NYSE$BLDR

Builders FirstSource Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Builders FirstSource reported a decrease in net sales due to decline in core organic net sales and commodity deflation, but gross profit margin percentage increased due to stronger mix in value-added products.

Builders FirstSource reported a net sales decrease of 34.6% to $4.5 billion, driven by a decline in core organic net sales and commodity deflation. Net income decreased by 59.0% to $404.6 million, with earnings per diluted share at $3.16. Adjusted EBITDA decreased by 49.0% to $768.8 million, with a margin of 17.0%.

  • Net sales decreased by 34.6% to $4.5 billion, impacted by a 22.3% decline in core organic net sales and 16.2% commodity deflation.
  • Gross profit margin percentage increased 40 basis points to 35.2% due to a stronger mix in value-added products.
  • Net income decreased by 59.0% to $404.6 million, with diluted earnings per share of $3.16.
  • Adjusted EBITDA decreased by 49.0% to $768.8 million; adjusted EBITDA margin declined by 480 basis points to 17.0%.

Headline financials

Total Revenue

$4.53B

Previous: $6.93B-34.6%
EPS (adj)

$3.89

Previous: $6.26-37.9%
Gross Margin

35.2%

Previous: 34.8%+1.1%
Adjusted EBITDA

$769M

Previous: $1.5B-48.7%
Adjusted EBITDA Margin

17.0%

Previous: 21.8%-22.0%
SG&A Expenses

$1.02B

Previous: $1B+1.8%
Net Interest Expense

$53M

Previous: $70.7M-25.0%
Income Tax Benefit

$119M

Previous: $308M-61.2%
Capital Expenditures

-$231M

Previous: -$120M-93.3%
Free Cash Flow

$174M

Previous: $868M-80.0%
Net Income

$405M

Previous: $987M-59.0%
Operating Income

$577M

Previous: $1.37B-57.8%
Gross Profit

$1.59B

Previous: $2.41B-33.9%
Cash & Equivalents

$89.3M

Previous: $166M-46.3%
Total Assets

$10.7B

Previous: $12.1B-11.2%
Stock-Based Comp

$12.4M

Previous: $9.32M+33.1%

Revenue & EPS history

Builders FirstSource · Revenue · Quarterly

$4.53B

Q2 2023-34.6%vs Q2 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Builders FirstSource · $3.45B total across 3 segments · Q2 2023

  • Manufactured Products
    $1.29B-24.4%
  • Windows, Doors & Millwork
    $1.11B-9.3%
  • Lumber & Sheet Goods
    $1.06B-62.6%

Forward guidance

For 2023, the Company expects net sales to be in a range of $16.8 billion to $17.8 billion, gross profit margin to be in a range of 33% to 35%, Adjusted EBITDA to be in a range of $2.6 billion to $2.9 billion and Adjusted EBITDA margin to be in a range of 15% to 17%.

Tailwinds

  • Net Sales to be in a range of $16.8 billion to $17.8 billion.
  • Gross Profit margin to be in a range of 33% to 35%.
  • Adjusted EBITDA to be in a range of $2.6 billion to $2.9 billion.
  • Adjusted EBITDA margin to be in a range of 15% to 17%.
  • Free cash flow in the range of $1.6 billion to $2.0 billion.

Headwinds

  • Single-Family starts are projected to be down high single-digits to low double-digits.
  • Total capital expenditures in the range of $400 million to $450 million.
  • Interest expense in the range of $185 million to $205 million.
  • An effective tax rate of 23.0% to 25.0%.
  • Depreciation and amortization expenses in the range of $550 million to $600 million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+1.2%

Avg return

Earnings day

+2.6%

Avg return

5 days after

+2.6%

Avg return

30 days after

47%

30 / 64 earnings

Positive

+23.3%

Q3 2015

Best reaction

-18.6%

Q1 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.5%-10.6%-8.6%
Q4 2025+0.8%-3.6%-26.4%
Q3 2025-3.1%-4.8%-2.7%
Q1 2025-6.4%-10.4%-10.0%
Q4 2024-0.3%-2.8%-12.7%
Q3 2024+2.5%+3.4%+2.0%
Q2 2024+2.1%+3.9%+12.0%
Q1 2024-18.6%-16.9%-27.5%
Q4 2023+2.7%+5.2%+14.6%
Q3 2023+11.7%+15.7%+28.3%
Q2 2023-1.4%+3.7%+1.3%
Q1 2023+12.2%+19.4%+25.0%
Q4 2022+5.2%+9.4%+5.8%
Q3 2022-1.5%+13.8%+14.7%
Q2 2022+3.3%+0.5%-13.8%
Q1 2022-2.7%+3.3%+0.6%
Q4 2021+3.8%-0.4%-13.3%
Q3 2021+11.6%+12.3%+18.0%
Q2 2021+2.9%+6.2%+18.6%
Q1 2021+6.7%+2.7%-13.0%
Q4 2020+10.4%+6.5%+14.8%
Q3 2020-0.7%+7.1%+24.3%
Q2 2020-0.0%+10.6%+33.6%
Q1 2020-11.8%-13.5%+6.5%
Q4 2019-4.5%-11.6%-59.2%
Q3 2019+8.7%+6.4%+13.6%
Q2 2019+9.8%+10.5%+13.2%
Q1 2019+17.0%+16.4%-1.9%
Q4 2018+2.2%+0.6%-2.8%
Q3 2018+17.8%+12.0%+9.3%
Q2 2018-1.4%-4.7%-9.4%
Q1 2018-3.1%-5.8%+2.8%
Q4 2017+7.8%+7.2%+1.0%
Q3 2017+5.3%+3.0%+17.5%
Q2 2017+7.0%+6.4%+6.1%
Q1 2017-4.2%-11.1%-11.1%
Q4 2016+13.4%+18.2%+15.8%
Q3 2016-3.1%+0.3%+12.1%
Q2 2016-4.2%-5.4%+2.4%
Q1 2016+2.8%
Q4 2015+13.4%
Q3 2015+23.3%
Q2 2015-3.3%
Q1 2015-1.6%
Q4 2014-4.0%
Q3 2014+4.6%
Q2 2014-10.8%
Q1 2014-4.4%
Q4 2013+7.2%
Q3 2013-0.5%
Q2 2013-2.2%
Q1 2013+3.9%
Q4 2012-1.2%
Q3 2012-1.8%
Q2 2012-15.4%
Q1 2012-6.9%
Q4 2011+4.6%
Q3 2011-10.4%
Q2 2011-11.0%
Q1 2011-0.7%
Q4 2010+0.8%
Q3 2010-1.9%
Q2 2010-7.1%
Q1 2010-0.5%

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