Builders FirstSource'sQ2 2023 net sales were $4.5 billion, a 34.6% decrease driven by a decline in core organic net sales of 22.3% and commodity deflation of 16.2%, partially offset by acquisitions of 3.9%.
Gross profit margin percentage increased 40 basis points to 35.2% due to stronger mix in value-added products overall, largely driven by our recent strategic investments in Multi-Family and related commodity price fluctuations.
Q2 2023 net income decreased 59.0% to $404.6 million, or $3.16 per diluted share compared to $5.75 in the prior year period, and adjusted net income decreased 53.6% to $498.4 million, or $3.89 per diluted share compared to $6.26 in the prior year period. Net income and adjusted net income per diluted share declined 45.0% and 37.9%, respectively.
Adjusted EBITDA decreased 49.0% to $768.8 million, primarily driven by lower net sales including a decline in core organic products and commodity deflation.
Adjusted EBITDA margin declined by 480 basis points to 17.0% in Q2 2023.
“Q2 results surpassed our expectations driven by the strength of our value-added product portfolio, contributions from operational initiatives instilled over the last few years, and a more stable housing environment,” commented Dave Rush, CEO of Builders FirstSource. “We continue to exceed our near-term targets and execute our strategic priorities through the hard work and dedication of our team members. We are creating value for shareholders by driving operational excellence and prudently deploying capital for long-term growth.”
For 2023, the Company expects to achieve the financial performance highlighted below. Projected net sales and Adjusted EBITDA include the expected benefit of price, commodity, and margin impacts for 2023.
Headquartered in Irving, Texas, Builders FirstSource is the largest U.S. supplier of building products, prefabricated components, and value-added services to the professional market segment for new residential construction and repair and remodeling.
