Builders FirstSource, Inc. reported its results for the Q3 ended September 30, 2024.
Net sales of $4.2 billion, a 6.7% decrease, driven by a 7.2% decline in core organic sales as Multi-Family continues to trend downward and commodity deflation of 2.9%, partially offset by growth from acquisitions of 2.0% and one additional selling day contributing 1.4%.
Core organic net sales declined 7.2%. Single-Family declined 4.6% and Multi-Family declined 30.9%, while Repair and Remodel (“R&R”)/Other increased 0.8%. On a weighted basis, Multi-Family and Single-Family lowered net sales by 4.2% and 3.2%, respectively, while R&R/Other raised sales by 0.2%.
Q3 2024 gross profit was $1.4 billion, a decrease of 12.3%. Gross profit margin percentage decreased 210 basis points to 32.8%, primarily driven by ongoing Multi-Family and core organic normalization.
Q3 2024 net income was $284.8 million, or $2.44 earnings per diluted share, compared to net income of $451.5 million, or $3.59 earnings per diluted share, in the same period a year ago. The 36.9% decrease in net income was primarily driven by lower gross profit and higher operating expenses, partially offset by lower income tax expenses.
Net income as a percentage of net sales decreased by 323 basis points from the prior year period to 6.7%, primarily due to lower gross profit margins, partially offset by lower income tax expenses.
Q3 2024 Adjusted net income was $359.5 million, a decrease of 32.6%, primarily driven by lower gross profit, partially offset by lower operating expenses after adjustments and lower income tax expenses.
Q3 2024 Adjusted EBITDA decreased 23.0% to $626.5 million, primarily driven by lower gross profit, partially offset by lower operating expenses after adjustments.
Adjusted EBITDA margin declined by 310 basis points from the prior year period to 14.8%, primarily due to lower gross profit margins, partially offset by lower operating expenses.
2024 Full Year Outlook
For 2024, the Company expects to achieve the financial performance highlighted below. Projected Net Sales and Adjusted EBITDA include the expected impact of price, commodities, and margins for 2024.
- Net Sales to be in a range of $16.25 billion to $16.55 billion.
- Gross Profit margin to be in a range of 32.0% to 33.0%.
- Adjusted EBITDA to be in a range of $2.25 billion to $2.35 billion.
- Adjusted EBITDA margin to be in a range of 13.8% to 14.2%.
- Free cash flow in the range of $1.2 billion to $1.4 billion.
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.
