Builders FirstSource, Inc. reported its results for the 3Q ending September 30, 2020. Net sales for the 3Q 2020 were $2.3 billion, a 15.9% increase compared to a year ago. Core organic sales increased by 6.7% while commodity price inflation added 7.2% to net sales.
Gross margin was $570.7 million, an increase of $29.5 million compared with the prior year period. Gross margin percentage decreased to 24.9% from 27.3% in the prior year period.
3Q 2020 net income was $85.9 million, or $0.73 per diluted share, compared to $78.1 million, or $0.67 per diluted share, in the same period a year ago.
3Q adjusted net income was $96.7 million, or $0.82 per diluted share, compared to $84 million, or $0.72 per diluted share, in the 3Q 2019. The increase in adjusted net income of $12.7 million, or 15.1%, was primarily driven by the increase in net sales described above.
Adjusted EBITDA grew $24 million to a quarterly record of $184.3 million, an increase of 15%. The increase was primarily driven by the growth in net sales attributable to core organic growth across all three of our customer end markets. Adjusted EBITDA remained steady at 8% of net sales in the 3Q, compared to 8.1% in the same period a year ago.
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.
