Builders FirstSource, Inc. reported its results for the Q4 and full year ended December 31, 2024.
Fourth Quarter 2024 Financial Performance Highlights
Net sales of $3.8 billion, an 8.0% decrease, were primarily driven by lower core organic sales of 8.8% and commodity deflation of 3.1%, partially offset by growth from acquisitions of 2.5% and one additional selling day contributing 1.4%.
Gross profit was $1.2 billion, a decrease of 15.7%. Gross profit margin percentage decreased 300 basis points to 32.3%, primarily driven by ongoing Single-Family and Multi-Family margin normalization.
Net income was $190.2 million, or diluted EPS of $1.65, compared to net income of $350.7 million, or diluted EPS of $2.83, in the same period a year ago. The 45.8% decrease in net income was primarily driven by lower gross profit, partially offset by lower operating and income tax expenses.
Net income as a percentage of net sales decreased by 347 basis points to 5.0%, primarily due to lower gross profit margins, partially offset by lower operating and income tax expenses.
Adjusted net income was $267.5 million, a decrease of 39.1%, primarily driven by lower gross profit, partially offset by lower operating expenses after adjustments and income tax expenses.
Adjusted EBITDA decreased 28.0% to $493.6 million, primarily driven by lower gross profit, partially offset by lower operating expenses after adjustments. Adjusted EBITDA margin decreased by 360 basis points from the prior year period to 12.9%, primarily attributable to lower gross margin and reduced operating leverage.
“Our Q4 and full year results demonstrate our resilience and ability to drive results in the face of a complex operating environment, while maintaining our focus on building for the future. The strength of our differentiated platform and our operational excellence initiatives drove a mid-teens EBITDA margin in 2024. Results this year are further proof that our success is driven by the dedication of our hardworking team members and support of our customers,” commented Peter Jackson, CEO of Builders FirstSource.
Mr. Jackson continued, “By continuing to invest in our value-added solutions and our installation business, along with leveraging cutting-edge technology, we are addressing customer challenges and serving as the supplier of choice. Our investments today in organic growth opportunities and value-enhancing acquisitions position us to perform well in any environment.”
Pete Beckmann, CFO of Builders FirstSource, added, “Our Q4 and full year results reflect our ability to execute our strategy by leveraging our exceptional operating platform and financial flexibility. Our business generates consistently strong free cash flow through the cycle, which we deploy under our balanced capital allocation strategy. This disciplined capital deployment framework remains in place: maintaining a fortress balance sheet, investing in organic growth, making value-enhancing acquisitions, and returning capital to shareholders through share repurchases.”
Full-Year 2024 Financial Performance Highlights
Net sales of $16.4 billion, a 4.1% decrease, primarily driven by lower core organic net sales of 5.1% and commodity deflation of 1.8%, partially offset by growth from acquisitions of 2.1% and the benefit from two additional selling days of 0.7%.
Net income was $1.1 billion, or diluted EPS of $9.06, compared to net income of $1.5 billion, or diluted EPS of $11.94, in the prior year period. The 30.0% decrease in net income was primarily driven by lower gross profit, partially offset by lower operating and income tax expenses.
Adjusted EBITDA decreased 19.6% to $2.3 billion, primarily driven by lower gross profit, partially offset by lower operating expenses after adjustments. Adjusted EBITDA margin decreased by 280 basis points from the prior year period to 14.2%, primarily due to lower gross profit and reduced operating leverage.
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.
