Builders FirstSource reports Q3 decreases
Builders FirstSource (BFS) has reported its results for the third quarter ended September 30, 2024, and most of the numbers are down (compared to last year).
Year-over-year highlights include:
- Net sales were $4.2 billion, a 6.7 percent decrease, which the company says was driven by lower core organic sales and commodity deflation but was partially offset by growth from acquisitions and one additional selling day.
- Core organic net sales declined 7.2 percent.
- Gross profit margin percentage decreased 210 basis points to 32.8 percent, primarily driven by ongoing multi-family and core organic normalization.
- Gross profit was $1.4 billion, a decrease of 12.3 percent.
- Net income decreased 36.9 percent to $284.8 million, or $2.44 per diluted share compared to $3.59 per diluted share in the prior year period, which is a 32 percent decline in net income per diluted share.
- Adjusted EBITDA decreased 23 percent to $626.5 million, primarily driven by lower gross profit.
- SG&A was $958.3 million, an increase of $18.8 million, or 2 percent, primarily driven by additional expenses from operations acquired within the last 12 months and asset write-offs.
- Cash provided by operating activities was $730 million, up $80.5 million compared to the prior year period.
As previously announced, Dave Rush is retiring as president and CEO of BFS, effective November 6, 2024. Rush will remain on the board of directors and continue as a "special advisor" to ensure a smooth transition.
“I'm proud of our resilient third quarter performance as we maintained a mid-teens EBITDA margin by leveraging our distinct competitive advantages and differentiated business model,” commented Rush. “Our six acquisitions during the third quarter reinforce our commitment to investing in value-added products to enhance our margin profile. I am confident in our ability to execute our strategy and drive long-term growth.”
Rush added, “It has been an honor to serve this great company as CEO for the past two years capping off my more than 25 years of service through various levels of the business. We have the best people in the industry, and the opportunity to be CEO of BFS has truly been the joy and highlight of my career. I am so proud of how far we have come and am grateful to the board of directors, my fellow leadership team and all team members for their support. I have full confidence in Peter and know he will be an excellent leader of BFS. He embodies our culture, has helped craft our current strategy, and has served as a trusted advisor to our operational leaders.”
“It has been a pleasure to serve alongside Dave, and I'm grateful that he will continue to be involved moving forward as an advisor and board member,” commented Peter Jackson, incoming CEO of Builders FirstSource. "I want to thank the board for their confidence in Pete Beckmann and me to drive the BFS strategy, which will continue to be focused on growing value-added products and services, driving operational excellence, investing in digital solutions and innovation, and continuing to build our high-performing culture."
Pete Beckmann, incoming CFO of Builders FirstSource, added, “We delivered resilient results during the third quarter despite a choppy housing market and the reduced value of an average start by leaning into the pillars of our strategy and operating model. We are leveraging our fortress balance sheet and free cash flow generation to drive disciplined capital deployment, as witnessed by our share repurchases and M&A activity during the quarter."
View BFS' complete Q3 2024 financial picture here.
