Profits surge at Builders FirstSource
Builders FirstSource reported sales for the third quarter moved ahead 4.6% to $5.8 billion compared to third quarter 2021 sales of $5.5 billion.
The Dallas, Texas-based company said core organic sales increased by 6.9% and acquisitions contributed net sales growth of 5.2%, partially offset by commodity price deflation of 7.5%.
Organic growth in value-added products increased by nearly 20%. Single-family sales saw core growth of 1.8%, repair and remodel core revenue jumped 31.1%, and core sales in the multi-family market rose 16.2%.
The prodealer and building solutions provider also posted a third quarter net income of $738 million, rising more than 20% from a net income of $631.1 million for the same period a year ago.
Acquisitions have also been plentiful for the company. On July 1, Builders FirstSource acquired Arizona-based HomeCo with sales of about $44 million in 2021.
On Sept.1, Houston, Texas floor and roof truss manufacturer Trussway was acquired, bringing sales of approximately $291 million in 2021. On the same date, the super dealer also acquired Fulcrum Building Group, a multi-brand operator of pro-focused lumberyards and millwork facilities in the Florida Panhandle and Alabama Coast. Fulcrum had approximately $140 million in sales in 2021.
Pima Door & Supply and Sunrise Carpentry were acquired as of Oct. 3. Pima and Sunrise will provide the company with dedicated millwork capability in the high-growth Phoenix metro area. Pima and Sunrise had approximately $10 million in sales in 2021.
Looking ahead, Builders FirstSource projects net sales to grow to a range of $22.5 billion to $23.0 billion, or approximately 13% to 16% over 2021 sales of $19.9 billion.
Builders FirstSource operates more than 570 locations in 42 states including 47 of the top 50 markets.
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The Bottom Line: Profits at Builders FirstSource rise more than 20% to $738 million as sales increase 4.6% to $5.8 billion.
What the CEO said: “Our strong third quarter results reflect the fundamental strengths of our business, including the value-added products and solutions that resonate with our customers, and our consistent execution,” said Dave Flitman, president and CEO of Builders FirstSource. “We are winning new business and strengthening existing customer relationships by providing customers individualized solutions and excellent service, which make us a partner of choice.”
“In addition to our focus on profitable core organic growth, we have also continued to grow through accretive acquisitions in line with our strategy,” Flittman added.
Company info: Click here to read the full third quarter 2022 financial report from Builders FirstSource.