Builders Firstsource ( (BLDR) ) has released its Q3 earnings. Here is a breakdown of the information Builders Firstsource presented to its investors.
Builders FirstSource is the largest U.S. supplier of building products, prefabricated components, and value-added services, primarily serving the professional market segment for new residential construction and repair and remodeling.
In its third-quarter earnings report for 2024, Builders FirstSource announced a decrease in net sales and profits compared to the prior year, with notable highlights including a continued focus on acquisitions to enhance its product offerings and an upcoming change in leadership.
The company’s financial performance showed a 6.7% decline in net sales to $4.2 billion, primarily due to lower core organic sales and commodity deflation. Gross profit margin fell by 210 basis points to 32.8%, and net income decreased by 36.9% to $284.8 million. Despite these declines, the company saw a positive increase in cash flow, with cash provided by operating activities rising to $730 million and a free cash flow increase of 18% to $634.7 million.
Strategic announcements included the retirement of CEO Dave Rush, who will be succeeded by Peter Jackson. The company remains committed to its strategy of growing value-added products and services, driving operational excellence, and investing in digital solutions and innovation.
Looking ahead, Builders FirstSource aims to achieve net sales between $16.25 billion and $16.55 billion for the full year 2024, with a gross profit margin of 32.0% to 33.0% and adjusted EBITDA between $2.25 billion and $2.35 billion, demonstrating confidence in its continued growth and strategic direction despite current market challenges.
