Financial Performance - Net sales for FY 2023 were $17.1 billion, a 24.8% decrease year-over-year[8] - Gross profit for FY 2023 was $6.0 billion, a 22.4% decrease year-over-year, with a gross margin of 35.2%[8] - Adjusted EBITDA for FY 2023 was $2.9 billion, with an adjusted EBITDA margin of 17.0%[8] - Adjusted EPS for FY 2023 was $14.59, a 22.0% decrease year-over-year[8] - The company generated $1.9 billion in free cash flow during 2023[21] Sales Mix and Growth - Multi-Family sales increased by 20.3% in 2023, while Repair & Remodel/Other sales increased by 0.7%[10] - Single-Family sales decreased by 24.1% due to a weak housing market[22] - Value-added product mix was 53% for FY 2023[10] - Q4 2023 value-added product mix was approximately 52%[49] Capital Allocation - The company successfully deployed approximately $2.5 billion in 2023[34] - $1.8 billion was used to repurchase 17.8 million shares of common stock at an average price of $100.49 per share[22] - $0.3 billion was deployed on seven acquisitions to expand the company's footprint[34] - $0.4 billion was allocated to ROI-generating growth investments focused on digital and automation[34] Digital Initiatives - Full digital product launch of myBLDR.com remains on track for Q1 2024[22] - The company aims to generate $1 billion in incremental product revenue by 2026 through digital solutions[39] 2024 Outlook - The company anticipates single-family starts growth to be down 20% to 30% in 2024[69] - The company expects repair & remodel growth to be up mid-single digits in 2024[55] - The company assumes average commodity prices in the range of $400 to $440 per mbf for 2024[54]

Financial Data and Key Metrics Changes - The company reported net sales of $4.2 billion for the fourth quarter, reflecting a 1% decline in core organic sales and a 5% deflation in commodity prices, partially offset by a 2% growth from acquisitions [6][7] - Adjusted EBITDA was $686 million, down approximately 2% year-over-year, primarily due to lower net sales from a weak housing market and commodity deflation [7][8] - The free cash flow yield for the year was approximately 13%, with an operating cash flow return on invested capital of 28% [8][9] - The net debt to adjusted EBITDA ratio was approximately 1.1x, indicating a strong balance sheet [8] Business Line Data and Key Metrics Changes - Value-added products represented 52% of net sales in Q4, contributing to a gross margin of 35.3%, which increased by 120 basis points due to productivity improvements and favorable multifamily margins [106][90] - SG&A expenses increased by $60 million to $974 million, primarily due to higher variable compensation and inflation, leading to a 150 basis point increase in SG&A as a percentage of net sales [7][8] Market Data and Key Metrics Changes - The multifamily market is experiencing normalization, with expectations of a 20% to 30% decline in multifamily starts, impacting sales and margins throughout the year [55][53] - The company noted a strong performance in the multifamily sector, driven by prior acquisitions and favorable margins, with growth of over 4% [137] Company Strategy and Development Direction - The company is focused on maintaining a fortress balance sheet and has a capital deployment strategy targeting $5.5 billion to $8.5 billion from 2024 to 2026 [100][103] - The digital strategy aims to establish a differentiated position as the only provider of an end-to-end digital platform in the industry, expected to drive substantial growth [4][135] - The company remains disciplined in M&A, having completed seven deals in 2023 with aggregate sales of approximately $540 million, and continues to seek attractive opportunities [3][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the near-term outlook and the ability to create shareholder value despite a challenging operating environment [11][130] - The company anticipates a rebound in sales as severe weather conditions subside, with a healthy housing market expected in 2024 [141][130] - Management acknowledged the normalization of margins and the competitive environment, indicating a cautious but optimistic approach moving forward [116][115] Other Important Information - The board approved a share repurchase program of up to $1 billion, reflecting the company's commitment to returning value to shareholders [9][100] - The company achieved a recordable incident rate improvement of over 30% in 2023, emphasizing its commitment to safety [132] Q&A Session Summary Question: What is the outlook for the multifamily market? - Management indicated that the multifamily market is normalizing, with expectations of a significant decline in starts, but remains optimistic about long-term demand [55][54] Question: How does the company plan to manage margin normalization? - Management acknowledged the normalization of margins and competitive pressures but expressed confidence in maintaining a strong margin profile through value-added products and disciplined pricing [116][115] Question: What are the expectations for digital sales growth? - The company targets $200 million in incremental digital revenue by the end of the year and $1 billion by 2026, driven by enhanced customer relationships and digital tools [135][148]

Builders FirstSource, Inc. (BLDR) reported impressive earnings in fourth-quarter 2023. The bottom line surpassed the Zacks Consensus Estimate and improved from the previous year. Despite a challenging operating environment in 2023, where single-family starts witnessed significant reduction, the company delivered mid-teens or better adjusted EBITDA margin for 11 consecutive quarters.Shares of this manufacturer and supplier of building materials gained 5.3% on Feb 22.Net sales surpassed the consensus mark but ...

Builders FirstSource (BLDR) came out with quarterly earnings of $3.55 per share, beating the Zacks Consensus Estimate of $2.70 per share. This compares to earnings of $3.21 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 31.48%. A quarter ago, it was expected that this construction supply company would post earnings of $4.05 per share when it actually produced earnings of $4.24, delivering a surprise of 4.69%.Over the last fou ...

IRVING, Texas--(BUSINESS WIRE)--Builders FirstSource, Inc. (NYSE: BLDR) announced that on February 21, 2024, its Board of Directors authorized the repurchase of up to $1.0 billion of the Company’s outstanding shares of common stock, inclusive of the approximately $200 million remaining outstanding in the prior share repurchase plan authorized in April 2023. “ The Board’s increased share repurchase authorization reflects our strong conviction in the Company’s strategy, operating model, and ability to genera ...

13 For Immediate Release • The Company repurchased $1.8 billion of shares in 2023, reducing its total shares outstanding by 12.2% in 2023. Peter Jackson, CFO of Builders FirstSource, added, "Our fourth quarter and full year results demonstrate the effectiveness of our operating model through the cycle. Our fortress balance sheet, strong cash flow Three Months Ended Twelve Months Ended | --- | --- | --- | --- | --- | --- | --- | --- | --- | |------------------------------------------------------------------| ...

The market price of our common stock historically has experienced and may continue to experience significant price fluctuations similar to those experienced by the broader stock market in recent years. For example, between January 1, 2023, and December 31, 2023, the closing price of our common stock on the NYSE ranged from $65.35 to $170.56 per share. In addition, the price of our common stock may fluctuate significantly in response to various factors, including: • actual or anticipated fluctuations in our ...

For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. Builders FirstSource (BLDR) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.Builders FirstSource is one of 218 companies in the Retail-Wholesale group. The Retail-Wholesale group currently sits at #11 ...

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-a ...

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?Let's take a look at what these Wall Street heavyweights have to say about Builders FirstSource (BLDR) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.Builders FirstSource currently ...