分组1 - Builders FirstSource reported quarterly earnings of $2.31 per share, exceeding the Zacks Consensus Estimate of $2.24 per share, but down from $3.55 per share a year ago, indicating an earnings surprise of 3.12% [1] - The company posted revenues of $3.82 billion for the quarter ended December 2024, missing the Zacks Consensus Estimate by 2.36% and down from $4.15 billion year-over-year [2] - Over the last four quarters, Builders FirstSource has surpassed consensus EPS estimates three times, but has topped consensus revenue estimates only once [2] 分组2 - The stock has gained approximately 1.3% since the beginning of the year, underperforming the S&P 500's gain of 4.5% [3] - The current consensus EPS estimate for the upcoming quarter is $1.91 on revenues of $3.9 billion, and for the current fiscal year, it is $11.59 on revenues of $17.37 billion [7] - The Zacks Industry Rank for Building Products - Retail is in the bottom 28% of over 250 Zacks industries, indicating potential challenges for the sector [8]

Financial Performance - For Q4 2024, net sales were $3.8 billion, an 8.0% decrease driven by lower core organic sales of 8.8% and commodity deflation of 3.1%[3] - Gross profit for Q4 2024 was $1.2 billion, a decrease of 15.7%, with a gross margin of 32.3%, down 300 basis points[4] - Net income for Q4 2024 was $190.2 million, or diluted EPS of $1.65, a 45.8% decrease compared to the prior year[9] - Adjusted EBITDA for Q4 2024 decreased 28.0% to $493.6 million, with an adjusted EBITDA margin of 12.9%, down 360 basis points[10] - Net sales for Q4 2024 were $3,820.3 million, a decrease of 7.9% from $4,150.9 million in Q4 2023[31] - Gross margin for Q4 2024 was $1,234.1 million, down 15.7% from $1,464.9 million in Q4 2023[31] - Net income for Q4 2024 was $190.2 million, a decline of 45.9% compared to $350.8 million in Q4 2023[31] - Adjusted EBITDA for Q4 2024 was $493.6 million, down 28.0% from $685.5 million in Q4 2023, with an adjusted EBITDA margin of 12.9%[39] - Free cash flow for the twelve months ended December 31, 2024, was $1,506.1 million, reflecting strong operating activities of $1,872.7 million[45] Cash Flow and Capital Management - For full-year 2024, cash provided by operating activities was $1.9 billion, down from $2.3 billion in the prior year, with free cash flow of $1.5 billion, a decrease of $0.4 billion[10] - The company repurchased 8.9 million shares in 2024 at an average price of $170.74, reducing total shares outstanding by 6.8%[10] - Interest expense increased to $53.1 million in Q4 2024 from $46.8 million in Q4 2023[31] - The company experienced a net cash provided by operating activities of $373.5 million in Q4 2024, down from $611.7 million in Q4 2023[33] - Cash and cash equivalents at the end of Q4 2024 were $153.6 million, compared to $66.2 million at the end of Q4 2023[33] Future Projections - For 2025, the company expects net sales in the range of $16.5 billion to $17.5 billion and adjusted EBITDA between $1.9 billion and $2.3 billion[20] - The company anticipates a gross profit margin in the range of 30% to 32% for 2025[20] - Projected capital expenditures for 2025 are between $350 million and $450 million[20] - The effective tax rate for 2025 is expected to be between 23.0% and 25.0%[20] Asset and Liability Management - Total assets increased to $10,583.1 million in 2024 from $10,499.5 million in 2023, representing a growth of 0.8%[35] - Total liabilities increased to $6,286.6 million in 2024 from $5,767.1 million in 2023, marking a rise of 9.0%[35] - Total stockholders' equity decreased to $4,296.5 million in 2024 from $4,732.4 million in 2023, a decline of 9.2%[35] Sales Performance by Segment - For the twelve months ended December 31, 2024, total net sales decreased by 4.1% to $16,400.5 million from $17,097.3 million in 2023[47] - Windows, doors & millwork sales for the full year 2024 were $4,226.9 million, a slight decrease of 1.9% from $4,310.1 million in 2023[47] - Specialty building products & services saw a 1.5% increase in sales for the full year 2024, reaching $4,050.1 million compared to $3,992.1 million in 2023[47] - Lumber & lumber sheet goods sales for the full year 2024 were $4,191.9 million, up 1.6% from $4,126.0 million in 2023[47] - The company reported a 15.8% decline in manufactured products sales for the full year 2024, totaling $3,931.6 million compared to $4,669.1 million in 2023[47] - The percentage of value-added products in total net sales remained stable at 49.7% for the full year 2024[47] - Value-added products accounted for 49.7% of total net sales in Q4 2024, down from 51.9% in Q4 2023[47] - Manufactured products sales in Q4 2024 were $899.6 million, down 18.9% from $1,108.6 million in Q4 2023[47] Management Insights - Builders FirstSource's management emphasizes the importance of non-GAAP financial measures for evaluating business performance and trends[27] - The company is focusing on market expansion and new product development to counteract declining sales in certain segments[47] - GAAP SG&A expense for Q4 2024 was $930.0 million, down from $974.4 million in Q4 2023, with an adjusted SG&A expense of $764.2 million[42] - The company reported a basic adjusted net income per share of $2.33 for Q4 2024, compared to $3.58 in Q4 2023[37] - The company incurred $20.3 million in technology implementation expenses during Q4 2024, compared to $29.8 million in Q4 2023[39]

Builders FirstSource, Inc. (BLDR) is slated to report fourth-quarter 2024 results on Feb. 20, before market open.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.In the last reported quarter, the company’s adjusted earnings per share (EPS) and net sales missed the Zacks Consensus Estimate by 0.7% and 5.2%, respectively. On a year-over-year basis, the top and the bottom lines tumbled 6.7% and 27.6%, respectively.BLDR’s earnings topped the consensus mark in three of the trailing four qua ...

In the latest trading session, Builders FirstSource (BLDR) closed at $163.43, marking a +0.32% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.72%. Meanwhile, the Dow experienced a rise of 0.3%, and the technology-dominated Nasdaq saw an increase of 1.35%.Heading into today, shares of the construction supply company had gained 11.85% over the past month, outpacing the Retail-Wholesale sector's gain of 6.17% and the S&P 500's gain of 1.02% in that time.Market partic ...

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 ...

Stock Performance - Builders FirstSource (BLDR) closed at $166 76, marking a -0 81% move from the previous day, underperforming the S&P 500's daily loss of 0 29% [1] - Over the last month, BLDR shares increased by 13 46%, outperforming the Retail-Wholesale sector's gain of 3 53% and the S&P 500's gain of 2 52% [1] Earnings and Revenue Projections - The company's upcoming earnings report is set for February 20, 2025, with an EPS projection of $2 19, reflecting a 38 31% drop compared to the same quarter last year [2] - Revenue is projected at $3 92 billion, a 5 54% decline from the equivalent quarter last year [2] Analyst Estimates and Revisions - Recent changes to analyst estimates for BLDR are closely tied to short-term business dynamics, with positive revisions indicating a favorable business outlook [3] - The Zacks Consensus EPS estimate has moved 3 18% lower over the last 30 days [5] Valuation Metrics - BLDR is trading at a Forward P/E ratio of 14 15, slightly below the industry average of 14 42 [6] - The PEG ratio for BLDR is 0 91, significantly lower than the industry average of 2 25, indicating a discount relative to expected earnings growth [6] Industry Ranking - The Building Products - Retail industry, part of the Retail-Wholesale sector, has a Zacks Industry Rank of 196, placing it in the bottom 22% of over 250 industries [7] - Industries in the top 50% of the Zacks Industry Rank outperform the bottom half by a factor of 2 to 1 [7]

Builders FirstSource, Inc. (BLDR) is set to expand its footprint in its West Division by acquiring Alpine Lumber Company.BLDR stock inched up 0.4% in the after-hours trading session on Monday, post the acquisition announcement.More on BLDR’s New AcquisitionThe Colorado-based company will bring in 21 locations, serving homebuilders and contractors across the Front Range of Colorado, western Colorado and northern New Mexico, to BLDR’s portfolio. Additionally, the acquisition will also enhance the company’s pr ...

Core Viewpoint - Builders FirstSource (NYSE: BLDR) has shown strong performance over the past year with a 45% gain, but shares have declined over 10% from their highs due to persistently high mortgage rates [1] Financial Performance - Builders FirstSource reported mixed Q3 results, indicating challenges in the current market environment [1]

PART I — FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited financial statements for the three and nine months ended September 30, 2024, reflect a decline in net sales and income, an increase in total assets and liabilities, and a decrease in stockholders' equity due to share repurchases [Condensed Consolidated Statements of Operations](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The condensed consolidated statements of operations show a decline in net sales, net income, and diluted EPS for both the three and nine months ended September 30, 2024, compared to the prior year **Consolidated Statements of Operations Highlights (in thousands, except per share amounts)** | Metric | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $4,232,494 | $4,534,264 | $12,580,186 | $12,946,468 | | **Gross margin** | $1,386,333 | $1,581,102 | $4,148,871 | $4,547,448 | | **Income from operations** | $428,023 | $641,628 | $1,291,103 | $1,685,883 | | **Net income** | $284,783 | $451,457 | $887,654 | $1,189,862 | | **Diluted EPS** | $2.44 | $3.59 | $7.39 | $9.10 | [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of September 30, 2024, the balance sheet reflects an increase in total assets and liabilities, primarily due to long-term debt, while total stockholders' equity decreased mainly from common stock repurchases **Balance Sheet Summary (in thousands)** | Account | September 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total current assets** | $3,474,408 | $3,300,728 | | **Total assets** | $10,894,137 | $10,499,452 | | **Total current liabilities** | $1,958,883 | $1,863,437 | | **Total liabilities** | $6,447,464 | $5,767,101 | | **Total stockholders' equity** | $4,446,673 | $4,732,351 | [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended September 30, 2024, net cash from operations decreased, while significant cash was used in investing activities for acquisitions and in financing activities for common stock repurchases **Cash Flow Summary for Nine Months Ended September 30 (in thousands)** | Cash Flow Activity | 2024 | 2023 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $1,499,229 | $1,695,173 | | **Net cash used in investing activities** | ($534,884) | ($476,096) | | **Net cash used in financing activities** | ($702,398) | ($1,211,426) | | **Net change in cash and cash equivalents** | $261,947 | $7,651 | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Financial%20Statements) The notes provide detailed disclosures on eleven acquisitions, issuance of new senior notes, significant stock repurchases, and confirmation of no goodwill impairment triggering events - The company operates as a single reportable segment, supplying building materials, manufactured components, and construction services across approximately 580 locations in 43 states[12](index=12&type=chunk)[15](index=15&type=chunk) - Completed eleven acquisitions in the first nine months of 2024 for a combined total of approximately **$265.4 million**, net of cash acquired[22](index=22&type=chunk) - In February 2024, the company issued **$1.0 billion** of 6.375% senior unsecured notes due 2034, using the proceeds to repay outstanding debt under its Revolving Facility and for general corporate purposes[41](index=41&type=chunk) - The company has known and threatened construction defect legal claims, which are generally covered by insurance above a deductible, however, a reasonable estimate of loss cannot be determined at this time[49](index=49&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the decrease in Q3 net sales and gross margin to market conditions, while maintaining a positive long-term housing outlook and continuing its strategy of growth through acquisitions and shareholder returns [Recent Developments](index=19&type=section&id=Recent%20Developments) Recent developments include eleven acquisitions, significant share repurchases, and an executive transition with a new CEO and CFO appointed - Completed eleven acquisitions through September 30, 2024, for an aggregate purchase price of approximately **$265.4 million**, net of cash acquired[57](index=57&type=chunk) - Repurchased **6.8 million shares** for a total cost of **$1.2 billion** during the nine months ended September 30, 2024, at a weighted average price of **$171.37 per share**[58](index=58&type=chunk) - Announced that Peter Jackson, EVP and CFO, will succeed Dave Rush as President & CEO, effective November 6, 2024[60](index=60&type=chunk) [Current Operating Conditions and Outlook](index=20&type=section&id=Current%20Operating%20Conditions%20and%20Outlook) Despite a slight decrease in Q3 single-family housing starts, management maintains a positive long-term outlook for the underbuilt housing market and focuses on strategic growth through acquisitions - U.S. single-family housing starts decreased **0.5%** in Q3 2024 vs Q3 2023, but increased **10.1%** for the first nine months of 2024 compared to the same period in 2023[61](index=61&type=chunk) - Management believes the long-term housing industry outlook is positive, as the market remains underbuilt relative to demographic growth[62](index=62&type=chunk) [Results of Operations](index=21&type=section&id=Results%20of%20Operations) Net sales for Q3 and the nine-month period decreased due to lower organic sales and commodity deflation, leading to a decline in gross margin percentage attributed to margin normalization **Q3 2024 vs. Q3 2023 Net Sales by Product Category (in millions)** | Product Category | Q3 2024 Net Sales | Q3 2023 Net Sales | % Change | | :--- | :--- | :--- | :--- | | Lumber & lumber sheet goods | $1,069.1 | $1,157.2 | (7.6)% | | Manufactured products | $997.6 | $1,200.4 | (16.9)% | | Windows, doors & millwork | $1,084.8 | $1,093.3 | (0.8)% | | Specialty building products & services | $1,081.0 | $1,083.4 | (0.2)% | | **Total Net sales** | **$4,232.5** | **$4,534.3** | **(6.7)%** | **Nine Months 2024 vs. 2023 Net Sales by Product Category (in millions)** | Product Category | Nine Months 2024 Net Sales | Nine Months 2023 Net Sales | % Change | | :--- | :--- | :--- | :--- | | Lumber & lumber sheet goods | $3,244.4 | $3,092.9 | 4.9% | | Manufactured products | $3,031.8 | $3,557.4 | (14.8)% | | Windows, doors & millwork | $3,230.5 | $3,263.4 | (1.0)% | | Specialty building products & services | $3,073.5 | $3,032.8 | 1.3% | | **Total Net sales** | **$12,580.2** | **$12,946.5** | **(2.8)%** | - Q3 2024 gross margin percentage decreased to **32.8%** from **34.9%** in Q3 2023, driven by ongoing multi-family and core organic margin normalization[69](index=69&type=chunk) [Liquidity and Capital Resources](index=22&type=section&id=Liquidity%20and%20Capital%20Resources) As of September 30, 2024, the company maintained strong liquidity, with cash from operations decreasing year-over-year, primarily used for significant share repurchases and acquisitions - Total liquidity was **$2.1 billion** at September 30, 2024, consisting of cash on hand and availability under the Revolving Facility[83](index=83&type=chunk) **Borrowing Availability (in millions)** | Metric | September 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Maximum borrowing amount | $1,800.0 | $1,800.0 | | Outstanding borrowings | $0.0 | ($464.0) | | Letters of credit | ($65.4) | ($70.3) | | **Net excess borrowing availability** | **$1,734.6** | **$1,265.7** | - Cash from operations decreased to **$1.5 billion** for the nine months ended Sep 30, 2024, from **$1.7 billion** in the prior year, largely due to lower net income and timing of accounts payable[86](index=86&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=24&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from interest rate changes, particularly on variable-rate borrowings, and commodity price volatility, which can impact operating results if price increases are not passed on to customers - The company's **$4.55 billion** in senior notes bear fixed interest rates, mitigating risk from rising market rates, however, the Revolving Facility has variable interest rates[40](index=40&type=chunk)[92](index=92&type=chunk) - The company faces risk from short-term changes in material costs, particularly lumber, delays in passing on price increases to customers can negatively impact operating results[93](index=93&type=chunk) [Controls and Procedures](index=24&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of September 30, 2024, with no material changes to internal control over financial reporting identified during the quarter - The CEO and CFO concluded that as of September 30, 2024, the company's disclosure controls and procedures were effective at a reasonable assurance level[99](index=99&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[100](index=100&type=chunk) PART II — OTHER INFORMATION [Legal Proceedings](index=26&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal claims, including construction defect claims, which are generally insured, and management believes their outcome will not materially affect the company's financial position - The company faces construction defect legal claims, but a reasonable estimate of loss cannot be made at this time due to the early stage of proceedings and complexity of claims[102](index=102&type=chunk) - Management believes the ultimate disposition of current legal proceedings will not materially affect the company's financial position, cash flows, or results of operations[104](index=104&type=chunk) [Risk Factors](index=26&type=section&id=Item%201A.%20Risk%20Factors) There were no material changes to the risk factors previously disclosed in the company's 2023 Annual Report on Form 10-K - There were no material changes to the risk factors reported in the company's 2023 Form 10-K[106](index=106&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=26&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q3 2024, the company repurchased shares under a new program, with a significant amount remaining available for future repurchases **Q3 2024 Share Repurchase Activity** | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | July 2024 | 1,456 | $158.88 | | August 2024 | 450,922 | $168.10 | | September 2024 | 453,505 | $185.33 | | **Total Q3** | **905,883** | **$176.71** | - On August 5, 2024, the board authorized a new **$1.0 billion** share repurchase plan, as of September 30, 2024, **$841.8 million** remained available under this authorization[107](index=107&type=chunk) [Other Information](index=26&type=section&id=Item%205.%20Other%20Information) No other information is reported for this item - None[109](index=109&type=chunk) [Exhibits](index=27&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and financial statements in Inline XBRL format - Exhibits filed include CEO and CFO certifications under Sarbanes-Oxley Sections 302 and 906[110](index=110&type=chunk) - Financial statements and notes are provided in Inline eXtensible Business Reporting Language (Inline XBRL) format[110](index=110&type=chunk)

Q3 2024 Performance - Net sales decreased by 6.7% year-over-year to $4.2 billion[10] - Gross profit decreased by 12.3% year-over-year to $1.4 billion, with a gross margin of 32.8%[10] - Adjusted EBITDA decreased by 23.0% year-over-year to $627 million[10] - Adjusted diluted EPS decreased by 27.6% year-over-year to $3.07[10] Sales and Product Mix - Single-family core organic net sales decreased by 4.6%[12] - Multi-family sales decreased by 30.9%, while Repair & Remodel/Other increased by 0.8%[12] - Value-added product mix was 49% for Q3 2024[12] - Value-Added Core Organic Sales decreased 10% against the prior year[32] Capital Deployment and Share Repurchases - Total capital deployed in Q3 2024 was approximately $0.4 billion[10] - The company repurchased 6.8 million shares YTD at an average price of $171.37 per share for approximately $1.2 billion[12] - Since August 2021, the company has repurchased over 45% of total shares outstanding for a total cost of approximately $7.3 billion[12] 2024 Outlook - Total net sales are projected to be $16.25 to $16.55 billion[38] - Gross profit margin is expected to be 32.0% to 33.0%[38] - Total adjusted EBITDA is projected to be $2.25 to $2.35 billion[38] - Free cash flow is expected to be $1.2 to $1.4 billion[38]