Builders FirstSource sales and profits fall in Q4

Builders FirstSource Truck June 2023

Builders FirstSource saw commodity deflation of 5% in the fourth quater.

quarter 2022 sales of $4.4 billion.

The Dallas, Texas-based prodealer giant and building solutions provider said the drop was caused by a decline in core organic net sales of 1.3% and commodity deflation of 5%, partially offset by growth from acquisitions of 1.6%.

During the quarter, sales to single-family builders slipped by 3.5%, while multifamily and repair and remodel sales saw a 4.3% increase.

Lower sales resulted in the company’s fourth quarter net income declining 8.8% to $350.7 million compared to a fourth quarter 2022 net income of $384.5 million.

Net sales for the full year declined 24.8% to $17.1 billion in comparison to 2022 net sales of $22.7 billion.

Sales in 2023 were the result of a decline in core organic net sales of 17.3% and commodity deflation of 11.1%, partially offset by growth from acquisitions of 3.6%, the company said.

Single-family builder sales decreased 24.1%, while multifamily and repair and remodel sales increased 20.3% and 0.7%, for the year. On a weighted basis, the decline in single-family reduced overall sales by 18.9%, Builders FirstSource reported.

Builders FirstSource posted a net income of $1.5 billion for the year, down 44% from a net income of $2.7 billion in 2022. 

For 2024, Builders FirstSource said it expects sales to be in the range of $17.5 billion to $18.5 billion.

Additionally, the company said that within its geographies, single-family starts are projected to be up mid-single digits, multifamily starts down 20% to 30%, and repair and remodel is projected to be up low single digits.

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