Builders FirstSource (BLDR) Q4 2024 earnings summary

Executive summary

• FY 2024 net sales were $16.4 billion, down 4.1% year-over-year, with gross profit of $5.4 billion, and adjusted EBITDA of $2.3 billion, both down year-over-year.

• Delivered resilient results in a challenging 2024, maintaining focus on value-added products, digital tools, and operational excellence.

• Completed 13 acquisitions in 2024, expanding geographic reach and product offerings.

• Generated $1.5 billion in free cash flow during 2024, supporting disciplined capital allocation and $1.5 billion in share repurchases.

• Value-added products comprised 50% of net sales in 2024, up from ~42% in 2019.

Financial highlights

• Q4 2024 net sales were $3.8 billion, down 8% year-over-year, with gross margin at 32.3% (down 300 bps) and adjusted EBITDA of $494 million (margin 12.9%, down 360 bps).

• Full-year gross margin was 32.8%, down 240 bps, and adjusted EBITDA margin was 14.2%, down 280 bps.

• Adjusted EPS for Q4 was $2.31, a 35% decrease year-over-year; full-year adjusted diluted EPS was $11.56, down 20.8%.

• Free cash flow for FY 2024 was $1.5 billion; year-end liquidity was $1.8 billion.

• Net debt to Adjusted EBITDA was 1.5x at year-end.

Outlook and guidance

• 2025 net sales guidance: $16.5–$17.5 billion; Adjusted EBITDA: $1.9–$2.3 billion (margin 11.5%–13%); gross margin: 30%–32%.

• Free cash flow guidance for 2025: $600 million–$1 billion; capex expected at $350–$450 million.

• Q1 2025 net sales expected at $3.5–$3.8 billion; Adjusted EBITDA $350–$400 million, impacted by weather and wildfires.

• 2025 assumptions: single-family starts flat, multi-family starts down mid-teens, R&R up low single digits.

• Productivity savings of $70–$90 million targeted for 2025.