Builders FirstSource Reports Third Quarter Earnings

IRVING, Texas – Builders FirstSource (NYSE:BLDR) reported third quarter earnings that beat analyst expectations, but revenue fell short and the company lowered its full-year guidance.

Shares were trading flat premarket Tuesday following the announcement.

The building materials supplier posted adjusted earnings per share of $3.07, surpassing the consensus estimate of $2.96. However, revenue declined 6.7% YoY to $4.2 billion, missing analyst projections of $4.44 billion.

Builders FirstSource CEO Dave Rush said the company delivered "resilient third quarter performance" by maintaining a mid-teens EBITDA margin despite challenging market conditions. Adjusted EBITDA fell 23% to $626.5 million, with margins contracting to 14.8% from 17.9% a year ago.

Looking ahead, the company reduced its full-year 2024 revenue outlook to $16.25-16.55 billion, down from the $16.85 billion analysts were expecting. Builders FirstSource now sees adjusted EBITDA of $2.25-2.35 billion, with margins between 13.8-14.2%.

"We are leveraging our fortress balance sheet and free cash flow generation to drive disciplined capital deployment, as witnessed by our share repurchases and M&A activity during the quarter," said incoming CFO Pete Beckmann.

The company repurchased 0.9 million shares for $159.7 million in Q3 and completed six acquisitions to reinforce its value-added products strategy.

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