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 (margin 14.2%), both down year-over-year.

• Adjusted diluted EPS was $11.56, down 20.8% year-over-year; full-year net income was $1.1 billion (diluted EPS $9.06), down 30%.

• Delivered resilient performance in 2024 despite a complex environment, focusing on value-added products, digital tools, and operational excellence.

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

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

Financial highlights

• Q4 2024 net sales were $3.8 billion, down 8% year-over-year, with gross profit of $1.2 billion and gross margin of 32.3%, down 300 bps.

• Q4 adjusted EBITDA was $494 million (margin 12.9%), down 28% year-over-year.

• Q4 adjusted EPS was $2.31, a 35% decrease year-over-year; Q4 adjusted net income was $267.5 million.

• Full-year gross margin was 32.8%, down 240 bps; free cash flow for FY 2024 was $1.5 billion.

• Year-end liquidity was $1.8 billion, with net debt to Adjusted EBITDA at 1.5x.

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, with $80 million in lost sales due to 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.