Builders FirstSource Reports Mixed Q3 Results and Lowers Year-End Expectations

IRVING, Texas - Builders FirstSource (NYSE:BLDR) reported third-quarter earnings that exceeded analysts' expectations, but revenue fell short of forecasts as the company lowered its year-end guidance.

Shares remained flat in pre-market trading on Tuesday following the announcement.

The building materials supplier reported adjusted earnings of $3.07 per share, surpassing the consensus estimate of $2.96. However, revenue decreased by 6.7% year-over-year to $4.2 billion, which was below analysts' expectations of $4.44 billion.

CEO Dave Rush noted that the company demonstrated "resilient third-quarter performance" by maintaining mid-teen EBITDA margins despite challenging market conditions. Adjusted EBITDA fell by 23% to $626.5 million, with margins narrowing from 17.9% in the same period last year to 14.8%.

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

Newly appointed CFO Pete Beckmann stated, "Leveraging our strong balance sheet and our ability to generate free cash flow, we are providing disciplined capital allocation as seen in our share repurchases and acquisition activities throughout the quarter."

The company repurchased 0.9 million shares for $159.7 million in the third quarter and completed six acquisitions to strengthen its value-added products strategy.