Builders FirstSource, Inc. SEC 10-Q Report

Builders FirstSource, Inc., a leading supplier and manufacturer of building materials, released its Form 10-Q report for the first quarter of 2025. The report highlights the company's financial performance and operational activities amidst a challenging market environment. The company experienced a decline in net sales and profitability, influenced by macroeconomic factors and segment-specific challenges.

Financial Highlights

• Net sales: $3,657.5 million, a 6.0% decrease compared to the same period in 2024, primarily due to decreases in the multi-family and single-family customer segments.
• Gross margin: $1,115.2 million, representing 30.5% of net sales, down from 33.4% in the first quarter of 2024, driven by margin normalization in single-family and multi-family segments.
• Income from operations: $184.4 million, a decrease from $373.6 million in the first quarter of 2024, reflecting reduced operating leverage.
• Net income: $96.3 million, a significant decrease from $258.8 million in the first quarter of 2024, primarily due to lower sales and increased interest expenses.
• Net income per share - Basic: $0.85, compared to $2.12 in the first quarter of 2024, reflecting the decrease in net income.
• Net income per share - Diluted: $0.84, compared to $2.10 in the first quarter of 2024, reflecting the decrease in net income.

Business Highlights

• Revenue Segments: The company reported a decrease in net sales across several product categories for the three months ended March 31, 2025. Manufactured products saw a decline of 13.6%, windows, doors, and millwork decreased by 10.4%, while specialty building products and services experienced a slight increase of 1.2%. Lumber and lumber sheet goods remained relatively stable with a minor decrease of 0.5%.
• Geographical Performance: The company operates approximately 595 locations across 43 states in the United States, organized into three geographical divisions: East, Central, and West. These divisions are aggregated into one reportable segment due to similar economic characteristics and operational similarities.
• New Production Launches: The company completed acquisitions of Alpine Lumber and Cluss Lumber, expanding its market footprint and operations in value-added product categories. These acquisitions are expected to enhance the company's production capabilities and market reach.
• Future Outlook: The company anticipates a positive long-term outlook for the housing industry, despite current macroeconomic uncertainties such as interest rate fluctuations and inflation. The company plans to leverage its market position to capitalize on construction activity and potential strategic acquisitions.

SEC Filing: Builders FirstSource, Inc. [ BLDR ] - 10-Q - May. 01, 2025