Builders FirstSource forecasts 2025 sales of $15.1 bln-$15.4 bln

Overview

• Builders FirstSource Q3 net sales fell 6.9% yr/yr, but beat analyst expectations

• Adjusted EPS for Q3 beats analyst expectations, despite a weak housing market

• Adjusted EBITDA decreased 30.8% yr/yr, driven by lower gross profit

Outlook

• Company expects 2025 net sales between $15.1 bln and $15.4 bln

• Company projects 2025 adjusted EBITDA between $1.625 bln and $1.675 bln

• Company anticipates 2025 free cash flow of $0.8 bln to $1.0 bln

Result Drivers

• NET SALES DECLINE - Driven by a 10.6% decline in core organic net sales and 1.1% commodity deflation, partially offset by 4.8% growth from acquisitions

• GROSS PROFIT MARGIN - Decreased 240 basis points to 30.4%, primarily due to a below-normal starts environment

• SG&A INCREASE - SG&A expenses rose 1.3% due to acquisitions and ERP implementation, affecting net income

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 10 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the construction supplies & fixtures peer group is "buy"

• Wall Street's median 12-month price target for Builders FirstSource Inc is $140.00, about 17.6% above its October 29 closing price of $115.29

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nBw1Y6ztZa

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