Builders FirstSource reported its 2022 fourth quarter financial results on Feb. 28, showing that the company had a record revenue year despite a second-half slowdown amid a weaker housing environment.

Dallas-based Builders FirstSource — No. 1 on MDM’s 2022 Top Building Materials/Construction Distributions List — reported that fourth quarter revenue declined 6.0% year-over-year to $4.4 billion. It attributed the to lower single-family housing starts, two fewer selling days (-3.2 percentage points) and commodity deflation (-3.0 points), partially offset by growth from acquisitions (+7.9 points).

The company’s 4Q core organic sales declined by 7.7% year-over-year. By sales mix, Single-Family organic sales fell 13.9% year-over-year; Multi-Family increased 14.1%; Repair & Remodel/Other increased 19%. Organic sales in value-added products increased 0.6%.

Builders FirstSource’s 4Q gross profit was $1.5 billion, roughly flat year-over-year, while gross profit margin increased 200 basis points to 34.1%, primarily driven by increased value-added product category mix.

The company’s 4Q selling, general and administrative expenses increased approximately 11.0% year-over-year, primarily driven by additional expenses from operations acquired in the past 12 months.

Builders FirstSource’s 4Q net profit was $384.5 million, down from $442.5 million a year earlier. Adjusted EBITDA decreased 12.2% year-over-year to $0.7 billion and adjusted EBItDA margin fell by 110 basis points to 16.0%.

During the fourth quarter, former company CEO Dave Flitman left the company in mid-November to take the same position at US Foods, upon which company veteran Dave Rush became Builders FirstSource’s interim CEO. That interim title was removed on Jan. 10.

Full Year

For the full year 2022, Builders FirstSource reported company record sales of $22.7 billion that increased 14.2% vs. 2021, driven by acquisitions (+7.3 points), core organic growth (+6.6 points) and commodity inflation (+1.1 points).

By organic sales mix, Single Family increased 4.9%, Repair and Remodel/Other increased 14.2% and Multi-Family increased 9.5%.

The company’s 2022 gross profit was $7.7 billion, up 32.4% vs. 2021. Gross profit margin increased 470 bps to 34.1%.

SG&A of $4.0 billion increased by approximately 14.7% and to 17.5% of net sales.

The company’s 2022 net profit was $2.7 billion, compared to $1.7 billion in 2021. Adjusted EBITDA soared 43.0% to $4.4 billion.

Builders FirstSource’s sales growth slowed throughout the year, going from 36.1% in 1Q to 24.2% in 2Q and 4.6% in 3Q before flipping to 4Q’s 6.0% decline.

The company said it deployed approximately $2.1 billion in capital on 14 acquisitions since 2021 and deployed approximately $3.5 billion in total capital during 2022. Of that $3.5 billion, $2.6 billion were in share repurchases; $0.6 billion was in tuck-in M&A; and $0.3 billion was allocated to growth investments focused on digital and automation.

In its 3Q22 earnings call on Nov. 8, 2022, Builders FirstSource shared that it made considerable cost-reduction actions amid major declines in U.S. homebuilding, including cutting 2,600 jobs — mostly in temporary positions — at the end of 2Q and early 3Q.


In its 4Q earrings report, Builders FirstSource said it elected not to provide full-year 2023 guidance due to economic uncertainty. For 1Q23, the company expects net sales to be in a range of $3.4 billion to $3.7 billion and adjusted EBITDA of $400 million to $440 million at a margin of 11.7% to 11.9%. Those figures would significantly trail 1Q22’s sales of $5.7 billion and adjusted EBItDA of $1.0 billion and margin of 17.6%.

The company expects 2023 total capital expenditures to be in the range of $300 million to $350 million.

Related Posts

  • Builders FirstSource 3Q Sales Rise 4.6% to $5.8 billion

    In the first quarter and second quarter of 2022, year-over-year growth topped 36.1% and 24.2%,…

  • Builders FirstSource ranked No. 1 among Building Materials/Construction Distributors in MDM’s 2022 Top Distributor List.

  • Builders FirstSource Executive Vice President Dave Rush has been appointed interim CEO while a search…