Profits surge at Builders FirstSource

Builders FirstSource reported sales for the third quarter moved ahead 4.6% to $5.8 billion compared to third quarter 2021 sales of $5.5 billion.

The Dallas, Texas-based company said core organic sales increased by 6.9% and acquisitions contributed net sales growth of 5.2%, partially offset by commodity price deflation of 7.5%.

Organic growth in value-added products increased by nearly 20%. Single-family sales saw core growth of 1.8%, repair and remodel core revenue jumped 31.1%, and core sales in the multi-family market rose 16.2%.

The prodealer and building solutions provider also posted a third quarter net income of $738 million, rising more than 20% from a net income of $631.1 million for the same period a year ago.

Acquisitions have also been plentiful for the company. On July 1, Builders FirstSource acquired Arizona-based HomeCo with sales of about $44 million in 2021. 

On Sept.1, Houston, Texas floor and roof truss manufacturer Trussway was acquired, bringing sales of approximately $291 million in 2021. On the same date, the super dealer also acquired Fulcrum Building Group, a multi-brand operator of pro-focused lumberyards and millwork facilities in the Florida Panhandle and Alabama Coast. Fulcrum had approximately $140 million in sales in 2021.

Pima Door & Supply and Sunrise Carpentry were acquired as of Oct. 3. Pima and Sunrise will provide the company with dedicated millwork capability in the high-growth Phoenix metro area. Pima and Sunrise had approximately $10 million in sales in 2021.

Looking ahead, Builders FirstSource projects net sales to grow to a range of $22.5 billion to $23.0 billion, or approximately 13% to 16% over 2021 sales of $19.9 billion.

Builders FirstSource operates more than 570 locations in 42 states including 47 of the top 50 markets.