Major organic sales decline and deflation continued to slam the building products distribution giant in 2Q.
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The decline in sales was primarily driven by a weak housing market that has plagued the building materials and construction industries for the past year.
Stephen Herron is the second major executive appointment for BFS in 2023.
The company's sales slowed considerably in the second half of the year amid tougher comps and a slumping single-family housing market.
M&A deals involving building supply facilities fell from 178 in 2021 to 164 in 2022, with lumber companies accounting for the most activity last year.
Dave Rush had served as interim CEO since mid-November and is a 23-year company veteran.
US Foods announced the CEO appointment of Dave Flitman one week after Builders FirstSource announced his departure.
Builders FirstSource Executive Vice President Dave Rush has been appointed interim CEO while a search for a permanent successor is conducted.
The distributor has also enacted a handful of other cost-cutting actions as homebuilding has soured throughout 2022.
In the first quarter and second quarter of 2022, year-over-year growth topped 36.1% and 24.2%, respectively.
Builders FirstSource ranked No. 1 among Building Materials/Construction Distributors in MDM's 2022 Top Distributor List.
Core organic sales comprised half of the distributors' 24% sales growth year-over-year.
The company still has plenty of capital left in its 2022 M&A budget, and underlying growth has it targeting accelerated revenue growth.
The distributor reported 2022 first-quarter net sales of $5.7 billion, while net income grew 270.6% to $639.6 million.
The distributor announced that Amy Bass Messersmith will be joining Builders FirstSource's executive team effective March 14.
Year-end reports of publicly traded distributors support Q4 Baird-MDM Quarterly Industrial Distribution Survey results. Public company commentary remains optimistic for strong year.
The distributor’s 2021 yearly net sales reached nearly $20 billion, while fourth-quarter net sales reached $4.6 billion.
The building materials distributor says its board of directors has authorized the company to repurchase $1 billion of its common shares.
The building materials distributor completed its acquisition of the largest independent building materials supplier in New England.
For the third quarter of 2021, the building materials distributor reported net sales of $5.5 billion and net income of $613.1 million.
