Dallas-based construction materials distributor Builders FirstSource on Nov. 8 reported 2022 third-quarter financials, which showed $5.8 billion in net sales but a slowdown in growth compared to the first two quarters of the year.
For 3Q, net sales grew 4.6% year-over-year, but that followed year-over-year growth of 24.2% in 2Q and 36.1% in 1Q. Builders FirstSource said the relatively slight gains it saw during 3Q were driven by core organic growth (up 6.9%) and acquisitions, partially offset by commodity deflation.
Builders FirstSource announced two acquisitions during the third quarter: Trussway, a manufacturer of floor and roof trusses headquartered in Houston with approximately $291 million in sales in 2021; and Fulcrum Building Group, a multi-brand operator of pro-focused lumberyards and millwork facilities in the Florida Panhandle and Alabama Coast with approximately $140 million in sales in 2021.
Net income in 3Q grew 20.4% to $0.7 billion, or $4.72 per diluted share, and adjusted net income increased 16.8% to $0.8 billion, or $5.20 per diluted share, the company said.
Gross profit was $2.0 billion, a 17.6% increase over 3Q last year.
Builder FirstSource ranks No. 1 on MDM’s 2022 Top Distributors List for Building Materials and Construction.
“Our strong third quarter results reflect the fundamental strengths of our business, including the value-added products and solutions that resonate with our customers, and our consistent execution,” said Dave Flitman, President and CEO of Builders FirstSource. “We are winning new business and strengthening existing customer relationships by providing customers individualized solutions and excellent service, which make us a partner of choice. We delivered a 6.9% increase in core organic sales, including nearly 20% growth in our higher margin value-added products. That performance, combined with continued investments in our core operations and relentless focus on cost controls and productivity, helped us to produce record Adjusted EBITDA of $1.2 billion during the quarter, an increase of approximately 20% versus the third quarter of last year. While we have begun to experience increasing macro headwinds, our leading position in the market, focus on innovation and prudent capital allocation have positioned us to succeed in any environment. I am confident that we will continue to deliver on our strategic pillars given the skill and dedication of our team members.”