Building materials distributor Builders FirstSource Inc. (NYSE: BLDR), Dallas, announced that its board has authorized the company to buy back up to $1 billion of its common shares.
“Since the merger of BFS and BMC at the onset of 2021, we have executed our integration plan, including the review of our balanced capital allocation strategy with the goal of maintaining our commitment to delivering long-term shareholder value,” said Dave Flitman, President and CEO of Builders FirstSource. “This new share repurchase program is aligned with that commitment and underpins our confidence in our balance sheet and strong cash flow generation.
“As of August 11, 2021, we had approximately $417 million of cash on hand, which is consistent with our recent guidance of $1.4 to $1.6 billion of free cash flow in 2021.”
Builders FirstSource, which is ranked No. 1 on MDM’s 2021 Top Distributors list for Building & Construction, reported second-quarter sales of $5.6 billion earlier this month, a 90.6% increase from the same quarter a year ago due to its 2020 merger with BMC Stock Holdings. Profit of $497.2 million was quadruple its 2Q 2020 profit of $122.5 million.