Building materials distributor Builders FirstSource Inc. (Nasdaq: BLDR), Dallas, reported third-quarter sales of $2.3 billion, a 15.9% increase from the same quarter a year ago. Core organic sales increased 6.7%, excluding acquisitions and commodity impacts. Profit of $85.9 million was a 10% improvement from 3Q 2019.
During the quarter, the company announced the $2.5 billion acquisition of BMC Stock Holdings Inc., Raleigh, North Carolina. The market-shifting move should bode well for the company moving forward, and Builders FirstSource saw acquisitions contribute net sales growth of 2% in the period.
“Our third quarter 2020 results reflect our team’s collective efforts to execute our strategic plan, which led to record sales and Adjusted EBITDA,” said CEO Chad Crow. “These exceptional results were underpinned by strong demand for our integrated services and by our team’s ability to react quickly to market fluctuations, including the sharp rise in lumber costs. In August, we were thrilled to announce our planned merger with BMC, a transaction that is expected to create significant value for all shareholders in the coming years. As we look to the remainder of 2020, we will continue to focus on executing our growth strategy with a safety-first emphasis and planning for the transformational merger of Builders FirstSource and BMC.”
For the first nine months, Builders FirstSource reported sales of $6 billion, a 9.3% increase compared to the first nine months of 2019. Acquisitions and core organic growth contributed 2.6% and 2.8% of the increase, respectively.