Construction materials distribution giant Builders FirstSource reported its 2022 second quarter financial results on Aug. 1, showing continued — albeit decelerated — major sales gains heavily influenced by BFS’ recent acquisitions.
The Dallas, Texas-based company posted 2Q sales of $6.9 billion, up 24.2% year-over-year, while core organic sales improved 12.2%. Acquisitions contributed 8.1 percentage points of growth, while commodity price inflation contributed 3.9 points.
It followed a 1Q in which BFS’ total sales jumped 36.1% and core organic sales grew 15.0%.
The company noted that 2Q core organic sales in its value-added products grew by 32.0%.
BFS’ 2Q gross profit of $2.4 billion jumped 52.4% year-over-year, with gross margin of 34.8% up 640 basis points.
BFS’ total 2Q net profit of $1.0 billion more than doubled the $497 million of a year earlier and far outpaced 1Q’s $640 million.
Like in 1Q, the 2Q figures were heavily influenced by BFS’ transformative merger with fellow building materials distributor BMC Stock Holdings, which completed at the start of 2021, along with subsequent acquisitions that include John’s Lumber, WTS Paradigm, California TrusFrame and National Lumber.
“During the second quarter, we remained focused on executing our strategy, accelerating value-added product sales and expanding customer solutions, resulting in another quarter of record revenue and EBITDA performance despite the dynamic environment and challenging year-over-year comparisons,” said Dave Flitman, Builders FirstSource President and CEO, in the companies 2Q earnings release. “I remain optimistic on the prospects for our industry over the long term and confident in our ability to outperform the market as we execute our strategy and further invest in margin accretive, value-added products and transformative digital solutions.”
Along with the financials, the company announced Aug. 1 that, during July, it acquired HomCo, a lumber and hardware supplier in Flagstaff, Arizona.