Acquisitions, Pricing Power Major 2Q Growth at Builders FirstSource - Modern Distribution Management

Log In

Acquisitions, Pricing Power Major 2Q Growth at Builders FirstSource

Core organic sales comprised half of the distributors' 24% sales growth year-over-year.
Builders FirstSource Exterior and Trademark Logo

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.

Related Posts

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!


articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events



You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.