Thu, May 1, 6:31 PM (16 days ago)
**Summary of Builders FirstSource, Inc. (BLDR) Q1 2025 Financial Performance** **Financial Health and Performance Metrics:** - **Revenue:** Q1 2025 revenue was $3.7 billion, a 6.0% decrease from Q1 2024 due to core organic sales decline, commodity price deflation, and fewer selling days. - **Profit Margins:** Gross margin decreased to 30.5% from 33.4% in Q1 2024, driven by margin normalization and a below-normal starts environment. - **Net Income:** Net income was $96.3 million, down from $258.8 million in Q1 2024, reflecting lower gross margins and higher interest expenses. - **Earnings per Share (EPS):** Basic EPS was $0.85, down from $2.12 in Q1 2024. **Cash Flow:** - **Operating Activities:** Cash provided by operating activities was $132.3 million, down from $317.2 million in Q1 2024 due to lower net income. - **Investing Activities:** Cash used in investing activities increased by $761.0 million, primarily due to higher acquisition spending. - **Financing Activities:** Cash provided by financing activities was $741.5 million, mainly from borrowings under the revolving credit facility. **Quarterly Performance Discussion:** - **Acquisitions:** Completed acquisitions of Alpine Lumber and Cluss Lumber for $828.0 million, expanding market footprint and value-added product categories. - **Share Repurchases:** Repurchased 0.1 million shares for $12.8 million in Q1 2025 and an additional 3.3 million shares for $390.9 million post-Q1. - **Liquidity:** Net excess borrowing availability was $944.3 million, with $775.0 million in outstanding borrowings under the revolving credit facility. **Trends and Uncertainties:** - **Market Conditions:** The housing industry faces macroeconomic uncertainties, including interest rate fluctuations and inflation, which may pressure near-term demand. - **Seasonality:** Q1 and Q4 are typically affected by weather, leading to reduced construction activity. - **Future Operations Impact:** The company is well-positioned to take advantage of construction activity and increase market share through strategic acquisitions and operational efficiencies. **Future Outlook:** - **Growth Strategies:** Focus on working capital management, strategic acquisitions, and digital strategies to drive growth. - **Risk Factors:** Potential risks include economic conditions, supply chain disruptions, and competitive pricing policies.