Tue, May 13, 11:39 AM (34 days ago)
### Cornerstone Building Brands, Inc. (CNR) Q1 2025 Financial Summary **Overview:** Cornerstone Building Brands, Inc. (CNR) reported a challenging first quarter of 2025, marked by increased costs and operational challenges. The company's financial health reflects the impacts of strategic acquisitions, rising interest expenses, and operational inefficiencies. **Financial Performance:** - **Revenue:** Net sales increased by $29.6 million (2.6%) to $1,175.3 million, driven by acquisitions of Harvey Building Products Corp. and Mueller Supply Company, Inc., partially offset by lower volumes across all segments. - **Profit Margins:** Gross profit margin decreased to 20.1% from 20.4% due to lower average selling prices and higher material costs. - **Operating Loss:** The company reported an operating loss of $18.8 million, compared to a loss of $7.3 million in the previous year, primarily due to higher selling, general, and administrative expenses. - **Net Loss:** Net loss widened to $110.6 million from $118.6 million, reflecting increased interest expenses and foreign exchange losses. - **Cash Flow:** Net cash used in operating activities was $136.1 million, an improvement from $163.7 million in the prior year, driven by favorable long-term incentive compensation plan adjustments. **Segment Performance:** - **Aperture Solutions:** Reportable segment net sales increased by 5.2% due to the Harvey acquisition, but adjusted EBITDA decreased by $2.5 million due to lower volumes and unfavorable pricing. - **Surface Solutions:** Net sales decreased by 12.6% due to lower volumes, leading to a $11.7 million drop in adjusted EBITDA. - **Shelter Solutions:** Net sales increased by 10.7% driven by the Mueller acquisition, but adjusted EBITDA decreased by $4.2 million due to lower volumes and unfavorable pricing. **Liquidity and Capital Resources:** - **Cash and Cash Equivalents:** Increased to $162.4 million from $159.5 million. - **Debt:** Total long-term debt stood at $4.8 billion, with significant borrowings under revolving credit facilities. - **Capital Expenditures:** Reduced to $37.1 million from $52.4 million, reflecting lower spending on capital projects. **Future Outlook and Uncertainties:** - **Strategic Acquisitions:** The company continues to integrate recent acquisitions, aiming to realize synergies and operational efficiencies. - **Economic Conditions:** Challenging macroeconomic conditions, including high interest rates and commodity price volatility, pose risks to future performance. - **Operational Efficiency:** The company is focused on implementing cost-saving measures and improving operational efficiencies to mitigate the impact of rising costs. **Conclusion:** Cornerstone Building Brands, Inc. faces significant challenges in the current economic environment, with increased costs and operational inefficiencies impacting financial performance. The company's strategic acquisitions and focus on operational efficiency are key to navigating these challenges and achieving sustainable growth.