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BLDR Q3 FY24

Earnings AnalystTuesday, Dec 3, 2024 1:40 am ET

1min read

BLDR -- NBSM --

Builders Firstsource (BLDR) reported a total operating revenue of $4.232 billion as of September 30, 2024, a decrease of approximately 4.47% compared to $4.534 billion as of September 30, 2023. This change reflects the challenges the company faces in revenue generation.

## Key Financial Data

1. Decline in Operating Revenue: Operating revenue in 2024 was $4.232 billion, a decrease of $302 million, or 4.47%, compared to the same period in 2023. This performance indicates difficulties in market sales.

2. Decline in Core Organic Sales: According to reports, the company's core organic sales decreased by 3.8% in the second quarter of 2024, mainly due to the sluggish real estate market source.

3. Fluctuations in Raw Material Costs: Raw material costs in the construction materials industry rebounded in early 2024, which may have put pressure on the company's gross margin source.

# Industry Comparison

1. Overall Industry Analysis: The construction materials industry as a whole is affected by economic cycle fluctuations, especially in the context of rising interest rates, which weakens consumer and business investment intentions, leading to a decline in overall sales revenue. Despite a 4.8% year-on-year growth in the total output value of the construction industry in the first half of 2024, the area of housing construction decreased by 6.2% source.

2. Peer Comparison Analysis: The decline in revenue for Builders Firstsource needs to be further compared with other companies in the same industry. If peers perform well, attention may need to be paid to internal operations of Builders Firstsource; but if peers also face similar revenue declines, it may be due to the overall industry environment.

# Conclusion

Builders Firstsource faces challenges in revenue decline in 2024, mainly due to weakened market demand and increased competition. The overall economic environment for the construction materials industry is not optimistic, and companies may face ongoing pressure.

# Opportunities

1. Potential Market Recovery: Builders Firstsource has the opportunity to recover revenue if the real estate market warms up in the future.

2. Optimized Product Portfolio: The company can attract customers by optimizing product portfolios and improving service quality to improve sales performance source.

3. Policy Support: New infrastructure and policy support may bring new growth opportunities for the construction materials industry.

# Risks

1. Persistent Market Slump: If the real estate market continues to be sluggish, Builders Firstsource's revenue may continue to be affected.

2. Rising Raw Material Costs: If raw material prices continue to rise, they may further squeeze the company's profit margin source.

3. Intense Price Competition: Intense competition within the industry may lead to price cuts, further affecting the company's profitability.

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