Builders FirstSource(BLDR)2025-05-01 18:29Financial Performance - Net sales for Q1 2025 were 3.9 billion in Q1 2024, with core organic sales down 8.1% due to declines in multi-family and single-family segments [75]. - Gross margin decreased to 30.5% in Q1 2025 from 33.4% in Q1 2024, primarily driven by margin normalization in single-family and multi-family segments [78]. - The company reported a net income of 2.7% in Q1 2025, down from 6.7% in Q1 2024 [73]. - Cash provided by operating activities decreased to 317.2 million in Q1 2024, primarily due to lower net income [88]. Expenses and Costs - Selling, general and administrative expenses increased to 25.4% of net sales in Q1 2025, up from 23.8% in Q1 2024, due to reduced operating leverage [80]. - Interest expense rose to 16.6 million from Q1 2024, attributed to higher average debt balances [80]. - A 1.0% increase in interest rates on the Revolving Facility would result in approximately 775.0 million in outstanding borrowings as of March 31, 2025 [95]. Acquisitions and Investments - The company completed acquisitions of Alpine Lumber and Cluss Lumber for approximately 761.0 million in Q1 2025, mainly due to an additional 944.3 million in net excess borrowing availability under its Revolving Facility [84]. - The company’s liquidity at March 31, 2025, was 741.5 million in Q1 2025, compared to 775.0 million net borrowings on the Revolving Facility [90]. Market Conditions - Actual U.S. total housing starts were 0.3 million in Q1 2025, a decrease of 1.6% compared to Q1 2024, with single-family starts down 5.7% [70]. - The company anticipates a long-term positive outlook for the housing industry despite near-term pressures from macroeconomic uncertainties [71]. - The company may face adverse impacts on operating results due to delays in passing on material price increases to customers, particularly for lumber products [96].