Builders expects to spend around $500 million in accretive M&A this year. So far, the Company has completed seven acquisitions for $1.2 billion in the last year. The Company is focused on tuck-in M&A opportunities of which there are over 1,000 candidates with sub $100 million revenue levels. The blowout Q1 2022 had adjusted EBITDA margin of 17.6%. The Company continues to invest in operations despite significant supply chain constraints.
Builders first source free#
Free cash flow in the range of $2 billion to $2.4 billion assuming average commodity prices in the range of $700 to $1,000.īuilders CEO David Flitman noted that Company entered 2022 with record net sales, gross margin, and adjusted EBITA with strong organic sales growth of 15%. The Company sees growth across all geographics in fiscal full-year 2022 with single-family starts in the mid-single digits, multi-family starts in the low to mid-single digits and R&R in the low to mid-single digits. The Board authorized a new $2 billion share buyback program. The Company repurchased 3.6 million shares for $286 million. The Company had a net debt to LTM adjusted EBITDA ratio of 0.9X and liquidity of $1.2 billion. Adjusted EBITA rose 119.8% for a Q1 record of $1 billion driven by commodity inflation, double-digit core organic growth, and robust residential housing market.
Revenues grew 36.1% year-over-year (YoY) to $5.68 billion, beating consensus analyst estimates for $4.69 billion. The Company reported earnings-per-share (EPS) profits of $3.90 beating consensus analysts estimates for a profit of $2.02, a $1.88 beat. On May 10, 2022, Builders released its fiscal first-quarter 2021 results for the quarter ending October 2021. Prudent investors looking for indirect exposure to the housing market can watch for opportunistic pullbacks in shares of Builders FirstSource. Shares are trading at 5.42X forward earnings. The Company blew away its fiscal Q1 2022 top and bottom-line earnings and raised forward guidance in addition to authorizing a $2 billion share buyback.
Commodity inflation and pricing discipline combined with a robust residential housing demand drove the Company to a record $1 billion adjusted EBITDA on a record $6 billion in sales in Q1 2022. Economic uncertainty from inflationary pressures, supply constraints, logistics disruptions, and the Russian Ukraine conflict is still not impacting homebuilding as secular tailwinds continue to persist. Rising interest rate headwinds are cooling consumer mortgage applications but there's still a supply shortage of homes that will fuel demand for homes. Building materials supplier Builders FirstSource (NASDAQ: BLDR) stock has been basing for the last month in the bear market as shares are down (-20%) year-to-date.
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