Builders FirstSource Inc (BLDR)
Pretax margin
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 1,387,488 | 1,580,126 | 1,797,801 | 1,884,390 | 1,984,204 | 2,024,338 | 2,403,320 | 3,174,414 | 3,571,830 | 3,669,564 | 3,500,633 | 2,857,926 | 2,251,547 | 1,855,033 | 1,165,262 | 615,262 | 408,166 | 270,832 | 260,961 | 244,781 |
| Revenue (ttm) | US$ in thousands | 16,400,480 | 16,731,040 | 17,032,810 | 17,105,360 | 17,097,320 | 17,304,020 | 18,531,220 | 20,928,590 | 22,726,410 | 23,003,660 | 22,750,790 | 21,401,210 | 19,893,860 | 17,789,810 | 14,576,670 | 10,945,630 | 8,558,870 | 7,791,680 | 7,477,270 | 7,436,150 |
| Pretax margin | 8.46% | 9.44% | 10.55% | 11.02% | 11.61% | 11.70% | 12.97% | 15.17% | 15.72% | 15.95% | 15.39% | 13.35% | 11.32% | 10.43% | 7.99% | 5.62% | 4.77% | 3.48% | 3.49% | 3.29% |
December 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $1,387,488K ÷ $16,400,480K
= 8.46%
Builders FirstSource Inc has shown a fluctuating trend in pretax margin over the past few years. The pretax margin started at a relatively low level of around 3%-4% in early 2020, gradually increasing to reach double-digit figures by the end of 2022. Subsequently, there was a slight decline in pretax margin in the first half of 2023, followed by a more significant drop in the second half of 2023 and continuing into 2024.
The company's pretax margin peaked at approximately 15.95% in September 2022 and has since experienced a downward trajectory, reaching 8.46% by December 2024. This downward trend suggests potential challenges in maintaining profitability levels or controlling costs effectively.
Overall, while Builders FirstSource Inc managed to achieve impressive pretax margins in the recent past, the gradual decline observed in 2023 and 2024 indicates a need for careful monitoring and strategic adjustments to sustain profitability in the future.
Peer comparison
Dec 31, 2024