BL

Builders FirstSource, Inc. stock research

Mar 31, 2024

FY2024 Q1

Builders FirstSource (BLDR) Gross Margin — Quarter Ended Mar 31, 2024

Revenue was stable compared to the same quarter last year, while gross profit declined and gross margin weakened. The cost of revenue remained steady relative to revenue, resulting in a lower gross profit and a compressed gross margin.

Gross margin takeaway

Quarter ended Mar 31, 2024 · FY2024 Q1

Revenue was stable compared to the same quarter last year, while gross profit declined and gross margin weakened. The cost of revenue remained steady relative to revenue, resulting in a lower gross profit and a compressed gross margin.

  • The gross margin weakened compared to both the prior quarter and the same quarter last year. Revenue decreased sequentially while cost of revenue declined at a slower pace, putting downward pressure on gross profit and margin.
  • Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all lower. Relative to the same quarter one year ago, revenue was essentially flat, but gross profit was lower and gross margin weakened.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

33.4%

Gross profit

$1.3B

Revenue

$3.9B

Cost of revenue

$2.6B

Quarter-over-quarter change

-1.9 pts

Year-over-year change

-1.9 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Jun 30, 2023$4.5B$1.6B$2.9B35.2%
Sep 30, 2023$4.5B$1.6B$3.0B34.9%
Dec 31, 2023$4.2B$1.5B$2.7B35.3%
Mar 31, 2024$3.9B$1.3B$2.6B33.4%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Dec 31, 2023

-1.9 pts

Year-over-year change

Mar 31, 2023

-1.9 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The gross margin weakened compared to both the prior quarter and the same quarter last year. Revenue decreased sequentially while cost of revenue declined at a slower pace, putting downward pressure on gross profit and margin.

Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all lower. Relative to the same quarter one year ago, revenue was essentially flat, but gross profit was lower and gross margin weakened.

Monitor the relationship between cost of revenue and revenue to see if cost efficiency can stabilize gross margin.

BLDR Gross Margin — Quarter Ended Mar 31, 2024