Builders FirstSource, Inc. stock research
FY2024 Q4
Builders FirstSource (BLDR) Gross Margin — Quarter Ended Dec 31, 2024
Revenue and cost of revenue both decreased compared with the prior quarter, leading to a lower gross profit and a slightly weakened gross margin. Versus the same quarter one year earlier, revenue declined while cost of revenue fell less steeply, resulting in a more pronounced compression of gross profit and gross margin.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue and cost of revenue both decreased compared with the prior quarter, leading to a lower gross profit and a slightly weakened gross margin. Versus the same quarter one year earlier, revenue declined while cost of revenue fell less steeply, resulting in a more pronounced compression of gross profit and gross margin.
- The strongest observable margin driver is the relationship between revenue and cost of revenue, as gross margin contracted period over period and year over year, with cost of revenue declining at a slower pace than revenue in the year-ago comparison.
- Compared with the immediately preceding quarter, revenue, gross profit, and cost of revenue all moved lower, while gross margin weakened slightly. Versus the same quarter one year earlier, revenue and gross profit were lower, cost of revenue was lower, and gross margin showed a more notable weakening.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
32.3%
Gross profit
$1.2B
Revenue
$3.8B
Cost of revenue
$2.6B
Quarter-over-quarter change
-0.4 pts
Year-over-year change
-3.0 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2024 | $3.9B | $1.3B | $2.6B | 33.4% |
| Jun 30, 2024 | $4.5B | $1.5B | $3.0B | 32.8% |
| Sep 30, 2024 | $4.2B | $1.4B | $2.8B | 32.8% |
| Dec 31, 2024 | $3.8B | $1.2B | $2.6B | 32.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-0.4 pts
Year-over-year change
Dec 31, 2023
-3.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue and cost of revenue, as gross margin contracted period over period and year over year, with cost of revenue declining at a slower pace than revenue in the year-ago comparison.
Compared with the immediately preceding quarter, revenue, gross profit, and cost of revenue all moved lower, while gross margin weakened slightly. Versus the same quarter one year earlier, revenue and gross profit were lower, cost of revenue was lower, and gross margin showed a more notable weakening.
Monitor the trajectory of cost of revenue relative to revenue, as a slower decline in cost of revenue compared with revenue may continue to pressure gross margin.