Slide 1: Q4 & FY 2024 Earnings Presentation
Q4 & FY 2024 Earnings Presentation PETER JACKSON, CEO PETE BECKMANN, CFO FEBRUARY 20, 2025 Footnote
Slide 2: Safe Harbor & Non-GAAP Financial Measures
Safe Harbor & Non-GAAP Financial Measures Cautionary Notice Statements in this presentation and the schedules hereto that are not purely historical facts or that necessarily depend upon future events, including statements about forecasted financial performance or other statements about anticipations
Slide 3: Clear Strategic Pillars Driving Long-Term Profitable Growth
Clear Strategic Pillars Driving Long-Ter m Profitable Growth Organic Growth with a Drive Continue to Disciplined Focus on Operational Build Our High- Capital Value-Added Excellence & Performing Allocation Products and Invest in Digital Culture Services and Innovation Footnote © C O P Y R I G H T B U
Slide 4: Resilient FY 2024 Performance
Resilient FY 2024 Perfor mance $16.4B $5.4B $2.3B $11.56 Net Sales Gross Profit Adjusted EBITDA1 Adjusted 4.1% Decrease2 10.5% Decrease2 19.6% Decrease2 Diluted EPS1 20.8% Decrease2 Gross Margin Adjusted EBITDA1 of 32.8% Margin of 14.2% Generated $1.5B in Free Cash Flow During 2024 1) Adjusted EBITD
Slide 5: Executed Against Our Strategy in 2024
Executed Against Our Strategy in 2024 ▪ ~50% value-added product mix in 2024 driven by continued Multi-Family normalization ▪ Install sales increased by 8 percent year-over-year as we help address customer labor challenges ▪ Delivered $117 million in productivity savings in 2024 primarily through mo
Slide 6: Increasing Value-Added Mix and Expanding to Desirable Geographies Through M&A
Increasing Value-Added Mix and Expanding to Desirable Geographies Through M&A Net Sales Acquisition Date Benefits ▪ Leading provider of lumber and building materials on Growth in Value- Q4 2024 Long Island 500 bps Added Product Mix ▪ Building materials provider to contractors, remodelers, Q4 2024 an
Slide 7: Disciplined Capital Deployment Framework
Disciplined Capital Deployment Framework FY 2024 Highlights ~$2.2B $367M $367M allocated to sustaining the business, as well as ROI- $352M generating growth investments in value-added capacity and Digital $352M deployed on 13 $1.5B acquisitions to expand our footprint into high-growth geographies an
Slide 8: Creating a Better Way to Build as Demand for Modern, Digital Solutions Continues to Grow
Creating a Better Way to Build as Demand for Moder n, Digital Solutions Continues to Grow Addressing industry …with industry-leading …to become the premier partner pain points… digital solutions… for builders and suppliers ▪ Lengthy design cycle remains Streamlined design in a Increase Wallet Shar
Slide 9: Q4 2024 Financial Update
Q4 2024 Financial Update Core Organic End Market Sales Highlights Q4 2024 Net Sales ($M) Bridge ▪ Single-Family: -6.8% led by declines in the size, complexity, and value of an average home, as well as a greater mix of entry level homes ($200) ($131) -8.8% Core Organic ▪ Multi-Family: -29.1% amid mut
Slide 10: Q4 2024 Financial Update
Q4 2024 Financial Update Q4 2024 Net Sales Mix by Product Category Q4 2024 Core Organic Product Category Sales1 Highlights Q4 2024 Value-Added ▪ Value-Added Core Organic Sales1 decreased 13% against the Product Mix: ~50% prior year due to a decline in Multi-Family truss and lapping of 25% higher com
Slide 11: Strong Balance Sheet and Liquidity Provide Financial Flexibility
Strong Balance Sheet and Liquidity Provide Financial Flexibility Consistent Capital Allocation Priorities Low Net Leverage1 Profile 1 Maintain a Strong Balance Sheet ▪ Target Base Business leverage ratio of 1.0x to 2.0x 2 Organic Growth 2.5x 1.5x ▪ Drive productivity and growth with investments Base
Slide 12: 2025 Outlook
2025 Outlook 2025 Full Year Outlook Metrics Current Guidance 2024 Actual Total Net Sales1 $16.5 to $17.5 billion $16.4 billion Gross Profit Margin1 30.0% to 32.0% 32.8% Total Adjusted EBITDA1,4 $1.9 to $2.3 billion $2.3 billion Total Adjusted EBITDA Margin1,4 11.5% to 13.0% 14.2% Free Cash Flow2 $0.
Slide 13: 2025 Full Year Assumptions
2025 Full Year Assumptions 2025 Full Year Assumptions Metrics Current Assumptions Single-Family Starts (BLDR geographies) Flat (Down Low-Single Digits to Up Low-Single Digits) Multi-Family Starts (BLDR geographies)1 Down Mid-Teens Repair & Remodel (BLDR geographies) Up Low-Single Digits Selling Days
Slide 14: Overview of Base Business Framework
Over view of Base Business Framework ~66% of BFS’s Base Business1 Underlying Base Business Assumptions is Non-Commodity Windows, Doors & Millwork Lumber & Lumber Sheet Goods ▪ Assumes $400/mbf lumber and lumber sheet goods Manufactured Products Specialized Products & Other pricing (in line with 25-y
Slide 15: Base Business Performance Aligned with Long Term Plan
Base Business 1 Perfor mance Aligned with Long Ter m Plan Sales ($B) Adjusted EBITDA2 ($B) $22.7 $4.4 $19.9 $5.0 $17.1 $3.1 $16.4 $17.0 ~6% $2.1 $2.9 $4.2 $12.8 $0.6 $0.0 $0.0 $2.3 ~14% $1.3 $0.6 $2.1 $0.3 $0.0 $0.0 $15.7 $17.7 $16.5 $16.4 $17.0 $1.1 $12.5 $2.3 $2.3 $2.3 $2.1 $1.8 $1.1 2020PF 2021 2
Slide 16: Strong Operating Model Creates Value for Our Customers and Shareholders
Strong Operating Model Creates Value for Our Customers and Shareholders 1 Creating opportunity by 3 Leveraging robust FCF addressing builder problems generation from resilient and delivering value-added business model and broad products and solutions across product portfolio to fuel cycles; strong t
Slide 17: Appendix
Appendix Footnote © C O P Y R I G H T B U I L D E R S F I R S T S O U R C E . A L L R I G H T S R E S E R V E D .
Slide 18: Strategic Execution Has Driven Sustainable Gross Margin Improvement
Strategic Execution Has Driven Sustainable Gross Margin Improvement Strategic Initiatives Lead to Higher Gross Margins ~35-45 bps ✓ Investment in Value- Added Products: VAP ~210-230 bps made up ~50% of net sales in 2024 vs. ~42% in 2019 ~180-200 bps ✓ Operational Excellence: ~$360M in COGS 31.0% ~31
Slide 19: Summary Financial Information & Reconciliations
Summar y Financial Infor mation & Reconciliations Footnote © C O P Y R I G H T B U I L D E R S F I R S T S O U R C E . A L L R I G H T S R E S E R V E D . 19 19
Slide 20: Summary Financial Information & Reconciliations
Summar y Financial Infor mation & Reconciliations Footnote © C O P Y R I G H T B U I L D E R S F I R S T S O U R C E . A L L R I G H T S R E S E R V E D . 20 20
Slide 21: Summary Financial Information & Reconciliations
Summar y Financial Infor mation & Reconciliations Footnote © C O P Y R I G H T B U I L D E R S F I R S T S O U R C E . A L L R I G H T S R E S E R V E D . 21 21
Slide 22: Summary Financial Information & Reconciliations
Summar y Financial Infor mation & Reconciliations Footnote © C O P Y R I G H T B U I L D E R S F I R S T S O U R C E . A L L R I G H T S R E S E R V E D . 22 22
Slide 23: Summary Financial Information & Reconciliations
Summar y Financial Infor mation & Reconciliations Footnote © C O P Y R I G H T B U I L D E R S F I R S T S O U R C E . A L L R I G H T S R E S E R V E D . 23 23
Slide 24: Summary Financial Information & Reconciliations
Summar y Financial Infor mation & Reconciliations Footnote © C O P Y R I G H T B U I L D E R S F I R S T S O U R C E . A L L R I G H T S R E S E R V E D . 24 24
Slide 25: Summary Financial Information & Reconciliations
Summar y Financial Infor mation & Reconciliations Footnote © C O P Y R I G H T B U I L D E R S F I R S T S O U R C E . A L L R I G H T S R E S E R V E D . 25 25
Slide 26: Summary Financial Information & Reconciliations
Summar y Financial Infor mation & Reconciliations Footnote © C O P Y R I G H T B U I L D E R S F I R S T S O U R C E . A L L R I G H T S R E S E R V E D . 26 26
Slide 27: Summary Financial Information & Reconciliations
Summar y Financial Infor mation & Reconciliations Footnote © C O P Y R I G H T B U I L D E R S F I R S T S O U R C E . A L L R I G H T S R E S E R V E D . 27 27