Builders FirstSource, Inc. is a leading supplier and manufacturer of building materials, manufactured components, and construction services to professional homebuilders, sub-contractors, remodelers, and consumers. The company operates approximately 570 locations in 43 states across the U.S. They offer an integrated solution to customers by providing manufacturing, supply, and installation of a full range of structural and related building products. The company's primary revenue streams are from lumber and lumber sheet goods, manufactured products, windows, doors, and millwork, and specialty building products and services. The company competes in a highly fragmented market with large national dealers, specialty dealers, and local material distributors. Their competitive advantages include their integrated approach, scale, comprehensive product lines, and value-added services.

• Employees: 29,000 (as of December 31, 2023)
• Geographic Footprint: 43 states in the U.S.
• Headquarters: Irving, Texas
• Founded: 1998
• Number of locations/facilities: 570
• Revenue: $17.1 billion (FY2023)
• Key Subsidiaries/Brands: Paradigm, Synboard

• CEO: Dave Rush
• CFO: Peter M. Jackson
• Senior Vice President and Chief Accounting Officer: Jami Beckmann
• Board Chair: Paul S. Levy

• Annual Revenue: $17.1 billion (FY2023)
• Net Income: $1.5 billion (FY2023)
• Total Assets: $10.5 billion (as of December 31, 2023)
• Employees: 29,000 (as of December 31, 2023)
• Key Financial Highlights: Revenue decreased by 24.8% compared to 2022 due to a decline in core organic sales and commodity price deflation. Gross margin percentage increased to 35.2% in 2023 from 34.1% in 2022.

Builders FirstSource groups its products and services into four categories:

• Lumber and Lumber Sheet Goods: Includes dimensional lumber, plywood, and oriented strand board (OSB) used in on-site house framing.
• Manufactured Products: Includes factory-built substitutes for job-site framing such as wood floor and roof trusses, wall panels, and engineered wood. Also includes Ready-Frame, a whole-house framing solution.
• Windows, Doors and Millwork: Includes the manufacturing, assembly, and distribution of windows, and the assembly and distribution of interior and exterior door units. Millwork includes interior trim and custom features.
• Specialty Building Products and Services: Includes various products such as vinyl, composite and wood siding, exterior trim, metal studs, cement, roofing, insulation, wallboard, ceilings, cabinets and hardware. Also includes services such as turn-key framing, shell construction, design assistance and professional installation. Also includes software products through their Paradigm subsidiary.

The company operates through three geographic divisions: East, Central, and West. Due to similar economic characteristics, categories of products, distribution methods and customers, the operating divisions are aggregated into one reportable segment.

The company's strategy focuses on building an advantaged market position to create value for shareholders by increasing profits and net cash flow. Key strategic initiatives include:

• Organic growth of value-added products and services by maximizing share of wallet and expanding manufacturing footprint.
• Leveraging competitive strengths to capitalize on housing market share, emphasizing local access, competitive pricing, and a broad product portfolio.
• Investing in innovation and driving operational excellence through standardized processes and technology-based workflows.
• Pursuing strategic acquisitions to add manufacturing capabilities and enhance market strength.
• Maintaining a strong balance sheet with a low net leverage ratio.

The company operates in the professional segment of the U.S. residential building products supply market. The industry is highly fragmented with competition from large national dealers, specialty dealers, and local material distributors. Key market trends include greater utilization of manufactured components, an expanding role of the distributor in providing turn-key services, and a consolidation of suppliers by homebuilders. The residential building products industry is driven by the level of activity in both the U.S. residential new construction market and the U.S. residential repair and remodeling market. The company believes its integrated approach and scale allow it to compete effectively.

• Industry Risks: Dependence on the residential homebuilding industry and the U.S. economy, cyclical market pressures, and fluctuations in building product prices.
• Competitive Risks: Highly fragmented and competitive market, increased competitive pressure, and the potential loss of significant customers.
• Operational Risks: Inability to implement growth strategy, failure to attract and retain key employees, disruptions in information technology systems, and product shortages or loss of key suppliers.
• Financial Risks: Level of indebtedness, variable interest rate exposure, inability to obtain additional financing, and potential impairment charges.
• Legal and Compliance Risks: Exposure to product liability, product warranty, casualty, construction defect, asbestos, vehicle and other claims, and changes to tax laws and regulations.