It was a flat second quarter for Builders FirstSource, but the company did generate $45 million in incremental digital sales.
Builders FirstSource also says it’s still on track to generate $1 billion in digital sales as soon as 2026.
The company is a manufacturer and supplier of building products, prefabricated components and services. Its sales totaled $4.50 billion in Q2 2024. That’s a decrease of 1.6% from sales of $4.52 billion in the second quarter of 2023.
Net income was $344.1 million in Q2, which compares with $404.6 million in the prior year.
“While we continue to see weaker-than-expected single-family starts, slowing multi-family, and broader housing and affordability challenges, we are executing our strategy by controlling what we can control, investing in value-added solutions, and driving adoption of our industry-leading digital platform,” says CEO David Rush.
Builders FirstSource digital sales in Q2
Builders FirstSource launched a new ecommerce platform in February.
The new platform enables users to:
- Plan projects including intake and mark-up.
- Make structural adjustments and finish selections online.
- Review frames and walk with suppliers and builders.
- Request an estimate across all product categories.
- Review quotes, purchase material and track orders.
- Set a schedule and align material receipt and labor.
- View Builders FirstSource invoices and track full project costs.
So far, digital sales are slow, but steadily increasing, Rush told analysts on a recent earnings call.
“Since launching in late February, we have seen the value of orders placed through the digital platform go from zero to over $250 million,” he said. “Year-to-date through Q2, incremental sales have totaled $45 million. While we still have a long way to go, we remain confident in our ability to meet our target of $1 billion in incremental sales by 2026, as we grow wallet share and win new customers.”
Much of the company’s focus in the second quarter was building greater for its ecommerce platform, myBLDR.com.
“As we started to roll out the digital and the adoption, I think it probably isn’t a surprise that we have gone first to our employees and we’ve gotten them up to speed on the benefits of digital,” Rush told analysts, according to a transcript from SeekingAlpha. “The customers that we’ve gone to initially have been existing customers. While we give you that stat of orders through the system of $250 million, now we expect fully that existing customers push in orders through the system.”
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