Builders FirstSource's net sales for the 4Q ended December 31, 2020 were $2.5 billion, a 43.5% increase compared to a year ago.
4Q 2020 gross margin was $669.2 million, an increase of $192.6 million compared with the prior year period. Gross margin percentage decreased to 26.4% from 27% in the prior year period. The decrease in gross margin percentage was primarily attributable to a shift in sales mix due to commodity inflation relative to the prior year period.
4Q 2020 adjusted EBITDA grew $147.8 million to a quarterly record of $257.1 million, an increase of 135.2%. The increase was primarily driven by the growth in net sales attributable to core organic growth across all three of our customer end markets, commodity inflation and cost leverage. Adjusted EBITDA margin improved to a record 10.2% of net sales in the 4Q, compared to 6.2% in the same period a year ago.
Chad Crow, CEO of Builders FirstSource, commented: “Record 4Q results reflect an exceptional finish to a year of remarkable performance, despite the challenges in 2020. Solid momentum from the continued execution of our strategic plan combined with strong residential market tailwinds positions Builders FirstSource to accelerate its success through the recently completed combination with BMC. The combined company provides a broader platform for growth including a deepened presence in the top housing markets across the nation. It has been my absolute pleasure to help build this great company over the past 21 years, and I believe that Dave Flitman’s proven ability to drive sustainable growth with a defined vision will lead to further value creation for our shareholders in the quarters and years to come.”
Net sales for the full year 2020 was a record $8.6 billion, a 17.6% increase compared to the full year 2019, as acquisitions and core organic growth contributed 2.5% and 5.6% of the increase, respectively across all three customer end markets.
2020 gross margin increased $245.8 million to a record $2.2 billion driven by strong growth in net sales. Gross margin percentage was 26% for the full year 2020 compared to 27.2% for the full year 2019.
Adjusted EBITDA for the full year 2020 grew $184.1 million, or 35.7%, to a record $700.2 million, or 8.2% of net sales, compared to $516.1 million, or 7.1% of net sales, for the full year 2019. The year-over-year improvement was attributable to core organic growth in our customer end markets, commodity inflation and cost leverage.
Headquartered in Dallas, Texas, Builders FirstSource is the largest U.S. supplier of building products, prefabricated components, and value-added services to the professional market segment for new residential construction and repair and remodeling.
