US LBM Q1 EBITDA Falls 82% to $14 Million as Sales Drop 14%
Updated
Updated · Bloomberg · May 12
US LBM Q1 EBITDA Falls 82% to $14 Million as Sales Drop 14%
1 articles · Updated · Bloomberg · May 12
$14 million in first-quarter EBITDA marked one of the clearest signs yet of stress in the building-materials sector for US LBM Holdings, according to people familiar with the results.
Softening demand and rising operating expenses drove the earnings slump, squeezing profitability even as the distributor remained a multibillion-dollar business.
$1.38 billion in sales was nearly 14% below a year earlier, showing the downturn is hitting revenue as well as margins.
US LBM, backed by Bain Capital and Platinum Equity, adds to evidence that weakening construction-related demand is spreading pain across the industry.
As earnings plunge 82%, is US LBM’s rapid acquisition-fueled growth model now its greatest vulnerability?
While US LBM falters, its backer Platinum Equity thrives. What does this reveal about private equity's new playbook for a tougher economy?
Data center construction is booming while housing stalls. Why is US LBM on the losing side of this major market shift?