BuildDirect Reports Fourth Quarter and Year Ended December 31, 2024 Financial Results

BuildDirect reports in US dollars and in accordance with IFRS Accounting Standards

BuildDirect.com Technologies Inc. (“BuildDirect” or the “Company“) a leading omnichannel building material retailer, announced its financial results for the Fourth Quarter (“Q4 2024“) and full-year audited financial results for the year ended December 31, 2024 (“FY 2024“).

“In 2024, we stayed focused on what matters: improving margins, controlling costs, and growing where it makes sense,” said Shawn Wilson, CEO of BuildDirect. “This marks our 12th straight quarter of positive adjusted EBITDA. We cut $2.3M in annual operating expenses, expanded gross margin, and made smart investments in inventory and new locations, including our latest opening in Brighton, Michigan, to support long-term growth. With a new credit facility in place, we’re in a strong position to keep building.”

“Since year end, we’ve opened a new location in California and completed an asset acquisition, with Anchor Flooring and Supply LLC and Yorkshore Sales and Marketing Inc. to strengthen our presence in the Southeast,” Shawn continued. “It’s a solid deal that fits our model: grow the Pro Center network, create operating leverage, and stay disciplined on returns.”

Shawn added, “We’re focused on scaling the right way-by building or acquiring strong locations, expanding our commercial reach, and growing EBITDA through better execution.”

Q4 2024 and FY 2024 Highlights

• Delivered $2.2 million in adjusted EBITDA in Fiscal 2024, extending the Company’s track record to 12 straight quarters of positive performance.
• Delivered gross margin of 38.7% in Fiscal 2024, an increase of 18 bps year-over-year.
• Total operating expenses in Fiscal 2024 decreased by $2.3 million to $26.3 million, or 8.0% year-over-year, driven by disciplined cost control and operational efficiencies.
• Working capital decreased by $0.1 million to $2.7 million at December 31, 2024 from $2.8 million at December 31, 2023.
• Secured a total capacity of CAD$9.5 million in a Revolving Credit Facility from the Royal Bank of Canada.
• Opened a new Pro Center in Brighton, Michigan and completed build-out and optimization of the Pro Center in Richmond, British Columbia in 2024; strategic groundwork enabled the successful launch of two additional locations in early 2025.

Revenue and Gross Profit per Segment

The Company reports its results in two segments: (1) BuildDirect and (2) Acquired Retailers (“Retailers”). We measure each reportable operating segment’s performance based on revenue. Our BuildDirect segment comprises sales through our BuildDirect e-commerce and brick and mortar operations. Our Retailers segment comprises sales of flooring building materials through our acquired brick and mortar locations and includes installation services. The BuildDirect and Retailers segments contributed 25.2% and 74.8% in Q4 2024, compared to 22.5% and 77.5% in Q4 2023. Likewise, the BuildDirect and Retailers segments contributed 23.2% and 76.8% of our sales, respectively, in 2024 compared to 27.3% and 72.7% of our sales, respectively, in 2023.

Consolidated revenue in Q4 2024 was $16,723,578 compared to $16,916,952 in Q4 2023, a decrease of $193,374 or 1.1%.

Revenue in Q4 2024 for BuildDirect was $4,206,535 compared to $3,800,051 for the same period in the prior year, an increase of $406,484 or 10.7%. The increase can be attributed to the Company’s strategy to shift its e-commerce product mix to higher margin, direct-sourced products with inventory levels to support the shift.

Q4 2024 revenue for Retailers was $12,517,044 compared to $13,116,901 for the same period in the prior year, a decrease of $599,857 or 4.6%. This decrease can be attributed to weaker housing remodeling and new construction activities, posited to be driven by higher mortgage interest rates.

Consolidated gross profit in Q4 2024 was $6,562,881 compared to $5,957,814 in the same period in the prior year, an increase of $605,067 or 10.2%. The increase can be attributed to higher revenue in the BuildDirect segment and higher gross margin in the Retailers segments. In addition, gross profit percentage increased 4.0% in Q4 2024 to 39.2% compared to 35.2% in Q4 2023.

2025 Outlook

In 2025, BuildDirect is pursuing a focused and disciplined growth strategy aimed at expanding its Pro Center network and unlocking greater operating leverage across its platform. With a proven track record of scalable and profitable operations, the company will look to accelerate growth through the exploration of a combination of new location builds and targeted strategic acquisitions.

As part of this strategy, and subsequent to year-end, BuildDirect opened a new Pro Center in California and completed the acquisition of key flooring assets from Anchor Flooring and Supply Company LLC (“Anchor”) and Yorkshore Sales and Marketing Inc. (“Yorkshore”), marking its expansion in the Florida market. For the 12-month period ending December 31, 2024, Anchor and Yorkshore reported consolidated, unaudited revenue of US$5.8 million and EBITDA of US$661,000 as previously disclosed.

Looking ahead, BuildDirect remains committed to expanding its geographic footprint, deepening supplier relationships, and enhancing its service capabilities for professional customers. Each new location and acquisition is carefully aligned with the company’s goal of delivering strong returns and capturing market share in both core and emerging regions.

In parallel, BuildDirect is focused on driving EBITDA growth through improved operational efficiency and the continued development of its commercial sales channel. By optimizing its infrastructure and leveraging data-driven decision-making, the company is well-positioned to scale profitably while maintaining a high standard of customer service.

These initiatives reflect BuildDirect’s unwavering commitment to pursue sustainable growth, operational excellence, and long-term value creation for its stakeholders.

For full results click here.

About BuildDirect

BuildDirect (TSXV: BILD “BuildDirect” or the “Company”) is a growing omnichannel building material retailer. BuildDirect connects North American home improvement B2B and B2C organizations, and homeowners with quality building materials and services through its robust global supply chain network. BuildDirect’s growth trajectory, strong product offering, and proprietary heavyweight delivery network are delivering value today, solidifying its position as an innovative player in the home improvement industry. For more information, visit www.BuildDirect.com.

Source: BuildDirect.com Technologies Inc.