Builders FirstSource (BLDR) Q3 2026 Earnings
Adjusted EPS excludes amortization expense of $70.6 million, technology implementation expense of $38.4 million, stock compensation of $15.6 million, other management-identified adjustments (severance, gain/loss on asset sales, one-time costs) of $8.4 million and acquisition expense of $0.9 million, less a $(32.1) million tax effect. Results also include an income tax benefit of $(33.6) million (GAAP effective tax rate of (125.0)%), driven by subsidiary losses. GAAP diluted EPS was $0.56.
How Did BLDR Stock React to Q3 2026 Earnings?
Did BLDR Beat Earnings? Q3 2026 Results
Yes. Builders FirstSource reported Q3 2026 earnings of $1.51 a share on Oct 29, 2026, beating the $1.05 consensus estimate by 44.0%. Revenue was $3.9B against a $3.8B estimate.
Builders FirstSource cleared a low bar by a wide margin in the third quarter of 2026, posting adjusted EPS of $1.51 against a consensus estimate of $1.05, a beat of 44.03%, even as the underlying business continued to feel the strain of a weakening housing market. Revenue of $3.85 billion edged past the $3.75 billion estimate by 2.64%, though net sales still fell 2.2% year over year, with core organic sales down 3.9% and single-family core organic sales sliding 6.2%, reflecting the broader pullback in housing starts that has pressured the company and its peers alike. Gross margin contracted 260 basis points to 27.8%, and adjusted EBITDA dropped 28.3% to $311.10 million, while a $33.60 million income tax benefit cushioned GAAP results. Looking ahead, management narrowed its full-year outlook, guiding for net sales of $14.20 billion to $14.60 billion and adjusted EBITDA of $1.07 billion to $1.13 billion, assuming single-family starts decline mid- to high-single digits for the full year.
- Lower housing starts environment drove a 3.9% decline in core organic net sales
- Single Family core organic sales declined 6.2%; Multi-Family rose 2.0%; R&R/Other rose 0.3%
- Commodity deflation of 0.1%, partially offset by 1.8% growth from acquisitions
- Gross margin fell 260 bps to 27.8% on housing headwinds
- SG&A rose on acquired operations and higher fuel and insurance costs, partially offset by lower variable compensation and cost-saving actions
- Higher net interest expense from other finance obligations and higher average debt balances
- Income tax benefit of $33.6 million from losses at certain subsidiaries
- Approximately $23 million of productivity savings in the quarter
“Our third quarter results reflect the disciplined execution of our team and the resilience of our platform. While housing market conditions remain challenging, we are focused on what we can control: delivering solutions that help builders operate more efficiently and investing in value-added products and technology to drive productivity and fuel growth. These efforts are reinforcing our leadership position and our role as the partner of choice for homebuilders.”
Builders FirstSource CEO, on the earnings call
What Is Builders FirstSource's Outlook?
For full-year 2026, Builders FirstSource narrowed its outlook while maintaining the midpoints for net sales and Adjusted EBITDA. Guidance: - Net sales of $14.2 billion to $14.6 billion. - Gross profit margin of 27.5% to 28.5%. - Adjusted EBITDA of $1.075 billion to $1.125 billion. - Adjusted EBITDA margin of 7.4% to 7.9%. - Free cash flow of approximately $400 million to $450 million, assuming average commodity prices of $390 to $410 per mbf. Assumptions, within the company's geographies: - Single Family starts down mid- to high-single digits. - Multi-Family starts down mid-single digits. - Repair & remodel activity down 1%. - Acquisitions adding 1.5% to 2% to net sales growth. - Capex of $175 million to $225 million. - Interest expense of $290 million to $300 million. - D&A of $580 million to $610 million. - No change in selling days versus 2025. The company expects $60 million to $70 million in 2026 productivity savings. It will host an Investor Day on November 17, 2026.
BLDR YoY Financials
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $3.9B | $3.9B | −2.2% |
| Gross Profit | $1.1B | $1.2B | −10.6% |
| Operating Income | $99.1M | $228.7M | −56.7% |
| Net Income | $60.4M | $122.4M | −50.6% |
BLDR Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.