Builders Firstsource Inc
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.30%.
Did BLDR Beat Earnings? Q2 2025 Results
Builders FirstSource delivered a mixed second quarter, edging past earnings expectations while falling short on revenue as a deepening housing slowdown weighed heavily on results. Adjusted diluted EPS came in at $2.38, ahead of the $2.34 consensus estimate by 1.57%, but net sales slid 5.0% year-over-year to $4.23 billion, short of the $4.28 billion analysts had expected. The core story was a housing market under significant strain, with Single-Family sales contracting 9.1% and Multi-Family plunging 23.3%, driving an 8.5% decline in organic net sales that no amount of acquisition-led growth could fully offset. Gross margin compressed 210 basis points to 30.7%, while adjusted EBITDA fell 24.4% to $506.10 million, pressuring shares by roughly 9% following the report. Looking ahead, management guided full-year 2025 net sales of $14.80 billion to $15.60 billion and adjusted EBITDA of $1.50 billion to $1.70 billion, assuming Single-Family starts decline 10% to 12% and Multi-Family starts fall mid-teens, signaling continued caution through year-end.
- Core organic net sales declined 8.5%, driven by Single-Family down 9.1% and Multi-Family down 23.3%
- R&R/Other increased 3.0%
- Commodity deflation of 1.5% reduced net sales
- Acquisitions contributed 5.0% growth to net sales
- Gross margin compressed 210 basis points to 30.7% due to Single- and Multi-Family margin normalization and below-normal starts
- SG&A increased 1.5% driven by acquired operations and ERP implementation costs
- Net interest expense increased $20 million to $72 million due to higher average debt balances
- Productivity savings of approximately $5 million delivered in Q2, $22 million year to date
“Our durable results in the second quarter reinforce the advantage of our differentiated product offerings and commitment to execution. In this challenging market environment, we are prioritizing what's within our control—serving customers with excellence, leveraging technology, and managing the business with discipline. We remain focused on building for the future through investments in value-added solutions, digital capabilities, and operational efficiency. These efforts are strengthening our position in the industry and laying the foundation to emerge stronger and accelerate delivery of long-term shareholder value as market conditions improve.”
Builders FirstSource CEO, on the earnings call
Forward Guidance & Outlook
For full-year 2025, Builders FirstSource expects net sales of $14.8 billion to $15.6 billion, gross profit margin of 29.0% to 30.5%, Adjusted EBITDA of $1.5 billion to $1.7 billion, Adjusted EBITDA margin of 10.1% to 10.9%, and free cash flow of $0.8 billion to $1.0 billion (assuming average commodity prices of $375 to $425 per thousand board foot). Key assumptions include Single-Family starts down 10-12%, Multi-Family starts down mid-teens, and flat R&R activity. Acquisitions completed within the last twelve months are projected to add 5.0% to 5.5% in net sales growth. Total capital expenditures are expected at $300 million to $350 million, interest expense of $270 million to $280 million, an effective tax rate of 23.0% to 25.0%, and D&A of $550 million to $600 million. One fewer selling day is projected to decrease net sales by 0.4%. Productivity savings of $45 million to $65 million are expected for the full year.
BLDR YoY Financials
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Figures from SEC filings and company reports. Not investment advice.