Builders Firstsource Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −3.38%.
Did BLDR Beat Earnings? Q4 2025 Results
Builders FirstSource capped a difficult fiscal year with a fourth-quarter miss on both the top and bottom lines, as a persistently weak housing starts environment weighed heavily on results. The building products distributor reported adjusted EPS of $1.12, falling short of the $1.28 consensus estimate by 12.25%, while revenue of $3.36 billion trailed expectations by 2.87% and declined 12.1% from a year earlier. The shortfall traced primarily to a 14.0% drop in core organic net sales, with single-family demand off 15.4% and multi-family sliding 20.4%, pressures that also squeezed gross margin by 250 basis points to 29.8% and sent adjusted EBITDA down 44.3% to $274.90 million. SG&A costs climbed despite lower sales, reflecting ongoing ERP system implementation expenses that totaled $135.80 million for the full year, roughly double the prior year's burden. Analysts have flagged declining revenue and ROIC as meaningful risks for the stock. Looking ahead, management guided 2026 net sales of $14.80 billion to $15.80 billion and free cash flow of approximately $500.00 million, assuming flat housing starts within its geographies.
- Below-normal housing starts environment drove 12.1% net sales decline
- Core organic net sales declined 14.0% with Single Family down 15.4%, Multi-Family down 20.4%, and R&R/Other down 6.5%
- Commodity deflation of 1.9% further pressured net sales
- Acquisitions contributed 3.8% growth partially offsetting organic declines
- Gross profit margin declined 250 basis points to 29.8%
- Reduced operating leverage increased SG&A as a percentage of net sales by 370 basis points to 28.0%
- Higher average debt balances increased net interest expense by $14.6 million
“Driven by focused execution and close customer partnerships, we successfully navigated 2025 despite ongoing housing affordability challenges, weak consumer confidence, and depressed commodity prices. We remain committed to reducing barriers to affordable housing and driving a more efficient, integrated supply chain. Our ability to perform effectively through each phase of the business cycle reflects the strength of our differentiated value-added solutions, industry-leading technology, and unique operating model.”
Builders FirstSource CEO, on the earnings call
Forward Guidance & Outlook
For 2026, Builders FirstSource expects net sales of $14.8 billion to $15.8 billion, gross profit margin of 28.5% to 30%, adjusted EBITDA of $1.3 billion to $1.7 billion, adjusted EBITDA margin of 8.8% to 10.8%, and free cash flow of approximately $0.5 billion (assuming average commodity prices of $365–$385 per thousand board foot). Key assumptions include flat single-family and multi-family starts within the company's geographies, R&R up 1%, acquisitions adding approximately 1% net sales growth, total capex of $250–$300 million, interest expense of $270–$280 million, effective tax rate of 20%–22%, and D&A of $525–$575 million. The company expects $50–$70 million in productivity savings from operational excellence initiatives.
BLDR YoY Financials
BLDR Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.