Builders Firstsource Inc
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +5.69%.
Did BLDR Beat Earnings? Q1 2026 Results
Builders FirstSource posted a bruising first quarter for fiscal 2026, missing adjusted earnings estimates by a wide margin even as its top line came in ahead of expectations, a split result that sent shares to a 52-week low. Adjusted diluted EPS of $0.27 fell well short of the $0.37 consensus, a 27.61% miss, while revenue of $3.29 billion edged 3.58% above estimates but still represented a steep 10.1% decline from the year-ago period. The core culprit was a housing market under pressure: an 8.3% drop in organic net sales, led by an 11.1% decline in single-family volumes, compressed gross margin by 220 basis points to 28.3% and drove adjusted EBITDA down 42.1% to $213.80 million. On a GAAP basis, the company swung to a net loss of $47.41 million from net income of $96.30 million a year earlier. Looking ahead, management guided full-year 2026 net sales of $14.60 billion to $15.60 billion and adjusted EBITDA of $1.10 billion to $1.50 billion, assuming single-family and multi-family starts each decline in the low-single digits and commodity prices hold in the $390 to $410 per thousand board feet range.
- Lower housing starts environment drove 10.1% net sales decline
- Core organic net sales declined 8.3%, with Single Family down 11.1%
- Commodity deflation of 3.3% weighed on revenue
- Acquisitions contributed 1.5% net sales growth
- Gross margin compressed 220 basis points to 28.3%
- Higher net interest expense increased $9.5 million to $74.4 million due to higher average debt balances
- Reduced operating leverage increased SG&A as a percentage of sales by 240 basis points
- Approximately $6 million in productivity savings from operational excellence initiatives
“Our first quarter results reflect the adaptability of our operating model as we delivered strong strategic share growth in a weak housing market. Across the organization, we remain focused on the factors within our control, including serving our customers, expanding our differentiated portfolio of value-added solutions, and leveraging technology to accelerate growth and drive operational excellence. This disciplined approach continues to strengthen our leading position as a trusted, full-service partner to homebuilders.”
Builders FirstSource CEO, on the earnings call
Forward Guidance & Outlook
For full-year 2026, Builders FirstSource expects net sales of $14.6 billion to $15.6 billion, gross profit margin of 27.5% to 29%, Adjusted EBITDA of $1.1 billion to $1.5 billion, Adjusted EBITDA margin of 7.5% to 9.6%, and free cash flow of approximately $0.4 billion to $0.5 billion (assuming commodity prices of $390–$410 per mbf). Key assumptions include single-family starts down low-single digits, multi-family starts down low-single digits, R&R down 1%, acquisitions adding approximately 1% to net sales, capex of $225–$275 million, interest expense of $275–$285 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 and supply chain initiatives.
BLDR YoY Financials
BLDR Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.