Builders FirstSource (NYSE:BLDR) Releases Quarterly Earnings Results, Misses Estimates By $0.09 EPS

Builders FirstSource (NYSE:BLDR) released its quarterly earnings results on Thursday. The company reported $1.17 earnings per share for the quarter, missing the consensus estimate of $1.26 by ($0.09), FiscalAI reports. The company had revenue of $3.86 billion for the quarter, compared to analysts’ expectations of $3.92 billion. Builders FirstSource had a net margin of 1.97% and a return on equity of 14.89%. The business’s quarterly revenue was down 8.8% on a year-over-year basis. During the same quarter in the previous year, the company posted $2.38 EPS.

Here are the key takeaways from Builders FirstSource’s conference call:

• 2026 guidance was lowered to reflect weaker housing demand, with single-family starts expected to decline nearly 7%, multifamily starts 4%, and repair-and-remodel activity 1%. Net sales are now expected at $14.0-$14.8 billion and adjusted EBITDA at $1.0-$1.2 billion.
• Second-quarter net sales fell 9% to $3.9 billion, while adjusted EBITDA declined 35% to $329 million and adjusted EPS dropped 51% to $1.17. Gross margin contracted 260 basis points to 28.1% amid lower starts and competitive pricing pressure.
• Management said it maintained market share despite the weak environment and identified an additional $40 million of fixed-cost savings, increasing its 2026 cost-action target to $115 million. Productivity initiatives generated $28 million of savings in the quarter.
• BFS continues to pursue acquisitions and completed the purchase of Precision Design and Trim in Boise during June. Management sees substantial long-term M&A runway in the fragmented building-products market, although elevated leverage will remain a consideration.
• Demand remains pressured by high interest rates, affordability concerns, elevated builder inventories, and uncertainty, particularly in Texas, Colorado, and multifamily construction. The company is consolidating facilities, reducing capital expenditures, and preserving liquidity while positioning for a future housing recovery.

Builders FirstSource Trading Down 2.4%

BLDR stock traded down $1.64 during midday trading on Thursday, reaching $66.12. The company’s stock had a trading volume of 4,608,350 shares, compared to its average volume of 2,459,728. The company has a debt-to-equity ratio of 1.15, a quick ratio of 1.09 and a current ratio of 1.76. The stock has a fifty day simple moving average of $77.23 and a two-hundred day simple moving average of $90.42. Builders FirstSource has a 1 year low of $65.10 and a 1 year high of $151.03. The firm has a market capitalization of $7.11 billion, a price-to-earnings ratio of 25.33, a PEG ratio of 1.81 and a beta of 1.42.

Institutional Trading of Builders FirstSource

A number of large investors have recently made changes to their positions in BLDR. Invesco Ltd. lifted its holdings in Builders FirstSource by 36.0% during the 4th quarter. Invesco Ltd. now owns 2,102,080 shares of the company’s stock valued at $216,283,000 after buying an additional 556,210 shares in the last quarter. Corient Private Wealth LLC grew its stake in Builders FirstSource by 1.7% in the 4th quarter. Corient Private Wealth LLC now owns 49,805 shares of the company’s stock worth $5,051,000 after acquiring an additional 849 shares in the last quarter. Alberta Investment Management Corp bought a new position in Builders FirstSource in the 4th quarter worth about $1,245,000. NewEdge Advisors LLC increased its position in shares of Builders FirstSource by 8.9% during the fourth quarter. NewEdge Advisors LLC now owns 4,593 shares of the company’s stock worth $473,000 after acquiring an additional 376 shares during the period. Finally, Empowered Funds LLC raised its stake in shares of Builders FirstSource by 63.3% during the fourth quarter. Empowered Funds LLC now owns 55,757 shares of the company’s stock valued at $5,737,000 after acquiring an additional 21,611 shares in the last quarter. 95.53% of the stock is owned by hedge funds and other institutional investors.

Builders FirstSource declared that its Board of Directors has approved a stock buyback plan on Thursday, April 30th that allows the company to repurchase $500.00 million in outstanding shares. This repurchase authorization allows the company to buy up to 5.4% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s leadership believes its stock is undervalued.

Wall Street Analysts Forecast Growth

BLDR has been the subject of several recent analyst reports. Royal Bank Of Canada dropped their price objective on shares of Builders FirstSource from $110.00 to $107.00 and set an “outperform” rating for the company in a research note on Friday, May 1st. DA Davidson set a $100.00 target price on shares of Builders FirstSource in a report on Thursday, July 23rd. Barclays dropped their price target on shares of Builders FirstSource from $114.00 to $93.00 and set an “overweight” rating for the company in a research note on Friday, May 1st. Deutsche Bank Aktiengesellschaft cut their price target on shares of Builders FirstSource from $102.00 to $81.00 and set a “hold” rating on the stock in a report on Monday, May 4th. Finally, Zacks Research raised shares of Builders FirstSource from a “strong sell” rating to a “hold” rating in a research report on Friday, July 3rd. Nine research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $99.97.

Builders FirstSource Company Profile

Builders FirstSource, Inc is a leading supplier of structural and value-added building products and services to professional contractors, homebuilders and remodelers. The company provides a comprehensive range of materials and prefabricated components that support all phases of residential construction, from site development and framing to finishing and installation.

The company’s core offerings include lumber and lumber sheet goods, windows and doors, millwork, roofing and siding, and engineered wood products such as roof and floor trusses.