Builders FirstSource (NYSE:BLDR) Posts Quarterly Earnings Results

Builders FirstSource (NYSE:BLDR) announced its quarterly earnings data on Thursday. The company reported $1.17 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.25 by ($0.08), FiscalAI reports. The company had revenue of $3.86 billion for the quarter, compared to the consensus estimate of $3.91 billion. Builders FirstSource had a return on equity of 14.89% and a net margin of 1.97%.The company’s revenue for the quarter was down 8.8% on a year-over-year basis. During the same quarter in the prior year, the company earned $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 Price Performance

NYSE:BLDR traded down $0.15 during trading hours on Friday, reaching $65.86. 1,370,087 shares of the company were exchanged, compared to its average volume of 2,451,625. The company has a market capitalization of $7.08 billion, a P/E ratio of 25.25, a P/E/G ratio of 1.67 and a beta of 1.42. Builders FirstSource has a 1-year low of $65.10 and a 1-year high of $151.03. The company has a debt-to-equity ratio of 1.15, a current ratio of 1.76 and a quick ratio of 1.09. The business has a 50 day moving average of $77.08 and a 200 day moving average of $90.01.

Analyst Ratings Changes

A number of research analysts have recently commented on the stock. The Goldman Sachs Group decreased their price objective on shares of Builders FirstSource from $110.00 to $101.00 in a research report on Friday, May 1st. Stephens reduced their price target on Builders FirstSource from $125.00 to $100.00 and set an “equal weight” rating for the company in a report on Monday, April 27th. UBS Group set a $88.00 price target on Builders FirstSource in a research report on Friday. Deutsche Bank Aktiengesellschaft set a $66.00 price objective on Builders FirstSource in a research report on Friday. Finally, Weiss Ratings downgraded Builders FirstSource from a “sell (d+)” rating to a “sell (d)” rating in a research note on Tuesday, July 21st. Nine equities research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $91.50.

Builders FirstSource announced that its Board of Directors has initiated a stock repurchase plan on Thursday, April 30th that authorizes the company to repurchase $500.00 million in shares. This repurchase authorization authorizes the company to purchase up to 5.4% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s management believes its stock is undervalued.

Institutional Trading of Builders FirstSource

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

Key Headlines Impacting Builders FirstSource

Here are the key news stories impacting Builders FirstSource this week:

• Positive Sentiment: Truist Financial maintained a Buy rating despite reducing its price target from $115 to $90. The new target still implies substantial potential upside, suggesting the firm expects a recovery in housing-related demand over time. Benzinga analyst update
• Neutral Sentiment: BMO Capital Markets and Stifel Nicolaus reportedly retained Hold ratings, reflecting a wait-and-see stance following the earnings release and uncertainty around the timing of a housing-market recovery. BMO analyst update
• Negative Sentiment: Wells Fargo lowered its price target from $85 to $65 and shifted to an Equal Weight rating. The revised target indicates limited near-term upside and reinforces concerns that earnings recovery may take longer than previously expected. Wells Fargo analyst update
• Negative Sentiment: Builders FirstSource reported second-quarter EPS of $1.17, below the $1.25 consensus estimate and down sharply from $2.38 a year earlier. Revenue of $3.86 billion also missed expectations of $3.91 billion and declined 8.8% year over year. Builders FirstSource Q2 earnings report
• Negative Sentiment: Management issued 2026 revenue guidance of $14.0 billion to $14.8 billion, below the $14.8 billion consensus at the midpoint and signaling continued softness in construction demand. Weaker housing activity and reduced profitability are the main drivers of the negative investor reaction. Builders FirstSource outlook report

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.