Builders FirstSource (NYSE:BLDR) Issues Earnings Results, Misses Expectations By $0.09 EPS

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

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 Stock Down 2.4%

Shares of Builders FirstSource stock traded down $1.64 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. Builders FirstSource has a 52 week low of $65.10 and a 52 week high of $151.03. The firm’s fifty day simple moving average is $77.23 and its two-hundred day simple moving average is $90.42. The company has a quick ratio of 1.09, a current ratio of 1.76 and a debt-to-equity ratio of 1.15. The company has a market capitalization of $7.11 billion, a price-to-earnings ratio of 25.33, a P/E/G ratio of 1.81 and a beta of 1.42.

Hedge Funds Weigh In On Builders FirstSource

Institutional investors and hedge funds have recently modified their holdings of the company. Boston Partners lifted its holdings in shares of Builders FirstSource by 73.0% in the 3rd quarter. Boston Partners now owns 1,852,292 shares of the company’s stock worth $224,627,000 after buying an additional 781,506 shares during the period. Coliseum Capital Management LLC purchased a new stake in shares of Builders FirstSource during the fourth quarter worth about $80,321,000. Dimensional Fund Advisors LP increased its stake in shares of Builders FirstSource by 37.9% during the fourth quarter. Dimensional Fund Advisors LP now owns 2,641,809 shares of the company’s stock worth $271,816,000 after purchasing an additional 725,905 shares in the last quarter. Invesco Ltd. raised its position in shares of Builders FirstSource by 36.0% during the 4th quarter. Invesco Ltd. now owns 2,102,080 shares of the company’s stock worth $216,283,000 after purchasing an additional 556,210 shares during the last quarter. Finally, Renaissance Technologies LLC acquired a new position in shares of Builders FirstSource during the 4th quarter worth about $55,020,000. 95.53% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on BLDR. Royal Bank Of Canada reduced their price objective on Builders FirstSource from $110.00 to $107.00 and set an “outperform” rating on the stock in a research note on Friday, May 1st. KeyCorp dropped their target price on Builders FirstSource from $100.00 to $91.00 and set an “overweight” rating for the company in a report on Monday, July 13th. BMO Capital Markets dropped their target price on Builders FirstSource from $93.00 to $85.00 and set a “market perform” rating for the company in a report on Tuesday. Deutsche Bank Aktiengesellschaft reduced their price target on Builders FirstSource from $102.00 to $81.00 and set a “hold” rating on the stock in a research report on Monday, May 4th. Finally, The Goldman Sachs Group decreased their price target on Builders FirstSource from $110.00 to $101.00 in a research note on Friday, May 1st. Nine investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the stock has an average rating of “Hold” and an average price target of $99.97.

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

Trending Headlines about Builders FirstSource

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

• Positive Sentiment: An insider purchase of 50,000 BLDR shares, valued at approximately $4.4 million, may signal confidence in the company’s long-term prospects. Analysts’ previously published price targets also remain well above the current share price, although these targets may not yet reflect the latest earnings update. Builders FirstSource Falls as Investors Weigh Weak Housing Signals and Earnings Risk
• Neutral Sentiment: BMO Capital Markets maintained its Hold rating, while Stifel Nicolaus also retained a Hold rating, suggesting analysts are waiting for clearer evidence of a housing-market recovery before becoming more positive. BMO Capital Keeps Their Hold Rating on Builders FirstSource
• Negative Sentiment: Builders FirstSource reported second-quarter adjusted earnings of $1.17 per share, below estimates ranging from $1.26 to $1.29 and down sharply from $2.38 a year earlier. Revenue of $3.86 billion also missed expectations of $3.92 billion and declined 8.8% year over year. Builders FirstSource Second-Quarter Earnings Report
• Negative Sentiment: Management issued 2026 revenue guidance of $14.0 billion to $14.8 billion, below the roughly $14.8 billion analyst consensus. The reduced outlook reinforces concerns that demand for building materials and construction-related services is recovering more slowly than expected. Builders FirstSource Stock Down as Q2 Earnings and Sales Miss Estimates
• Negative Sentiment: Recent housing data showing softer single-family construction activity and lower permits is adding pressure to the outlook for suppliers such as BLDR. The combination of weak industry signals, falling profitability and prior guidance reductions has heightened earnings risk. Builders FirstSource Housing Signals and Earnings Risk

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.