Track market-moving stories before they get noisy

Builders FirstSource (BLDR - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Over the past month, shares of this construction supply company have returned -16.7%, compared to the Zacks S&P 500 composite's -0.4% change. During this period, the Zacks Building Products - Retail industry, which Builders FirstSource falls in, has lost 11.9%. The key question now is: What could be the stock's future direction?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

Builders FirstSource is expected to post earnings of $1.14 per share for the current quarter, representing a year-over-year change of -39.4%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

For the current fiscal year, the consensus earnings estimate of $3.15 points to a change of -54.3% from the prior year. Over the last 30 days, this estimate has remained unchanged.

For the next fiscal year, the consensus earnings estimate of $4.28 indicates a change of +36% from what Builders FirstSource is expected to report a year ago. Over the past month, the estimate has remained unchanged.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Builders FirstSource is rated Zacks Rank #5 (Strong Sell).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

For Builders FirstSource, the consensus sales estimate for the current quarter of $3.8 billion indicates a year-over-year change of -3.6%. For the current and next fiscal years, $14.32 billion and $14.74 billion estimates indicate -5.7% and +2.9% changes, respectively.

Last Reported Results and Surprise HistoryBuilders FirstSource reported revenues of $3.86 billion in the last reported quarter, representing a year-over-year change of -8.8%. EPS of $1.17 for the same period compares with $2.38 a year ago.

Compared to the Zacks Consensus Estimate of $3.91 billion, the reported revenues represent a surprise of -1.23%. The EPS surprise was -9.3%.

Over the last four quarters, the company surpassed EPS estimates just once. The company topped consensus revenue estimates two times over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Builders FirstSource is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Builders FirstSource. However, its Zacks Rank #5 does suggest that it may underperform the broader market in the near term.

Builders FirstSource (BLDR - Free Report) ended the recent trading session at $65.79, demonstrating a +2.51% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily loss of 0.38%. Elsewhere, the Dow saw a downswing of 0.51%, while the tech-heavy Nasdaq depreciated by 0.29%.

Shares of the construction supply company have depreciated by 11.49% over the course of the past month, underperforming the Retail-Wholesale sector's loss of 6.14%, and the S&P 500's gain of 2.08%.

Investors will be eagerly watching for the performance of Builders FirstSource in its upcoming earnings disclosure. On that day, Builders FirstSource is projected to report earnings of $1.14 per share, which would represent a year-over-year decline of 39.36%. At the same time, our most recent consensus estimate is projecting a revenue of $3.8 billion, reflecting a 3.62% fall from the equivalent quarter last year.

BLDR's full-year Zacks Consensus Estimates are calling for earnings of $3.15 per share and revenue of $14.32 billion. These results would represent year-over-year changes of -54.28% and -5.71%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Builders FirstSource. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, Builders FirstSource possesses a Zacks Rank of #5 (Strong Sell).

In terms of valuation, Builders FirstSource is currently trading at a Forward P/E ratio of 20.37. For comparison, its industry has an average Forward P/E of 19.88, which means Builders FirstSource is trading at a premium to the group.

We can also see that BLDR currently has a PEG ratio of 2.08. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Building Products - Retail stocks are, on average, holding a PEG ratio of 2.08 based on yesterday's closing prices.

The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 239, which puts it in the bottom 3% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

Builders FirstSource (NYSE:BLDR – Get Free Report) and Tecnoglass (NYSE:TGLS – Get Free Report) are both industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitability, valuation and analyst recommendations.

Analyst Ratings This is a breakdown of current ratings and price targets for Builders FirstSource and Tecnoglass, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Builders FirstSource 3 13 9 0 2.24 Tecnoglass 0 2 3 0 2.60 Builders FirstSource presently has a consensus price target of $90.35, suggesting a potential upside of 33.38%. Tecnoglass has a consensus price target of $63.33, suggesting a potential upside of 57.94%. Given Tecnoglass’ stronger consensus rating and higher possible upside, analysts clearly believe Tecnoglass is more favorable than Builders FirstSource.

Earnings and Valuation This table compares Builders FirstSource and Tecnoglass”s gross revenue, earnings per share (EPS) and valuation. Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Builders FirstSource $14.45 billion 0.50 $435.20 million $0.91 74.44 Tecnoglass $983.61 million 1.81 $159.57 million $2.84 14.12 Builders FirstSource has higher revenue and earnings than Tecnoglass. Tecnoglass is trading at a lower price-to-earnings ratio than Builders FirstSource, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk Builders FirstSource has a beta of 1.44, indicating that its stock price is 44% more volatile than the S&P 500. Comparatively, Tecnoglass has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500.

Institutional and Insider Ownership 95.5% of Builders FirstSource shares are owned by institutional investors. Comparatively, 37.3% of Tecnoglass shares are owned by institutional investors. 2.7% of Builders FirstSource shares are owned by company insiders. Comparatively, 0.1% of Tecnoglass shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability This table compares Builders FirstSource and Tecnoglass’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets Builders FirstSource 0.71% 11.73% 4.32% Tecnoglass 12.35% 17.84% 10.14% (Get Free Report)

Builders FirstSource, Inc., together with its subsidiaries, manufactures and supplies building materials, manufactured components, and construction services to professional homebuilders, sub-contractors, remodelers, and consumers in the United States. It offers lumber and lumber sheet goods comprising dimensional lumber, plywood, and oriented strand board products that are used in on-site house framing; manufactured products, such as wood floor and roof trusses, floor trusses, wall panels, stairs, and engineered wood products; and windows, and interior and exterior door units, as well as interior trims and custom products comprising intricate mouldings, stair parts, and columns under the Synboard brand name. The company also provides specialty building products and services, including vinyl, composite and wood siding, exterior trims, metal studs, cement, roofing, insulation, wallboards, ceilings, cabinets, and hardware products; turn-key framing, shell construction, design assistance, and professional installation services. In addition, it offers software products, such as drafting, estimating, quoting, and virtual home design services, which provide software solutions to retailers, distributors, manufacturers, and homebuilders. The company was formerly known as BSL Holdings, Inc. and changed its name to Builders FirstSource, Inc. in October 1999. Builders FirstSource, Inc. was incorporated in 1998 and is based in Irving, Texas.

About Tecnoglass (Get Free Report)

Tecnoglass Inc., through its subsidiaries, designs, produces, markets, and installs architectural systems for the commercial and residential construction industries in Colombia, the United States, Panama, and internationally. The company offers low emissivity, laminated/thermo-laminated, thermo-acoustic, tempered, silk-screened, curved, and digital print glass products. It also provides aluminum products, including bars, plates, profiles, rods, and tubes that are used in the manufacture of architectural glass settings, such as windows, doors, spatial separators, and related products. In addition, the company offers curtain wall/floating facades, windows and doors, interior dividers and commercial display windows, hurricane-proof windows, and stick facade systems; and other products comprising awnings, structures, automatic doors, and other components of architectural systems. It markets and sells its products primarily under the Tecnoglass, ESWindows, and Alutions brands through internal and independent sales representatives, as wells as directly to distributors. The company was founded in 1984 and is headquartered in Barranquilla, Colombia. Tecnoglass Inc. is a subsidiary of Energy Holding Corporation.

Receive News & Ratings for Builders FirstSource Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Builders FirstSource and related companies with MarketBeat.com's FREE daily email newsletter.

Companies join forces to help professional builders work smarter, build faster, and deliver a better homeowner experience.

, /PRNewswire/ -- Builders FirstSource, Inc. (NYSE: BLDR), a leading provider of building materials and value-added services, and Digs, a leading AI platform for homebuilders and homeowners, today announced a strategic partnership to deliver the next generation of AI-powered workflows and digital infrastructure for professional builders and homeowners.

Under the partnership, Builders FirstSource is the solo lead on Digs' $25.3 million Series A financing and has also entered into a five-year commercial agreement with Digs to accelerate product development, strengthen platform integration, and expand AI capabilities. Through the commercial agreement, the companies will collaborate to strengthen Builders FirstSource's digital ecosystem for residential homebuilders and build out new experiences for homeowners.

"Our customers are looking for seamless technology that helps them operate more efficiently and deliver a better homeowner experience," said Peter Jackson, CEO of Builders FirstSource. "By combining Builders FirstSource's scale, deep customer relationships, product data, and extensive digital ecosystem with Digs' AI platform, we are advancing tools that can simplify workflows, improve productivity, and create a more connected experience across the homebuilding lifecycle, enabling us to serve our customers in new ways at every stage."

The companies intend to leverage Builders FirstSource's comprehensive digital ecosystem and Digs' patented AI platform to better serve homebuilders, including the more than 140,000 customers served by Builders FirstSource today, by helping them eliminate disconnected workflows, reduce manual work, and deliver exceptional homeowner experiences from pre-construction through warranty and beyond.

One Intelligent Platform Across the Entire Build

As part of the partnership, Builders FirstSource and Digs intend to enhance Builders FirstSource's digital ecosystem with Digs' patented AI technology to turn thousands of disconnected construction documents into a single living source of truth, connecting plans, specifications, selections, products, approvals, warranties, conversations, and project history into one intelligent platform.

For builders: Every stakeholder can work from the same trusted information, from estimating and purchasing to construction, design, sales, and homeowner care. For homeowners: Greater transparency during construction and a complete digital twin of their home that continues delivering value long after move-in. The result is faster decisions, less rework, shorter project cycle times, and a better ownership experience.

Helping Builders Work Faster at Every Stage

The partnership accelerates a new generation of AI-powered capabilities to streamline operations and improve both internal workflows and the homeowner experience.

Planned innovations include:

A single source of truth for every project with AI chat, files, e-signatures, QR codes, comments, tasks, and project collaboration. AI-powered diagramming, finish selections, and visual coordination between builders, designers, trades, and homeowners. Consumer-grade client experiences that keep homeowners informed throughout construction while reducing interruptions to project teams. AI-powered homeowner handoff, warranty, and aftercare that extends the builder relationship long after move-in. Integrated into Builders FirstSource's digital ecosystem, these connected workflows will be devised to span estimating, procurement, construction, and ongoing homeownership, helping teams build more homes with greater efficiency and confidence.

Extending the Builder Relationship Beyond Move-In

This intelligent foundation will be designed to enable homeowners to receive personalized maintenance guidance, warranty support, and tailored services for their home, while giving builders a more efficient way to manage aftercare and strengthen long-term customer relationships.

Over time, it opens the door to new services and innovations across the full life of the home.

"Our vision has always been beyond construction software," said Ryan Fink, CEO and Co-founder of Digs. "We're building the AI platform that understands every home. Builders FirstSource brings national reach, industry relationships, product data, and market scale. Together, we're creating something even beyond the next generation of residential construction, we're creating the first scalable true digital twin of the home for homeowners to power new experiences for the life of their home."

About Builders FirstSource

Builders FirstSource (NYSE: BLDR), headquartered in Irving, Texas, is a leading provider of building materials for professional builders in new residential construction and repair and remodeling. We deliver integrated homebuilding solutions by manufacturing, supplying, and installing a full range of structural and related building products. With approximately 565 locations across 43 states, we serve 48 of the top 50 and 91 of the top 100 Core Based Statistical Areas (CBSAs), ensuring broad geographic coverage and enhancing our ability to partner with our customers. Our leading network of strategically located manufacturing facilities produces factory-built roof and floor trusses, wall panels, vinyl windows, custom millwork and trim, manufactured and semi-custom modular homes, as well as engineered wood that we design and cut specifically for each home. We also assemble interior and exterior doors into pre-hung units for easy installation. Additionally, we distribute a wide range of building products, including lumber, sheet goods, windows, doors, millwork, and specialty items. Our services, which vary by market, include professional installation, turnkey framing, and shell construction. Supported by the latest construction innovations and digital solutions, we help drive greater efficiency across homebuilding. Learn more at www.bldr.com.

About Digs

Digs is the leading AI platform for homebuilders and homeowners. Using patented artificial intelligence, Digs transforms construction documents into a single source of truth that helps builders boost productivity, accelerate workflows, improve collaboration, and deliver exceptional homeowner experiences from pre-construction through warranty, aftercare, and beyond. Digs serves builders, contractors, designers, trade partners, vendors, and homeowners across all 50 states.

Forward-Looking Statements

Statements in this news release and the schedules hereto that are not purely historical facts or that necessarily depend upon future events, including statements about the partnership between Builders FirstSource and Digs, the resulting product innovation and the capabilities of Builders FirstSource's and Digs' digital platforms, may be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Readers are cautioned not to place undue reliance on forward-looking statements. In addition, oral statements made by the Builders FirstSource's directors, officers and employees to the investor and analyst communities, media representatives and others, depending upon their nature, may also constitute forward-looking statements. As with the forward-looking statements included in this release, these forward-looking statements are by nature inherently uncertain, and actual results or events may differ materially as a result of many factors. All forward-looking statements are based upon information available to Builders FirstSource on the date this release was submitted. Builders FirstSource undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements involve risks and uncertainties, many of which are beyond the Builders FirstSource's control or may be currently unknown to the Builders FirstSource, that could cause actual events or results to differ materially from the events or results described in the forward-looking statements; such risks or uncertainties include those related to the partnership between Builders FirstSource and Digs and the ability of the partnership to achieve the anticipated benefits thereof, adoption of the technologies being developed by Builders FirstSource and Digs by homebuilders and homeowners, the ability of Builders FirstSource's growth strategies, including acquisitions, organic growth and digital and technology strategies, including the Builders FirstSource's ability to drive growth by incorporating artificial intelligence and machine learning solutions into its platform, or the dependence of the Builders FirstSource's revenues and operating results on, among other things, the homebuilding industry and, to a lesser extent, repair and remodel activity, which in each case is dependent on economic conditions, including inflation, interest rates, home size and affordability, consumer confidence, labor and supply shortages, tariffs and duties, and also lumber and other commodity prices. The Builders FirstSource may not succeed in addressing these and other risks. Further information regarding factors that could affect our financial and other results can be found in the risk factors section of Builders FirstSource's most recent annual report on Form 10-K filed with the Securities and Exchange Commission (the "SEC") and may also be described from time to time in the other reports Builders FirstSource files with the SEC. Consequently, all forward-looking statements in this release are qualified by the factors, risks and uncertainties contained therein.

SOURCE Digs

Bank of New York Mellon Corp purchased a new stake in Builders FirstSource, Inc. (NYSE:BLDR – Free Report) during the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund purchased 554,604 shares of the company’s stock, valued at approximately $49,626,000. Bank of New York Mellon Corp owned approximately 0.52% of Builders FirstSource as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors and hedge funds also recently made changes to their positions in the company. Northwestern Mutual Wealth Management Co. increased its holdings in Builders FirstSource by 99,084.1% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 2,241,561 shares of the company’s stock worth $230,634,000 after purchasing an additional 2,239,301 shares in the last quarter. Norges Bank acquired a new stake in shares of Builders FirstSource in the 4th quarter valued at about $109,269,000. Boston Partners lifted its holdings in shares of Builders FirstSource by 73.0% in the third quarter. Boston Partners now owns 1,852,292 shares of the company’s stock valued at $224,627,000 after purchasing an additional 781,506 shares in the last quarter. Coliseum Capital Management LLC bought a new stake in shares of Builders FirstSource in the fourth quarter valued at about $80,321,000. Finally, Dimensional Fund Advisors LP boosted its position 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 buying an additional 725,905 shares during the period. Institutional investors and hedge funds own 95.53% of the company’s stock.

Builders FirstSource Price Performance NYSE:BLDR opened at $67.29 on Friday. Builders FirstSource, Inc. has a 1-year low of $65.10 and a 1-year high of $151.03. The company has a current ratio of 1.79, a quick ratio of 1.09 and a debt-to-equity ratio of 1.14. The firm has a fifty day simple moving average of $75.22 and a 200 day simple moving average of $82.90. The stock has a market capitalization of $7.24 billion, a PE ratio of 73.94, a P/E/G ratio of 2.23 and a beta of 1.44.

Builders FirstSource (NYSE:BLDR – Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The company reported $1.17 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.25 by ($0.08). The firm 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 11.73% and a net margin of 0.71%.The business’s revenue was down 8.8% compared to the same quarter last year. During the same period last year, the company posted $2.38 earnings per share. On average, research analysts expect that Builders FirstSource, Inc. will post 3.15 EPS for the current fiscal year. Builders FirstSource announced that its Board of Directors has initiated a stock buyback plan on Thursday, April 30th that permits the company to repurchase $500.00 million in shares. This repurchase authorization permits the company to purchase up to 5.4% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s board believes its stock is undervalued.

Analyst Ratings Changes A number of equities research analysts recently issued reports on the company. Stifel Nicolaus dropped their target price on Builders FirstSource from $76.00 to $70.00 and set a “hold” rating on the stock in a research report on Thursday, July 23rd. Benchmark reduced their price target on Builders FirstSource from $105.00 to $100.00 and set a “buy” rating for the company in a research report on Thursday, July 23rd. Deutsche Bank Aktiengesellschaft set a $66.00 price target on shares of Builders FirstSource in a research note on Friday, July 31st. Robert W. Baird set a $75.00 price objective on shares of Builders FirstSource in a report on Friday, July 31st. Finally, UBS Group cut their price objective on shares of Builders FirstSource from $122.00 to $88.00 and set a “buy” rating on the stock in a research report on Friday, July 31st. Nine research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $90.35.

Check Out Our Latest Research Report on BLDR

Builders FirstSource Profile (Free Report)

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.

Read More Five stocks we like better than Builders FirstSource Nutanix’s Rally Has a Bigger Story Than Earnings as AMD’s AI Bet Takes Shape SEC Probe Puts Wall Street Leverage Risk Back in Focus A Bearish-Dollar Options Surge Raises the Stakes for Warsh at Jackson Hole Five Below’s Turnaround Is Working—But Has the Stock Run Too Far? Want to see what other hedge funds are holding BLDR? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Builders FirstSource, Inc. (NYSE:BLDR – Free Report).

Receive News & Ratings for Builders FirstSource Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Builders FirstSource and related companies with MarketBeat.com's FREE daily email newsletter.

Posted by Defense World Staff on Aug 6th, 2026

Cetera Investment Advisers lowered its stake in Builders FirstSource, Inc. (NYSE:BLDR – Free Report) by 16.3% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 41,118 shares of the company’s stock after selling 8,025 shares during the period. Cetera Investment Advisers’ holdings in Builders FirstSource were worth $3,385,000 at the end of the most recent quarter.

Several other institutional investors have also recently bought and sold shares of the stock. Northwestern Mutual Wealth Management Co. lifted its position in Builders FirstSource by 99,084.1% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 2,241,561 shares of the company’s stock valued at $230,634,000 after purchasing an additional 2,239,301 shares during the period. Norges Bank bought a new stake in shares of Builders FirstSource during the fourth quarter worth approximately $109,269,000. Boston Partners raised its stake in shares of Builders FirstSource by 73.0% during the third 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 last quarter. Coliseum Capital Management LLC acquired a new position in Builders FirstSource in the fourth quarter valued at approximately $80,321,000. Finally, Dimensional Fund Advisors LP boosted its stake in Builders FirstSource by 37.9% in the fourth quarter. Dimensional Fund Advisors LP now owns 2,641,809 shares of the company’s stock valued at $271,816,000 after acquiring an additional 725,905 shares during the last quarter. Institutional investors own 95.53% of the company’s stock.

Builders FirstSource Stock Performance BLDR opened at $75.93 on Thursday. The company has a market capitalization of $8.17 billion, a price-to-earnings ratio of 83.44, a P/E/G ratio of 2.45 and a beta of 1.44. The business’s 50-day moving average price is $76.88 and its two-hundred day moving average price is $88.50. Builders FirstSource, Inc. 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 1.14, a current ratio of 1.79 and a quick ratio of 1.09.

Builders FirstSource (NYSE:BLDR – Get Free Report) last posted its quarterly earnings data on Thursday, July 30th. The company reported $1.17 earnings per share for the quarter, missing the consensus estimate of $1.25 by ($0.08). Builders FirstSource had a return on equity of 11.73% and a net margin of 0.71%.The firm had revenue of $3.86 billion for the quarter, compared to analyst estimates of $3.91 billion. During the same period in the prior year, the company earned $2.38 earnings per share. The firm’s quarterly revenue was down 8.8% on a year-over-year basis. Equities analysts expect that Builders FirstSource, Inc. will post 3.15 EPS for the current fiscal year.

Builders FirstSource declared that its board has approved a share buyback program on Thursday, April 30th that allows the company to buyback $500.00 million in shares. This buyback authorization allows the company to repurchase up to 5.4% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s board of directors believes its stock is undervalued.

Wall Street Analysts Forecast Growth A number of equities research analysts recently commented on BLDR shares. Deutsche Bank Aktiengesellschaft set a $66.00 price objective on Builders FirstSource in a report on Friday, July 31st. Benchmark lowered their price target on Builders FirstSource from $105.00 to $100.00 and set a “buy” rating for the company in a research note on Thursday, July 23rd. Truist Financial cut their price target on shares of Builders FirstSource from $115.00 to $90.00 and set a “buy” rating on the stock in a research report on Friday, July 31st. Raymond James Financial decreased their price objective on shares of Builders FirstSource from $140.00 to $100.00 in a report on Friday, May 1st. Finally, Weiss Ratings downgraded shares of 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, eleven have given a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Builders FirstSource presently has a consensus rating of “Hold” and a consensus price target of $90.59.

Read Our Latest Research Report on BLDR

Builders FirstSource Company Profile (Free Report)

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.

See Also Five stocks we like better than Builders FirstSource SpaceX: Love the Company, But the Stock Is a Harder Call Ulta’s Growth Is Real, But So Are the Risks BWX Technologies Is Turning the AI Power Problem Into a Nuclear Growth Story Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth

Receive News & Ratings for Builders FirstSource Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Builders FirstSource and related companies with MarketBeat.com's FREE daily email newsletter.

« PREVIOUS HEADLINEEmpowered Funds LLC Buys 3,616 Shares of Willis Towers Watson Public Limited Company $WTW

NEXT HEADLINE »Cetera Investment Advisers Sells 10,491 Shares of CAVA Group, Inc. $CAVA

Key Takeaways Builders FirstSource cut its 2026 sales and adjusted EBITDA outlook amid softer housing construction demand.BLDR's Q2 margins contracted as pricing pressure and weaker operating leverage weighed on profitability.BLDR's 2026 earnings estimate has fallen sharply, while higher leverage and weak housing trends remain risks. Builders FirstSource, Inc. (BLDR - Free Report) shares have fallen about 12% in the past month, extending a difficult stretch for the building-products supplier. The decline raises a central question for investors: Has the pullback created value, or are weaker fundamentals still being reflected in the stock?

The latest results favor caution. Housing demand remains soft, margins have contracted and the Zacks Consensus Estimate for 2026 earnings has moved sharply lower.

BLDR Faces Broad Housing Demand PressureCore organic sales declined 7% year over year in the second quarter of 2026. Single-family sales fell 8.1%, multifamily dropped 9.7% and repair-and-remodel and other sales decreased 1.8%, showing that weakness was not confined to one end market.

Management now expects single-family starts to decline by mid to high-single digits in 2026, multifamily starts to fall by mid-single digits and repair-and-remodel activity to decrease 1%. Installed Building Products, Inc. (IBP - Free Report) , a national installer of insulation and complementary building products, also has meaningful exposure to residential construction. UFP Industries, Inc. (UFPI - Free Report) serves construction customers alongside retail and industrial packaging markets, giving investors another building-products company through which to assess demand conditions.

Builders FirstSource Sees Margins ContractBuilders FirstSource’s gross margin fell 260 basis points year over year to 28.1% in the second quarter. Adjusted EBITDA margin declined 350 basis points to 8.5% as lower gross profit and reduced operating leverage outweighed cost reductions.

Pricing pressure remains another constraint. Value-added core organic sales declined 11%, including a 12% drop in manufactured products and a 10% decrease in windows, doors and millwork. Management said industry participants have competed aggressively to fill capacity, leaving margins below desired levels despite greater stability in recent months.

BLDR Estimate Cuts Reinforce the RisksThe company lowered its 2026 net sales outlook to $14-$14.8 billion from $14.6-$15.6 billion. It also reduced adjusted EBITDA guidance to $1-$1.2 billion from $1.1-$1.5 billion and narrowed the expected adjusted EBITDA margin range to 7.1-8.1%.

Second-quarter adjusted earnings of $1.17 per share missed the Zacks Consensus Estimate by 9.3%, while revenues of $3.86 billion missed by 1.2%. The consensus estimate for 2026 earnings has declined 22.9% over the past four weeks, reducing near-term earnings visibility.

Builders FirstSource Retains Recovery LeversBuilders FirstSource continues to use acquisitions, digital tools and productivity programs to strengthen its competitive position. Since the 2021 BMC merger, it has completed 42 acquisitions representing nearly $2.3 billion in annual sales, while recent deals expanded installation and manufactured-product capabilities.

Cost actions could also soften the downturn. The company generated $28 million of productivity savings in the second quarter and expects $50-$70 million for 2026. It remained free-cash-flow positive, with $32 million generated in the quarter and $1.6 billion of liquidity. Still, net debt to trailing adjusted EBITDA rose to 3.6 times from 2.3 times a year earlier, limiting the margin for error.

BLDR’s Weak Signals Favor Continued CautionBLDR’s lower share price and discounted valuation may attract value-focused investors, but the operating and estimate trends have not stabilized. Housing weakness, margin pressure and higher leverage suggest that a durable recovery may depend on improved residential construction activity.

The stock currently carries a Zacks Rank #5 (Strong Sell), reflecting unfavorable earnings estimate revisions and weak near-term prospects.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Its Value Score of B indicates comparatively favorable valuation characteristics, but the Growth Score of D, Momentum Score of C and VGM Score of D show that valuation support is not matched by broad strength across growth and momentum measures. The combination supports a cautious stance rather than a clear value case.

Key Takeaways Builders FirstSource lowered 2026 sales and adjusted EBITDA guidance as residential construction weakens.BLDR's Q2 earnings, sales and margins declined as pricing pressure and lower volumes hurt profitability.BLDR is expanding cost-saving measures, but falling earnings estimates and higher leverage support caution. Builders FirstSource, Inc. (BLDR - Free Report) lowered its 2026 outlook as softer housing activity and competitive pricing weighed on earnings. The reset turns the construction slowdown into a more immediate issue for investors.

The new ranges imply that weaker volumes, reduced operating leverage and margin pressure may continue through the rest of the year. Cost actions provide support, but they do not eliminate the demand problem.

BLDR Lowers Its Full-Year Sales ForecastBuilders FirstSource reduced expected 2026 net sales to $14-$14.8 billion from $14.6-$15.6 billion. The revised range reflects a more cautious view of residential construction and customer activity.

Management expects single-family starts to decline by mid to high-single digits, multifamily starts to fall by mid-single digits and repair-and-remodel activity to decrease 1%. Those assumptions point to broad weakness across the company’s major end markets.

Builders FirstSource Resets Profit ExpectationsAdjusted EBITDA guidance fell to $1-$1.2 billion from $1.1-$1.5 billion. The expected adjusted EBITDA margin range narrowed to 7.1-8.1% from 7.5-9.6%, showing the effect of lower volumes and reduced fixed-cost absorption.

Builders FirstSource also expects a 2026 gross margin of 27.5-28.5%. Competitive pricing and excess industry capacity make a meaningful profit rebound harder to achieve without better housing activity.

BLDR’s Second Quarter Explains the ResetSecond-quarter net sales declined 8.8% year over year to $3.86 billion. Adjusted earnings fell 50.8% to $1.17 per share, missing the Zacks Consensus Estimate by 9.3%, while revenues missed the consensus mark by 1.2%.

Weakness reached every major product category. Value-added product sales declined 11.1%, including a 13.3% drop in manufactured products and a 9.1% decrease in windows, doors and millwork. Adjusted EBITDA fell 34.9%, and adjusted EBITDA margin contracted 350 basis points to 8.5%.

Builders FirstSource Intensifies Cost ActionsThe company increased targeted 2026 cost actions to $115 million. Measures include lower overtime and temporary labor, reduced overhead spending, tighter discretionary controls and additional facility consolidations.

Productivity savings totaled $28 million in the second quarter and $34 million in the first half. Management expects $50-$70 million for 2026, though those savings may only partly offset weaker demand and pricing.

Installed Building Products, Inc. (IBP - Free Report) , a national installer serving residential and commercial construction, offers a useful comparison for labor-intensive building services. UFP Industries, Inc. (UFPI - Free Report) supplies construction customers while also operating in retail and industrial packaging markets. Those business models illustrate how service exposure and diversification can affect resilience when housing activity slows.

BLDR’s Ratings Reflect the Guidance RiskThe lower outlook and sharp estimate cuts leave BLDR exposed to further earnings volatility. Liquidity of about $1.6 billion and expected free cash flow of $400-$500 million provide flexibility, but net debt to trailing adjusted EBITDA has risen to 3.6 times.

BLDR currently carries a Zacks Rank #5 (Strong Sell), which reflects unfavorable earnings estimate revisions and weak near-term prospects. The Zacks Consensus Estimate for 2026 earnings has declined 22.9% over the past four weeks.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Value Score of B indicates relatively favorable valuation characteristics. However, the Growth Score of D, Momentum Score of C and VGM Score of D show limited support from growth and momentum factors. Because the Style Scores complement the Zacks Rank, the overall mix favors caution until demand, margins or estimates show clearer improvement.

Builders FirstSource, Inc. (BLDR) Q2 2026 Earnings Call Transcript

Key Takeaways BLDR reported second-quarter earnings and sales below estimates, with both declining year over year.BLDR faced weaker housing starts, lower organic sales and commodity deflation, partly offset by acquisitions.BLDR cut its 2026 sales and adjusted EBITDA outlook while maintaining free cash flow expectations. Builders FirstSource, Inc. (BLDR - Free Report) second-quarter 2026 adjusted earnings and net sales missed the Zacks Consensus Estimate. Both metrics also declined on a year-over-year basis.

The top-line pullback reflected weaker housing starts, lower core organic sales and commodity deflation. Acquisition growth partly offset these headwinds.

Shares of this manufacturer and supplier of building materials moved down 2.3% during today’s pre-market trading session. The decline reflected the year-over-year contraction in adjusted earnings and revenues, and management’s lowered 2026 sales and profitability outlook amid persistent housing-market weakness.

BLDR’s Q2 Earnings & Revenue DiscussionThe company reported adjusted earnings per share of $1.17, which declined 50.8% year over year and missed the Zacks Consensus Estimate of $1.29 by 9.3%.

Net sales were $3.86 billion, down 8.8% from the year-ago quarter. Sales also missed the $3.91 billion consensus mark by 1.2%. The quarter reflected a softer housing environment and commodity deflation, partly offset by acquisition-related growth.

Builders FirstSource’s End-Market Trends Remained SoftCore organic net sales declined 7% year over year in the second quarter, reflecting broad-based pressure across end markets. Single-Family was the biggest drag, with core organic net sales down 8.1% on lower starts activity and reduced value per start.

Multi-Family sales fell 9.7% as higher interest rates continued to defer certain projects, while Repair and Remodel/Other sales declined 1.8% amid consumer uncertainty. On a weighted basis, Single-Family lowered total net sales by 5.6%, Multi-Family by 1% and Repair and Remodel/Other by 0.4%.

BLDR’s Product Categories Skewed LowerResults were weaker across all major product categories during the second quarter.

Value-Added Products: Net sales from value-added products, comprising 46.2% of quarterly net sales, declined 11.1% year over year to $1.79 billion.

Within this category, Manufactured products sales totaled $831.6 million, down 13.3% from the prior-year quarter. Windows, doors & millwork sales decreased 9.1% to $954.6 million.

Specialty Building Products & Services: Net sales from this product category, representing 26.9% of quarterly sales, declined 5.1% year over year to $1.04 billion.

Lumber & Lumber Sheet Goods: Net sales from this category, also accounting for 26.9% of quarterly sales, decreased 8.1% to $1.04 billion.

Builders FirstSource’s Cost Structure Dented ProfitabilityGross profit declined 16.3% year over year to $1.09 billion. Gross margin contracted 260 basis points to 28.1%, primarily due to the weaker housing starts environment and related headwinds.

Selling, general and administrative expenses decreased 3% to $958.3 million, reflecting lower variable compensation and wages following cost-saving actions. However, SG&A as a percentage of net sales increased 150 basis points to 24.8% because of reduced operating leverage.

The margin pressure weighed on earnings power. Adjusted EBITDA declined 34.9% to $329.3 million, while adjusted EBITDA margin contracted 350 basis points to 8.5%. BLDR generated about $28 million in productivity savings during the quarter and $34 million during the first six months of 2026.

BLDR’s Cash Flow Stayed PositiveDespite weaker earnings, the company remained cash-generative during the quarter. Cash provided by operating activities was $68 million, down from $273 million in the prior-year period. Free cash flow declined to $32.2 million from $255 million, primarily due to lower net income, partly offset by reduced capital expenditures.

Liquidity was approximately $1.6 billion as of June 30, 2026, comprising $1.5 billion of net borrowing availability and $0.1 billion of cash. Net debt totaled $4.6 billion, resulting in a net debt-to-adjusted EBITDA ratio of 3.6 times compared with 2.3 times a year ago. The company had $500 million remaining under its share repurchase authorization.

Builders FirstSource’s 2026 View Turned More CautiousBLDR lowered its 2026 net sales outlook to $14-$14.8 billion from $14.6-$15.6 billion. Gross profit margin is now expected between 27.5% and 28.5% compared with the prior range of 27.5-29%.

The company now expects adjusted EBITDA of $1-$1.2 billion, down from $1.1-$1.5 billion, and adjusted EBITDA margin of 7.1-8.1% compared with 7.5-9.6% previously forecasted. Free cash flow expectations were maintained at $0.4-$0.5 billion.

BLDR lowered its capital expenditure forecast to $175-$225 million from $225-$275 million. Interest expense is now anticipated between $280 million and $290 million, while the adjusted effective tax rate is expected between 22% and 24%. For the third quarter, management expects net sales of $3.6-$3.9 billion and adjusted EBITDA of $275-$325 million.

BLDR’s Zacks RankBuilders FirstSource currently carries a Zacks Rank #4 (Sell).

Stocks to ConsiderHere are some better-ranked stocks from the Zacks Retail-Wholesale sector:

 Five Below, Inc. (FIVE - Free Report) presently sports a Zacks Rank #1 (Strong Buy). The company delivered a trailing four-quarter earnings surprise of 70.1%, on average. FIVE stock has gained 4.4% in the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.

 The Zacks Consensus Estimate for Five Below’s 2026 sales and EPS indicates growth of 15.1% and 36.1%, respectively, from the year-ago period’s levels.

 FIGS, Inc. (FIGS - Free Report) has a Zacks Rank #2 (Buy) at present. The company delivered a trailing four-quarter earnings surprise of 212.5%, on average. FIGS stock has declined 4.9% in the past six months.

 The Zacks Consensus Estimate for FIGS’ 2026 sales and EPS indicates growth of 15.5% and 36.8%, respectively, from the prior-year levels.
 
Dutch Bros Inc. (BROS - Free Report) carries a Zacks Rank of 2 at present. The company delivered a trailing four-quarter earnings surprise of 31.6%, on average. BROS stock has increased 15.8% in the past six months.

 The Zacks Consensus Estimate for Dutch Bros’ 2026 sales and EPS indicates growth of 27% and 23.7%, respectively, from the prior-year levels.

Key Takeaways Builders FirstSource is expected to post lower Q2 earnings and sales amid weak residential construction.BLDR faces margin pressure from competitive pricing, a lower-margin sales mix and elevated input costs.Acquisitions, bundled offerings and AI-enabled digital tools may support revenue and market share. Builders FirstSource, Inc. (BLDR - Free Report) is slated to report second-quarter 2026 results on July 30, before market open.

In the last reported quarter, the company’s adjusted earnings per share (EPS) missed the Zacks Consensus Estimate by 30.8%, while net sales beat the same by 4.5%. On a year-over-year basis, both top and bottom lines tumbled 10.1% and 82.1%, respectively.

BLDR’s earnings topped the consensus mark in two of the trailing four quarters and missed on two occasions, the average surprise being negative 8%.

Trend in Estimate Revision of BLDRThe Zacks Consensus Estimate for Builders FirstSource’s second-quarter EPS has moved south to $1.29 from $1.32 in the past 30 days. The estimated figure indicates a 45.8% year-over-year decline from EPS of $2.38 reported in the year-ago quarter.

The consensus estimate for net sales is pegged at $3.91 billion, indicating a decline of 7.6% from $4.23 billion reported in the year-ago quarter.

Factors Likely to Shape Builders FirstSource’s Q2 ResultsNet Sales

Builders FirstSource's second-quarter revenues are likely to remain under pressure as elevated mortgage rates, affordability constraints and cautious consumer sentiment continue to weigh on residential construction activity. Single-family revenues may remain soft as lower starts and the ongoing shift toward smaller, less complex homes reduce sales dollars per start. Multifamily activity is also expected to stay muted, with management not anticipating a meaningful improvement before 2027.

Value-added products, which comprised 48.3% of first-quarter sales, likely remained pressured by weak single-family construction and lower structural content per home. Specialty products, representing 26% of sales, may have provided some support, though pricing pressure and volatility likely persisted. Lumber and sheet goods, at 25.7% of sales, likely benefited from bundling and share gains, but lower margins and commodity-price movements may have limited the revenue contribution.

Despite these industry headwinds, the company continues to benefit from its broad product portfolio, bundled offerings and expanding value-added solutions. Acquisitions are expected to provide incremental revenue support. Since the BMC merger, Builders FirstSource has completed 41 acquisitions representing more than $2.3 billion in annual sales, while the Premium Building Components deal expanded its manufactured products presence into New York. Digital initiatives may also support growth, with the company preparing to launch its next generation of AI-enabled solutions later this year to strengthen customer engagement and capture additional market share.

Margins

Margins are likely to remain under pressure in the second quarter despite ongoing cost-control efforts. Competitive pricing, an unfavorable product mix with higher lumber and sheet goods sales, and elevated fuel and input costs are expected to weigh on profitability. While BLDR's $100 million cost-reduction program should provide some relief, weak housing demand, affordability challenges and pricing pressure are likely to keep second-quarter margins constrained.

What the Zacks Model Predicts for BLDROur proven model does not conclusively predict an earnings beat for Builders FirstSource this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Unfortunately, this is not the case here, as you will see below.

BLDR’s Earnings ESP: BLDR has an Earnings ESP of -8.74%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank of BLDR: The company currently carries a Zacks Rank of #4 (Sell).

Stocks With the Favorable CombinationHere are some companies in the Zacks Retail-Wholesale sector, which, per our model, have the right combination of elements to post an earnings beat in the respective quarters to be reported.

BJ's Restaurants, Inc. (BJRI - Free Report) currently has an Earnings ESP of +7.51% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

 In the to-be-reported quarter, BJRI's earnings are expected to decline 10.3%. BJRI's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed on one occasion, the average surprise being 136%.

CAVA Group, Inc. (CAVA - Free Report) currently has an Earnings ESP of +20.30% and a Zacks Rank of 3.

In the to-be-reported quarter, CAVA’s earnings are expected to increase 6.3%. CAVA's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed on one occasion, the average surprise being 16.6%.

The Cheesecake Factory Incorporated (CAKE - Free Report) currently has an Earnings ESP of +2.76% and a Zacks Rank of 3.

In the to-be-reported quarter, Cheesecake Factory’s earnings are expected to register a 0.9% year-over-year rise. Cheesecake Factory’s earnings surpassed estimates in each of the trailing four quarters, with an average beat of 6.7%.

The market expects Builders FirstSource (BLDR - Free Report) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 30. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis construction supply company is expected to post quarterly earnings of $1.29 per share in its upcoming report, which represents a year-over-year change of -45.8%.

Revenues are expected to be $3.9 billion, down 7.9% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Builders FirstSource?For Builders FirstSource, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -8.74%.

On the other hand, the stock currently carries a Zacks Rank of #4.

So, this combination makes it difficult to conclusively predict that Builders FirstSource will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Builders FirstSource would post earnings of $0.39 per share when it actually produced earnings of $0.27, delivering a surprise of -30.77%.

Over the last four quarters, the company has beaten consensus EPS estimates two times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Builders FirstSource doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Posted by _ _xnake on Jul 17th, 2026

Shares of Builders FirstSource, Inc. (NYSE:BLDR – Get Free Report) have been given an average rating of “Hold” by the twenty-three brokerages that are covering the firm, Marketbeat reports. Three research analysts have rated the stock with a sell rating, twelve have issued a hold rating and eight have assigned a buy rating to the company. The average 1-year target price among brokerages that have covered the stock in the last year is $101.4481.

A number of equities research analysts recently weighed in on BLDR shares. 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. Loop Capital reduced their price objective on shares of Builders FirstSource from $140.00 to $110.00 in a research note on Friday, May 1st. Royal Bank Of Canada lowered their target price on shares of Builders FirstSource from $110.00 to $107.00 and set an “outperform” rating for the company in a report on Friday, May 1st. Zacks Research upgraded shares of Builders FirstSource from a “strong sell” rating to a “hold” rating in a research report on Friday, July 3rd. Finally, Raymond James Financial cut their price target on Builders FirstSource from $140.00 to $100.00 in a research note on Friday, May 1st.

Get Our Latest Research Report on BLDR

Builders FirstSource Price Performance Shares of BLDR stock opened at $78.23 on Friday. The firm has a market cap of $8.41 billion, a price-to-earnings ratio of 29.97, a PEG ratio of 1.80 and a beta of 1.42. Builders FirstSource has a 12 month low of $65.10 and a 12 month high of $151.03. 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 stock has a 50-day moving average price of $77.30 and a 200 day moving average price of $92.59.

Builders FirstSource (NYSE:BLDR – Get Free Report) last released its earnings results on Thursday, April 30th. The company reported $0.27 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.39 by ($0.12). The business had revenue of $3.29 billion for the quarter, compared to analyst estimates of $3.17 billion. Builders FirstSource had a net margin of 1.97% and a return on equity of 14.89%. The business’s revenue for the quarter was down 10.1% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.51 earnings per share. Research analysts expect that Builders FirstSource will post 4.32 EPS for the current year.

Builders FirstSource announced that its Board of Directors has approved a share repurchase program on Thursday, April 30th that authorizes the company to buyback $500.00 million in shares. This buyback authorization authorizes the company to repurchase up to 5.4% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s leadership believes its shares are undervalued.

Hedge Funds Weigh In On Builders FirstSource Several hedge funds have recently added to or reduced their stakes in the stock. Wedge Capital Management L L P NC grew its position in shares of Builders FirstSource by 6.3% during the 2nd quarter. Wedge Capital Management L L P NC now owns 89,477 shares of the company’s stock worth $8,006,000 after buying an additional 5,268 shares during the period. Hudson Value Partners LLC increased its stake in shares of Builders FirstSource by 10.2% in the 2nd quarter. Hudson Value Partners LLC now owns 60,904 shares of the company’s stock valued at $5,450,000 after acquiring an additional 5,620 shares during the last quarter. LVM Capital Management Ltd. MI acquired a new stake in shares of Builders FirstSource in the 2nd quarter valued at approximately $666,000. Polianta Ltd raised its position in shares of Builders FirstSource by 37.1% in the 2nd quarter. Polianta Ltd now owns 22,900 shares of the company’s stock valued at $2,049,000 after acquiring an additional 6,200 shares during the period. Finally, Czech National Bank boosted its stake in Builders FirstSource by 1.7% during the 2nd quarter. Czech National Bank now owns 30,616 shares of the company’s stock worth $2,740,000 after acquiring an additional 500 shares during the last quarter. Institutional investors and hedge funds own 95.53% of the company’s stock.

Builders FirstSource Company Profile (Get Free Report)

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.

Featured Stories Five stocks we like better than Builders FirstSource Why Abbott Laboratories Stock Is Suddenly Winning Back Wall Street Revving Up Returns: Big Banks Race Through the Rate Plateau Why Uber’s Biggest Deal Yet Could Unlock Its Next Growth Phase Why Microsoft Is Playing a Different AI Game Than Big Tech—and Cash Flow Is the Test

Receive News & Ratings for Builders FirstSource Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Builders FirstSource and related companies with MarketBeat.com's FREE daily email newsletter.

« PREVIOUS HEADLINERio Tinto Group (LON:RIO) Given New GBX 8,100 Price Target at Berenberg Bank

NEXT HEADLINE »Skyline Builders Group (NASDAQ:SKBL) Trading Down 1.4% – What’s Next?

Builders FirstSource (BLDR - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Shares of this construction supply company have returned -5.5% over the past month versus the Zacks S&P 500 composite's +1.3% change. The Zacks Building Products - Retail industry, to which Builders FirstSource belongs, has gained 7.5% over this period. Now the key question is: Where could the stock be headed in the near term?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, Builders FirstSource is expected to post earnings of $1.32 per share, indicating a change of -44.5% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

The consensus earnings estimate of $4.32 for the current fiscal year indicates a year-over-year change of -37.3%. This estimate has changed +1.2% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $5.69 indicates a change of +31.7% from what Builders FirstSource is expected to report a year ago. Over the past month, the estimate has remained unchanged.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Builders FirstSource.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

For Builders FirstSource, the consensus sales estimate for the current quarter of $3.93 billion indicates a year-over-year change of -7.2%. For the current and next fiscal years, $14.87 billion and $15.66 billion estimates indicate -2.1% and +5.3% changes, respectively.

Last Reported Results and Surprise HistoryBuilders FirstSource reported revenues of $3.29 billion in the last reported quarter, representing a year-over-year change of -10.1%. EPS of $0.27 for the same period compares with $1.51 a year ago.

Compared to the Zacks Consensus Estimate of $3.15 billion, the reported revenues represent a surprise of +4.47%. The EPS surprise was -30.77%.

Over the last four quarters, Builders FirstSource surpassed consensus EPS estimates two times. The company topped consensus revenue estimates two times over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Builders FirstSource is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Builders FirstSource. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

IRVING, Texas--(BUSINESS WIRE)--Builders FirstSource, Inc. (NYSE: BLDR) (“Builders FirstSource” or the "Company") will host a conference call and webcast on Thursday, July 30, 2026, to discuss the Company's financial results and other business matters. The teleconference will begin at 8:00 a.m. Central Time and will be hosted by Peter Jackson, President and Chief Executive Officer, and Pete Beckmann, Chief Financial Officer. The live webcast, archived replay, and the accompanying presentation c.

Builders FirstSource (BLDR - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Over the past month, shares of this construction supply company have returned +13%, compared to the Zacks S&P 500 composite's -1.7% change. During this period, the Zacks Building Products - Retail industry, which Builders FirstSource falls in, has gained 10.8%. The key question now is: What could be the stock's future direction?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, Builders FirstSource is expected to post earnings of $1.32 per share, indicating a change of -44.5% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

For the current fiscal year, the consensus earnings estimate of $4.26 points to a change of -38.2% from the prior year. Over the last 30 days, this estimate has remained unchanged.

For the next fiscal year, the consensus earnings estimate of $5.69 indicates a change of +33.5% from what Builders FirstSource is expected to report a year ago. Over the past month, the estimate has remained unchanged.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Builders FirstSource is rated Zacks Rank #5 (Strong Sell).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

For Builders FirstSource, the consensus sales estimate for the current quarter of $3.93 billion indicates a year-over-year change of -7.2%. For the current and next fiscal years, $14.87 billion and $15.66 billion estimates indicate -2.1% and +5.3% changes, respectively.

Last Reported Results and Surprise HistoryBuilders FirstSource reported revenues of $3.29 billion in the last reported quarter, representing a year-over-year change of -10.1%. EPS of $0.27 for the same period compares with $1.51 a year ago.

Compared to the Zacks Consensus Estimate of $3.15 billion, the reported revenues represent a surprise of +4.47%. The EPS surprise was -30.77%.

Over the last four quarters, Builders FirstSource surpassed consensus EPS estimates two times. The company topped consensus revenue estimates two times over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Builders FirstSource is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Builders FirstSource. However, its Zacks Rank #5 does suggest that it may underperform the broader market in the near term.

Builders FirstSource (BLDR - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Shares of this construction supply company have returned +8.7% over the past month versus the Zacks S&P 500 composite's +2% change. The Zacks Building Products - Retail industry, to which Builders FirstSource belongs, has gained 20.7% over this period. Now the key question is: Where could the stock be headed in the near term?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

Builders FirstSource is expected to post earnings of $1.32 per share for the current quarter, representing a year-over-year change of -44.5%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

The consensus earnings estimate of $4.26 for the current fiscal year indicates a year-over-year change of -38.2%. This estimate has remained unchanged over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $5.69 indicates a change of +33.5% from what Builders FirstSource is expected to report a year ago. Over the past month, the estimate has remained unchanged.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Builders FirstSource is rated Zacks Rank #5 (Strong Sell).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

In the case of Builders FirstSource, the consensus sales estimate of $3.93 billion for the current quarter points to a year-over-year change of -7.2%. The $14.87 billion and $15.66 billion estimates for the current and next fiscal years indicate changes of -2.1% and +5.3%, respectively.

Last Reported Results and Surprise HistoryBuilders FirstSource reported revenues of $3.29 billion in the last reported quarter, representing a year-over-year change of -10.1%. EPS of $0.27 for the same period compares with $1.51 a year ago.

Compared to the Zacks Consensus Estimate of $3.15 billion, the reported revenues represent a surprise of +4.47%. The EPS surprise was -30.77%.

Over the last four quarters, Builders FirstSource surpassed consensus EPS estimates two times. The company topped consensus revenue estimates two times over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Builders FirstSource is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Builders FirstSource. However, its Zacks Rank #5 does suggest that it may underperform the broader market in the near term.

On June 17, 2026, Builders FirstSource Inc BLDR shares fell 3.3% today, closing at $76.14. This decline comes after a volatile performance, with the stock ranging from a 52-week high of $151.03 to a low of $65.10. While the stock has shown some resilience recently with a 1-week increase of 2.0% and a 1-month rise of 8.1%, it remains down significantly year-to-date by 26.0% and over the past year by 29.5%.

GF Value™ verdict: Current price of $76.14 vs GF Value™ of $133.63, indicating a 43.0% upside.GF Score™: 82/100, suggesting a strong overall rating.Most notable signal: Insider activity shows that insiders sold $0.4M in the last 3 months with no buying activity. Is BLDR Overvalued or Undervalued? Builders FirstSource Inc BLDR appears to be significantly undervalued at its current price of $76.14 when compared to the GF Value™ estimate of $133.63. This presents a margin of safety of approximately 43.0%, suggesting that there is a substantial upside potential for investors. The GF Valuation label categorizes BLDR as significantly undervalued, which could indicate an attractive opportunity for long-term investors. However, it is important to recognize that market conditions and industry trends can impact future performance, thus posing potential risks despite the current valuation.

GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Given the current undervaluation, investors may consider the potential for price appreciation, but should remain cautious of broader market fluctuations that could affect the stock's trajectory.

How Does BLDR's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 29.2x 12.3x Forward P/E 17.2x N/A Analyzing the current P/E (TTM) of 29.2x, it is notably 137% above its 5-year median P/E of 12.3x. This indicates that Builders FirstSource is trading at a premium compared to its historical valuation metrics. The forward P/E of 17.2x suggests some expected improvement, but the current P/E analysis conflicts with the GF Value™ verdict of undervaluation, indicating that the stock may not be as attractive based on traditional valuation metrics.

What Does BLDR's GF Score™ Tell Us? Metric Rating GF Score™ 82/100 Financial Strength 5/10 Profitability 9/10 Growth 8/10 Valuation 4/10 Momentum 4/10 Builders FirstSource's GF Score™ of 82/100 indicates a strong overall performance, driven primarily by its high profitability rank of 9/10 and a solid growth rank of 8/10. However, the company shows weaknesses in financial strength and valuation, where it received ratings of 5/10 and 4/10, respectively. This suggests that while Builders FirstSource is performing well in terms of profit generation and growth prospects, its financial stability and valuation metrics require closer scrutiny.

What Are Insiders Doing with BLDR Stock? Recent insider activity reveals that insiders have sold approximately $0.4 million worth of shares in the last three months, with no buying activity reported during this period. This selling could indicate a lack of confidence among insiders regarding the stock's short-term performance or broader market conditions. While insider selling does not always correlate with negative future performance, it can be a signal for investors to monitor closely.

What This Means for Investors Based on the GF Value™ assessment, Builders FirstSource Inc BLDR is currently undervalued at a price of $76.14, compared to a GF Value™ estimate of $133.63. However, caution is warranted due to the high current P/E ratio and the recent insider selling activity. Investors should weigh the potential for appreciation against the underlying risks before making investment decisions.

For the complete analysis, visit the Builders FirstSource Inc BLDR stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is BLDR's GF Score™?

BLDR's GF Score™ is 82/100, indicating a strong overall rating based on financial strength, profitability, growth, valuation, and momentum.

Is BLDR overvalued or undervalued?

BLDR is currently undervalued, with a GF Value™ estimate of $133.63 compared to its current price of $76.14, suggesting a potential upside of 43.0%.

What is BLDR's P/E ratio?

BLDR's current P/E (TTM) is 29.2x, which is significantly above its 5-year median P/E of 12.3x, indicating that the stock is trading at a premium compared to its historical valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Key Takeaways BLDR to post Q1 on April 30 premarket, with consensus EPS of 39 cents and net sales of $3.17B, both down Y/Y.BLDR sales may slump on soft residential demand, smaller homes and muted multifamily; value-added demand weak.BLDR's margins face low commodity pricing plus rent/insurance inflation, partly offset by $100M SG&A actions. Builders FirstSource, Inc. (BLDR - Free Report) is slated to report first-quarter 2026 results on April 30, before market open.

In the last reported quarter, the company’s adjusted earnings per share (EPS) and net sales missed the Zacks Consensus Estimate by 13.9% and 2.3%, respectively. On a year-over-year basis, both top and bottom lines tumbled 12.1% and 51.5%, respectively.

BLDR’s earnings topped the consensus mark in three of the trailing four quarters and missed on one occasion, the average surprise being negative 0.2%.

Trend in Estimate Revision of BLDRThe Zacks Consensus Estimate for Builders FirstSource’s first-quarter EPS has moved south to 39 cents from 41 cents in the past 30 days. The estimated figure indicates a 74.2% year-over-year decline from EPS of $1.51 reported in the year-ago quarter.

The consensus estimate for net sales is pegged at $3.17 billion, indicating a decline of 13.3% from $3.66 billion reported in the year-ago quarter.

Factors to Shape Builders FirstSource’s Q1 ResultsNet Sales

BLDR’s top-line performance in the to-be-reported quarter is expected to remain under pressure due to continued softness in residential construction markets. The company is likely to have been affected by weak housing affordability, muted consumer confidence and cautious builder activity, all of which weighed on demand exiting 2025. Single-family revenues may remain soft as builders pivot toward smaller, less complex homes to incentivize affordability, thereby reducing the sales dollars per start for BLDR. Furthermore, management anticipates that multifamily activity will remain muted, with meaningful improvements unlikely to materialize until the latter half of 2026.

BLDR’s value-added product category (representing approximately 47.7% of full-year 2025 net sales), which includes manufactured components and windows, doors and millwork, is likely to have been pressured by softer single-family activity, reduced home size and lower structural complexity, limiting demand for higher-content solutions.

On the other hand, relatively stable contributions from Specialty building products & services (about 26.8% of net sales) and Lumber & lumber sheet goods (around 25.5%) are expected to have provided some offset, supported by steady repair and remodel activity. However, commodity deflation — particularly in lumber — remains a key headwind, weighing on overall pricing and top-line performance.

BLDR’s continued focus on strategic acquisitions, disciplined cost management, productivity initiatives and expanding digital capabilities is expected to have supported performance to some extent, helping mitigate the impact of pricing pressure and moderating demand in a seasonally softer quarter.

Margins

Margins are likely to have remained under pressure in the first quarter due to lower operating leverage and a challenging commodity pricing environment. Management noted that the commodity composite exited 2025 below $350 per thousand board feet and forecasted a 2026 average of $365 to $385, which remains significantly below historical norms.

Additionally, ongoing inflationary pressures on rent and insurance, highlighted by a year-end insurance true-up, remain key areas of focus. To cushion these impacts, BLDR has initiated $100 million in SG&A-related cost actions, including $75 million in direct year-over-year reductions through facility consolidations, tighter discretionary spending and optimized labor management. These measures are intended to support profitability as the benefits materialize throughout the year.

What the Zacks Model Predicts for BLDROur proven model does not conclusively predict an earnings beat for Builders FirstSource this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Unfortunately, this is not the case here, as you will see below.

BLDR’s Earnings ESP: BLDR has an Earnings ESP of +10.01%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank of BLDR: The company currently carries a Zacks Rank of #4 (Sell).

Stocks With the Favorable CombinationHere are some companies in the Zacks Retail-Wholesale sector, which, per our model, have the right combination of elements to post an earnings beat in the respective quarters to be reported.

CAVA Group, Inc. (CAVA - Free Report) currently has an Earnings ESP of +11.61% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the to-be-reported quarter, CAVA’s earnings are expected to decline 22.7%. CAVA's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed on one occasion, the average surprise being 26.5%.

The Cheesecake Factory Incorporated (CAKE - Free Report) currently has an Earnings ESP of +3.38% and a Zacks Rank of 3.

In the to-be-reported quarter, Cheesecake Factory’s earnings are expected to register a 10.8% year-over-year rise. Cheesecake Factory’s earnings surpassed estimates in each of the trailing four quarters, with an average beat of 9.9%.

Chipotle Mexican Grill, Inc. (CMG - Free Report) has an Earnings ESP of +1.80% and a Zacks Rank of 3 at present.

In the to-be-reported quarter, Chipotle’s earnings are expected to register a 17.2% year-over-year decline. Chipotle’s earnings surpassed estimates in each of the trailing four quarters, with an average beat of 3.6%.

IRVING, Texas--(BUSINESS WIRE)--Builders FirstSource, Inc. (NYSE: BLDR) today reported its results for the first quarter ended March 31, 2026.

First Quarter 2026 Highlights

All Year-Over-Year Comparisons Unless Otherwise Noted:

Net sales were $3.3 billion, a 10.1% decrease, primarily due to a lower starts environment. The decline reflects lower core organic net sales and commodity deflation, partially offset by growth from acquisitions. Gross profit was $0.9 billion, a decrease of 16.7%. Gross profit margin percentage decreased 220 basis points to 28.3%, primarily driven by a lower starts environment. Net income (loss) was $(47.4) million, or diluted EPS of $(0.43) compared to diluted EPS of $0.84 in the prior year period. Net income (loss) as a percent of net sales decreased by 400 basis points to (1.4)%. Adjusted EBITDA decreased 42.1% to $213.8 million, primarily driven by lower gross profit. Adjusted EBITDA margin declined by 360 basis points to 6.5%, attributable to lower gross margin and reduced operating leverage. Cash provided by operating activities was $87.5 million, a decrease of $44.9 million compared to the prior year period. The Company's free cash flow was $42.7 million, a decrease of 5.1%, compared to $45.0 million in the prior year period. The decrease was primarily driven by lower net income. The Company repurchased 3.3 million shares of its common stock at an average price of $92.25 per share for $302.9 million, inclusive of applicable fees and taxes. “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,” commented Peter Jackson, CEO of Builders FirstSource.

Mr. Jackson continued, “By continuing to invest in innovation and the capabilities that matter most to our customers, we are reinforcing our role as a preferred provider and extending our competitive advantages. Our strategy enables us to outperform as the market normalizes and to deliver sustainable, long-term value for our shareholders.”

Pete Beckmann, CFO of Builders FirstSource, added, “Our first quarter performance demonstrates our disciplined execution and focus on cost and working capital management. We are generating strong cash flow through the cycle, investing selectively in high-return opportunities, and maintaining a strong balance sheet. This balanced approach enables us to navigate the current environment while compounding shareholder value over time.”

First Quarter 2026 Financial Performance Highlights

All Year-Over-Year Comparisons Unless Otherwise Noted:

Net Sales

Net sales were $3.3 billion, a 10.1% decrease, primarily due to a lower starts environment. The decrease reflects an 8.3% decline in core organic net sales, as well as commodity deflation of 3.3%, partially offset by growth from acquisitions of 1.5%. Core organic net sales declined 8.3%. Single Family declined 11.1%, Multi-Family declined 1.4%, and Repair and Remodel (“R&R”)/Other declined 1.3%. On a weighted basis, Single Family lowered net sales by 7.9%, R&R/Other by 0.3%, and Multi-Family by 0.1%. Gross Profit

Gross profit was $0.9 billion, a decrease of 16.7%. Gross profit margin percentage decreased 220 basis points to 28.3%, primarily driven by a lower starts environment. Selling, General and Administrative Expenses

SG&A was $912.5 million, a decrease of $18.4 million, or 2.0%, primarily driven by lower variable compensation due to lower core organic sales, partially offset by additional expenses from operations acquired within the last twelve months. As a percentage of net sales, total SG&A increased by 240 basis points to 27.8%, primarily attributable to reduced operating leverage. Net Interest Expense

Net interest expense increased $9.5 million to $74.4 million, primarily due to higher average debt balances. Income Tax Expense (Benefit)

Income tax was $(10.5) million, compared to $23.2 million in the prior year period, primarily driven by a decrease in income before income taxes. The effective tax rate in the first quarter decreased 130 basis points year-over-year to 18.1%, primarily related to an increase in stock-based compensation benefit. Net Income (Loss)

Net income (loss) was $(47.4) million, or $(0.43) earnings per diluted share, compared to net income of $96.3 million, or $0.84 earnings per diluted share, in the same period a year ago. The decrease in net income was primarily driven by lower gross profit and higher net interest expense, partially offset by lower SG&A and an income tax benefit. Net income (loss) as a percentage of net sales was (1.4)%, a decrease of 400 basis points from the prior year period, primarily due to lower gross profit margins and higher net interest expense, partially offset by lower SG&A and an income tax benefit. Adjusted Net Income

Adjusted net income was $30.0 million, a decrease of 82.6%, primarily driven by lower gross profit and higher net interest expense, partially offset by lower SG&A and income tax expenses. Adjusted Earnings Per Diluted Share

Adjusted earnings per diluted share was $0.27, compared to $1.51 in the same period a year ago. The 82.1% decrease was primarily driven by lower adjusted net income, partially offset by share repurchases. Adjusted EBITDA

Adjusted EBITDA decreased 42.1% to $213.8 million, primarily driven by lower gross profit. Adjusted EBITDA margin declined by 360 basis points from the prior year period to 6.5%, primarily due to lower gross profit margins and reduced operating leverage. Capital Structure, Leverage, and Liquidity Information

For the three months ended March 31, 2026, cash provided by operating activities was $87.5 million, and cash used in investing activities was $57.8 million. The Company's free cash flow was $42.7 million, compared to $45.0 million in the prior year period, largely the result of lower net income as well as lower capital expenditures. Liquidity as of March 31, 2026, was approximately $1.5 billion, consisting of $1.4 billion in net borrowing availability under the revolving credit facility and $0.1 billion of cash on hand. As of March 31, 2026, LTM Adjusted EBITDA was $1.4 billion and net debt was $4.6 billion, resulting in a net debt to LTM Adjusted EBITDA ratio of 3.2x, compared to 2.0x in the prior year period. In the first quarter, the Company repurchased 3.3 million shares of its common stock at an average price of $92.25 per share for $302.9 million, inclusive of applicable fees and taxes. On April 29, 2026, the Board of Directors authorized the repurchase of up to $500 million of the Company’s outstanding shares of common stock, which includes the approximately $200 million remaining under its prior April 2025 authorization. Since the inception of its buyback program in August 2021, the Company has repurchased 102.6 million shares of its common stock, or 49.7% of its total shares outstanding, at an average price of $81.26 per share for a total cost of $8.3 billion, inclusive of applicable fees and taxes. Productivity Savings From Operational Excellence

For the first quarter, the Company delivered approximately $6 million in productivity savings related to operational excellence and supply chain initiatives. The Company expects to deliver $50 million to $70 million in productivity savings in 2026. 2026 Full Year Total Company Outlook

For 2026, the Company expects to achieve the financial performance highlighted below. Projected Net Sales and Adjusted EBITDA include the expected impact of price, commodities, and margins. We are not providing a quantitative reconciliation of our forward-looking guidance of adjusted EBITDA, adjusted EBITDA margin, or free cash flow because we are unable to predict with reasonable certainty all the components required to provide such reconciliation without unreasonable efforts, which are uncertain and could have a material impact on GAAP reported results for the guidance period. See “Non-GAAP Financial Measures” for additional information.

Net Sales to be in a range of $14.6 billion to $15.6 billion. Gross Profit margin to be in a range of 27.5% to 29%. Adjusted EBITDA to be in a range of $1.1 billion to $1.5 billion. Adjusted EBITDA margin to be in a range of 7.5% to 9.6%. Free cash flow of approximately $0.4 billion to $0.5 billion, assuming average commodity prices in the range of $390 to $410 per thousand board foot (mbf). 2026 Full Year Assumptions

The Company’s anticipated 2026 performance is based on several assumptions for the full year, including the following:

Within the Company’s geographies, Single Family starts are projected to be down low-single digits, Multi-Family starts are projected to be down low-single digits, and R&R is projected to be down 1%. Acquisitions completed within the last twelve months are projected to add net sales growth of approximately 1%. Total capital expenditures in the range of $225 million to $275 million. Interest expense in the range of $275 million to $285 million. An effective tax rate of 20% to 22%. Depreciation and amortization expenses in the range of $525 million to $575 million. No change in selling days versus 2025. Conference Call

Builders FirstSource will host a conference call and webcast on Thursday, April 30, 2026, to discuss the Company’s financial results and other business matters. The teleconference will begin at 8:00 a.m. Central Time and will be hosted by Peter Jackson, Chief Executive Officer, and Pete Beckmann, Chief Financial Officer.

The live webcast, archived replay, and the accompanying presentation can be accessed on the Company's investor relations website at investors.bldr.com under the Events and Presentations section. The online archive of the webcast will be available for approximately 90 days.

To participate in the teleconference, please dial into the call a few minutes before the start time at 833-316-2483 (U.S. and Canada) or 785-838-9284 (international), Conference ID: BLDRQ126.

Upcoming Events

Management will participate in investor meetings at the Oppenheimer Industrial Growth Conference (virtually) on May 4, 2026, the KeyBanc Industrials and Basic Materials Conference in Boston on May 28, and the Wells Fargo Industrials and Materials Conference in Chicago on June 9.

About Builders FirstSource

Builders FirstSource (NYSE: BLDR), headquartered in Irving, Texas, is the nation's leading provider of building materials for professional builders in new residential construction and repair and remodeling. We deliver integrated homebuilding solutions by manufacturing, supplying, and installing a full range of structural and related building products. With approximately 570 locations across 43 states, we serve 48 of the top 50 and 94 of the top 100 Core Based Statistical Areas (CBSAs), ensuring broad geographic coverage and enhancing our ability to partner with our customers. Our leading network of strategically located manufacturing facilities produces factory-built roof and floor trusses, wall panels, vinyl windows, custom millwork and trim, manufactured and semi-custom modular homes, as well as engineered wood that we design and cut specifically for each home. We also assemble interior and exterior doors into pre-hung units for easy installation. Additionally, we distribute a wide range of building products, including lumber, sheet goods, windows, doors, millwork, and specialty items. Our services, which vary by market, include professional installation, turnkey framing, and shell construction. Supported by the latest construction innovations and digital solutions, we help drive greater efficiency across homebuilding. Learn more at www.bldr.com

Forward-Looking Statements

Statements in this news release and the schedules hereto that are not purely historical facts or that necessarily depend upon future events, including statements about expected market share gains, forecasted financial performance, industry and business outlook or other statements about anticipations, beliefs, expectations, hopes, synergies, intentions or strategies for the future, may be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Readers are cautioned not to place undue reliance on forward-looking statements. In addition, oral statements made by the Company’s directors, officers and employees to the investor and analyst communities, media representatives and others, depending upon their nature, may also constitute forward-looking statements. As with the forward-looking statements included in this release, these forward-looking statements are by nature inherently uncertain, and actual results or events may differ materially as a result of many factors. All forward-looking statements are based upon information available to Builders FirstSource on the date this release was submitted. Builders FirstSource undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements involve risks and uncertainties, many of which are beyond the Company’s control or may be currently unknown to the Company, that could cause actual events or results to differ materially from the events or results described in the forward-looking statements; such risks or uncertainties include those related to the Company’s growth strategies, including acquisitions, organic growth and digital and technology strategies, including the Company’s ability to drive growth by incorporating artificial intelligence and machine learning solutions into its platform, or the dependence of the Company’s revenues and operating results on, among other things, the homebuilding industry and, to a lesser extent, repair and remodel activity, which in each case is dependent on economic conditions, including inflation, interest rates, home size and affordability, consumer confidence, labor and supply shortages, tariffs and duties, and also lumber and other commodity prices. The Company may not succeed in addressing these and other risks. Further information regarding factors that could affect our financial and other results can be found in the risk factors section of Builders FirstSource’s most recent annual report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) and may also be described from time to time in the other reports Builders FirstSource files with the SEC. Consequently, all forward-looking statements in this release are qualified by the factors, risks and uncertainties contained therein.

Non-GAAP Financial Measures

The financial measures entitled Adjusted EBITDA, LTM Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income, Adjusted net income as a percent of net sales, basic Adjusted net income per share, diluted Adjusted net income per share, Adjusted SG&A, Adjusted SG&A as a percent of net sales, and Free cash flow are not financial measures recognized under GAAP and are therefore non-GAAP financial measures. The Company believes that these non-GAAP financial measures provide useful information to management and investors regarding certain financial and business trends relating to the Company’s financial condition and operating results.

Adjusted EBITDA is defined as GAAP net income before depreciation and amortization expense, net interest expense, income tax expense and other non-cash or special items including stock compensation expense, acquisition and related expense, technology implementation expense, debt issuance and refinancing costs, severance and gain on sale of assets and other one-time costs partially offset by the tax effect of those adjustments to net income. LTM Adjusted EBITDA is defined as Adjusted EBITDA for the last twelve consecutive months. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by net sales. Adjusted net income is defined as GAAP net income before non-cash or special items including acquisition and related expense, technology implementation expense, debt issuance and refinancing cost and amortization expense partially offset by the tax effect of those adjustments to net income. Adjusted net income as a percent of net sales is defined as Adjusted net income divided by net sales. Basic Adjusted net income per share is defined as Adjusted net income divided by weighted average basic common shares outstanding while diluted Adjusted net income per share is defined as Adjusted net income divided by weighted average diluted common shares outstanding. Adjusted SG&A is defined as GAAP SG&A expense before non-cash or special items including depreciation expense, amortization expense, stock compensation expense, acquisition and related expense, and technology implementation expense. Adjusted SG&A as a percent of sales is defined as Adjusted SG&A divided by net sales. Free cash flow is defined as GAAP net cash from operating activities less capital expenditures, net of proceeds from the sale of property, plant and equipment.

Company management uses Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income, Adjusted net income as a percent of net sales, basic Adjusted net income per share and diluted Adjusted net income per share as supplemental measures in its evaluation of the Company’s business, including for trend analysis, purposes of determining management incentive compensation and budgeting and planning purposes. Company management believes that these measures provide a meaningful measure of the Company’s performance and a better baseline for comparing financial performance across periods because these measures eliminate the effects of period to period changes, in the case of Adjusted EBITDA and Adjusted EBITDA margin, in taxes, costs associated with capital investments, net interest expense, stock compensation expense, and other non-cash and non-recurring items and, in the case of Adjusted net income, Adjusted net income as a percent of sales, and Adjusted net income per diluted share, in certain non-recurring items. Company management also uses free cash flow as a supplemental measure in its evaluation of the Company’s business, including for purposes of its internal liquidity assessments. Company management believes that free cash flow provides a meaningful evaluation of the Company’s liquidity.

The Company believes that these non-GAAP financial measures provide additional tools for investors to use in evaluating ongoing operating results, cash flows and trends and in comparing the Company’s financial measures with other companies in the Company’s industry, which may present similar non-GAAP financial measures to investors. However, the Company’s calculations of these financial measures are not necessarily comparable to similarly titled measures reported by other companies. Company management does not consider these financial measures in isolation or as alternatives to financial measures determined in accordance with GAAP. Furthermore, items that are excluded and other adjustments and assumptions that are made in calculating these non-GAAP financial measures are significant components in understanding and assessing the Company’s financial performance. These non-GAAP financial measures should be evaluated in conjunction with, and are not a substitute for, the Company’s GAAP financial measures. Further, because these non-GAAP financial measures are not determined in accordance with GAAP and are thus susceptible to varying calculations, the non-GAAP financial measures, as presented, may not be comparable to other similarly titled measures of other companies. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables below.

The Company’s Adjusted EBITDA outlook, free cash flow and full-year forecast for its effective tax rate on operations exclude the impact of certain income and expense items that management believes are not part of underlying operations. These items may include, but are not limited to, loss on early extinguishment of debt, restructuring charges, certain tax items, and charges associated with non-recurring costs such as professional and legal fees associated with our acquisitions and enterprise resource planning (ERP) program. The Company’s management cannot estimate on a forward-looking basis without unreasonable effort the impact these income and expense items will have on its reported net income, operating cash flow and its reported effective tax rate because these items, which could be significant, are difficult to predict and may be highly variable. As a result, the Company does not provide a reconciliation to the most comparable GAAP financial measure for its Adjusted EBITDA or free cash flow outlook or its effective tax rate on operations forecast. Please see the Forward-Looking Statements section of this release for a discussion of certain risks relevant to the Company’s outlook.

BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(unaudited)

  Three Months Ended
March 31,

(in thousands, except per share amounts)

2026

2025

Net sales

$

3,287,077

$

3,657,496

Cost of sales

2,358,111

2,542,255

Gross margin

928,966

1,115,241

Selling, general and administrative expenses

912,450

930,800

Income from operations

16,516

184,441

Interest expense, net

74,392

64,892

Income (loss) before income taxes

(57,876

)

119,549

Income tax expense (benefit)

(10,462

)

23,245

Net income (loss)

$

(47,414

)

$

96,304

Net income (loss) per share:

Basic

$

(0.43

)

$

0.85

Diluted

$

(0.43

)

$

0.84

Weighted average common shares:

Basic

109,870

113,675

Diluted

109,870

114,339

BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(unaudited)

  Three Months Ended
March 31,

(in thousands)

2026

2025

Cash flows from operating activities:

Net income (loss)

$

(47,414

)

$

96,304

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation and amortization

148,360

145,031

Deferred income taxes

51,054

(10,638

)

Stock-based compensation expense

13,628

14,238

Other non-cash adjustments

1,919

(6,774

)

Changes in assets and liabilities, net of assets acquired and liabilities assumed:

Receivables

(157,768

)

30,599

Inventories, net

(88,382

)

(82,503

)

Contract assets

(17,600

)

(10,851

)

Other current assets

(2,141

)

(15,013

)

Other assets and liabilities

550

(16,213

)

Accounts payable

211,270

142,891

Accrued liabilities

(37,744

)

(166,294

)

Contract liabilities

11,722

11,551

Net cash provided by operating activities

87,454

132,328

Cash flows from investing activities:

Cash used for acquisitions, net of cash acquired

(12,407

)

(824,795

)

Purchases of property, plant and equipment

(46,745

)

(99,974

)

Proceeds from sale of property, plant and equipment

1,969

12,713

Cash used for equity investments

(664

)

—

Net cash used in investing activities

(57,847

)

(912,056

)

Cash flows from financing activities:

Borrowings under revolving credit facility

240,000

1,142,000

Repayments under revolving credit facility

(40,000

)

(367,000

)

Repayments of long-term debt and other loans

(679

)

(754

)

Payments of acquisition-related deferred and contingent consideration

(900

)

(322

)

Tax withholdings on and exercises of equity awards

(11,372

)

(20,102

)

Repurchase of common stock

(300,067

)

(12,347

)

Net cash provided by (used in) financing activities

(113,018

)

741,475

Net change in cash and cash equivalents

(83,411

)

(38,253

)

Cash and cash equivalents at beginning of period

181,753

153,624

Cash and cash equivalents at end of period

$

98,342

$

115,371

BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET

(unaudited)

  (in thousands, except par value amounts)

March 31,
2026

December 31,
2025

ASSETS

Current assets:

Cash and cash equivalents

$

98,342

$

181,753

Accounts receivable, less allowances of $43,461 and $42,511, respectively

1,163,011

1,061,011

Other receivables

385,779

330,013

Inventories, net

1,189,402

1,094,684

Contract assets

150,611

133,011

Other current assets

128,958

126,811

Total current assets

3,116,103

2,927,283

Property, plant and equipment, net

2,155,071

2,204,184

Operating lease right-of-use assets, net

616,612

622,188

Goodwill

4,139,898

4,137,377

Intangible assets, net

1,112,852

1,183,793

Deferred income taxes

23,662

23,000

Other assets, net

138,896

139,705

Total assets

$

11,303,094

$

11,237,530

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$

924,611

$

714,710

Accrued liabilities

531,002

566,325

Contract liabilities

180,543

168,440

Current portion of operating lease liabilities

111,423

111,132

Current maturities of long-term debt

24,285

14,334

Total current liabilities

1,771,864

1,574,941

Noncurrent portion of operating lease liabilities

542,933

547,772

Long-term debt, net of current maturities, discounts and issuance costs

4,613,278

4,427,033

Deferred income taxes

229,691

177,975

Other long-term liabilities

141,108

157,558

Total liabilities

7,298,874

6,885,279

Commitments and contingencies (Note 11)

Stockholders’ equity:

Preferred stock, $0.01 par value, 10,000 shares authorized; zero shares issued and outstanding

—

—

Common stock, $0.01 par value, 300,000 shares authorized; 107,518 and 110,585 shares issued and outstanding, respectively

1,075

1,106

Additional paid-in capital

4,003,145

4,197,279

Retained earnings

—

153,866

Total stockholders’ equity

4,004,220

4,352,251

Total liabilities and stockholders’ equity

$

11,303,094

$

11,237,530

BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES

Reconciliation of GAAP Net Income to Adjusted Net Income

(unaudited)

  Three Months Ended

Twelve Months Ended

March 31,

March 31,

(in millions, except per share amounts)

2026

2025

2026

Reconciliation to Adjusted Net Income:

GAAP net income (loss)

$

(47.4

)

$

96.3

$

291.5

Acquisition and related expense

1.4

3.4

5.4

Technology implementation expense

27.5

24.1

139.1

Debt issuance and refinancing cost

—

—

0.2

Amortization expense

72.9

73.3

296.8

Tax-effect of adjustments to net income (loss)

(24.4

)

(24.2

)

(106.0

)

Adjusted net income

$

30.0

$

172.9

$

627.0

Adjusted net income as a % of sales

0.9

%

4.7

%

4.2

%

GAAP common shares outstanding

109.9

113.7

GAAP diluted common shares outstanding

109.9

114.3

Basic adjusted net income per share:

$

0.27

$

1.52

Diluted adjusted net income per share:

$

0.27

$

1.51

BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES

Reconciliation of GAAP Net Income to Adjusted EBITDA

(unaudited)

  Three Months Ended

Twelve Months Ended

March 31,

March 31,

(in millions)

2026

2025

2026

Reconciliation to Adjusted EBITDA:

GAAP net income (loss)

$

(47.4

)

$

96.3

$

291.5

Interest expense, net

74.4

64.9

283.3

Income tax expense

13.9

47.4

149.3

Depreciation expense

75.5

71.7

298.0

Amortization expense

72.9

73.3

296.8

Stock compensation expense

13.6

14.2

52.9

Acquisition and related expense

1.4

3.4

5.4

Technology implementation expense

27.5

24.1

139.1

Debt issuance and refinancing cost

—

—

0.2

Tax-effect of adjustments to net income (loss)

(24.4

)

(24.2

)

(106.0

)

Other management-identified adjustments (1)

6.4

(1.9

)

17.9

Adjusted EBITDA

$

213.8

$

369.2

$

1,428.4

Adjusted EBITDA margin

6.5

%

10.1

%

9.6

%

(1) Primarily relates to severance, net gain/loss on sale of assets, and other one-time costs.

BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES

Reconciliation of GAAP Selling, General & Administrative Expenses to Adjusted Selling, General & Administrative Expenses

(unaudited)

  Three Months Ended

March 31,

(in millions)

2026

2025

Reconciliation to Adjusted SG&A Expense:

GAAP SG&A expense

$

912.5

$

930.8

Depreciation expense

(53.7

)

(49.4

)

Amortization expense

(70.2

)

(70.6

)

Stock compensation expense

(13.6

)

(14.2

)

Acquisition and related expense

(1.4

)

(3.4

)

Technology implementation expense

(27.5

)

(24.1

)

Other management-identified adjustments (1)

(6.4

)

1.9

Adjusted SG&A expense

$

739.7

$

771.0

GAAP SG&A expense as a % of sales

27.8

%

25.4

%

Adjusted SG&A expense as a % of sales

22.5

%

21.1

%

(1) Primarily relates to severance, net gain/loss on sale of assets, and other one-time costs.

BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES

Interest Reconciliation

(unaudited)

  Three Months Ended

March 31, 2026

(in millions)

Interest
Expense

Net Debt
Outstanding

Revolving credit facility @ 4.70% weighted average interest rate

$

1.8

$

200.0

2032 Unsecured notes @ 4.25%

13.8

1,300.0

2034 Unsecured notes @ 6.375%

15.9

1,000.0

2035 Unsecured notes @ 6.75%

12.7

750.0

2032 Unsecured notes @ 6.375%

11.2

700.0

2030 Unsecured notes @ 5.00%

6.9

550.0

Amortization of debt issuance costs, discount and premium

2.0

—

Finance leases and other finance obligations

10.7

179.9

Cash

—

(98.3

)

Total (1)

$

75.0

$

4,581.6

(1) Total interest expense does not include interest income of approximately $0.6 million received during the three month period.

BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES

Free Cash Flow

(unaudited)

  Three Months Ended

(in millions)

March 31, 2026

Free Cash Flow

Operating activities

$

87.5

Less: Capital expenditures, net of proceeds

(44.8

)

Free cash flow

$

42.7

BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES

Sales by Product Category

(unaudited)

  Three Months Ended March 31,

2026

2025

(in millions)

Net Sales

% of
Net Sales

Net Sales

% of
Net Sales

% Change

Manufactured products

$

734.5

22.3

%

$

850.8

23.3

%

(13.7

)%

Windows, doors & millwork

853.8

26.0

%

934.4

25.5

%

(8.6

)%

Value-added products

1,588.3

48.3

%

1,785.2

48.8

%

(11.0

)%

Specialty building products & services

853.4

26.0

%

903.8

24.7

%

(5.6

)%

Lumber & lumber sheet goods

845.4

25.7

%

968.5

26.5

%

(12.7

)%

Total net sales

$

3,287.1

100.0

%

$

3,657.5

100.0

%

(10.1

)%

More News From Builders FirstSource, Inc.

Builders FirstSource (BLDR - Free Report) came out with quarterly earnings of $0.27 per share, missing the Zacks Consensus Estimate of $0.39 per share. This compares to earnings of $1.51 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -30.93%. A quarter ago, it was expected that this construction supply company would post earnings of $1.3 per share when it actually produced earnings of $1.12, delivering a surprise of -13.85%.

Over the last four quarters, the company has surpassed consensus EPS estimates two times.

Builders FirstSource, which belongs to the Zacks Building Products - Retail industry, posted revenues of $3.29 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 4.48%. This compares to year-ago revenues of $3.66 billion. The company has topped consensus revenue estimates two times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Builders FirstSource shares have lost about 19% since the beginning of the year versus the S&P 500's gain of 4.2%.

What's Next for Builders FirstSource?While Builders FirstSource has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Builders FirstSource was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.84 on $4.03 billion in revenues for the coming quarter and $5.58 on $14.93 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Retail is currently in the bottom 1% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Tecnoglass (TGLS - Free Report) , another stock in the same industry, has yet to report results for the quarter ended March 2026. The results are expected to be released on May 7.

This architectural glass maker is expected to post quarterly earnings of $0.72 per share in its upcoming report, which represents a year-over-year change of -21.7%. The consensus EPS estimate for the quarter has been revised 41.4% lower over the last 30 days to the current level.

Tecnoglass' revenues are expected to be $243 million, up 9.3% from the year-ago quarter.

Key Takeaways BLDR Q1 adjusted EPS fell 82% to $0.27, missing estimates despite net sales topping consensus.Lower starts and commodity deflation cut core organic sales by 8.3%, with Single-Family down 11.1%.BLDR trims 2026 guidance. It repurchases $303M stock and adds a $500M buyback authorization. Builders FirstSource, Inc. (BLDR - Free Report) first-quarter 2026 adjusted earnings missed the Zacks Consensus Estimate, while net sales beat the same. However, both metrics declined on a year-over-year basis.

The top-line pullback was due to lower activity across end markets and commodity price pressure. Management attributed the year-over-year decline primarily to a lower starts environment, which reduced core organic net sales and added a commodity deflation headwind.

However, BLDR’s efforts in supply-chain optimization and operational excellence aided its bottom-line growth. Going forward, the company expects to continue investing in enhancing its capabilities and expanding its geographic footprint to manage near-term uncertainties and offer long-term value to the shareholders.

BLDR’s Q1 Earnings & Revenue DiscussionThe company reported adjusted earnings per share of 27 cents, which declined 82.1% year over year and missed the Zacks Consensus Estimate of 39 cents by 30.8%.

Net sales were $3.29 billion, down 10.1% from the year-ago quarter. Sales, however, came ahead of the $3.15 billion consensus mark by 4.5%. The quarter reflected a softer start environment and commodity deflation, partly offset by acquisition-related growth.

BLDR’s End-Market Trends Remained SoftCore organic net sales declined 8.3% year over year in the first quarter, reflecting broad-based pressure across end markets. Single-Family was the biggest drag, with core organic net sales down 11.1% on lower start activity and lower value per start.

Multi-Family and Repair and Remodel (R&R)/Other were more resilient but still negative, declining 1.4% and 1.3%, respectively. On a weighted basis, Single-Family lowered total net sales by 7.9%, while R&R/Other and Multi-Family reduced net sales by 0.3% and 0.1%, respectively, underscoring how BLDR’s sales exposure remains concentrated in Single-Family demand.

Builders FirstSource’s Product Categories Skewed LowerResults were broadly weaker across the company’s major product groupings.

Value-Added Products: In the first quarter, net sales of value-added products (comprising 48.3% of quarterly net sales) were $1.59 billion, down 11% from the prior-year quarter.

Within this product category, sales from Manufactured products totaled $734.5 million and Windows, doors & millwork were $853.8 million, down 13.7% and 8.6% year over year, respectively.

Specialty Building Products & Services: Net sales from this product category (comprising 26% of quarterly net sales) declined 5.6% from the year-ago quarter to $853.4 million.

Lumber & Lumber Sheet Goods: For the quarter, this product category’s net sales (comprising 25.7% of quarterly net sales) decreased 12.7% year over year to $845.4 million.

BLDR’s Cost Structure Dented ProfitabilityMargins compressed as volumes softened and operating leverage deteriorated. Gross profit declined 16.7% year over year to $929 million, with gross margin contracting 220 basis points to 28.3% on the lower starts environment.

Selling, general and administrative expenses (SG&A) decreased 2% to $912.5 million, but SG&A as a percentage of net sales increased 240 basis points to 27.8% due to reduced operating leverage.

The margin pressure flowed through to earnings power. Adjusted EBITDA decreased 42.1% to $213.8 million, and adjusted EBITDA margin declined 360 basis points to 6.5%, reflecting lower gross margin and reduced operating leverage.

Builders FirstSource’s Cash Flow Stayed PositiveDespite the earnings shortfall, the company remained cash-generative in the quarter. Cash provided by operating activities was $87.5 million, down $44.9 million year over year. Free cash flow was $42.7 million compared with $45 million in the prior-year period, with the decrease primarily tied to lower net income.

Capital deployment remained active. Builders FirstSource repurchased 3.3 million shares for $302.9 million at an average price of $92.25 per share. The board also authorized an additional $500 million repurchase program on April 29, 2026, which includes roughly $200 million remaining under the prior authorization.

Builders FirstSource’s 2026 View Turned More CautiousBLDR updated its 2026 full-year outlook, framing expectations around the current price and demand environment. The company now expects net sales of $14.6-$15.6 billion, compared with the prior $14.8-$15.8 billion range, while keeping its assumption of ~1% net sales growth from acquisitions completed within the last 12 months and no change in selling days versus 2025.

Profitability expectations moved down. BLDR now sees gross profit margin of 27.5%-29%, versus the prior 28.5%-30% range, and adjusted EBITDA of $1.1-$1.5 billion, down from the earlier $1.3-$1.7 billion view. Accordingly, adjusted EBITDA margin is now projected at 7.5%-9.6%, compared with the prior 8.8%-10.8% range.

Cash generation expectations also reflect updated commodity assumptions. BLDR now expects free cash flow of approximately $0.4-$0.5 billion versus the prior expectation of about $0.5 billion, and it raised its assumed average commodity price range to $390-$410 per thousand board foot from $365-$385. On the cost and investment side, the company lowered its capital expenditure view to $225-$275 million from $250-$300 million, while interest expense is now expected to be $275-$285 million versus $270-$280 million previously. The effective tax rate (20%-22%) and depreciation and amortization ($525-$575 million) ranges were maintained.

BLDR’s Zacks Rank & Key PicksBuilders FirstSource currently carries a Zacks Rank #4 (Sell).

Here are some better-ranked stocks from the Zacks Retail-Wholesale sector:

FIGS, Inc. (FIGS - Free Report) sports a Zacks Rank of 1 (Strong Buy) at present. The company delivered a trailing four-quarter earnings surprise of 187.5%, on average. FIGS stock has surged 101.5% in the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for FIGS’ 2026 sales and EPS indicates growth of 11.9% and 26.3%, respectively, from the prior-year levels.

Five Below, Inc. (FIVE - Free Report) presently sports a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 63.4%, on average. FIVE stock has rallied 45% in the past six months.

The Zacks Consensus Estimate for Five Below’s 2026 sales and EPS indicates growth of 11.3% and 19.2%, respectively, from the year-ago period’s levels.

Dutch Bros Inc. (BROS - Free Report) carries a Zacks Rank of 2 (Buy) at present. The company delivered a trailing four-quarter earnings surprise of 41.6%, on average. BROS stock has declined 0.3% in the past six months.

The Zacks Consensus Estimate for Dutch Bros’ 2026 sales and EPS indicates growth of 24.6% and 19.7%, respectively, from the prior-year levels.

On May 01, 2026, Builders FirstSource Inc (BLDR) shares fell 4.3% to $75.72. The stock has experienced significant volatility, trading within a 52-week range of

Key Takeaways Builders FirstSource missed on earnings in Q1 2026. It was the second miss in a row.The company cut full year guidance and analysts slashed 2026-2027 earnings estimates.Shares of Builders FirstSource have fallen to multi-year lows in 2026. Builders FirstSource, Inc. (BLDR - Free Report) is not seeing a turnaround in home building this year. This Zacks Rank #5 (Strong Sell) is expected to see another year of declining earnings in 2026.

Builders FirstSource provides building materials for professional builders in new residential construction, repair and remodeling. It has approximately 570 locations across 43 states.

It distributes a wide range of building products, including lumber, sheet goods, windows, doors, millwork, and specialty items.

Builders FirstSource Misses on Earnings in the First Quarter 2026On Apr 30, 2026, Builders FirstSource reported first quarter 2026 results and missed on the Zacks Consensus by $0.12. Earnings were $0.27 compared to the Zacks Consensus of $0.39.

It was the second earnings miss in a row.

Net sales fell 10.1% to $3.3 billion, primarily due to a lower starts environment. The builders aren’t building at the same rate as prior years.  

Gross profit margin decreased 220 basis points to 28.3%, also driven by a lower starts environment.

Builders FirstSource Lowers 2026 GuidanceThe company has gotten more bearish since February, when it first gave its 2026 guidance.

It now expects net sales in the range of $14.6 billion to $14.8 billion, down from the previous guidance range of $14.8 billion to $15.8 billion.

Gross profit margins also fell to a range of 27.5% to 29% from 28.5% to 30%.

Analysts Slash 2026 and 2027 Earnings EstimatesIt’s not surprising, given the headwinds the company faces, that the analysts are also bearish.

Five estimates were cut for 2026 in the last week, which pushed the Zacks Consensus down to $4.49 from $5.58. That’s an earnings decline of 34.8%.

It would be the fourth year in a row of earnings declines. The Federal Reserve began raising interest rates, which slowed the housing market, in 2022.

Four estimates were also cut for 2027 which pushed the Zacks Consensus down to $5.94 from $7.20.

Here’s what it looks like on the price and consensus chart.

Image Source: Zacks Investment Research

Shares Plunge in 2026The shares are now trading at multi-year lows but they have plunged further in 2026.

Image Source: Zacks Investment Research

It has a low forward price-to-earnings (P/E) ratio of just 16.4. However, a P/E under 15 usually indicates the company is a value.

Builders FirstSource is shareholder friendly. While it’s not paying a dividend, the company has a share repurchase program. In the first quarter, Builders FirstSource repurchased 3.3 million shares for $302.9 million.

On Apr 29, 2026, the Board of Directors authorized the repurchase of an additional $500 million of shares, which includes the approximately $200 million remaining under the April 2025 authorization.

Since the inception of the share buyback program in Aug 2021, it has repurchased 49.7% of its total shares outstanding for a total cost of $8.3 billion.

The new home market is not going to rebound this year.

Investors might want to wait for green shoots in the 2027 earnings estimates before jumping in.

On May 12, 2026, Builders FirstSource Inc (BLDR) shares fell 3.3% to a current price of $74.88. This price is situated within a 52-week range of $73.40 to $151.