Track market-moving stories before they get noisy

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.

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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.

-

Chief Operating Officer Steve Herron to Retire

Mike Hiller Appointed Chief Operating Officer-Designate

Coley O’Brien Appointed Chief Human Resources Officer

IRVING, Texas--(BUSINESS WIRE)--Builders FirstSource, Inc. (NYSE: BLDR) announced today that as part of a planned leadership transition, Mike Hiller has been appointed Chief Operating Officer-Designate, succeeding Steve Herron, who will retire on December 31, 2026.

“This succession plan reflects both the bench depth of quality leadership within our company and our ability to attract top talent from outside our industry,” said Peter Jackson, CEO of Builders FirstSource. “The timeline will support a smooth transition for our team members, enabling them to stay focused on providing our customers with best-in-class service.”

Mr. Herron joined the Company as part of the 2015 acquisition of ProBuild Holdings. He has more than 40 years of experience in the industry, including senior management roles at HD Supply Holdings, The Home Depot, Lowe’s and Williams Brothers Lumber. Prior to his 2023 appointment as COO, he was President of the Company’s East Division.

“Humility and humor are the hallmarks of Steve’s style,” Jackson said. “We are grateful to him for his leadership and wish him a wonderful retirement.”

Mr. Hiller has more than 25 years of experience in business development, finance and operational leadership in the building materials industry. Prior to the 2021 merger of Builders FirstSource and BMC Stock Holdings, he was vice president of BMC’s Intermountain Region. He later became president of the Company’s Central Division, and most recently served as Chief Talent Officer.

“Mike is a thoughtful leader who puts people first while maintaining high standards of operational excellence,” Jackson said. “He is the right choice to lead our operations during this transformative time for the industry.”

Coley O’Brien has been appointed Chief Human Resources Officer, succeeding Mr. Hiller in leading the Company’s human resources functions. Mr. O’Brien has more than 25 years of experience in human resources and operations training. He joins the Company from The Wendy’s Company, where he held leadership roles in human resources and operations training since 2007. Most recently, he served as Chief People Officer, leading global HR strategy, innovation and people systems.

"Coley has a proven track record of building and executing talent strategies that support strong corporate culture and business outcomes," Jackson said. "His operational mindset, deep understanding of people systems and extensive experience leading and developing a distributed workforce will be extremely beneficial for our team.”

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.

More News From Builders FirstSource, Inc.

Back to Newsroom

On May 27, 2026, Builders FirstSource Inc (BLDR) shares rose 4.1% to a current price of $77.47. This movement comes amid a challenging year for the stock, which

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 -2.4%, compared to the Zacks S&P 500 composite's +0.2% change. During this period, the Zacks Building Products - Retail industry, which Builders FirstSource falls in, has lost 3.4%. The key question now is: What could be the stock's future direction?

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.

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.

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.

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

Revenue Growth ForecastEven 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.

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.

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.

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.