Builders FirstSource (NYSE:BLDR) Announces Earnings Results

Builders FirstSource (NYSE:BLDR) issued its earnings results on Thursday. The company reported $0.27 earnings per share for the quarter, missing analysts’ consensus estimates of $0.41 by ($0.14), Zacks reports. The firm had revenue of $3.29 billion for the quarter, compared to the consensus estimate of $3.18 billion. Builders FirstSource had a net margin of 2.87% and a return on equity of 17.89%. The company’s revenue for the quarter was down 10.1% on a year-over-year basis. During the same period last year, the firm earned $1.51 earnings per share.

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

• Builders FirstSource lowered its 2026 outlook after a weak housing market—Q1 adjusted EPS was $0.27 (down 82%), gross profit fell 17% and management now guides net sales to $14.6–$15.6B with Adjusted EBITDA of $1.1–$1.5B.
• The company is executing $100 million of cost actions (including $75M of reductions), realized $13M in Q1, and targets $50–70M of productivity savings to protect margins as volumes recover.
• Capital allocation remains active: BFS deployed $360M in Q1 (including $303M of buybacks), has repurchased nearly 50% of shares since 2021, and the board authorized an additional $500 million repurchase program.
• Strategic growth priorities continue with digital and value‑added expansion—its digital platform processed nearly $800 million of quotes in Q1 and a next‑gen AI‑enabled platform plus install/value‑add offerings aim to drive share gains when the market improves.
• Financial position shows strong liquidity and cash generation—Q1 free cash flow was $43M, TTM FCF yield ~10% and ~$1.5B available liquidity—but net debt to Adjusted EBITDA is ~3.2x, above the company’s long‑term target.

Builders FirstSource Stock Down 5.0%

Shares of NYSE:BLDR traded down $4.20 on Thursday, reaching $79.18. The company had a trading volume of 5,931,389 shares, compared to its average volume of 1,991,720. Builders FirstSource has a 52-week low of $76.50 and a 52-week high of $151.03. The firm’s 50 day simple moving average is $89.22 and its 200-day simple moving average is $105.05. The firm has a market capitalization of $8.76 billion, a PE ratio of 20.41, a PEG ratio of 2.51 and a beta of 1.63. The company has a current ratio of 1.86, a quick ratio of 1.16 and a debt-to-equity ratio of 1.02.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on BLDR shares. Barclays decreased their target price on Builders FirstSource from $124.00 to $114.00 and set an “overweight” rating for the company in a research report on Wednesday, April 8th. Wells Fargo & Company decreased their target price on Builders FirstSource from $120.00 to $87.00 and set an “equal weight” rating for the company in a research report on Wednesday, April 8th. Robert W. Baird decreased their target price on Builders FirstSource from $135.00 to $125.00 and set a “neutral” rating for the company in a research report on Wednesday, February 18th. Bank of America decreased their target price on Builders FirstSource from $123.00 to $100.00 and set a “neutral” rating for the company in a research report on Monday, April 20th. Finally, Stephens cut their price target on Builders FirstSource from $125.00 to $100.00 and set an “equal weight” rating on the stock in a report on Monday. Nine investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $117.62.

Key Builders FirstSource News

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

• Positive Sentiment: Revenue beat estimates — Q1 revenue of $3.29B topped consensus (~$3.18B) even as sales fell ~10% YoY, showing demand still generates top‑line but at lower volumes. Builders FirstSource’s Q1 Earnings Lag Estimates, Sales Beat
• Positive Sentiment: Some analysts remain constructive — William Blair maintained a Buy/Outperform stance citing depressed valuation and margin recovery potential, supporting a medium‑term recovery case. Analyst Maintains Buy on Builders FirstSource
• Positive Sentiment: Insider buying activity noted (recent purchase disclosed), which can be a constructive signal for long‑term investors. Builders FirstSource slides after Q1 loss and weaker 2026 outlook
• Neutral Sentiment: Mixed guidance — company issued revenue guidance range (~$14.6B–$15.6B) around consensus but gave a more cautious tone on margins and FCF; range leaves room for beat or miss depending on execution. Press Release / Slide Deck
• Neutral Sentiment: Analyst landscape is mixed — several buys/overweights and price targets above current levels coexist with neutral ratings and recent target trims, so watch upcoming revisions. Analyst and price‑target summary
• Negative Sentiment: EPS miss and profitability hit — Q1 EPS $0.27 missed estimates (~$0.39–$0.41) and the company swung to a net loss versus profit a year ago; this is the primary driver of the negative price reaction. Builders FirstSource (BLDR) Q1 Earnings Lag Estimates
• Negative Sentiment: Weaker 2026 outlook on margins and FCF — management signaled softer end‑market demand and lowered margin/FCF expectations, which hurts a stock valued on cash generation and share repurchases. Slides after Q1 loss and weaker outlook
• Negative Sentiment: High trading volume and market reaction — the combination of an earnings miss, guidance caution and a swing to a loss prompted heavier selling and pressure on the stock near its recent lows. MarketBeat BLDR summary

Insider Activity

In related news, Director Paul S. Levy purchased 50,000 shares of the business’s stock in a transaction dated Friday, March 13th. The shares were acquired at an average cost of $87.73 per share, for a total transaction of $4,386,500.00. Following the acquisition, the director owned 1,727,191 shares of the company’s stock, valued at $151,526,466.43. The trade was a 2.98% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 2.70% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in BLDR. Integrated Wealth Concepts LLC grew its stake in Builders FirstSource by 9.3% during the 1st quarter. Integrated Wealth Concepts LLC now owns 3,460 shares of the company’s stock worth $432,000 after buying an additional 295 shares during the last quarter. Woodline Partners LP grew its stake in Builders FirstSource by 40.7% during the 1st quarter. Woodline Partners LP now owns 9,723 shares of the company’s stock worth $1,215,000 after buying an additional 2,812 shares during the last quarter. EverSource Wealth Advisors LLC grew its stake in Builders FirstSource by 180.0% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,582 shares of the company’s stock worth $185,000 after buying an additional 1,017 shares during the last quarter. Baird Financial Group Inc. grew its stake in Builders FirstSource by 230.7% during the 2nd quarter. Baird Financial Group Inc. now owns 18,942 shares of the company’s stock worth $2,210,000 after buying an additional 13,215 shares during the last quarter. Finally, Jump Financial LLC grew its stake in Builders FirstSource by 144.1% during the 2nd quarter. Jump Financial LLC now owns 7,223 shares of the company’s stock worth $843,000 after buying an additional 4,264 shares during the last quarter. 95.53% of the stock is currently owned by hedge funds and other institutional investors.

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

About Builders FirstSource

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.