Builders FirstSource (NYSE:BLDR) Issues Earnings Results

Builders FirstSource (NYSE:BLDR) issued its quarterly earnings results on Tuesday. The company reported $1.12 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.30 by ($0.18), FiscalAI reports. The firm had revenue of $3.36 billion for the quarter, compared to analyst estimates of $3.46 billion. Builders FirstSource had a net margin of 2.87% and a return on equity of 17.89%. The firm’s revenue for the quarter was down 12.1% compared to the same quarter last year. During the same quarter last year, the business posted $2.31 earnings per share.

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

• Management emphasized persistent macro headwinds — housing affordability, weak consumer confidence, and depressed commodity prices — noting OSB fell below $350/MBF and insurance and rent inflation continue to pressure costs.
• Fourth-quarter results showed weakness with net sales down 12% to $3.4 billion, gross margin of 29.8% (down 250 bps), adjusted EBITDA of $275 million (down ~44%) and adjusted EPS of $1.12 (down 52%), although full-year margins remained above pre-guidance levels.
• Leadership is taking aggressive cost actions — a $100 million SG&A program ( ~$75M reductions, ~$25M avoidance), 25 facility consolidations in 2025, and $48 million of productivity savings — while generating strong cash flow ($874M free cash flow in 2025) to preserve flexibility.
• BFS remains active on M&A and capability expansion, completing 40 acquisitions since 2021 (adding ~$2.3B of sales) and buying Pleasant Valley Homes to expand into factory-built/modular offerings as a potential cost-competitive solution for builders.
• The company is advancing its digital and technology strategy — processing nearly $7 billion of quotes (130% YoY), progressing SAP pilots and investing in AI/automation to speed estimating and improve sales productivity.

Builders FirstSource Trading Down 0.5%

BLDR stock opened at $114.03 on Thursday. Builders FirstSource has a 1-year low of $94.35 and a 1-year high of $151.03. The company has a current ratio of 1.86, a quick ratio of 1.15 and a debt-to-equity ratio of 1.02. The business’s 50 day moving average is $114.63 and its 200-day moving average is $120.45. The firm has a market cap of $12.61 billion, a P/E ratio of 29.39, a P/E/G ratio of 14.35 and a beta of 1.56.

Institutional Investors Weigh In On Builders FirstSource

A number of hedge funds and other institutional investors have recently bought and sold shares of BLDR. State Street Corp lifted its position in Builders FirstSource by 2.3% during the 4th quarter. State Street Corp now owns 5,108,120 shares of the company’s stock worth $525,574,000 after buying an additional 115,857 shares in the last quarter. Wellington Management Group LLP boosted its position in Builders FirstSource by 2.3% in the 4th quarter. Wellington Management Group LLP now owns 3,316,797 shares of the company’s stock valued at $341,265,000 after buying an additional 73,835 shares during the last quarter. Dimensional Fund Advisors LP increased its stake in shares of Builders FirstSource by 37.9% in the 4th quarter. Dimensional Fund Advisors LP now owns 2,641,809 shares of the company’s stock valued at $271,816,000 after buying an additional 725,905 shares during the period. Victory Capital Management Inc. increased its stake in shares of Builders FirstSource by 7.1% in the 4th quarter. Victory Capital Management Inc. now owns 2,027,595 shares of the company’s stock valued at $208,619,000 after buying an additional 134,112 shares during the period. Finally, Boston Partners raised its position in shares of Builders FirstSource by 73.0% during the third quarter. Boston Partners now owns 1,852,292 shares of the company’s stock worth $224,627,000 after acquiring an additional 781,506 shares during the last quarter. 95.53% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on the stock. Weiss Ratings restated a “hold (c-)” rating on shares of Builders FirstSource in a report on Wednesday, January 21st. Wells Fargo & Company raised their price objective on Builders FirstSource from $115.00 to $120.00 and gave the stock a “cautious” rating in a research note on Wednesday, February 11th. DA Davidson cut their target price on Builders FirstSource from $115.00 to $111.00 and set a “neutral” rating on the stock in a research report on Monday, February 2nd. Benchmark increased their price target on Builders FirstSource from $138.00 to $142.00 and gave the company a “buy” rating in a research report on Friday, October 31st. Finally, UBS Group cut their price objective on Builders FirstSource from $166.00 to $143.00 and set a “buy” rating on the stock in a report on Tuesday, January 6th. Nine research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $132.52.

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.