Builders FirstSource (NYSE:BLDR) Announces Quarterly Earnings Results

Builders FirstSource (NYSE:BLDR) issued its 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 during the quarter, compared to the consensus estimate of $3.46 billion. Builders FirstSource had a return on equity of 21.28% and a net margin of 3.79%.The company’s quarterly revenue was down 12.1% on a year-over-year basis. During the same quarter in the prior year, the company posted $2.31 EPS.

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 Stock Up 0.1%

BLDR opened at $114.85 on Wednesday. The company has a debt-to-equity ratio of 1.03, a quick ratio of 1.15 and a current ratio of 1.79. The stock has a market capitalization of $12.70 billion, a price-to-earnings ratio of 21.88, a PEG ratio of 14.36 and a beta of 1.56. Builders FirstSource has a fifty-two week low of $94.35 and a fifty-two week high of $153.91. The company has a fifty day moving average of $114.54 and a two-hundred day moving average of $120.50.

Institutional Investors Weigh In On Builders FirstSource

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Cinctive Capital Management LP raised its position in shares of Builders FirstSource by 122.9% in the fourth quarter. Cinctive Capital Management LP now owns 28,686 shares of the company’s stock valued at $2,952,000 after buying an additional 15,817 shares during the last quarter. Balyasny Asset Management L.P. raised its holdings in Builders FirstSource by 10,664.0% in the 4th quarter. Balyasny Asset Management L.P. now owns 305,159 shares of the company’s stock valued at $31,398,000 after acquiring an additional 302,324 shares during the last quarter. Auxier Asset Management LLC acquired a new stake in shares of Builders FirstSource during the fourth quarter worth $206,000. Freestone Grove Partners LP purchased a new stake in shares of Builders FirstSource in the fourth quarter valued at $2,130,000. Finally, Guggenheim Capital LLC purchased a new stake in shares of Builders FirstSource in the fourth quarter valued at $288,000. Hedge funds and other institutional investors own 95.53% of the company’s stock.

Key Builders FirstSource News

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

• Positive Sentiment: Revenue guidance range ($14.8B–$15.8B) includes the Street midpoint, reducing outright downside risk to revenue expectations. Builders FirstSource Reports Fourth Quarter and Full-Year 2025 Results; Provides 2026 Financial Outlook
• Positive Sentiment: Acquisitions and some commodity cost relief partially offset organic weakness, which could support cash flow as housing demand recovers. Builders FirstSource Reports Fourth Quarter and Full-Year 2025 Results; Provides 2026 Financial Outlook
• Neutral Sentiment: Company released an earnings slide deck and call transcript — useful for investors wanting line-item detail on margins, mix and regional trends. Slide Deck / Press Release
• Neutral Sentiment: Revenue guidance brackets Wall Street forecasts, leaving upside or downside dependent on housing starts and pricing recovery—outcome is data-dependent. What’s Going On With Builders FirstSource Stock On Tuesday?
• Negative Sentiment: Q4 misses: EPS $1.12 vs. $1.31 est.; revenue $3.36B vs. $3.46B est.; net sales down 12.1% YoY — a clear near-term earnings and revenue headwind. Builders FirstSource misses Q4 expectations, shares dip
• Negative Sentiment: Management warned that annual profit margin will come in below estimates due to weak housing demand, signaling lower profitability ahead. Builders FirstSource forecast annual profit margin below estimates on weak housing demand
• Negative Sentiment: Company sales fell year-over-year (annual sales down ~7.4% in filings), underscoring persistent housing-market weakness that pressures top-line growth. Builders FirstSource Annual Sales Fall 7.4% as Housing Weakness Persists
• Negative Sentiment: Market reaction: shares slipped/edged lower after the report and comments on demand/pricing pressure — traders are pricing in slower housing recovery and margin risk. What’s Going On With Builders FirstSource Stock On Tuesday?

Analysts Set New Price Targets

Several research analysts have commented on BLDR shares. Robert W. Baird dropped their price objective on shares of Builders FirstSource from $135.00 to $125.00 and set a “neutral” rating for the company in a report on Wednesday. Zacks Research upgraded Builders FirstSource from a “strong sell” rating to a “hold” rating in a research report on Wednesday, November 5th. Benchmark boosted their target price on shares of Builders FirstSource from $138.00 to $142.00 and gave the company a “buy” rating in a research note on Friday, October 31st. DA Davidson lowered their price objective on shares of Builders FirstSource from $115.00 to $111.00 and set a “neutral” rating for the company in a research report on Monday, February 2nd. Finally, Weiss Ratings restated a “hold (c-)” rating on shares of Builders FirstSource in a research note on Wednesday, January 21st. Nine investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $133.52.

Builders FirstSource Company Profile

Builders FirstSource, Inc is a leading supplier of structural and value-added building products and services to professional contractors, homebuilders and remodelers. The company provides a comprehensive range of materials and prefabricated components that support all phases of residential construction, from site development and framing to finishing and installation.

The company’s core offerings include lumber and lumber sheet goods, windows and doors, millwork, roofing and siding, and engineered wood products such as roof and floor trusses.