Builders FirstSource (NYSE:BLDR) Posts Earnings Results, Misses Expectations By $0.08 EPS

Builders FirstSource (NYSE:BLDR) announced its quarterly earnings data on Thursday. The company reported $1.17 EPS for the quarter, missing analysts’ consensus estimates of $1.25 by ($0.08), FiscalAI reports. Builders FirstSource had a return on equity of 11.73% and a net margin of 0.71%.The company had revenue of $3.86 billion for the quarter, compared to analyst estimates of $3.91 billion. During the same period last year, the firm earned $2.38 earnings per share. The firm’s revenue for the quarter was down 8.8% on a year-over-year basis.

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

• 2026 guidance was lowered to reflect weaker housing demand, with single-family starts expected to decline nearly 7%, multifamily starts 4%, and repair-and-remodel activity 1%. Net sales are now expected at $14.0-$14.8 billion and adjusted EBITDA at $1.0-$1.2 billion.
• Second-quarter net sales fell 9% to $3.9 billion, while adjusted EBITDA declined 35% to $329 million and adjusted EPS dropped 51% to $1.17. Gross margin contracted 260 basis points to 28.1% amid lower starts and competitive pricing pressure.
• Management said it maintained market share despite the weak environment and identified an additional $40 million of fixed-cost savings, increasing its 2026 cost-action target to $115 million. Productivity initiatives generated $28 million of savings in the quarter.
• BFS continues to pursue acquisitions and completed the purchase of Precision Design and Trim in Boise during June. Management sees substantial long-term M&A runway in the fragmented building-products market, although elevated leverage will remain a consideration.
• Demand remains pressured by high interest rates, affordability concerns, elevated builder inventories, and uncertainty, particularly in Texas, Colorado, and multifamily construction. The company is consolidating facilities, reducing capital expenditures, and preserving liquidity while positioning for a future housing recovery.

Builders FirstSource Stock Up 0.6%

BLDR traded up $0.43 during trading on Friday, reaching $66.44. The company had a trading volume of 3,117,143 shares, compared to its average volume of 2,219,044. The company has a debt-to-equity ratio of 1.14, a current ratio of 1.79 and a quick ratio of 1.09. Builders FirstSource has a 12 month low of $65.10 and a 12 month high of $151.03. The business’s fifty day moving average price is $76.92 and its 200 day moving average price is $89.84. The company has a market cap of $7.15 billion, a P/E ratio of 73.01, a PEG ratio of 1.62 and a beta of 1.42.

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

Key Builders FirstSource News

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

• Positive Sentiment: Analysts continue to maintain constructive ratings despite lowering their targets. Truist kept a “buy” rating with a $90 target, while Royal Bank of Canada and Oppenheimer retained “outperform” ratings with $88 and $90 targets, respectively—implying roughly 32%–36% upside from the referenced price. Analyst price target updates
• Neutral Sentiment: The analyst actions were mixed but broadly cautious: RBC, Oppenheimer, and Truist each reduced their price targets, while Wells Fargo cut its target to $65 and moved to an “equal weight” rating. The lower targets suggest expectations for slower recovery, even though some firms still view the current valuation as attractive. Wells Fargo analyst update
• Negative Sentiment: Second-quarter adjusted earnings of $1.17 per share missed the $1.25 consensus estimate and fell sharply from $2.38 a year earlier. Revenue declined 8.8% year over year to $3.86 billion, below the $3.91 billion estimate, indicating weaker demand and reduced operating leverage. Q2 earnings and revenue miss
• Negative Sentiment: Builders FirstSource issued fiscal 2026 revenue guidance of $14.0 billion to $14.8 billion, with the upper end only matching consensus expectations. Commentary around weaker housing demand and a lower outlook is adding to concerns about near-term growth and profitability. Q2 outlook and housing-demand concerns

Institutional Investors Weigh In On Builders FirstSource

A number of hedge funds and other institutional investors have recently made changes to their positions in BLDR. Integrated Wealth Concepts LLC increased its holdings 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 purchasing an additional 295 shares in the last quarter. Woodline Partners LP lifted its holdings in shares of Builders FirstSource by 40.7% in the first quarter. Woodline Partners LP now owns 9,723 shares of the company’s stock valued at $1,215,000 after purchasing an additional 2,812 shares in the last quarter. EverSource Wealth Advisors LLC boosted its position in shares of Builders FirstSource by 180.0% during the second 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 period. Baird Financial Group Inc. grew its holdings in shares of Builders FirstSource by 230.7% during the second 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 in the last quarter. Finally, Jump Financial LLC grew its holdings in shares of Builders FirstSource by 144.1% during the second quarter. Jump Financial LLC now owns 7,223 shares of the company’s stock worth $843,000 after buying an additional 4,264 shares in the last quarter. 95.53% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

BLDR has been the subject of several analyst reports. DA Davidson set a $68.00 target price on Builders FirstSource in a research report on Friday. Jefferies Financial Group cut their price target on shares of Builders FirstSource from $85.00 to $80.00 and set a “hold” rating on the stock in a research report on Monday, May 4th. Wells Fargo & Company decreased their price objective on shares of Builders FirstSource from $85.00 to $65.00 and set an “equal weight” rating for the company in a report on Friday. Barclays lowered their target price on shares of Builders FirstSource from $93.00 to $81.00 and set an “overweight” rating for the company in a research note on Friday. Finally, Zacks Research raised shares of Builders FirstSource from a “strong sell” rating to a “hold” rating in a research report on Friday, July 3rd. Nine analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $90.59.

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.