Builders FirstSource (NYSE:BLDR) Issues Earnings Results

Builders FirstSource (NYSE:BLDR) posted its earnings results on Thursday. The company reported $0.27 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.39 by ($0.12), Zacks reports. The company had revenue of $3.29 billion during the quarter, compared to the consensus estimate of $3.17 billion. Builders FirstSource had a net margin of 2.87% and a return on equity of 17.89%. The business’s quarterly revenue was down 10.1% compared to the same quarter last year. During the same quarter in the previous year, the business posted $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 Price Performance

NYSE:BLDR traded down $3.30 during mid-day trading on Friday, reaching $75.79. 2,092,558 shares of the stock were exchanged, compared to its average volume of 2,322,034. The business has a fifty day moving average price of $89.22 and a 200 day moving average price of $105.05. The firm has a market capitalization of $8.38 billion, a PE ratio of 19.61, a PEG ratio of 2.51 and a beta of 1.63. Builders FirstSource has a 1-year low of $75.83 and a 1-year high of $151.03. The company has a current ratio of 1.86, a quick ratio of 1.16 and a debt-to-equity ratio of 1.02.

Insider Transactions at Builders FirstSource

In other news, Director Paul S. Levy bought 50,000 shares of the stock in a transaction that occurred on Friday, March 13th. The shares were purchased at an average cost of $87.73 per share, with a total value of $4,386,500.00. Following the completion of the acquisition, the director directly owned 1,727,191 shares in the company, valued at approximately $151,526,466.43. The trade was a 2.98% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 2.70% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the company. Smartleaf Asset Management LLC lifted its stake in Builders FirstSource by 25.0% during the fourth quarter. Smartleaf Asset Management LLC now owns 871 shares of the company’s stock valued at $90,000 after buying an additional 174 shares in the last quarter. StoneX Group Inc. purchased a new stake in Builders FirstSource during the fourth quarter valued at about $211,000. Brown Brothers Harriman & Co. lifted its stake in Builders FirstSource by 39.5% during the fourth quarter. Brown Brothers Harriman & Co. now owns 547 shares of the company’s stock valued at $56,000 after buying an additional 155 shares in the last quarter. Dorsey Wright & Associates acquired a new stake in Builders FirstSource during the 3rd quarter worth about $205,000. Finally, NorthRock Partners LLC purchased a new position in Builders FirstSource during the 3rd quarter valued at about $208,000. 95.53% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on BLDR shares. Bank of America lowered their price target on Builders FirstSource from $123.00 to $100.00 and set a “neutral” rating on the stock in a report on Monday, April 20th. Truist Financial lowered their price target on Builders FirstSource from $145.00 to $115.00 and set a “buy” rating on the stock in a report on Thursday. Barclays lowered their price target on Builders FirstSource from $114.00 to $93.00 and set an “overweight” rating on the stock in a report on Friday. Jefferies Financial Group lowered their price target on Builders FirstSource from $110.00 to $85.00 and set a “hold” rating on the stock in a report on Monday, April 13th. Finally, Raymond James Financial lowered their price target on Builders FirstSource from $140.00 to $100.00 in a report on Friday. Ten research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and three have issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $104.45.

Key Headlines Impacting Builders FirstSource

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

• Positive Sentiment: Board authorized a $500 million share repurchase (up to ~5.4% of shares), which supports the stock by signaling management views shares as undervalued and improving buyback-driven EPS/cash-return potential. RTT News
• Positive Sentiment: Certain analysts kept bullish ratings (Truist and Benchmark maintained buy/outperform stances even after lowering targets), providing some investor support and indicating continued conviction in longer?term recovery. Truist / MarketScreener
• Neutral Sentiment: Q1 results package / investor materials and call transcript are available for deeper diligence — useful for assessing margin cadence, backlog and guidance detail. Earnings Presentation
• Neutral Sentiment: Company hired a new legal leader amid governance/risk scrutiny — important for oversight but not an immediate earnings driver. Yahoo Finance
• Negative Sentiment: Q1 EPS missed expectations ($0.27 vs. $0.39) and the company reported a year?over?year revenue decline (~10.1%); management discussed margin pressure and weaker housing demand, which pressured sentiment. Zacks
• Negative Sentiment: Several brokers cut price targets this morning (examples: DA Davidson to $84, Wells Fargo to $85, Goldman to $101, Raymond James to $100, Baird to $95), amplifying near?term selling pressure despite many targets still implying upside from current levels. DA Davidson Wells Fargo / Benzinga Goldman / MarketScreener
• Negative Sentiment: Market reaction reflected concerns about a swing to a Q1 net loss and a softer 2026 outlook (lowered margins and free?cash?flow expectations), which reduces near?term upside and raises execution risk. QuiverQuant

Builders FirstSource declared that its board has initiated a share repurchase program on Thursday, April 30th that permits the company to buyback $500.00 million in outstanding shares. This buyback authorization permits 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.

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.