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Builders Firstsource
(NYSE:BLDR)
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Rating:59Neutral
Price Target:
$79.00
▼(-10.73% Downside)
Action:Reiterated
Date:06/27/26
The score is held back primarily by weakening fundamentals (sharp margin compression, negative trailing revenue growth, and higher leverage) and a relatively expensive valuation (P/E ~33.7). These are partially offset by meaningful ongoing free cash flow generation and improving near-term technical momentum, while the latest earnings call suggests management is focused on cost actions and buybacks but is still navigating significant near-term sales and EBITDA pressure.
Positive Factors
Diversified business model & national footprint
BLDR's integrated model—distribution, factory-built components, and services—creates multiple durable revenue streams and cross-sell opportunities. A national branch and manufacturing footprint provides scale, logistics advantages and local market coverage that support resilience through housing cycles.
Negative Factors
Sharp margin compression
Earnings power has materially weakened as operating profitability fell steeply. Lower net margins reduce retained earnings and ROE, limit reinvestment capacity, and raise sensitivity to continued cost or mix pressures—a structural headwind until margins sustainably recover.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified business model & national footprint
BLDR's integrated model—distribution, factory-built components, and services—creates multiple durable revenue streams and cross-sell opportunities. A national branch and manufacturing footprint provides scale, logistics advantages and local market coverage that support resilience through housing cycles.
Read all positive factors
Builders Firstsource Key Performance Indicators (KPIs)
Any
Net Sales by Product Category
Breaks down revenue across the company’s product lines—such as lumber and construction materials, millwork and manufactured components, and other specialties—showing which businesses drive sales and where margins differ. Changes in these mixes reveal exposure to housing activity and commodity price swings, the success of higher-margin value-add products, and where growth or risk is concentrated.
Breaks down revenue across the company’s product lines—such as lumber and construction materials, millwork and manufactured components, and other specialties—showing which businesses drive sales and where margins differ. Changes in these mixes reveal exposure to housing activity and commodity price swings, the success of higher-margin value-add products, and where growth or risk is concentrated.
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The Fly
The FlyBuilders Firstsource (BLDR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.14B
Dividend YieldN/A
Average Volume (3M)2.53M
Price to Earnings (P/E)28.9
Beta (1Y)1.14
Revenue Growth-8.33%
EPS Growth-66.48%
CountryUS
Employees28,000
SectorIndustrials
Sector Strength72
IndustryConstruction Materials
Share Statistics
EPS (TTM)2.63
Shares Outstanding107,559,875
10 Day Avg. Volume1,916,965
30 Day Avg. Volume2,532,120
Financial Highlights & Ratios
PEG Ratio-0.46
Price to Book (P/B)2.63
Price to Sales (P/S)0.75
P/FCF Ratio13.44
Enterprise Value/Market Cap1.64
Enterprise Value/Revenue0.90
Enterprise Value/Gross Profit3.02
Enterprise Value/Ebitda11.03
Forecast
1Y Price Target
$99.53Price Target Upside12.47% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
EPS Forecast (FY)4.28
Revenue Forecast (FY)$14.82B
Builders Firstsource Business Overview & Revenue Model
Company Description
Builders FirstSource, Inc. engages in the supply and manufacture of building materials, manufactured components, and construction services to professional homebuilders, sub-contractors, remodelers, and consumers. Its products include factory-built...
How the Company Makes Money
BLDR primarily makes money by selling building products and providing value-added construction services to professional customers, with revenue recognized largely from product sales and project deliveries tied to residential construction activity....
Builders Firstsource Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Negative
The call balanced several strategic and operational positives (strong capital deployment including aggressive share repurchases, continued M&A momentum, digital traction, solid liquidity and ongoing productivity programs) against pronounced near-term operating and margin deterioration (10% sales decline, 17% gross profit decline, 42% adjusted EBITDA drop, specialty margin pressures, and macro/inflationary headwinds). Management emphasized defensiveness—cost actions, facility consolidations and tactical buybacks—while guiding to a back‑loaded year and outlining a path to margin recovery as volume seasonality and savings materialize. Given the magnitude of the recent declines in profitability and the persistent market headwinds, the negative operational trends outweigh the strategic positives in the near term.Positive Updates
Reached Upper End of Q1 Guidance
Landed at the upper end of the expected Q1 range for sales and adjusted EBITDA despite a weaker-than-expected macro environment; daily sales continued to build into April.
Negative Updates
Decline in Net Sales
Net sales decreased 10% year-over-year to $3.3 billion in Q1, driven by lower organic sales and commodity deflation despite acquisition contribution.
Read all updates
Q1-2026 Updates
Positive
Negative
Reached Upper End of Q1 Guidance
Landed at the upper end of the expected Q1 range for sales and adjusted EBITDA despite a weaker-than-expected macro environment; daily sales continued to build into April.
Read all positive updates
Company Guidance
Management updated 2026 guidance calling for net sales of $14.6–$15.6 billion, adjusted EBITDA of $1.1–$1.5 billion (7.5%–9.6% adjusted EBITDA margin) and full‑year gross margin of 27.5%–29%, with free cash flow pegged at about $400–$500 million and a heavier second‑half weighting; Q2 guidance is net sales $3.75–$4.05 billion and adjusted EBITDA $300–$350 million. Assumptions include single‑family and multifamily starts down ~2.5% vs. 2025 (repair & remodel down ~1%), average commodity prices of $390–$410 per MBF (long‑term avg $400) and a year‑over‑year working‑capital headwind of roughly $180 million. Management reiterated $100 million of cost actions ( ~$75M in year‑over‑year reductions and $25M of avoidance), a $50M–$70M productivity target for 2026 (Q1 productivity $6M; ~$13M of cost actions realized in Q1), and noted Q1 capital deployment of $45M CapEx, $12M of acquisitions and $303M of buybacks (3.3M shares), a new $500M repurchase authorization, net debt/adjusted EBITDA ~3.2x, liquidity $1.5B, trailing‑12‑month FCF yield ≈10% and operating cash‑flow return on invested capital ~13%.Builders Firstsource Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
58
Neutral
Cash Flow
64
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 14.82B | 15.19B | 16.40B | 17.10B | 22.73B | 19.89B |
| Gross Profit | 4.43B | 4.41B | 5.38B | 6.01B | 7.74B | 5.85B |
| EBITDA | 1.21B | 1.38B | 1.60B | 2.73B | 4.24B | 2.93B |
| Net Income | 291.50M | 435.20M | 1.08B | 1.54B | 2.75B | 1.73B |
Balance Sheet | ||||||
| Total Assets | 11.30B | 11.24B | 10.58B | 10.50B | 10.60B | 10.71B |
| Cash, Cash Equivalents and Short-Term Investments | 98.34M | 181.75M | 153.62M | 66.16M | 80.44M | 42.60M |
| Total Debt | 5.29B | 5.65B | 4.33B | 3.71B | 3.49B | 3.40B |
| Total Liabilities | 7.30B | 6.89B | 6.29B | 5.77B | 5.63B | 5.91B |
| Stockholders Equity | 4.00B | 4.35B | 4.30B | 4.73B | 4.96B | 4.80B |
Cash Flow | ||||||
| Free Cash Flow | 861.64M | 853.28M | 1.49B | 1.83B | 3.26B | 1.52B |
| Operating Cash Flow | 1.17B | 1.22B | 1.87B | 2.31B | 3.60B | 1.74B |
| Investing Cash Flow | -612.97M | -1.47B | -710.72M | -668.29M | -957.48M | -1.34B |
| Financing Cash Flow | -575.08M | 279.42M | -1.07B | -1.65B | -2.60B | -780.11M |
Builders Firstsource Technical Analysis
Negative
88.50
Price Trends
77.37
Negative
84.29
Negative
99.64
Negative
Market Momentum
-0.05
Positive
42.87
Neutral
10.23
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BLDR, the sentiment is Negative. The current price of 88.5 is above the 20-day moving average (MA) of 81.08, above the 50-day MA of 77.37, and below the 200-day MA of 99.64, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 42.87 is Neutral, neither overbought nor oversold. The STOCH value of 10.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BLDR.
Builders Firstsource Risk Analysis
Builders Firstsource disclosed 34 risk factors in its most recent earnings report. Builders Firstsource reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Builders Firstsource Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $6.64B | 22.13 | 34.81% | 0.66% | 9.71% | 13.17% | |
73 Outperform | $7.77B | 22.14 | 17.68% | 0.69% | 6.31% | 11.06% | |
67 Neutral | $15.70B | 19.38 | -566.50% | 1.94% | -0.31% | 10.03% | |
67 Neutral | $11.53B | 27.61 | 22.43% | 0.47% | 5.03% | -5.49% | |
65 Neutral | $11.54B | ― | -12.50% | 2.43% | -12.20% | -333.77% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | $8.14B | 28.91 | 6.92% | ― | -8.33% | -66.48% |
* Industrials Sector Average
BLDR
Builders Firstsource
75.69
-55.34
-42.23%
AWI
Armstrong World
155.50
-11.20
-6.72%
MAS
Masco
77.84
13.14
20.31%
OC
Owens Corning
143.35
2.53
1.80%
SSD
Simpson Manufacturing Co
188.80
25.16
15.38%
WMS
Advanced Drainage Systems
150.47
34.52
29.77%
Builders Firstsource Corporate Events
Executive/Board Changes
Builders FirstSource Director Resigns From Board for Health Reasons
Neutral
Jun 5, 2026
On June 3, 2026, Builders FirstSource, Inc. announced that director Mark A. Alexander resigned from its Board of Directors, effective immediately, citing health reasons and confirming that his departure did not stem from any disagreement over the ...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Builders FirstSource Announces COO Successor and New CHRO
Positive
May 18, 2026
Builders FirstSource announced on May 18, 2026, a planned leadership transition under which Chief Talent Officer Mike Hiller was appointed Chief Operating Officer-Designate, effective the same day, and will succeed current COO Steve Herron upon hi...
Business Operations and StrategyStock BuybackFinancial Disclosures
Builders FirstSource Posts Q1 Loss Amid Housing Slowdown
Negative
Apr 30, 2026
On April 30, 2026, Builders FirstSource reported first-quarter 2026 results showing net sales of $3.3 billion, down 10.1% year over year, as a weaker housing starts environment and commodity deflation pressured revenue and margins. The company swu...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.