Builders Firstsource (BLDR)
NYSE:BLDR
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Builders Firstsource
(NYSE:BLDR)
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Rating:53Neutral
Price Target:
$85.00
▼(-3.95% Downside)
Action:ReiteratedDate:04/30/26
The score is held back primarily by weakening fundamentals (margin and earnings deterioration alongside higher leverage) and a bearish technical setup (below key moving averages with negative MACD). Valuation also detracts due to a very high P/E and no dividend yield. Earnings-call actions (cost initiatives, liquidity and substantial repurchases) provide some support but do not fully offset the near-term operating slowdown.
Positive Factors
Robust free cash flow and liquidity
Sustained operating cash flow and sizable trailing free cash flow provide durable internal funding for M&A, buybacks and capital needs. Strong liquidity (~$1.5B) cushions cyclical downturns and supports strategic investments without immediate reliance on new debt.
Negative Factors
Material margin and profitability deterioration
Sharp compression in net margin and declining revenues signal persistent pricing/mix and cost pressures. If specialty-product and mix headwinds persist, structural earnings power and ability to generate consistent operating profits remain impaired for multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Robust free cash flow and liquidity
Sustained operating cash flow and sizable trailing free cash flow provide durable internal funding for M&A, buybacks and capital needs. Strong liquidity (~$1.5B) cushions cyclical downturns and supports strategic investments without immediate reliance on new debt.
Read all positive factors
Builders Firstsource (BLDR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.61B
Dividend YieldN/A
Average Volume (3M)2.16M
Price to Earnings (P/E)―
Beta (1Y)1.14
Revenue Growth-8.33%
EPS Growth-66.48%
CountryUS
Employees29,000
SectorIndustrials
Sector Strength72
IndustryConstruction
Share Statistics
EPS (TTM)2.63
Shares Outstanding107,559,875
10 Day Avg. Volume2,019,994
30 Day Avg. Volume2,164,468
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 Cap1.63
Enterprise Value/Revenue0.95
Enterprise Value/Gross Profit3.17
Enterprise Value/Ebitda11.56
Forecast
1Y Price Target
$100.94Price Target Upside14.06% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering18
EPS Forecast (FY)4.33
Revenue Forecast (FY)$14.83B
Builders Firstsource Business Overview & Revenue Model
Company Description
Builders FirstSource, Inc., together with its subsidiaries, manufactures and supplies building materials, manufactured components, and construction services to professional homebuilders, sub-contractors, remodelers, and consumers in the United Sta...
How the Company Makes Money
Builders FirstSource makes money primarily by selling building products and related services to professional customers in residential construction and repair/remodel markets. Its revenue is generated through (1) distribution sales of building mate...
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.
Data provided by:
The Fly
The FlyBuilders 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 | 4.27B | 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
Neutral
88.50
Price Trends
95.79
Negative
104.03
Negative
115.39
Negative
Market Momentum
-2.00
Negative
51.87
Neutral
66.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BLDR, the sentiment is Neutral. The current price of 88.5 is above the 20-day moving average (MA) of 83.33, below the 50-day MA of 95.79, and below the 200-day MA of 115.39, indicating a neutral trend. The MACD of -2.00 indicates Negative momentum. The RSI at 51.87 is Neutral, neither overbought nor oversold. The STOCH value of 66.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $11.58B | 30.06 | 25.82% | 0.47% | 1.60% | 0.43% | |
74 Outperform | $7.09B | 26.40 | 34.81% | 0.66% | 9.71% | 13.17% | |
69 Neutral | $8.00B | 20.05 | 16.86% | 0.69% | 4.51% | 8.60% | |
67 Neutral | $14.51B | 14.37 | -566.50% | 1.94% | -0.31% | 10.03% | |
66 Neutral | $9.89B | ― | -11.39% | 2.43% | -7.95% | -187.64% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
53 Neutral | $8.61B | -47.69 | 6.92% | ― | -8.33% | -66.48% |
* Industrials Sector Average
BLDR
Builders Firstsource
80.03
-25.96
-24.49%
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Builders Firstsource Corporate Events
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.