Builders Firstsource (BLDR)
NYSE:BLDR
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Builders Firstsource
(NYSE:BLDR)
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Rating:45Neutral
Price Target:
$77.00
▼(-12.27% Downside)
Action:ReiteratedDate:03/31/26
The score is weighed down primarily by deteriorating recent financial performance (margin compression, weaker cash conversion, and balance-sheet comparability concerns) and a bearish technical setup with the stock trading below all key moving averages. Valuation is also a headwind due to the very high P/E and lack of dividend support. Offsetting factors come from the earnings call, where cost actions, digital momentum, and a guided back-half improvement provide some support despite near-term uncertainty.
Positive Factors
High gross margins from value-added solutions
Builders FirstSource's sustained >30% gross margin reflects durable pricing power from value‑added manufacturing and prefabricated solutions. Even if volumes soften, higher-margin product mix cushions earnings, supports reinvestment in factories and services, and underpins long-term profitability.
Negative Factors
Material margin compression and revenue decline
Sharp margin erosion and top-line contraction reflect weaker housing demand, commodity deflation and lower value per start. Persistently compressed EBITDA margins reduce internal funding for capex and M&A, increase sensitivity to cyclical swings, and make margin stabilization critical to long-term cash generation.
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Positive Factors
Negative Factors
High gross margins from value-added solutions
Builders FirstSource's sustained >30% gross margin reflects durable pricing power from value‑added manufacturing and prefabricated solutions. Even if volumes soften, higher-margin product mix cushions earnings, supports reinvestment in factories and services, and underpins long-term profitability.
Read all positive factors
Builders Firstsource (BLDR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.68B
Dividend YieldN/A
Average Volume (3M)2.34M
Price to Earnings (P/E)90.3
Beta (1Y)1.22
Revenue Growth-6.44%
EPS Growth-48.84%
CountryUS
Employees29,000
SectorIndustrials
Sector Strength72
IndustryConstruction
Share Statistics
EPS (TTM)1.12
Shares Outstanding110,609,210
10 Day Avg. Volume1,816,577
30 Day Avg. Volume2,337,976
Financial Highlights & Ratios
PEG Ratio-0.46
Price to Book (P/B)2.63
Price to Sales (P/S)0.75
P/FCF Ratio13.43
Enterprise Value/Market Cap1.57
Enterprise Value/Revenue1.00
Enterprise Value/Gross Profit3.29
Enterprise Value/Ebitda11.01
Forecast
1Y Price Target
$120.00Price Target Upside36.72% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)5.9
Revenue Forecast (FY)$14.99B
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)
Builders Firstsource Earnings Call Summary
Earnings Call Date:Feb 17, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Neutral
Balanced: the company demonstrated material strengths — strong full-year profitability, exceptional free cash flow generation, a proven M&A and value-add playbook, and rapid digital adoption — but reported meaningful quarter-over-quarter declines in sales, EBITDA and EPS driven by a weak housing market, commodity deflation and some one-time cost true-ups. Management has enacted significant cost actions, continues strategic investments, and provided conservative guidance that implies improvement in the back half of 2026, leaving the near-term outlook uncertain but the longer-term positioning constructive.Positive Updates
Strong Full-Year Profitability
Maintained full-year 2025 gross margin above 30% and EBITDA margin above 10%, reflecting resilience of value-added solutions and operational improvements.
Negative Updates
Q4 Revenue Decline
Net sales decreased 12% in Q4 to $3.4 billion, driven by core organic declines and commodity deflation despite acquisition contributions.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Full-Year Profitability
Maintained full-year 2025 gross margin above 30% and EBITDA margin above 10%, reflecting resilience of value-added solutions and operational improvements.
Read all positive updates
Company Guidance
Builders FirstSource guided 2026 net sales of $14.8–$15.8 billion, adjusted EBITDA of $1.3–$1.7 billion (8.8%–10.8% adj. EBITDA margin), full‑year gross margin of 28.5%–30% and roughly $500 million of free cash flow, assuming single‑family and multifamily starts are flat year‑over‑year, repair & remodel up ~1%, average commodity prices of $365–$385 per thousand board foot (versus a long‑term ~$400), and a roughly $300 million working‑capital swing that largely explains the year‑over‑year cash flow change; Q1 2026 was guided to net sales of $3.0–$3.3 billion and adjusted EBITDA of $175–$225 million, with the company expecting a heavier second‑half contribution to the year.Builders Firstsource Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
38
Negative
Cash Flow
52
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 15.19B | 16.40B | 17.10B | 22.73B | 19.89B |
| Gross Profit | 4.62B | 5.38B | 6.01B | 7.74B | 5.85B |
| EBITDA | 1.38B | 1.60B | 2.73B | 4.27B | 2.93B |
| Net Income | 435.20M | 1.08B | 1.54B | 2.75B | 1.73B |
Balance Sheet | |||||
| Total Assets | 11.24B | 10.58B | 10.50B | 10.60B | 10.71B |
| Cash, Cash Equivalents and Short-Term Investments | 181.75M | 153.62M | 66.16M | 80.44M | 42.60M |
| Total Debt | 5.65B | 4.33B | 3.71B | 3.49B | 3.40B |
| Total Liabilities | 6.89B | 6.29B | 5.77B | 5.63B | 5.91B |
| Stockholders Equity | 4.35B | 4.30B | 4.73B | 4.96B | 4.80B |
Cash Flow | |||||
| Free Cash Flow | 853.28M | 1.49B | 1.83B | 3.26B | 1.52B |
| Operating Cash Flow | 1.22B | 1.87B | 2.31B | 3.60B | 1.74B |
| Investing Cash Flow | -1.47B | -710.72M | -668.29M | -957.48M | -1.34B |
| Financing Cash Flow | 279.42M | -1.07B | -1.65B | -2.60B | -780.11M |
Builders Firstsource Technical Analysis
Neutral
87.77
Price Trends
98.29
Negative
104.46
Negative
116.04
Negative
Market Momentum
-3.47
Negative
49.70
Neutral
88.67
Negative
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 87.77 is above the 20-day moving average (MA) of 83.50, below the 50-day MA of 98.29, and below the 200-day MA of 116.04, indicating a neutral trend. The MACD of -3.47 indicates Negative momentum. The RSI at 49.70 is Neutral, neither overbought nor oversold. The STOCH value of 88.67 is Negative, 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 | $11.84B | 30.06 | 25.82% | 0.47% | 2.48% | -6.92% | |
72 Outperform | $7.64B | 31.80 | 36.09% | 0.66% | 15.10% | 23.35% | |
71 Outperform | $7.44B | 29.69 | 17.58% | 0.69% | 4.26% | 8.52% | |
64 Neutral | $9.51B | -17.89 | -11.39% | 2.43% | 3.47% | -148.53% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | $13.09B | 16.37 | -537.31% | 1.94% | -3.62% | 3.41% | |
45 Neutral | $9.68B | 90.31 | 10.11% | ― | -6.44% | -48.84% |
* Industrials Sector Average
BLDR
Builders Firstsource
87.77
-30.45
-25.76%
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119.41
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SSD
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177.89
28.91
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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.