Builders Firstsource Inc

Latest Results (11.11.2025):

Builders FirstSource, Inc reported its third quarter 2025 financial results, revealing a challenging quarter with declining net sales, earnings, and margins. The report highlights significant decreases across several financial metrics, including a 6.9% drop in net sales to $3.9 billion and a 57% decline in net income to $122.4 million. The results were impacted by lower core organic sales, commodity deflation, and a below-normal starts environment. Despite these challenges, the company emphasized its ongoing strategic investments, cost management, and operational excellence to drive long-term shareholder value.

Net Sales and Margin Trends

For the third quarter of 2025, Builders FirstSource, Inc experienced net sales of $3.9 billion, down 6.9% year over year. The decline was driven by a 10.6% decrease in core organic net sales and commodity deflation, partially offset by acquisitions. The gross profit margin fell by 240 basis points to 30.4%, reflecting the impact of a below-normal starts environment.

Decline in Earnings

Net income for the quarter dropped to $122.4 million (or $1.10 diluted earnings per share) from $284.8 million in the prior year period—a decline of approximately 57%. Additionally, adjusted net income saw a 42% decrease, while adjusted EBITDA decreased by 30.8%, contributing to a decline in the EBITDA margin by 380 basis points to 11.0%.

Cash Flow and Liquidity

Builders FirstSource reported operating cash provided of $547.7 million; however, free cash flow declined by 26.8% to $464.9 million. Liquidity remained robust at approximately $2.1 billion, underpinned by a healthy revolving credit facility and cash on hand, despite the challenging quarter.

Management Commentary and Forward-Looking Strategy

CEO Peter Jackson emphasized the strength of the company’s strategy and disciplined execution despite a weak housing market, while CFO Pete Beckmann highlighted careful cost management and capital deployment. Their commentary underlines an ongoing investment in operational excellence, strategic acquisitions, and maintaining financial agility as the company positions itself for future growth.