Builders FirstSource (NYSE:BLDR) Issues Earnings Results, Misses Estimates By $0.12 EPS

Builders FirstSource (NYSE:BLDR) issued its quarterly 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. Builders FirstSource had a return on equity of 14.89% and a net margin of 1.97%.The firm had revenue of $3.29 billion during the quarter, compared to analysts’ expectations of $3.17 billion. During the same quarter in the prior year, the firm earned $1.51 EPS. The firm’s revenue was down 10.1% compared to the same quarter last year.

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 Stock Performance

Shares of Builders FirstSource stock traded down $3.24 on Friday, hitting $75.85. The stock had a trading volume of 3,693,887 shares, compared to its average volume of 2,168,658. Builders FirstSource has a 52-week low of $75.38 and a 52-week high of $151.03. The company has a current ratio of 1.76, a quick ratio of 1.16 and a debt-to-equity ratio of 1.15. The stock has a market cap of $8.39 billion, a price-to-earnings ratio of 19.55, a P/E/G ratio of 2.38 and a beta of 1.49. The company’s 50 day moving average price is $89.22 and its 200 day moving average price is $105.05.

Builders FirstSource announced that its board has authorized a stock buyback plan on Thursday, April 30th that permits the company to repurchase $500.00 million in shares. This repurchase authorization permits the company to repurchase up to 5.4% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s board believes its shares are undervalued.

Insider Buying and Selling at Builders FirstSource

In other news, Director Paul S. Levy bought 50,000 shares of Builders FirstSource stock in a transaction dated Friday, March 13th. The stock was acquired at an average cost of $87.73 per share, with a total value of $4,386,500.00. Following the acquisition, the director owned 1,727,191 shares of the company’s stock, valued at approximately $151,526,466.43. This trade represents a 2.98% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 2.70% of the company’s stock.

Institutional Trading of Builders FirstSource

Institutional investors and hedge funds have recently bought and sold shares of the business. Boston Partners raised its stake in Builders FirstSource by 73.0% during the 3rd quarter. Boston Partners now owns 1,852,292 shares of the company’s stock valued at $224,627,000 after acquiring an additional 781,506 shares during the last quarter. Coliseum Capital Management LLC purchased a new stake in Builders FirstSource during the 4th quarter valued at approximately $80,321,000. Dimensional Fund Advisors LP raised its stake in Builders FirstSource by 37.9% during the 4th quarter. Dimensional Fund Advisors LP now owns 2,641,809 shares of the company’s stock valued at $271,816,000 after acquiring an additional 725,905 shares during the last quarter. Invesco Ltd. raised its position in Builders FirstSource by 36.0% during the 4th quarter. Invesco Ltd. now owns 2,102,080 shares of the company’s stock worth $216,283,000 after buying an additional 556,210 shares during the last quarter. Finally, Renaissance Technologies LLC purchased a new position in Builders FirstSource during the 4th quarter worth $55,020,000. Hedge funds and other institutional investors own 95.53% of the company’s stock.

Analyst Upgrades and Downgrades

BLDR has been the subject of a number of recent research reports. Royal Bank Of Canada decreased their price target on shares of Builders FirstSource from $110.00 to $107.00 and set an “outperform” rating for the company in a research note on Friday. Weiss Ratings downgraded Builders FirstSource from a “hold (c-)” rating to a “sell (d+)” rating in a report on Friday, March 20th. KeyCorp decreased their price target on Builders FirstSource from $145.00 to $100.00 and set an “overweight” rating for the company in a report on Friday. UBS Group decreased their price target on Builders FirstSource from $143.00 to $122.00 and set a “buy” rating for the company in a report on Friday. Finally, Bank of America decreased their price target on Builders FirstSource from $123.00 to $100.00 and set a “neutral” rating for the company in a report on Monday, April 20th. Nine research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and three have given a Sell rating to the company’s stock. According to MarketBeat, Builders FirstSource presently has an average rating of “Hold” and an average price target of $103.45.

Trending Headlines about Builders FirstSource

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

• Positive Sentiment: Board authorizes $500 million share repurchase (≈5.4% of outstanding shares), which supports buyback-driven upside and signals management thinks shares are undervalued. RTT News
• Positive Sentiment: Insider buying was reported (Paul S. Levy purchased shares), a constructive signal for investors watching insider conviction. Quiver Quant
• Neutral Sentiment: Some sell-side firms left “buy”/outperform stances in place even after trimming targets (e.g., UBS, Truist, Benchmark), so analyst tone is mixed rather than uniformly bearish. Benzinga (example: UBS)
• Negative Sentiment: Q1 results disappointed on profitability: EPS of $0.27 missed estimates, revenue fell ~10% YoY (though slightly beat sales forecasts), and management signaled weaker demand and pressure on margins and free cash flow for 2026 — a key driver of the stock’s downside. MarketBeat / Press Release
• Negative Sentiment: Widespread price-target cuts from multiple firms this morning (examples: UBS, RBC, Wells Fargo, DA Davidson, Truist, Loop Capital, Goldman, Raymond James, Benchmark, Baird) created additional selling pressure as several targets moved substantially lower. MarketScreener (Goldman example)

Builders FirstSource Company Profile

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.