Builders FirstSource Reports Decline in Q3 2025 Earnings

Builders Firstsource ( (BLDR) ) has released its Q3 earnings. Here is a breakdown of the information Builders Firstsource presented to its investors.

Builders FirstSource, Inc., headquartered in Irving, Texas, is a leading provider of building materials and integrated homebuilding solutions for professional builders in new residential construction and repair and remodeling sectors across the United States.

In its third-quarter earnings report for 2025, Builders FirstSource announced a decline in net sales to $3.9 billion, representing a 6.9% decrease from the previous year. The company attributed this decline to lower core organic net sales and commodity deflation, partially offset by growth from acquisitions.

Key financial metrics revealed a decrease in gross profit margin by 240 basis points to 30.4%, and a significant drop in net income to $122.4 million, or $1.10 per diluted share, compared to $2.44 in the prior year. Adjusted EBITDA also saw a decline of 30.8% to $433.7 million, with a corresponding decrease in the adjusted EBITDA margin by 380 basis points to 11.0%. The company reported a decrease in free cash flow by 26.8% to $464.9 million.

Despite the challenging market conditions, the management remains optimistic about the company’s strategic direction. CEO Peter Jackson emphasized the company’s focus on operational excellence and capital deployment to maintain its industry leadership. CFO Pete Beckmann highlighted the company’s financial agility and strong balance sheet as key enablers for future growth and strategic investments.

Looking ahead, Builders FirstSource projects net sales for the full year 2025 to range between $15.1 billion and $15.4 billion, with an adjusted EBITDA margin between 10.6% and 11.1%. The company plans to continue leveraging its competitive advantages to drive growth and deliver long-term value for shareholders.