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Builders Firstsource
(NYSE:BLDR)
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Rating:54Neutral
Price Target:
$74.00
▲(1.56% Upside)
Action:Reiterated
Date:08/18/26
BLDR scores in the mid-range primarily due to weakened profitability and higher leverage versus prior years, partially offset by still-solid (though declining) free cash flow. Technicals remain a headwind with the stock below key moving averages and negative MACD, while valuation is challenging given a high P/E. The latest earnings call further weighs on the score due to lowered guidance and continued demand/margin pressure despite cost actions and strong liquidity.
Positive Factors
Cash generation and liquidity
Meaningful operating and free cash flow, supported by $1.6B of liquidity, gives BLDR resilience through a cyclical slowdown. This funding can support essential investment, selective acquisitions and capital returns while reducing dependence on external financing.
Negative Factors
Sustained profitability compression
The sharp decline in operating and net margins shows that weaker demand, pricing pressure or costs are materially reducing earnings power. Lower profitability limits reinvestment capacity and makes future results more sensitive to housing volumes and product mix.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation and liquidity
Meaningful operating and free cash flow, supported by $1.6B of liquidity, gives BLDR resilience through a cyclical slowdown. This funding can support essential investment, selective acquisitions and capital returns while reducing dependence on external financing.
Read all positive factors
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.
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The Fly
The FlyBuilders Firstsource (BLDR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.55B
Dividend YieldN/A
Average Volume (3M)2.16M
Price to Earnings (P/E)76.3
Beta (1Y)1.19
Revenue Growth-9.38%
EPS Growth-86.05%
CountryUS
Employees28,000
SectorIndustrials
Sector Strength72
IndustryConstruction Materials
Share Statistics
EPS (TTM)0.92
Shares Outstanding107,596,460
10 Day Avg. Volume2,011,386
30 Day Avg. Volume2,164,006
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$80.87Price Target Upside10.99% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
EPS Forecast (FY)3.17
Revenue Forecast (FY)$14.35B
Builders Firstsource Business Overview & Revenue Model
Company Description
Builders FirstSource, Inc. engages in the supply and manufacture of building materials, manufactured components, and construction services to professional homebuilders, sub-contractors, remodelers, and consumers. Its products include factory-built...
How the Company Makes Money
BLDR primarily makes money by selling building products and providing value-added construction services to professional customers, with revenue recognized largely from product sales and project deliveries tied to residential construction activity....
Builders Firstsource Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Neutral
The call balanced clear operational and strategic positives — including productivity savings, expanded M&A capability, strong liquidity and progress on digital/SAP initiatives — against pronounced near-term financial pressure: declines in sales, gross profit, adjusted EBITDA and EPS, a sizable operating cash flow drop for the quarter, and lowered guidance tied to weak housing starts and commodity/fuel headwinds. Management emphasized disciplined cost actions (raising targeted savings to a $115M run rate), rightsizing capacity and preserving flexibility, but near-term metrics remain pressured.Positive Updates
Maintained Market Share and Operational Resilience
Management said the company maintained share in Q2 despite weak housing conditions; on-time & in-full delivery rate remained above 90%, and the operating model enabled rightsizing capacity without compromising service.
Negative Updates
Revenue Decline
Net sales decreased approximately 9% year-over-year to $3.9 billion in Q2. Core organic sales declined: single-family -8%, multifamily -10%, Repair & Remodel -2%.
Read all updates
Q2-2026 Updates
Positive
Negative
Maintained Market Share and Operational Resilience
Management said the company maintained share in Q2 despite weak housing conditions; on-time & in-full delivery rate remained above 90%, and the operating model enabled rightsizing capacity without compromising service.
Read all positive updates
Company Guidance
Management lowered full‑year guidance and now expects 2026 net sales of $14.0–$14.8 billion, adjusted EBITDA of $1.0–$1.2 billion (7.1%–8.1% adjusted EBITDA margin), full‑year gross margin of 27.5%–28.5% and free cash flow of about $400–$500 million; Q3 guidance is net sales $3.6–$3.9 billion and adjusted EBITDA $275–$325 million. Assumptions driving the outlook include single‑family starts down ~7%, multifamily starts down 4%, Repair & Remodel down 1%, and average commodity prices of $390–$410 per thousand board foot; Q2 results noted net sales ≈$3.9B (down ~9%), gross profit $1.1B (gross margin 28.1%, down 260 bps), adjusted EBITDA $329M (down 35%, margin 8.5%), adjusted EPS $1.17 (down 51%), Q2 operating cash flow $68M and free cash flow $32M, trailing‑12m FCF yield ~7%, net debt/adjusted EBITDA ~3.6x and liquidity of $1.6B.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 | 14.45B | 15.19B | 16.40B | 17.10B | 22.73B | 19.89B |
| Gross Profit | 4.22B | 4.41B | 5.38B | 6.01B | 7.74B | 5.85B |
| EBITDA | 1.03B | 1.38B | 2.16B | 2.73B | 4.24B | 2.93B |
| Net Income | 102.57M | 435.20M | 1.08B | 1.54B | 2.75B | 1.73B |
Balance Sheet | ||||||
| Total Assets | 11.32B | 11.24B | 10.58B | 10.50B | 10.60B | 10.71B |
| Cash, Cash Equivalents and Short-Term Investments | 65.65M | 181.75M | 153.62M | 66.16M | 80.44M | 42.60M |
| Total Debt | 5.24B | 5.65B | 4.33B | 3.71B | 3.49B | 3.40B |
| Total Liabilities | 7.32B | 6.89B | 6.29B | 5.77B | 5.63B | 5.91B |
| Stockholders Equity | 4.01B | 4.35B | 4.30B | 4.73B | 4.96B | 4.80B |
Cash Flow | ||||||
| Free Cash Flow | 639.32M | 853.28M | 1.49B | 1.83B | 3.26B | 1.52B |
| Operating Cash Flow | 898.00M | 1.22B | 1.87B | 2.31B | 3.60B | 1.74B |
| Investing Cash Flow | -514.80M | -1.47B | -710.72M | -668.29M | -957.48M | -1.34B |
| Financing Cash Flow | -404.56M | 279.42M | -1.07B | -1.65B | -2.60B | -780.11M |
Builders Firstsource Technical Analysis
Negative
72.86
Price Trends
76.04
Negative
77.85
Negative
92.77
Negative
Market Momentum
-1.23
Positive
40.59
Neutral
12.93
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BLDR, the sentiment is Negative. The current price of 72.86 is above the 20-day moving average (MA) of 71.77, below the 50-day MA of 76.04, and below the 200-day MA of 92.77, indicating a bearish trend. The MACD of -1.23 indicates Positive momentum. The RSI at 40.59 is Neutral, neither overbought nor oversold. The STOCH value of 12.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | $7.57B | 24.51 | 35.36% | 0.82% | 8.57% | 8.25% | |
76 Outperform | $8.03B | 21.32 | 18.44% | 0.60% | 6.48% | 16.55% | |
68 Neutral | $11.16B | 25.38 | 23.40% | 0.52% | 10.37% | 4.62% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $14.58B | 17.00 | -406.43% | 1.59% | -0.56% | 15.03% | |
60 Neutral | $12.16B | -18.57 | -17.10% | 2.15% | -11.79% | -310.77% | |
54 Neutral | $7.55B | 76.32 | 2.46% | ― | -9.38% | -86.05% |
* Industrials Sector Average
BLDR
Builders Firstsource
67.62
-70.53
-51.05%
AWI
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177.15
-16.62
-8.58%
MAS
Masco
73.38
-0.06
-0.08%
OC
Owens Corning
150.61
2.07
1.39%
SSD
Simpson Manufacturing Co
189.84
-0.79
-0.41%
WMS
Advanced Drainage Systems
144.10
0.88
0.61%
Builders Firstsource Corporate Events
Business Operations and StrategyExecutive/Board Changes
Builders FirstSource Announces Leadership Change in Technology Division
Neutral
Aug 7, 2026
On August 3, 2026, Builders FirstSource, Inc. notified Gayatri Narayan that she would be separated from her role as President, Technology and Digital Solutions, effective August 14, 2026. The company stated that her departure was not due to any di...
Executive/Board Changes
Builders FirstSource Director Resigns From Board for Health Reasons
Neutral
Jun 5, 2026
On June 3, 2026, Builders FirstSource, Inc. announced that director Mark A. Alexander resigned from its Board of Directors, effective immediately, citing health reasons and confirming that his departure did not stem from any disagreement over the ...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Builders FirstSource Announces COO Successor and New CHRO
Positive
May 18, 2026
Builders FirstSource announced on May 18, 2026, a planned leadership transition under which Chief Talent Officer Mike Hiller was appointed Chief Operating Officer-Designate, effective the same day, and will succeed current COO Steve Herron upon hi...
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.