Builders FirstSource, Inc. (NYSE:BLDR) shares fell Tuesday after the company posted a weaker-than-expected quarter and pointed to continued pressure in its core markets.
Management also flagged a softer operating backdrop, even as it highlighted ongoing efficiency and supply-chain initiatives.
Quarterly Metrics
The company reported fourth-quarter adjusted earnings per share of $1.12, missing the analyst consensus of $1.22.
Quarterly sales of $3.358 billion (down 12.1% year over year) missed the Street view of $3.459 billion. The decline reflects lower core organic net sales and commodity deflation, partially offset by growth from acquisitions.
In the fourth quarter, the company delivered approximately $15 million in productivity savings from operational excellence and supply chain initiatives.
Gross profit was $1.0 billion compared to gross profit of $1.2 billion in the prior year period.
Gross profit margin decreased 250 basis points to 29.8%, primarily driven by a below-normal starts environment.
Adjusted EBITDA decreased 44.3% to $274.9 million, primarily driven by lower gross profit. Adjusted EBITDA margin declined by 470 basis points to 8.2%.
For the three months ended Dec. 31, 2025, cash provided by operating activities was $194.8 million, and cash used in investing activities was $305.2 million.
Outlook
Builders FirstSource expects fiscal 2026 sales of $14.8 billion to $15.8 billion.
The company expects to deliver $50 million to $70 million in productivity savings in 2026.
BLDR Price Action: Builders FirstSource shares were down 0.17% at $114.53 at the time of publication on Tuesday, according to Benzinga Pro data.
Image created using artificial intelligence via Midjourney.
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