Builders FirstSource (BLDR) investor relations material

Executive summary

• Net sales for Q1 2026 were $3.3 billion, down 10.1% year-over-year, primarily due to lower housing starts and commodity price deflation, partially offset by acquisitions.

• Gross margin declined to 28.3% from 30.5% in Q1 2025, reflecting a weaker housing environment.

• Net loss was $47.4 million, or $(0.43) per diluted share, compared to net income of $96.3 million, or $0.84 per share, in Q1 2025.

• Adjusted EBITDA was $213.8 million, down 42.1% year-over-year; margin fell 360 basis points to 6.5%.

• Strategic focus remained on value-added solutions, operational excellence, digital innovation, and disciplined capital allocation.

Financial highlights

• Net sales: $3.3 billion, down 10.1% year-over-year; gross profit: $0.9 billion, down 16.7%; gross margin: 28.3%.

• Adjusted EBITDA: $213.8 million, down 42.1% year-over-year; margin: 6.5%.

• Adjusted EPS: $0.27, down 82% year-over-year; adjusted net income: $30 million (0.9% of sales).

• Free cash flow for Q1 was $42.7 million; trailing 12-month free cash flow yield was approximately 10%.

• Operating cash flow: $87.5 million, down from $132.3 million in Q1 2025.

Outlook and guidance

• 2026 net sales guidance: $14.6–$15.6 billion; adjusted EBITDA: $1.1–$1.5 billion; margin: 7.5%–9.6%.

• Full-year gross margin expected at 27.5%–29%; free cash flow guidance: $400–$500 million.

• Q2 net sales expected at $3.75–$4.05 billion; adjusted EBITDA at $300–$350 million.

• Industry forecasts project 1.3 million total U.S. housing starts and 930,000 single-family starts for 2026, both down from 2025.

• Single Family and Multi-Family starts expected to be down low-single digits; R&R down 1%.