Builders FirstSource (BLDR) Q2 2025 earnings summary

Executive summary

• Q2 2025 net sales were $4.2B, down 5% year-over-year, reflecting a challenging housing market, lower single-family and multi-family starts, and margin normalization, with operational discipline and technology investments supporting resilience.

• Net income dropped 46% to $185M, with adjusted EBITDA at $506M, and free cash flow at $255M, supporting continued share repurchases and strategic investments.

• Value-added products comprised ~47% of net sales, with ongoing investments in digital tools, ERP implementation, and geographic expansion through M&A.

• Acquisitions, including Truckee Tahoe, Alpine Lumber, and Cluss Lumber, expanded the market footprint and value-added operations.

• Capital allocation remains disciplined, balancing organic growth, M&A, and shareholder returns, with a new $500M repurchase plan authorized.

Financial highlights

• Net sales for Q2 2025 were $4.2B (down 5% year-over-year); gross profit was $1.3B (30.7% margin); adjusted EBITDA was $506M (12% margin); adjusted EPS was $2.38, down 32% year-over-year.

• Net income for Q2 2025 was $185M, a 46% decrease; free cash flow was $255M for the quarter.

• SG&A expenses rose 1.5% to $987.8M, mainly from acquisitions and ERP implementation.

• Value-added product sales declined 8.7% year-over-year; specialty building products & services grew 2.2%.

• Liquidity at quarter-end was $1.6B, with $87M in cash and $1,538M in revolver availability.

Outlook and guidance

• 2025 net sales guidance: $14.8–$15.6B; adjusted EBITDA: $1.5–$1.7B; margin: 10.1–10.9%; free cash flow: $0.8–$1.0B.

• Full-year gross margin expected at 29–30.5%, below long-term normalized levels.

• Q3 net sales expected at $3.65–$3.95B; adjusted EBITDA at $375–$425M.

• Single-Family starts expected to decline 10–12% for the year; Multi-Family down mid-teens; R&R flat.

• Capital expenditures expected at $300–$350M; interest expense $270–$280M; effective tax rate 23–25%.