Builders FirstSource (BLDR) Q3 2025 earnings summary

Executive summary

• Q3 2025 net sales were $3.9–$3.94 billion, down 6.9% year-over-year, with net income of $122.4 million, a 57% decrease, and EPS at $1.10–$1.11; declines driven by lower core organic sales and commodity deflation, partially offset by acquisitions.

• Adjusted EBITDA fell 30.8% to $433.7–$434 million, with margin at 11.0%, and adjusted EPS dropped 38.8% to $1.88.

• Gross margin was 30.4%, down 240 basis points year-over-year.

• Free cash flow was $464.9–$465 million in Q3, with strong liquidity of $2.1 billion at quarter-end.

• Continued investment in digital tools, technology, and targeted M&A to strengthen market position and support long-term growth.

Financial highlights

• Q3 2025 net sales: $3.9–$3.94 billion (down 6.9% YoY); nine months: $11.8 billion (down 5.9% YoY).

• Gross profit was $1.2 billion, down 13.5% year-over-year; gross margin at 30.4%.

• Adjusted EBITDA was $433.7–$434 million, down 31% year-over-year; adjusted EBITDA margin at 11%.

• Adjusted EPS was $1.88, a 39% decrease year-over-year.

• Value-added products comprised ~47% of Q3 net sales; specialty building products & services grew 3.6%.

Outlook and guidance

• 2025 guidance: net sales of $15.1–$15.4 billion, adjusted EBITDA of $1.625–$1.675 billion, EBITDA margin of 10.6–11.1%, gross margin of 30.1–30.5%, and free cash flow of $800 million–$1 billion.

• Capital expenditures forecasted at $300–$350 million; interest expense projected at $270–$280 million.

• Assumes single-family starts down 9%, multifamily down mid-teens, R&R flat year-over-year; acquisitions to add ~5% net sales growth.

• Scenario analysis for 2026 provided, showing resilience across a range of market and commodity conditions.

• Industry forecasts for 2025: 1.3 million total U.S. housing starts, 940,000 single-family starts.