Builders FirstSource Q4 Sales Drop 12.1%, EPS Misses by 12.3%
Builders FirstSource’s Q4 sales fell 12.1% year-on-year to $3.36 billion, missing estimates by 2.8%, and adjusted EPS dropped 56% to $1.12, 12.3% below analyst consensus. Operating margin slid to 1.8% from 8%, while full-year revenue guidance of $15.3 billion topped forecasts by 1.1%.
1. Q4 Sales and Earnings Miss
In Q4 CY2025, Builders FirstSource reported sales of $3.36 billion, down 12.1% year-over-year and 2.8% below expectations. Adjusted EPS of $1.12 declined from $2.31 a year earlier and missed consensus by 12.3%, while adjusted EBITDA fell 18.3% to $274.9 million.
2. Margin Compression and Cash Flow
Operating margin slid to 1.8%, down from 8% in the prior year quarter, reflecting higher overhead expenses and weaker pricing. Free cash flow margin contracted to 3.2% from 7.2%, highlighting tighter cash conversion amid revenue declines.
3. Full-Year Guidance
The company set full-year revenue guidance at a midpoint of $15.3 billion, 1.1% above estimates, and projected EBITDA of $1.5 billion, in line with consensus. Guidance implies stabilization of top-line growth after recent declines.
4. CEO Commentary and Strategic Outlook
Leadership emphasized execution and customer partnerships to navigate housing affordability challenges and depressed commodity costs. Management reiterated commitment to integrated supply chain efficiencies and value-added solutions to support long-term growth.