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Mar 31, 2025
Builders FirstSource Q1 2025 Earnings Report
Builders FirstSource reported lower earnings and revenue amid a challenging market, with declines across core segments.
Key Takeaways
Builders FirstSource faced a difficult Q1 2025 marked by lower core organic sales, reduced gross margins, and increased interest expenses, partially offset by acquisition growth.
Net sales declined to $3.66 billion due to lower core organic sales and commodity deflation.
Net income dropped significantly to $96.3 million, down from $258.8 million last year.
Adjusted EBITDA margin fell to 10.1%, reflecting lower gross profit and operating leverage.
Cash from operations dropped sharply, with free cash flow down over 80% year-over-year.
Revenue by Segment
Forward Guidance
Builders FirstSource expects stable performance for FY2025 supported by acquisitions and operational savings, despite ongoing macro challenges.
Positive Outlook
- 2025 revenue expected between $16.05B and $17.05B
- Adjusted EBITDA projected between $1.7B and $2.1B
- Free cash flow expected between $800M and $1.2B
- Productivity savings target of $70M to $90M for the year
- Gross margin expected between 29.0% and 31.0%
Challenges Ahead
- One fewer selling day expected to reduce sales by 0.4%
- Interest expense projected to rise to $260M–$280M
- Capital expenditures expected to reach up to $425M
- Multi-Family starts projected to decline by mid-teens
- Single-Family starts expected to be down mid-single digits
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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