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Jun 30, 2025
Builders FirstSource Q2 2025 Earnings Report
Builders FirstSource reported second quarter 2025 results with a decline in sales and income amid a challenging housing market.
Key Takeaways
The company faced lower core organic sales and commodity deflation, leading to declines in revenue, net income, and margins. However, solid free cash flow and disciplined capital deployment underscored operational resilience.
Net income dropped to $185 million, down from $344 million a year ago.
Revenue fell 5.0% to $4.23 billion, impacted by lower demand in Multi- and Single-Family segments.
Adjusted EBITDA declined 24.4% to $506.1 million.
Free cash flow remained strong at $255 million for the quarter.
Revenue by Segment
Forward Guidance
Builders FirstSource expects full-year 2025 performance to be impacted by continued macroeconomic headwinds but aims to deliver strong cash flow and operational efficiencies.
Positive Outlook
- Productivity savings forecasted between $45 million and $65 million.
- Adjusted EBITDA projected between $1.5B and $1.7B.
- Free cash flow expected to range from $800M to $1B.
- Acquisitions anticipated to contribute 5.0% to 5.5% revenue growth.
- Increased ABL revolving commitment to $2.2B, extended to 2030.
Challenges Ahead
- Single-Family starts projected to decline 10-12%.
- Multi-Family starts expected to drop mid-teens percentage.
- Gross margin expected to be in the 29.0%-30.5% range, lower than historical highs.
- Interest expense estimated between $270M and $280M.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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