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Sep 30
Builders FirstSource Q3 2025 Earnings Report
Builders FirstSource reported lower revenue and earnings in Q3 2025 due to a weak housing market and reduced operating leverage.
Key Takeaways
Revenue and net income declined in Q3 2025, primarily due to lower core organic sales and commodity deflation. However, the company generated strong free cash flow and continued executing its operational excellence strategy.
Net income fell to $122.4M, down from $284.8M last year.
Revenue decreased to $3.94B, driven by a decline in single-family and multi-family segments.
Free cash flow remained solid at $464.9M despite the earnings drop.
Productivity savings of $11M were realized in the quarter.
Builders FirstSource
Builders FirstSource
Builders FirstSource Revenue by Segment
Revenue by Segment
Manufactured products Revenue
CapyFin.comWindows, doors & millwork Revenue
CapyFin.comSpecialty building products Revenue
CapyFin.comLumber & sheet goods Revenue
CapyFin.com Forward Guidance
Builders FirstSource expects continued operational improvements and strong cash generation, despite persistent weakness in housing market activity.
Positive Outlook
- Full-year net sales forecast between $15.1B and $15.4B.
- Expected adjusted EBITDA between $1.625B and $1.675B.
- Free cash flow guidance of $800M to $1.0B.
- Productivity savings target of $45M to $60M for FY25.
- Liquidity remains strong at $2.1B as of Q3 end.
Challenges Ahead
- Single-family starts projected to decline ~9%.
- Multi-family starts expected to fall mid-teens percent.
- One fewer selling day expected to reduce net sales by 0.4%.
- Interest expense projected to increase to $270M–$280M.
- Gross margin expected to narrow to 30.1%–30.5%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income