Builders FirstSource misses quarterly estimates as fewer new homes built

Feb 20 (Reuters) - Builders FirstSource Inc BLDR.N reported quarterly revenue below expectations on Thursday, pressured by fewer constructions of single- and multi-family homes as well as lower selling prices for building materials.

Shares of the Irving, Texas-based construction supplies company were down 3.7% in trading before the bell.

Many potential homebuyers remain reluctant to buy due to still-high mortgage rates, with the benchmark 30-year fixed-rate mortgage hovering around 6.9% as of December-end.

The company reported fourth-quarter net sales of $3.82 billion, down 8% from a year ago. Analysts had on average expected a revenue of $3.90 billion, according to data complied by LSEG.

The sales decrease was primarily driven by lower core organic sales of 8.8% and commodity deflation of 3.1%, the company said.

Builders FirstSource, a supplier of building materials and manufactured components to homebuilders, subcontractors, remodelers and individual consumers, operates in about 570 locations across 43 states in the United States, according to its latest annual report.

The company expects 2025 net sales between $16.5 billion and $17.5 billion, the mid-point of the range falling below analysts' expectations of $17.32 billion.

It reported adjusted profit of $2.31 per share in the quarter ended December 31, compared with $3.55 per share a year ago.