Builders FirstSource Q1 revenue falls 10% but beats estimates

Overview

• U.S. building materials supplier's Q1 revenue fell 10% yr/yr but beat analyst expectations

• Adjusted EPS for Q1 dropped sharply and missed analyst expectations

• Company repurchased $303 mln in shares and authorized up to $500 mln more in buybacks

Outlook

• Builders FirstSource sees 2026 net sales between $14.6 bln and $15.6 bln

• Company expects 2026 adjusted EBITDA of $1.1 bln to $1.5 bln

• Builders FirstSource projects 2026 free cash flow of $0.4 bln to $0.5 bln

Result Drivers

• LOWER STARTS ENVIRONMENT - Co said Q1 sales decline was primarily due to a weaker housing starts environment

• COMMODITY DEFLATION - Co said commodity deflation contributed to lower net sales

• HIGHER INTEREST EXPENSE - Co said higher net interest expense contributed to lower net income

Company press release: ID:nBwYMkyca

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 12 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the construction supplies & fixtures peer group is "buy"

• Wall Street's median 12-month price target for Builders FirstSource Inc is $120.73, about 44.8% above its April 29 closing price of $83.38

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 17 three months ago

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