Builders FirstSource (BLDR) investor relations material

Executive summary

• Q2 2025 net sales were $4.2B, down 5% year-over-year, reflecting a challenging housing market, lower single- and multi-family starts, and margin normalization, partially offset by acquisitions.

• Net income dropped 46% to $185M, with adjusted EBITDA at $506M, and free cash flow at $255M, supporting share repurchases and strategic investments.

• Value-added products comprised 46–47% of net sales, with ongoing investments in digital tools, operational excellence, and geographic expansion through acquisitions.

• Operational discipline, facility consolidations, and cost controls maintained high delivery performance and flexibility.

• Technology investments advanced with SAP ERP launches and new digital leadership.

Financial highlights

• Gross profit was $1.3B, with gross margin at 30.7%, down 210 bps year-over-year due to margin normalization and low starts.

• Adjusted EBITDA margin was 12%, down 300 bps; adjusted EPS was $2.38, down 32–46% year-over-year.

• Operating cash flow for Q2 was $341M; free cash flow was $255M.

• SG&A expenses rose to $987.8M, mainly from acquisitions and ERP implementation, with SG&A as a percent of sales up to 23.3%.

• Net interest expense increased to $72M due to higher average debt.

Outlook and guidance

• 2025 net sales guidance: $14.8B–$15.6B; adjusted EBITDA: $1.5B–$1.7B; EBITDA margin: 10.1%–10.9%.

• Gross margin expected at 29%–30.5%; free cash flow forecasted at $800M–$1B.

• Q3 net sales expected at $3.65B–$3.95B; Q3 adjusted EBITDA at $375M–$425M.

• Single-family starts forecasted to decline 10–12%; multi-family down mid-teens; R&R flat.

• Capital expenditures expected at $300M–$350M; interest expense $270M–$280M; effective tax rate 23%–25%.