Builders FirstSource (BLDR) investor relations material

Executive summary

• Q3 net sales fell 2.2% YoY to $3.854B; adjusted EBITDA declined 28.3% to $311.1M, amid weaker housing activity and lower gross profit.

• Share gains, value-added offerings, productivity savings and disciplined cost management supported execution despite weaker demand and lower profitability.

• Full-year 2026 guidance was narrowed while maintaining the midpoints for net sales and adjusted EBITDA.

Financial highlights

• Q3 gross profit was $1.072B versus $1.199B YoY; gross margin declined to 27.8% from 30.4%.

• GAAP net income was $60.4M versus $122.4M; diluted EPS was $0.56 versus $1.10.

• Adjusted net income was $162.2M, or 4.2% of sales, versus $221.8M, or 5.6%; adjusted diluted EPS was $1.51 versus $2.00.

• Q3 operating cash flow was $146.6M and free cash flow was $76.0M; 9M operating cash flow was $302.0M versus $1.021B.

Outlook and guidance

• FY2026 guidance: net sales $14.2B–$14.6B; adjusted EBITDA $1.075B–$1.125B; adjusted EBITDA margin 7.4%–7.9%; gross margin 27.5%–28.5%.

• FY2026 free cash flow guidance is $400M–$450M, based on commodity prices of $390–$410 per mbf; capex is $175M–$225M.

• Assumptions include single-family starts down ~7%, multifamily starts down ~4%, R&R down 1%, and productivity savings of $60M–$70M.

• 2027 scenarios—not guidance—show sales of $12.7B–$15.3B, adjusted EBITDA of $0.6B–$1.2B and free cash flow of $0.2B–$0.6B across modeled starts and commodity cases.