Builders FirstSource (BLDR) Q1 2025 earnings summary

Executive summary

• Q1 2025 net sales were $3.7 billion, down 6% year-over-year, with gross profit of $1.1 billion and adjusted EBITDA of $369 million, reflecting margin pressure from macro and industry headwinds.

• Adjusted EPS was $1.51, a 43% decrease year-over-year; net income was $96.3 million, down from $258.8 million.

• Value-added product mix reached 48.4% of net sales, supported by strategic execution and acquisitions.

• Completed acquisitions of Alpine Lumber, O.C. Cluss, and Truckee Tahoe Lumber, expanding presence in key geographies and value-added offerings.

• Published 2025 CSR report, highlighting sustainability integration, a 10% safety improvement, and $5 million in community giving.

Financial highlights

• Net sales declined 6% year-over-year to $3.7 billion; gross profit was $1.1 billion with a 30.5% margin.

• Adjusted EBITDA was $369 million, down 32% year-over-year; adjusted EBITDA margin fell to 10.1%.

• Net income for Q1 2025 was $96.3 million; adjusted net income was $172.9 million.

• Operating cash flow was $132 million; free cash flow was $45 million; capital expenditures were $87 million.

• Repurchased 0.1 million shares for $12.8 million in Q1 and 3.3 million shares for $391 million post-quarter.

Outlook and guidance

• 2025 net sales guidance: $16.05–$17.05 billion; adjusted EBITDA: $1.7–$2.1 billion; margin: 10.6%–12.3%.

• Gross margin expected at 29%–31%; free cash flow guidance: $800 million–$1.2 billion.

• Q2 2025 net sales expected at $4.1–$4.4 billion; adjusted EBITDA at $475–$525 million.

• U.S. total housing starts forecasted at 1.4 million for 2025; single-family starts at 1.0 million.

• Guidance does not include potential tariff and duty impacts.