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 normalization and lower demand, but supported by a differentiated product portfolio and operational excellence.

• Adjusted diluted EPS was $1.51, down 43% year-over-year; gross margin was 30.5%.

• Completed two acquisitions in Q1 with prior year sales of $565 million and acquired a third company post-quarter, expanding market footprint and value-added product operations.

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

• Published 2025 Corporate Social Responsibility report, emphasizing sustainability integration and a 10% year-over-year safety improvement.

Financial highlights

• Net sales: $3.66–$3.7 billion in Q1 2025, down 6% year-over-year; gross profit: $1.1 billion; adjusted EBITDA: $369 million (margin 10.1%).

• Net income: $96.3 million in Q1 2025 vs. $258.8 million in Q1 2024; adjusted net income: $172.9 million.

• Diluted EPS: $0.84 in Q1 2025 vs. $2.10 in Q1 2024; adjusted EPS: $1.51.

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

• Repurchased 0.1 million shares for $12.8 million in Q1 2025; additional $391 million in share repurchases 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: 29%–31%; free cash flow: $800 million–$1.2 billion.

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

• Guidance excludes potential tariff and duty impacts; estimated annual tariff cost impact is $175–$250 million.

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