Builders FirstSource Q2 Misses Estimates, Swings to Loss, Cuts Full-Year Outlook
BLDR is trading near its 52-week low of $65.1 (1.2% above the low) on elevated volume (1.9× avg).
Summary
Builders FirstSource Q2 2026 results missed estimates, swung to a net loss, and management cut full-year guidance amid a housing downturn. The stock trades near 52-week lows.
Key Events · Earnings and Guidance · BLDR
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Q2 Earnings Miss and Net Loss
Net sales of $3.9B missed the $3.92B consensus; adjusted EPS of $1.17 missed estimates. GAAP net loss was $(3.9)M, or $(0.04) per share, versus $1.66 a year ago.
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Full-Year Guidance Cut
Management lowered 2026 outlook: net sales now $14.0B-$14.8B, adjusted EBITDA $1.0B-$1.2B, and free cash flow $0.4B-$0.5B, reflecting persistent housing weakness.
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Margin Compression
Gross margin fell 260 bps to 28.1%, and adjusted EBITDA margin declined 350 bps to 8.5%, driven by lower volumes and reduced operating leverage.
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Leverage Increase
Net debt to LTM adjusted EBITDA rose to 3.6x from 2.3x a year ago, though liquidity remains strong at $1.6B.
Analysis · BLDR · Trade & Services
Builders FirstSource reported a sharp earnings decline, missing consensus on both revenue and EPS, and swung to a net loss. The housing slowdown is hitting hard: sales fell 8.8%, gross margin compressed 260 basis points, and adjusted EBITDA dropped 35%. Management slashed full-year guidance, now expecting $1.0B-$1.2B in adjusted EBITDA, down from prior expectations. Leverage ticked up to 3.6x net debt/EBITDA. The stock is already near 52-week lows, and these results confirm the cyclical pressure. The $500M buyback authorization remains, but repurchases slowed dramatically this quarter.
At the time of this filing, BLDR was trading at $65.89 on NYSE in the Trade & Services sector, with a market capitalization of approximately $7.3B. The 52-week trading range was $65.10 to $151.03. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.