Builders FirstSource forecast annual profit margin below estimates on weak housing demand

Reuters
02/17
<a href="https://laohu8.com/S/BLDR">Builders FirstSource</a> forecast annual profit margin below estimates on weak housing demand

Feb 17 (Reuters) - Builders FirstSource BLDR.N forecast annual profit margin below Wall Street estimates on Tuesday, as continued weakness in housing construction and affordability constraints weighed on its business.

Softening demand across key property segments and lingering oversupply in areas like multifamily segment continue to squeeze Builders FirstSource's operating performance.

The company said it was focused on managing costs and committed to reducing barriers to affordable housing, despite navigating a challenging 2025 marked by weak consumer confidence.

Builders FirstSource expects full-year gross profit margin to be in the range of 28.5% to 30%, the midpoint of which is below analysts' estimates of 29.9%.

The Irving, Texas-based company forecast 2026 net sales to be in the range of $14.8 billion to $15.8 billion, largely in line with analysts' expectations of $15.3 billion according to data compiled by LSEG.

Net sales in the multi-family segment fell 20.4% year-over-year, marking a sharp downturn, while the single-family segment also faced pressure, slipping 15.4% from a year earlier.

The company, which supplies building materials and products for home construction, posted fourth-quarter adjusted profit of $1.12 per share, compared with $2.31 a year earlier. Analysts on average had expected $1.22 per share.

Its quarterly net sales fell 12.8% from a year earlier to $3.36 billion, compared with estimates of $3.46 billion.

(Reporting by Megavarshini G. Somasundaram in Bengaluru; Editing by Krishna Chandra Eluri)

((Megavarshini.SomasundaramGnanasundari@thomsonreuters.com;))

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