Overview
Building materials supplier's Q4 net sales fell 12.1%, missing analyst expectations
Adjusted EPS for Q4 missed analyst expectations
Company attributes sales decline to below-normal starts environment and commodity deflation
Outlook
Company projects 2026 net sales between $14.8 bln and $15.8 bln
Builders FirstSource expects 2026 adjusted EBITDA between $1.3 bln and $1.7 bln
Company anticipates 2026 free cash flow of approximately $0.5 bln
Result Drivers
BELOW-NORMAL STARTS - Co attributed 12.1% decrease in net sales to a below-normal starts environment, impacting core organic net sales
COMMODITY DEFLATION - Commodity deflation contributed to net sales decline, offset partially by acquisition growth
GROSS MARGIN DECLINE - Gross profit margin decreased by 250 basis points to 29.8%, driven by below-normal starts environment
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Sales | Miss | $3.40 bln | $3.46 bln (22 Analysts) |
Q4 Adjusted EPS | Miss | $1.12 | $1.22 (22 Analysts) |
Q4 EPS | $0.28 | ||
Q4 Adjusted Net Income | $124.30 mln | ||
Q4 Net Income | $31.50 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 10 "strong buy" or "buy", 13 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the construction supplies & fixtures peer group is "buy."
Wall Street's median 12-month price target for Builders FirstSource Inc is $136.50, about 19% above its February 13 closing price of $114.73
The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 18 three months ago
Press Release: ID:nBw60y5Ksa
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)