Builders FirstSource (BLDR) and Whirlpool (WHR) face a softer earnings outlook through 2026 despite expectations for in-line Q2 results across the broader building products sector, BofA Securities said in a note Monday.
The firm cut its 2025 and 2026 EPS estimates for Builders FirstSource by 4%, now projecting $7.77 and $9.12, down from $8.05 and $9.50. Both remain below consensus estimates of $8.29 for 2025 and $9.68 for 2026.
The downward revisions reflect softer new construction activity and lower lumber prices. Still, BofA raised its price objective on Builders FirstSource to $128 from $125, citing a higher sector multiple and expectations for structurally stronger margins. It maintained a neutral rating on the stock.
For Whirlpool, BofA lowered its earnings per share forecasts to $8.30 for 2025 and $10.25 for 2026, from $8.56 and $10.33 previously. These forecasts also sit below consensus, which stands at $8.96 and $10.92, respectively.
The brokerage cited continued softness in the repair and remodel segment through H2 and into 2026, along with signs of consumer trade-down in appliances.
BofA kept its neutral rating on Whirlpool while raising the price objective to $100 from $94, noting tariff-related tailwinds could support margins despite sluggish appliance demand.
Price: 122.94, Change: -0.22, Percent Change: -0.17
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