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Builders FirstSource Q3 sales fall 2.2% on lower housing starts

By Reuters News


Overview

  • U.S. building materials supplier's Q3 sales fell 2.2% but beat analyst expectations

  • Adjusted EPS for Q3 beat analyst expectations despite year-over-year decline

  • Company cites lower housing starts and commodity deflation for weaker results


Outlook

  • Company expects 2026 net sales of $14.2 bln to $14.6 bln

  • Company sees 2026 adjusted EBITDA of $1.075 bln to $1.125 bln

  • Builders FirstSource projects 2026 free cash flow of $400 mln to $450 mln


Result Drivers

  • LOWER HOUSING STARTS - Co said decreased housing starts and related headwinds reduced net sales and gross profit

  • ACQUISITIONS OFFSET DECLINE - Growth from acquisitions partially offset declines in core organic net sales

  • PRODUCTIVITY SAVINGS - Co delivered $23 mln in productivity savings from operational excellence and supply chain initiatives in Q3


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

Beat

$3.9 bln

$3.77 bln (24 Analysts)

Q3 Adjusted EPS

Beat

$1.51

$1.04 (22 Analysts)

Q3 EPS

$0.56

Q3 Adjusted Net Income

$162.20 mln

Q3 Net Income

$60.40 mln


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 9 "strong buy" or "buy", 16 "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 $72.65, about 30% above its October 28 closing price of $55.88

  • The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 17 three months ago


Reuters Recommended Reads

  • Oct 29 - D.R. Horton Q4 revenue beats estimates despite weak housing demand

  • Oct 28 - Meritage Homes Q3 adjusted EPS falls more than expected as higher mortgage rates hurt orders

  • Oct 28 - Homebuilder Century Communities' Q3 results miss estimates as higher interest rates hurt demand


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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