Builders FirstSource (NYSE:BLDR) posted fourth-quarter results on Tuesday that came in below Wall Street expectations, sending shares modestly lower in pre-market trade. Adjusted earnings per share were $1.12, $0.15 under consensus estimates, while revenue of $3.4 billion trailed the $3.46 billion forecast.
The stock declined 1.07% ahead of the open following the release.
Net sales dropped 12.1% year over year, which the company attributed mainly to what it called a “below-normal starts environment.”
The decrease was driven by a 14% fall in core organic net sales and 1.9% commodity deflation, partly offset by a 3.8% contribution from acquisitions. Adjusted EBITDA slid 44.3% to $274.9 million, as margins narrowed by 470 basis points to 8.2%.
Gross profit fell to $1 billion from $1.2 billion in the comparable period last year, with gross margin slipping 250 basis points to 29.8%. Net income declined sharply to $31.5 million, or $0.28 per diluted share, versus $190.2 million, or $1.65 per share, a year earlier.
“Driven by focused execution and close customer partnerships, we successfully navigated 2025 despite ongoing housing affordability challenges, weak consumer confidence, and depressed commodity prices,” said Peter Jackson, CEO of Builders FirstSource.
For fiscal 2026, the company guided revenue between $14.8 billion and $15.8 billion, broadly consistent with analyst projections of $15.14 billion. The outlook assumes flat single-family and multi-family housing starts across its markets, alongside a 1% increase in repair and remodeling activity.
In full-year 2025, Builders FirstSource generated $874 million in free cash flow, down from $1.5 billion the prior year, largely reflecting lower net income. The company continued its share repurchase program, buying back 3.4 million shares at an average price of $118.65 during 2025.