Builders FirstSource Q3 sales fall 2.2% on lower housing starts

Builders Firstsource

29/10/2026 11:09

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: ID:nBw90gY5ra

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.)