Builders FirstSource Q2 sales slightly miss estimates on lower housing starts, commodity deflation

Builders Firstsource

30/07/2026 12:12

Overview
U.S. building materials supplier's Q2 sales fell 8.8%, slightly missing analyst expectations
Adjusted EPS for Q2 missed analyst expectations
Company cites lower housing starts and commodity deflation as main drivers of sales decline

Outlook
Company expects 2026 net sales between $14.0 bln and $14.8 bln
Builders FirstSource sees 2026 adjusted EBITDA of $1.0 bln to $1.2 bln
Company expects 2026 free cash flow of $0.4 bln to $0.5 bln

Result Drivers
LOWER HOUSING STARTS - Co said sales and gross profit declined primarily due to a lower housing starts environment and related headwinds
COMMODITY DEFLATION - Co said commodity deflation contributed to lower net sales
PRODUCTIVITY SAVINGS - Co said it delivered $28 mln in productivity savings from operational excellence and supply chain initiatives in Q2

Company press release: ID:nBw6SdTMka

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Slight Miss*
$3.90 bln
$3.92 bln (24 Analysts)
Q2 Adjusted EPS
Miss
$1.17
$1.27 (22 Analysts)
Q2 Loss Per Share
 
$0.04
 
Q2 Adjusted Net Income
 
$126.10 mln
 
Q2 Net Loss
 
$3.90 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "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 $95.00, about 40.2% above its July 29 closing price of $67.76
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads
July 29 - UFP Industries Q2 sales beat estimates on acquisitions, new products sales
July 29 - Meritage Homes Q2 revenue falls 14% on lower volume and pricing
July 29 - Vulcan Materials beats quarterly profit estimates on strong construction materials 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.)