Builders FirstSource, Inc. (BLDR)

Price—Loading quote

AI: Fair-priced

Price checkAt $72.51, the shares look fairly priced because recovery hopes offset heavy debt.

At the August 14 close, 107.6 million shares imply a $7.80 billion market value. Adding June net debt of about $4.53 billion gives a total operating-business value near $12.33 billion. Against management’s 2026 adjusted cash-earnings guide of $1.0-$1.2 billion, investors pay roughly 10.3-12.3 times; guided free cash flow—cash left after running and investing in the business—offers only a 5.1%-6.4% yield. That is neither distressed nor clearly excessive, and it assumes earnings stabilize before debt becomes restrictive.

Big pictureCash stayed positive through past slowdowns, but the current housing slump has cut profits sharply.

Annual free cash flow, calculated as operating cash flow less capital spending, was $853 million in 2025, after $1.49 billion in 2024 and $1.83 billion in 2023; it remained positive throughout 2020-2025. However, first-half 2026 operating cash of $155.5 million minus $84.8 million of capital spending left only about $70.7 million. Second-quarter sales fell 8.8%, gross profit fell 16.3%, and a $185 million prior-year profit became a $3.9 million loss. Fixed operating costs therefore amplify housing cycles.

Business strengthA broad national network and fewer shares help, but rising debt weakens the cushion.

June current assets of $3.24 billion covered current liabilities 1.8 times, while reported liquidity was $1.6 billion. However, cash was only $66 million against $4.59 billion of debt; net debt reached 3.6 times adjusted cash earnings, up from 2.3 times one year earlier. Since August 2021, buybacks retired 102.6 million shares at an $81.26 average cost, while year-end shares fell from 179.8 million in 2021 to 107.6 million by June 2026. Stock compensation was modest, but repurchasing shares as leverage rose reduced financial flexibility.

What could change the storyLower borrowing costs could revive homebuilding, while another weak season would expose the balance sheet.

The bull case needs 2026 sales near management’s $14.0-$14.8 billion range, free cash flow of $400-$500 million, and eventual recovery from the second quarter’s 28.1% gross margin. Better housing starts could lift profit faster than sales, while the smaller share count would magnify each shareholder’s benefit. The bear case strengthens if free cash flow misses $400 million or debt remains above 3.5 times adjusted cash earnings. The price appears to assume 2026 is near the cycle’s low, not that 2022’s exceptional profits return quickly.

$72.51 price considered

AI: News

Outlook Cut AgainSecond-quarter results missed expectations, and management lowered its view as housing demand weakened further.

On July 30, adjusted earnings were $1.17 a share versus the $1.29 consensus, while $3.86 billion of sales missed by about 1.2% and declined 8.8% yearly. Management cut its sales outlook from $14.6-$15.6 billion to $14.0-$14.8 billion and narrowed adjusted cash earnings to $1.0-$1.2 billion. The shares fell 2.3% before trading opened and closed 2.6% lower. The timing supports, but does not prove, attribution to the miss and weaker outlook.

Profit Slump And BuybackFirst-quarter profit collapsed despite better sales, while a large buyback softened the signal.

On April 30, Builders FirstSource reported $3.29 billion of sales, above the $3.17 billion consensus, but adjusted earnings of $0.27 a share missed the $0.39 estimate. Gross margin fell to 28.3%, and the company lost $47.4 million. It had repurchased $303 million of shares at $92.25 each and authorized up to $500 million more, including $200 million previously available. Shares were reported 0.46% lower before trading opened; mixed news makes precise attribution uncertain. Buybacks support each remaining share but also consume debt-reduction capacity.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009
Revenue	$15.19B	$16.40B	$17.10B	$22.73B	$19.89B	$8.56B	$7.28B	$7.72B	$7.03B	$6.37B	$3.56B	$1.60B	$1.49B	$1.07B	$779.1M	$700.3M	$677.9M
Gross profit	$4.62B	$5.38B	$6.01B	$7.74B	$5.85B	$2.22B	$1.98B	$1.92B	$1.73B	$1.60B	$901.5M	$357.0M	$319.9M	$214.6M	$157.9M	$131.8M	$142.4M
Operating income	$786.3M	$1.60B	$2.18B	$3.77B	$2.39B	$543.9M	$392.3M	$369.0M	$285.1M	$236.3M	$90.8M	$49.6M	$48.0M	−$8.7M	−$37.5M	−$63.7M	−$60.7M
EBITDAderived	$1.38B	$2.16B	$2.73B	$4.27B	$2.93B	$660.4M	$492.3M	$466.9M	$378.1M	$346.1M	$149.0M	$59.2M	$57.3M	$2.4M	−$23.5M	−$48.3M	—
Net income	$435.2M	$1.08B	$1.54B	$2.75B	$1.73B	$313.5M	$221.8M	$205.2M	$38.8M	$144.3M	−$22.8M	$18.1M	−$42.7M	−$56.9M	−$65.0M	−$95.5M	−$61.9M
Basic EPSper diluted share	$3.91	$9.13	$12.06	$16.98	$8.55	$2.69	$1.92	$1.79	$0.34	$1.30	-$0.22	$0.19	-$0.44	-$0.60	-$0.68	—	—
Diluted EPSper diluted share	$3.89	$9.06	$11.94	$16.82	$8.48	$2.66	$1.90	$1.76	$0.34	$1.27	-$0.22	$0.18	-$0.44	-$0.60	-$0.68	—	—

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys5$60.64M disclosed value

Sells (SEC code S)6$10.02M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
May 8, 2026Form 4	Rush David EDirector	SellCommon Stock, par value $0.01 per share	5.0K	$78.17	$390.9K	122.3K
Mar 13, 2026Form 4	LEVY PAUL SDirector	BuyCommon Stock, par value $0.01 per share	50.0K	$87.73	$4.39M	1.73M
Aug 22, 2025Form 4	Johnson Timothy DEVP & General Counsel	SellCommon Stock, par value $0.01 per share	1.3K	$144.85	$181.1K	73.5K
Jun 10, 2025Form 4	Vance ToddPresident - East Division	BuyCommon Stock, par value $0.01 per share	1.9K	$115.50	$225.0K	31.1K
May 27, 2025Form 4	Charles Dirkson RDirector	BuyCommon Stock, par value $0.01 per share · indirect	5.0K	$109.67	$548.4K	5.0K

Review ownership filings at SEC.gov ↗

Builders FirstSource, Inc. (BLDR)

Financial charts

Financial statements

Insider buys & sells