Builders FirstSource Reports Third Quarter 2025 Results

IRVING, Texas--( BUSINESS WIRE)--Builders FirstSource, Inc. (NYSE: BLDR) today reported its results for the third quarter ended September 30, 2025.

Third Quarter 2025 Highlights

All Year-Over-Year Comparisons Unless Otherwise Noted:

Peter Jackson, CEO of Builders FirstSource, commented: “Our third quarter results reflect the strength of our strategy and disciplined execution in a weak housing market. Over the past several years, we have transformed into a stronger organization powered by our leading network of value-added solutions, a relentless focus on operational excellence, and capital deployment. These pillars, combined with our scale and a team dedicated to exceptional customer service, reinforce our industry leadership position and our track record of success. By focusing on the factors within our control and leveraging our competitive advantages, we're competing effectively today and are poised to accelerate growth in a normal starts environment and deliver sustainable, long-term value for our shareholders.”

Pete Beckmann, CFO of Builders FirstSource, added, “We continue to execute our strategy in a down market, responding to near-term challenges by carefully managing costs while preserving our ability to invest for the future. Our financial agility, supported by a healthy balance sheet and strong free cash flow through the cycle, enables us to deploy capital prudently to fuel organic growth, pursue strategic M&A, and return capital to shareholders. These investments are bolstering our competitive position as we invest for the future.”

Third Quarter 2025 Financial Performance Highlights

All Year-Over-Year Comparisons Unless Otherwise Noted:

Net Sales

Gross Profit

Selling, General and Administrative Expenses

Net Interest Expense

Income Tax Expense

Net Income

Adjusted Net Income

Adjusted Earnings Per Diluted Share

Adjusted earnings per diluted share was $1.88, compared to $3.07 in the same period a year ago. The 38.8% decrease was primarily driven by lower adjusted net income, partially offset by share repurchases.

Adjusted EBITDA

Capital Structure, Leverage, and Liquidity Information

Productivity Savings From Operational Excellence

2025 Full Year Total Company Outlook

For 2025, the Company expects to achieve the financial performance highlighted below. Projected Net Sales and Adjusted EBITDA include the expected impact of price, commodities, and margins for 2025.

2025 Full Year Assumptions

The Company’s anticipated 2025 performance is based on several assumptions for the full year, including the following:

Conference Call

Builders FirstSource will host a conference call and webcast on Thursday, October 30, 2025, to discuss the Company’s financial results and other business matters. The teleconference will begin at 8:00 a.m. Central Time and will be hosted by Peter Jackson, Chief Executive Officer, and Pete Beckmann, Chief Financial Officer.

The live webcast and archived replay can be accessed on the Company's investor relations website at investors.bldr.com under the Events and Presentations section. The online archive of the webcast will be available for approximately 90 days.

To participate in the teleconference, please dial into the call a few minutes before the start time at 800-343-4136 (U.S. and Canada) or 203-518-9843 (international), Conference ID: BLDRQ325.

Upcoming Events

Management will participate in investor meetings at the Baird Global Industrials Conference on November 11, 2025, in Chicago and the Stephens Annual Investment Conference on November 18, 2025, in Nashville.

About Builders FirstSource

Builders FirstSource (NYSE: BLDR), headquartered in Irving, Texas, is the nation's leading provider of building materials for professional builders in new residential construction and repair and remodeling. We deliver integrated homebuilding solutions by manufacturing, supplying, and installing a full range of structural and related building products. With approximately 585 locations across 43 states, we serve 48 of the top 50 and 92 of the top 100 metropolitan statistical areas, ensuring broad geographic coverage and enhancing our ability to partner with our customers. Our leading network of strategically located manufacturing facilities produces factory-built roof and floor trusses, wall panels, vinyl windows, custom millwork and trim, as well as engineered wood that we design and cut specifically for each home. We also assemble interior and exterior doors into pre-hung units for easy installation. Additionally, we distribute a wide range of building products, including lumber, sheet goods, windows, doors, millwork, and specialty items. Our services, which vary by market, include professional installation, turnkey framing, and shell construction. Supported by the latest construction innovations and digital solutions, we help drive greater efficiency across homebuilding. Learn more at www.bldr.com

Forward-Looking Statements

Statements in this news release and the schedules hereto that are not purely historical facts or that necessarily depend upon future events, including statements about forecasted financial performance or other statements about anticipations, beliefs, expectations, hopes, synergies, intentions or strategies for the future, may be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Readers are cautioned not to place undue reliance on forward-looking statements. In addition, oral statements made by our directors, officers and employees to the investor and analyst communities, media representatives and others, depending upon their nature, may also constitute forward-looking statements. As with the forward-looking statements included in this release, these forward-looking statements are by nature inherently uncertain, and actual results or events may differ materially as a result of many factors. All forward-looking statements are based upon information available to Builders FirstSource on the date this release was submitted. Builders FirstSource undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements involve risks and uncertainties, many of which are beyond the Company’s control or may be currently unknown to the Company, that could cause actual events or results to differ materially from the events or results described in the forward-looking statements; such risks or uncertainties include those related to the Company’s growth strategies, including acquisitions, organic growth and digital and technology strategies, including our ability to drive growth by incorporating artificial intelligence and machine learning solutions into our platform, or the dependence of the Company’s revenues and operating results on, among other things, the homebuilding industry and, to a lesser extent, repair and remodel activity, which in each case is dependent on economic conditions, including inflation, interest rates, home size and affordability, consumer confidence, labor and supply shortages, and also lumber and other commodity prices. Builders FirstSource may not succeed in addressing these and other risks. Further information regarding factors that could affect our financial and other results can be found in the risk factors section of Builders FirstSource’s most recent annual report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) and may also be described from time to time in the other reports Builders FirstSource files with the SEC. Consequently, all forward-looking statements in this release are qualified by the factors, risks and uncertainties contained therein.

Non-GAAP Financial Measures

The financial measures entitled Adjusted EBITDA, LTM Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income, Adjusted net income as a percent of net sales, basic Adjusted net income per share, diluted Adjusted net income per share, Adjusted SG&A, Adjusted SG&A as a percent of net sales, and Free cash flow are not financial measures recognized under GAAP and are therefore non-GAAP financial measures. The Company believes that these non-GAAP financial measures provide useful information to management and investors regarding certain financial and business trends relating to the Company’s financial condition and operating results.

Adjusted EBITDA is defined as GAAP net income before depreciation and amortization expense, net interest expense, income tax expense and other non-cash or special items including stock compensation expense, acquisition and related expense, technology implementation expense, debt issuance and refinancing costs, severance and gain on sale of assets and other one-time costs partially offset by the tax effect of those adjustments to net income. LTM Adjusted EBITDA is defined as Adjusted EBITDA for the last twelve consecutive months. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by net sales. Adjusted net income is defined as GAAP net income before non-cash or special items including acquisition and related expense, technology implementation expense, debt issuance and refinancing cost and amortization expense partially offset by the tax effect of those adjustments to net income. Adjusted net income as a percent of net sales is defined as Adjusted net income divided by net sales. Basic Adjusted net income per share is defined as Adjusted net income divided by weighted average basic common shares outstanding while diluted Adjusted net income per share is defined as Adjusted net income divided by weighted average diluted common shares outstanding. Adjusted SG&A is defined as GAAP SG&A expense before non-cash or special items including depreciation expense, amortization expense, stock compensation expense, acquisition and related expense, and technology implementation expense. Adjusted SG&A as a percent of sales is defined as Adjusted SG&A divided by net sales. Free cash flow is defined as GAAP net cash from operating activities less capital expenditures, net of proceeds from the sale of property, plant and equipment.

Company management uses Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income, Adjusted net income as a percent of net sales, basic Adjusted net income per share and diluted Adjusted net income per share as supplemental measures in its evaluation of the Company’s business, including for trend analysis, purposes of determining management incentive compensation and budgeting and planning purposes. Company management believes that these measures provide a meaningful measure of the Company’s performance and a better baseline for comparing financial performance across periods because these measures eliminate the effects of period to period changes, in the case of Adjusted EBITDA and Adjusted EBITDA margin, in taxes, costs associated with capital investments, net interest expense, stock compensation expense, and other non-cash and non-recurring items and, in the case of Adjusted net income, Adjusted net income as a percent of sales, and Adjusted net income per diluted share, in certain non-recurring items. Company management also uses free cash flow as a supplemental measure in its evaluation of the Company’s business, including for purposes of its internal liquidity assessments. Company management believes that free cash flow provides a meaningful evaluation of the Company’s liquidity.

The Company believes that these non-GAAP financial measures provide additional tools for investors to use in evaluating ongoing operating results, cash flows and trends and in comparing the Company’s financial measures with other companies in the Company’s industry, which may present similar non-GAAP financial measures to investors. However, the Company’s calculations of these financial measures are not necessarily comparable to similarly titled measures reported by other companies. Company management does not consider these financial measures in isolation or as alternatives to financial measures determined in accordance with GAAP. Furthermore, items that are excluded and other adjustments and assumptions that are made in calculating these non-GAAP financial measures are significant components in understanding and assessing the Company’s financial performance. These non-GAAP financial measures should be evaluated in conjunction with, and are not a substitute for, the Company’s GAAP financial measures. Further, because these non-GAAP financial measures are not determined in accordance with GAAP and are thus susceptible to varying calculations, the non-GAAP financial measures, as presented, may not be comparable to other similarly titled measures of other companies. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables below.

The Company’s Adjusted EBITDA outlook, free cash flow and full-year forecast for its effective tax rate on operations exclude the impact of certain income and expense items that management believes are not part of underlying operations. These items may include, but are not limited to, loss on early extinguishment of debt, restructuring charges, certain tax items, and charges associated with non-recurring costs such as professional and legal fees associated with our acquisitions and enterprise resource planning (ERP) program. The Company’s management cannot estimate on a forward-looking basis without unreasonable effort the impact these income and expense items will have on its reported net income, operating cash flow and its reported effective tax rate because these items, which could be significant, are difficult to predict and may be highly variable. As a result, the Company does not provide a reconciliation to the most comparable GAAP financial measure for its Adjusted EBITDA or free cash flow outlook or its effective tax rate on operations forecast. Please see the Forward-Looking Statements section of this release for a discussion of certain risks relevant to the Company’s outlook.

BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(unaudited)

Three Months Ended

September 30,

Nine Months Ended

September 30,

(in thousands, except per share amounts)

2025

2024

2025

2024

Net sales

3,941,190

4,232,494

11,832,750

12,580,186

Cost of sales

2,741,707

2,846,161

8,218,985

8,431,315

Gross margin

1,199,483

1,386,333

3,613,765

4,148,871

Selling, general and administrative expenses

970,715

958,310

2,889,269

2,857,768

Income from operations

228,768

428,023

724,496

1,291,103

Interest expense, net

69,258

54,263

206,139

154,615

Income before income taxes

159,510

373,760

518,357

1,136,488

Income tax expense

37,126

88,977

114,638

248,834

Net income

122,384

284,783

403,719

887,654

Net income per share:

Basic

1.11

2.45

3.61

7.45

Diluted

1.10

2.44

3.60

7.39

Weighted average common shares:

Basic

110,547

116,176

111,703

119,120

Diluted

110,930

116,940

112,142

120,116

BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(unaudited)

Three Months Ended

September 30,

Nine Months Ended

September 30,

(in thousands)

2025

2024

2025

2024

Cash flows from operating activities:

Net income

122,384

284,783

403,719

887,654

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

147,535

141,705

440,090

425,441

Deferred income taxes

56,243

(18,678

)

23,876

(46,000

)

Stock-based compensation expense

16,402

17,259

46,800

50,885

Other non-cash adjustments

17,121

(5,625

)

17,136

Changes in assets and liabilities, net of assets acquired and liabilities assumed:

Receivables

44,098

141,285

10,160

105,140

Inventories, net

134,085

96,552

103,616

47,316

Contract assets

15,523

7,040

2,615

(18,220

)

Other current assets

9,706

14,779

(3,731

)

4,741

Other assets and liabilities

(577

)

(8,402

)

(21,772

)

(41,009

)

Accounts payable

(49,357

)

(18,158

)

77,263

123,658

Accrued liabilities

50,164

55,552

(65,368

)

(81,237

)

Contract liabilities

1,432

(880

)

9,449

23,724

Net cash provided by operating activities

547,724

729,958

1,021,092

1,499,229

Cash flows from investing activities:

Cash used for acquisitions, net of cash acquired

(18,989

)

(123,938

)

(904,515

)

(256,856

)

Purchases of property, plant and equipment

(85,818

)

(99,578

)

(274,531

)

(280,897

)

Proceeds from sale of property, plant and equipment

2,976

4,257

18,408

10,555

Cash used for equity investments

(664

)

—

(1,330

)

(7,686

)

Net cash used in investing activities

(102,495

)

(219,259

)

(1,161,968

)

(534,884

)

Cash flows from financing activities:

Borrowings under revolving credit facility

235,000

57,000

4,058,000

954,000

Repayments under revolving credit facility

(468,000

)

(156,000

)

(4,058,000

)

(1,418,000

)

Proceeds from long-term debt and other loans

—

750,000

1,000,000

Repayments of long-term debt and other loans

(701

)

(846

)

(2,151

)

(2,613

)

Payments of loan costs

(396

)

—

(19,861

)

(12,829

)

Payments of acquisition-related deferred and contingent consideration

(1,303

)

(4,842

)

(3,425

)

(14,364

)

Tax withholdings on and exercises of equity awards

(686

)

(270

)

(27,191

)

(55,267

)

Repurchase of common stock

)

(153,207

)

(413,958

)

(1,153,325

)

Net cash provided by (used in) financing activities

(236,087

)

(258,165

)

283,414

(702,398

)

Net change in cash and cash equivalents

209,142

252,534

142,538

261,947

Cash and cash equivalents at beginning of period

87,020

75,569

153,624

66,156

Cash and cash equivalents at end of period

296,162

328,103

296,162

328,103

BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET

(unaudited)

(in thousands, except per share amounts)

September 30,

2025

December 31,

2024

ASSETS

Current assets:

Cash and cash equivalents

296,162

153,624

Accounts receivable, less allowances of $43,203 and $41,233, respectively

1,254,739

1,163,147

Other receivables

299,226

344,342

Inventories, net

1,176,429

1,212,375

Contract assets

148,480

151,095

Other current assets

121,152

116,656

Total current assets

3,296,188

3,141,239

Property, plant and equipment, net

2,203,663

1,961,731

Operating lease right-of-use assets, net

604,286

594,301

Goodwill

3,996,476

3,678,504

Intangible assets, net

1,195,868

1,103,634

Other assets, net

134,402

103,677

Total assets

11,430,883

10,583,086

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

960,870

868,054

Accrued liabilities

578,768

634,045

Contract liabilities

184,197

168,208

Current portion of operating lease liabilities

107,019

103,499

Current maturities of long-term debt

14,228

3,470

Total current liabilities

1,845,082

1,777,276

Noncurrent portion of operating lease liabilities

531,164

525,213

Long-term debt, net of current maturities, discounts and issuance costs

4,428,746

3,700,643

Deferred income taxes

172,043

148,167

Other long-term liabilities

137,659

135,317

Total liabilities

7,114,694

6,286,616

Commitments and contingencies (Note 11)

Stockholders' equity:

Preferred stock, $0.01 par value, 10,000 shares authorized; zero shares issued and outstanding

—

Common stock, $0.01 par value, 300,000 shares authorized; 110,552 and 113,578 shares issued and outstanding, respectively

1,106

1,136

Additional paid-in capital

4,192,699

4,271,269

Retained earnings

122,384

24,065

Total stockholders' equity

4,316,189

4,296,470

Total liabilities and stockholders' equity

11,430,883

10,583,086

BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES

Reconciliation of GAAP Net Income to Adjusted Net Income

(unaudited)

Three Months Ended

Nine Months Ended

Twelve Months

Ended

September 30,

(in millions)

2025

2024

2025

2024

2025

Reconciliation to Adjusted Net Income:

GAAP net income

122.4

284.8

403.7

887.7

593.9

Acquisition and related expense

(0.8

)

2.6

4.1

5.2

17.2

Technology implementation expense

40.7

19.4

93.5

46.7

113.9

Debt issuance and refinancing cost

0.2

Amortization expense

73.5

76.3

220.7

237.2

288.9

Tax-effect of adjustments to net income

(27.2

)

(23.6

)

(76.4

)

(69.4

)

(100.8

)

Adjusted net income

208.6

359.5

645.8

1,107.4

913.3

Adjusted net income as a % of sales

5.3

8.5

5.5

8.8

5.8

GAAP common shares outstanding

110.5

116.2

111.7

119.1

GAAP diluted common shares outstanding

110.9

116.9

112.1

120.1

Basic adjusted net income per share:

1.89

3.09

5.78

9.30

Diluted adjusted net income per share:

1.88

3.07

5.76

9.22

BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES

Reconciliation of GAAP Net Income to Adjusted EBITDA

(unaudited)

Three Months Ended

Nine Months Ended

Twelve Months

Ended

September 30,

(in millions)

2025

2024

2025

2024

2025

Reconciliation to Adjusted EBITDA:

GAAP net income

122.4

284.8

403.7

887.7

593.9

Interest expense, net

69.3

54.3

205.9

154.6

259.1

Income tax expense

64.3

112.6

191.0

318.2

276.2

Depreciation expense

74.1

65.5

219.4

188.3

287.7

Amortization expense

73.5

76.3

220.7

237.2

288.9

Stock compensation expense

16.4

17.3

46.8

50.9

59.0

Acquisition and related expense

(0.8

)

2.6

4.1

5.2

17.2

Technology implementation expense

40.7

19.4

93.5

46.7

113.9

Debt issuance and refinancing cost

0.2

Tax-effect of adjustments to net income

(27.2

)

(23.6

)

(76.4

)

(69.4

)

(100.8

)

Other management-identified adjustments (1)

1.0

17.3

17.7

7.3

Adjusted EBITDA

433.7

626.5

1,308.9

1,837.1

1,802.6

Adjusted EBITDA margin

11.0

14.8

11.1

14.6

11.5

(1) Primarily relates to severance, net gain/loss on sale of assets, and other one-time costs.

BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES

Reconciliation of GAAP Selling, General & Administrative Expenses to Adjusted Selling, General & Administrative Expenses

(unaudited)

Three Months Ended

Nine Months Ended

September 30,

(in millions)

2025

2024

2025

2024

Reconciliation to Adjusted SG&A Expense:

GAAP SG&A expense

970.7

958.3

2,889.3

2,857.8

Depreciation expense

(53.0

)

(45.3

)

(153.2

)

(130.7

)

Amortization expense

(70.8

)

(73.6

)

(212.7

)

(229.1

)

Stock compensation expense

(16.4

)

(17.3

)

(46.8

)

(50.9

)

Acquisition and related expense

0.8

(2.6

)

(4.1

)

(5.2

)

Technology implementation expense

(40.7

)

(19.4

)

(93.5

)

(46.7

)

Other management-identified adjustments (1)

(1.0

)

(17.3

)

(17.7

)

Adjusted SG&A expense

789.6

782.8

2,379.0

2,377.5

GAAP SG&A expense as a % of sales

24.6

22.6

24.4

22.7

Adjusted SG&A expense as a % of sales

20.0

18.5

20.1

18.9

(1) Primarily relates to severance, net gain/loss on sale of assets, and other one-time costs.

BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES

Interest Reconciliation

(unaudited)

Three Months Ended

Nine Months Ended

September 30, 2025

(in millions)

Interest

Expense

Net Debt

Outstanding

Interest

Expense

Net Debt

Outstanding

Revolving credit facility @ 5.50% weighted average interest rate

2.3

23.5

2032 Unsecured notes @ 4.25%

13.8

1,300.0

41.4

1,300.0

2034 Unsecured notes @ 6.375%

15.9

1,000.0

47.8

1,000.0

2035 Unsecured notes @ 6.75%

12.7

750.0

20.3

750.0

2032 Unsecured notes @ 6.375%

11.2

700.0

33.5

700.0

2030 Unsecured notes @ 5.00%

6.9

550.0

20.6

550.0

Amortization of debt issuance costs, discount and premium

1.9

5.2

Finance leases and other finance obligations

5.2

187.9

15.1

187.9

Debt issuance and refinancing cost

0.2

Cash

(296.2

)

(296.2

)

Total (1)

69.9

4,191.7

207.6

4,191.7

(1) Total interest expense does not include interest income of approximately $0.6 million and $1.5 million received during the three month and nine month periods, respectively.

BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES

Free Cash Flow

(unaudited)

Three Months Ended

Nine Months Ended

(in millions)

September 30, 2025

Free Cash Flow

Operating activities

547.7

1,021.1

Less: Capital expenditures, net of proceeds

(82.8

)

(256.1

)

Free cash flow

464.9

765.0

BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES

Sales by Product Category

(unaudited)

Three Months Ended September 30,

2025

2024

(in millions)

Net Sales

% of

Net Sales

% of

Net Sales

% Change

Manufactured products

868.4

22.0

1,014.7

24.0

(14.4

Windows, doors & millwork

989.9

25.1

1,087.0

25.7

(8.9

Value-added products

1,858.3

47.1

2,101.7

49.7

(11.6

Specialty building products & services

1,087.3

27.6

1,049.6

24.8

3.6

Lumber & lumber sheet goods

995.6

25.3

1,081.2

25.5

(7.9

Total net sales

3,941.2

100.0

4,232.5

100.0

(6.9

Nine Months Ended September 30,

2025

2024

(in millions)

Net Sales

% of

Net Sales

% of

Net Sales

% Change

Manufactured products

2,691.5

22.7

3,075.5

24.4

(12.5

Windows, doors & millwork

2,962.3

25.0

3,238.4

25.7

(8.5

Value-added products

5,653.8

47.7

6,313.9

50.1

(10.5

Specialty building products & services

3,050.0

25.9

2,963.8

23.6

2.9

Lumber & lumber sheet goods

3,129.0

26.4

3,302.5

26.3

(5.3

Total net sales

11,832.8

100.0

12,580.2

100.0

(5.9