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IRVING, Texas - Builders FirstSource, Inc. (NYSE:BLDR) reported first quarter earnings that surpassed analyst expectations, but the company’s stock tumbled 4.3% as its full-year revenue guidance fell short of estimates.
The building materials supplier posted adjusted earnings per share of $1.51 for the first quarter of 2025, beating the analyst consensus of $1.42. Revenue came in at $3.7 billion, slightly above the $3.67 billion analysts had projected. However, revenue declined 6% YoY, primarily due to lower core organic sales, one fewer selling day, and commodity deflation.
Builders FirstSource provided full-year 2025 revenue guidance of $16.05-17.05 billion, with the midpoint of $16.55 billion falling below the analyst consensus of $16.71 billion. This weaker-than-expected outlook appears to be driving the negative market reaction.
The company’s gross profit margin decreased 290 basis points to 30.5%, which it attributed to Single- and Multi-Family margin normalization and a below-normal starts environment. Adjusted EBITDA declined 31.7% to $369.2 million, with adjusted EBITDA margin contracting 380 basis points to 10.1%.
"Given the current environment, I’m proud of our resilient results in the first quarter," said Peter Jackson, CEO of Builders FirstSource. "While macro and industry dynamics continue to be unsettled, we remain confident in our ability to navigate any challenges by staying rooted in our strategy and focusing on the factors within our control."
The company repurchased 0.1 million shares of common stock at an average price of $131.51 for $12.8 million during the quarter. Additionally, Builders FirstSource announced a new $500 million share repurchase authorization, which includes approximately $100 million remaining from its prior August 2024 authorization.
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