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

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

*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.)