10-Q · April 30, 2026
Builders FirstSource reported disappointing Q1 2026 results with net sales of $3.3 billion, down 10.1% year-over-year and below estimates. The company reported a diluted EPS loss of $(0.43) versus an expected profit of…
Earnings analysis · 10-Q
BLDR earnings analysis
Filed October 29, 2026 · Our reading of the company's report
The latest report
Builders FirstSource delivered Q3 2026 revenue of $3.854 billion, beating consensus by approximately $95 million, but diluted EPS of $0.56 missed estimates by $0.50. Gross margin declined to 27.8% from 30.4% a year…
Read full summary
Builders FirstSource delivered Q3 2026 revenue of $3.854 billion, beating consensus by approximately $95 million, but diluted EPS of $0.56 missed estimates by $0.50. Gross margin declined to 27.8% from 30.4% a year earlier and free cash flow fell to $76.0 million from $462 million. Management maintained the midpoint of full-year sales and Adjusted EBITDA guidance while narrowing the outlook, leaving the overall signal mixed.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.56
- Gross margin
- 27.8%
What stood out
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Revenue beat consensus
Q3 2026 revenue was $3.854 billion, approximately $95 million above the $3.759 billion consensus estimate and down from $3.94 billion in Q3 2025.
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Revenue beat did not translate to EPS
Diluted EPS was $0.56 versus the $1.06 consensus estimate, a $0.50 miss, and declined from $1.10 in Q3 2025.
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Gross margin continued to contract
Gross margin was 27.8%, down from 28.1% in Q2 2026 and 30.4% in Q3 2025, indicating continued margin pressure.
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Positive but sharply lower free cash flow
Free cash flow was $76.0 million, down from $462 million in Q3 2025, although the company continues to forecast approximately $400 million-$450 million for full-year 2026.
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Full-year outlook maintained at midpoint
The company maintained full-year 2026 net sales guidance of $14.2 billion-$14.6 billion and Adjusted EBITDA guidance of $1.075 billion-$1.125 billion while narrowing the outlook range.
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Share repurchases remained limited
Liquidity remains supported by the $500.0 million remaining share-repurchase authorization; only 2,800 shares were acquired in Q3 2026 for tax withholding and none under the repurchase program.
What to watch
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Earnings and margin miss
Diluted EPS of $0.56 missed the $1.06 consensus estimate by $0.50, while gross margin fell to 27.8% from 30.4% a year earlier.
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Cash-flow conversion weakened
Free cash flow declined to $76.0 million from $462 million in Q3 2025, increasing execution risk against full-year free-cash-flow guidance of approximately $400 million-$450 million.
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Variable-rate interest exposure
Borrowings under the Revolving Facility were $197.0 million at September 30, 2026; a 1.0% increase in interest rates would add approximately $2.0 million to annual interest expense.
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Unquantified legal-claim exposure
The company states that no material changes were made to the risk factors in its 2025 Form 10-K, but construction-defect claims remain a potential liability: losses cannot currently be estimated, and future adverse judgments could be material to a period's results or liquidity.
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Input-cost pass-through risk
Material and transportation-cost increases are not always passed through to customers; delays in passing through price increases can adversely affect operating results.
Management's outlook
The company narrowed its full-year 2026 outlook while maintaining the net sales and Adjusted EBITDA midpoints. Guidance is net sales of $14.2 billion-$14.6 billion, gross margin of 27.5%-28.5%, Adjusted EBITDA of $1.075 billion-$1.125 billion, Adjusted EBITDA margin of 7.4%-7.9%, and free cash flow of approximately $400 million-$450 million.
Earlier filings 4
10-K · February 17, 2026
Builders FirstSource positions itself as a scale-driven, vertically integrated supplier to professional homebuilders, emphasizing manufactured components, value-added services and digital capabilities (Paradigm) to…
10-Q · October 30, 2025
Builders FirstSource reported Q3 net sales of $3,941,190 (in thousands) and diluted EPS of $1.10; revenue and profitability declined versus the year-ago quarter as gross margin contracted to 30.4% and income from…
10-Q · July 31, 2025
Builders FirstSource reported Q2 net sales of $4,234,064,000 and diluted EPS of $1.66, both down materially versus the year‑ago quarter. Gross margin contracted to 30.7% and operating income fell to $311,287,000 as…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.