The lowered 2026 guidance midpoint implies adjusted EBITDA of ~$1.3B vs prior ~$1.5B, a ~13% cut, while leverage has risen to 3.2x. The $500M buyback authorization provides a floor but does not address the fundamental earnings deterioration. Watch for further housing starts weakness and potential debt covenant pressure if EBITDA continues to decline.
Price Chart
Executive Summary
Builders FirstSource reported Q1 2026 results with a net loss of $47.4M (diluted EPS -$0.43) vs net income of $96.3M ($0.84) a year ago, as net sales fell 10.1% to $3.3B due to a weak housing starts environment. The company also announced a new $500M share repurchase authorization. The combination of deteriorating financials (revenue down 10.1%, GAAP net loss, adjusted EBITDA down 42.1%) and a lowered 2026 guidance range (net sales now $14.6B-$15.6B vs prior $14.8B-$15.8B, adjusted EBITDA now $1.1B-$1.5B vs prior $1.3B-$1.7B) signals a worsening operating environment that the buyback program cannot offset.
Key Financial Metrics
Key Facts
- Q1 2026 net sales $3.3B, down 10.1% YoY (core organic sales -8.3%, commodity deflation -3.3%)
- GAAP net loss of $47.4M (diluted EPS -$0.43) vs net income of $96.3M ($0.84) in Q1 2025
- Adjusted EBITDA fell 42.1% to $213.8M; adjusted EBITDA margin declined 360 bps to 6.5%
- Gross margin contracted 220 bps to 28.3%
- Net debt to LTM Adjusted EBITDA leverage rose to 3.2x from 2.0x a year ago
- 2026 guidance lowered: net sales $14.6B-$15.6B (from $14.8B-$15.8B), adjusted EBITDA $1.1B-$1.5B (from $1.3B-$1.7B)
- Board authorized $500M share repurchase program (includes ~$200M remaining from prior authorization)
- Company repurchased 3.3M shares for $302.9M in Q1 at avg price $92.25
Financial Impact
Net loss of $47.4M vs prior-year net income of $96.3M; adjusted EBITDA down 42.1% to $213.8M; 2026 guidance midpoint for adjusted EBITDA cut by ~$200M
Risk Factors
- Continued weakness in single-family and multi-family housing starts
- Further commodity deflation compressing margins
- Leverage at 3.2x limits financial flexibility if downturn persists
- Guidance assumes flat-to-down housing starts; any worsening could trigger further cuts
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-193923 |
| Document: bldr-20260430.htm | 0001193125-26-193923 |
| Document: bldr-ex99_2.htm | 0001193125-26-193923 |
| Document: 0001193125-26-193923-index-headers.html | 0001193125-26-193923 |
| Document: 0001193125-26-193923-index.html | 0001193125-26-193923 |
| Document: 0001193125-26-193923.txt | 0001193125-26-193923 |
| 8-K Data (Synthetic) | 0001193125-26-193923 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jul 30, 2026 9w ago | 8-K | $66.01 $67.21 | ▼ −1.82% | ▲ +2.15% | $56.25 (+14.79%) |
May 18, 2026 19w ago | 8-K | $66.39 $76.14 | ▲ +14.69% | ▲ +13.70% | $56.25 (−15.27%) |
Apr 30, 2026 22w ago | 8-K | $79.09 $76.72 | ▲ +3.00% | ▲ +7.96% | $56.25 (+28.88%) |
Feb 28, 2026 30w ago | Institutional Cluster | $99.41 $78.85 | ▼ −20.68% | ▼ −12.74% | $56.25 (−43.42%) |
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