A Business at a Glance
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Builders FirstSource, Inc.
BLDR
$8.2B
Mkt Cap
$72.86
+3.27%
Builders FirstSource, Inc. (BLDR) has a current P/E ratio of 18.5, compared to its historical median P/E of 13.8. The stock is currently considered Fair based on its historical valuation range.
Builders FirstSource, Inc. (BLDR) has a 5-year average return on invested capital (ROIC) of 22.9%. This indicates strong capital allocation and a potential competitive advantage.
Builders FirstSource, Inc. (BLDR) has a market capitalization of $7.8B. It is classified as a mid-cap stock.
Builders FirstSource, Inc. (BLDR) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 8.96%.
Based on historical P/E analysis, Builders FirstSource, Inc. (BLDR) appears fair. The current P/E of 18.5 is 35% above its historical median of 13.8. The estimated fair value CAGR (P/E method) is 29.9%.
Builders FirstSource, Inc. (BLDR) operates in the Retail-Lumber & Other Building Materials Dealers industry, within the Consumer Cyclical sector.
Builders FirstSource is a leading provider of integrated homebuilding solutions for professional builders in new residential construction and repair and remodeling, operating approximately 585 locations across 43 U.S. states. The company manufactures and supplies a comprehensive range of structural and value-added building products, including factory-built roof and floor trusses, wall panels, vinyl windows, custom millwork, modular homes, and engineered wood, complemented by distribution of lumber, sheet goods, doors, and specialty items. The business model combines manufacturing scale with a broad distribution network and professional installation services, generating revenue through product sales and value-added services such as turnkey framing, shell construction, and design assistance. Unit economics are characterized by a mix of commodity-exposed lumber and sheet goods alongside higher-margin manufactured components and services; the company operates with gross margins historically above 30% in normalized environments and maintains an asset-intensive manufacturing footprint that provides competitive advantages through prefabrication efficiency and labor cost reduction for customers. Distribution is geographically concentrated in 48 of the top 50 and 94 of the top 100 U.S. Core Based Statistical Areas, with co-located facilities to improve operational efficiency and serve local builder customers. The company's competitive moat derives from its integrated scale, comprehensive product portfolio, sophisticated digital and software capabilities through its Paradigm subsidiary, and ability to provide turnkey solutions that smaller competitors cannot match; customers range from large national production homebuilders (top 10 customers represent 14% of sales) to regional and custom builders, multi-family developers, and remodeling contractors, with the business benefiting from industry consolidation trends favoring larger, full-service suppliers.
【Macro headwinds persist near-term】 Management expects continued weakness in housing starts and affordability pressures through 2026, with single-family and multifamily starts projected to decline modestly year-over-year while repair and remodel activity remains muted. The company is managing cost inflation, particularly in fuel and input costs, while working to pass through price increases to customers, though timing and competitive dynamics are expected to create margin pressure in the near term. Despite near-term challenges, management remains focused on share growth through customer service excellence, product bundling for affordability, and technology adoption, with particular emphasis on digital tools that have processed over $5 billion in quotes and $2.5 billion in orders since launch. The company is investing strategically in capacity and capabilities for a market recovery, including expansion of semi-custom modular home offerings and continued productivity initiatives, while maintaining disciplined capital allocation and strong liquidity to position for significant upside when market conditions normalize.
| Metric | Target | Period |
|---|---|---|
| Net sales | $14.6 billion–$15.6 billion | FY2026 |
| Adjusted EBITDA | $1.1 billion–$1.5 billion | FY2026 |
| Adjusted EBITDA margin | 7.5%–9.6% | FY2026 |
| Gross margin | 27.5%–29% | FY2026 |
| Free cash flow | $400 million–$500 million | FY2026 |
Net sales (FY2026): “we are guiding net sales in the range of $14.6 billion-$15.6 billion”
Adjusted EBITDA (FY2026): “Adjusted EBITDA of $1.1 billion-$1.5 billion”
Adjusted EBITDA margin (FY2026): “Adjusted EBITDA margin of 7.5%-9.6%”
Gross margin (FY2026): “We expect our 2026 full year gross margin to be in the range of 27.5%-29%”
Free cash flow (FY2026): “We expect free cash flow of approximately $400 million-$500 million”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Segment | 2021 | 2022 | 2023 | 2024 | 2025 | % of Total |
|---|---|---|---|---|---|---|
Specialty Building Products and Services | $3.78B | $4.31B | $4.08B | $4.05B | $4.07B | 27% |
Lumber and Lumber Sheet Goods | $8.46B | $8.09B | $4.28B | $4.27B | $3.88B | 26% |
Windows, Doors and Millwork | $3.40B | $4.79B | $4.33B | $4.24B | $3.84B | 25% |
Manufactured Products | $4.40B | $5.69B | $4.70B | $3.99B | $3.41B | 22% |
Specialty Building Products & Services | $3.63B | $4.16B | — | — | — | — |
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 14.8B | 15.2B | 16.4B | 17.1B | 22.7B | 19.9B |
| Net Income | 291M | 435M | 1.1B | 1.5B | 2.7B | 1.7B |
| EPS | $2.62 | $3.89 | $9.06 | $11.94 | $16.82 | $8.48 |
| Free Cash Flow | 862M | 853M | 1.5B | 1.8B | 3.3B | 1.5B |
| ROIC | 6.3% | 7.8% | 15.0% | 20.6% | 36.1% | 34.8% |
| Gross Margin | 29.9% | 30.4% | 32.8% | 35.2% | 34.1% | 29.4% |
| Debt/Equity | 1.16 | 1.17 | 1.01 | 0.82 | 0.70 | 0.71 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 618M | 786M | 1.6B | 2.2B | 3.8B | 2.4B |
| Operating Margin | 4.2% | 5.2% | 9.7% | 12.7% | 16.6% | 12.0% |
| ROE | 7.3% | 10.1% | 23.9% | 31.8% | 56.3% | 57.9% |
| Shares Outstanding | 108M | 112M | 119M | 129M | 163M | 203M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 1.6B | 3.6B | 6.4B | 7.0B | 7.7B | 7.3B | 8.6B | 19.9B | 22.7B | 17.1B | 16.4B | 15.2B | 14.8B |
| Gross Margin | 22.3% | 25.3% | 25.1% | 24.6% | 24.9% | 27.2% | 26.0% | 29.4% | 34.1% | 35.2% | 32.8% | 30.4% | 29.9% |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 307M | 811M | 1.4B | 1.4B | 1.6B | 1.6B | 1.7B | 3.5B | 4.0B | 3.8B | 3.8B | 3.8B | 3.8B |
| EBIT | 50M | 91M | 236M | 285M | 369M | 392M | 544M | 2.4B | 3.8B | 2.2B | 1.6B | 786M | 618M |
| Op. Margin | 3.1% | 2.5% | 3.7% | 4.1% | 4.8% | 5.4% | 6.4% | 12.0% | 16.6% | 12.7% | 9.7% | 5.2% | 4.2% |
| Net Income | 18M | -23M | 144M | 39M | 205M | 222M | 314M | 1.7B | 2.7B | 1.5B | 1.1B | 435M | 291M |
| Net Margin | 1.1% | -0.6% | 2.3% | 0.6% | 2.7% | 3.0% | 3.7% | 8.7% | 12.1% | 9.0% | 6.6% | 2.9% | 2.0% |
| Non-Recurring | 629K | 5.1M | 5.5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 13.0% | 16.7% | 27.4% | 10.9% | 13.7% | 13.5% | 17.6% | 34.8% | 36.1% | 20.6% | 15.0% | 7.8% | 6.3% |
| ROE | 65.3% | -24.1% | 62.9% | 11.3% | 42.2% | 31.2% | 31.7% | 57.9% | 56.3% | 31.8% | 23.9% | 10.1% | 7.3% |
| ROA | 3.3% | -1.3% | 5.0% | 1.3% | 6.9% | 7.2% | 8.4% | 23.2% | 25.8% | 14.6% | 10.2% | 4.0% | 2.6% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 27M | 177M | 158M | 179M | 283M | 504M | 260M | 1.7B | 3.6B | 2.3B | 1.9B | 1.2B | 1.2B |
| Free Cash Flow | 1.8M | 133M | 116M | 116M | 181M | 391M | 148M | 1.5B | 3.3B | 1.8B | 1.5B | 853M | 862M |
| Owner Earnings | 12M | 112M | 38M | 72M | 171M | 392M | 126M | 1.2B | 3.1B | 1.7B | 1.2B | 571M | 523M |
| CapEx | 26M | 44M | 43M | 62M | 101M | 113M | 112M | 228M | 340M | 476M | 381M | 363M | 309M |
| Maint. CapEx | 9.6M | 58M | 110M | 93M | 98M | 100M | 117M | 547M | 497M | 558M | 562M | 591M | 595M |
| Growth CapEx | 16M | 0 | 0 | 0 | 3.5M | 13M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 9.6M | 58M | 110M | 93M | 98M | 100M | 117M | 547M | 497M | 558M | 562M | 591M | 595M |
| CapEx/OCF | 93.5% | 24.7% | 27.0% | 35.0% | 35.9% | 22.4% | 43.1% | 13.1% | 9.5% | 20.6% | 20.3% | 29.8% | 26.4% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 1.3M | 986K | 1.1M | 2.6M | 4.9M | 10M | 4.2M | 1.7B | 2.6B | 1.8B | 1.5B | 414M | 702M |
| Buyback Yield | 0.2% | 0.1% | 0.1% | 0.1% | 0.4% | 0.3% | 0.1% | 10.0% | 25.3% | 8.3% | 8.8% | 3.6% | 9.0% |
| Stock-Based Comp | 6.2M | 6.8M | 11M | 14M | 14M | 12M | 17M | 31M | 31M | 49M | 63M | 54M | 53M |
| Debt Repayment | 34K | 4.2M | 808M | 380M | 65M | 611M | 619M | 555M | 616M | 4.2M | 3.4M | 2.8M | 2.8M |
| Balance Sheet | |||||||||||||
| Net Debt | 366M | 529M | 736M | 1.7B | 1.6B | 1.6B | 1.5B | 3.4B | 3.4B | 3.8B | 4.2B | 4.9B | 4.5B |
| Cash & Equiv. | 18M | 65M | 14M | 58M | 10M | 14M | 424M | 43M | 80M | 66M | 154M | 182M | 98M |
| Long-Term Debt | 354M | 594M | 750M | 1.8B | 1.5B | 1.3B | 1.6B | 2.9B | 3.0B | 3.2B | 3.7B | 4.4B | 4.6B |
| Debt/Equity | 9.55 | 3.98 | 2.42 | 4.74 | 2.62 | 1.93 | 1.65 | 0.71 | 0.70 | 0.82 | 1.01 | 1.17 | 1.16 |
| Interest Coverage | 1.6 | 0.8 | 1.1 | 1.5 | N/A | 351.8 | 381.9 | 6631.7 | 21062.6 | 10827.5 | 16792.1 | 13794.3 | 13794.3 |
| Equity | 40M | 149M | 310M | 376M | 596M | 825M | 1.2B | 4.8B | 5.0B | 4.7B | 4.3B | 4.4B | 4.0B |
| Total Assets | 574M | 2.9B | 2.9B | 3.0B | 2.9B | 3.2B | 4.2B | 10.7B | 10.6B | 10.5B | 10.6B | 11.2B | 11.3B |
| Total Liabilities | 534M | 2.7B | 2.6B | 2.6B | 2.3B | 2.4B | 3.0B | 5.9B | 5.6B | 5.8B | 6.3B | 6.9B | 7.3B |
| Intangibles | 17M | 190M | 159M | 133M | 103M | 128M | 120M | 1.6B | 1.6B | 1.3B | 1.1B | 1.2B | 1.1B |
| Retained Earnings | -341M | -364M | -219M | -172M | 35M | 249M | 562M | 540M | 704M | 460M | 24M | 154M | 0 |
| Working Capital | 159M | 459M | 461M | 598M | 642M | 486M | 1.1B | 1.8B | 1.7B | 1.4B | 1.4B | 1.4B | 1.3B |
| Current Assets | 332M | 1.2B | 1.2B | 1.4B | 1.4B | 1.3B | 2.2B | 4.0B | 3.5B | 3.3B | 3.1B | 2.9B | 3.1B |
| Current Liabilities | 172M | 735M | 755M | 798M | 731M | 821M | 1.1B | 2.1B | 1.8B | 1.9B | 1.8B | 1.6B | 1.8B |
| Per Share Data | |||||||||||||
| EPS | 0.09 | -0.11 | 0.64 | 0.17 | 0.88 | 0.95 | 1.33 | 8.48 | 16.82 | 11.94 | 9.06 | 3.89 | 2.62 |
| Owner EPS | 0.06 | 0.54 | 0.17 | 0.32 | 0.73 | 1.68 | 0.54 | 5.72 | 18.79 | 13.18 | 10.49 | 5.10 | 4.87 |
| Book Value | 0.20 | 0.72 | 1.36 | 1.65 | 2.56 | 3.53 | 4.89 | 23.60 | 30.36 | 36.68 | 36.11 | 38.90 | 37.24 |
| Cash Flow/Share | 0.14 | 0.85 | 0.70 | 0.78 | 1.21 | 2.16 | 1.10 | 8.57 | 22.02 | 17.88 | 15.74 | 10.87 | 8.24 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 201.7M | 207.6M | 227.3M | 228.1M | 233.2M | 233.5M | 235.7M | 203.5M | 163.5M | 129.0M | 119.0M | 111.9M | 107.5M |
| Valuation | |||||||||||||
| P/E Ratio | 37.9 | N/A | 8.8 | 64.2 | 6.2 | 13.4 | 15.8 | 10.0 | 3.8 | 14.1 | 16.0 | 26.7 | 27.8 |
| P/FCF | 774.0 | 16.5 | 21.9 | 42.9 | 14.1 | 15.2 | 66.8 | 11.3 | 3.2 | 11.9 | 11.6 | 13.6 | 9.1 |
| EV/EBIT | 21.2 | 17.9 | 8.5 | 14.8 | 7.7 | 11.6 | 11.1 | 8.6 | 3.6 | 11.7 | 13.3 | 20.8 | 20.0 |
| Price/Book | 17.1 | 7.4 | 4.1 | 6.6 | 2.1 | 3.6 | 4.3 | 3.6 | 2.1 | 4.6 | 4.0 | 2.7 | 2.0 |
| Price/Sales | 0.4 | 0.3 | 0.2 | 0.3 | 0.3 | 0.3 | 0.4 | 0.5 | 0.5 | 0.9 | 1.3 | 0.9 | 0.5 |
| FCF Yield | 0.3% | 12.1% | 9.1% | 4.7% | 14.2% | 13.2% | 3.0% | 8.8% | 31.4% | 8.4% | 8.6% | 7.3% | 11.0% |
| Market Cap | 688M | 1.1B | 1.3B | 2.5B | 1.3B | 3.0B | 4.9B | 17.2B | 10.4B | 21.8B | 17.3B | 11.6B | 7.8B |
| Avg. Price | 7.09 | 11.35 | 10.94 | 15.67 | 17.49 | 17.61 | 25.67 | 50.96 | 65.01 | 114.67 | 174.45 | 126.68 | 72.86 |
| Year-End Price | 6.82 | 10.60 | 11.12 | 21.84 | 10.94 | 25.45 | 41.92 | 84.46 | 63.52 | 168.66 | 145.08 | 103.99 | 72.86 |
Builders FirstSource, Inc. passes 7 of 9 quality checks, indicating strong fundamentals.
Builders FirstSource, Inc. trades at 18.5x trailing earnings, compared to its 15-year median P/E of 13.8x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 9.4x vs a median of 13.8x. The company's 5-year average ROIC is 22.9% with a gross margin of 32.4%. Total shareholder yield (buybacks) is 9.0%. At current prices, the estimated annualized return to fair value is +40.3%.
Builders FirstSource, Inc. (BLDR) reported annual revenue of $15.2 billion in its most recent fiscal year, based on SEC EDGAR filings.
Builders FirstSource, Inc. (BLDR) has a net profit margin of 2.9%. This is a modest margin.
Builders FirstSource, Inc. (BLDR) generated $853 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Builders FirstSource, Inc. (BLDR) has a debt-to-equity ratio of 1.17. This indicates moderate leverage.
Builders FirstSource, Inc. (BLDR) reported earnings per share (EPS) of $3.89 in its most recent fiscal year.
Builders FirstSource, Inc. (BLDR) has a return on equity (ROE) of 10.1%. This indicates moderate shareholder returns.
Builders FirstSource, Inc. (BLDR) has a 5-year average gross margin of 32.4%. This indicates decent pricing power.
The Ledger Terminal provides 17 years of financial data for Builders FirstSource, Inc. (BLDR), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Builders FirstSource, Inc. (BLDR) has a book value per share of $38.90, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects continued weakness in housing starts and affordability pressures through 2026, with single-family and multifamily starts projected to decline modestly year-over-year while repair and remodel activity remains muted. The company is managing cost inflation, particularly in fuel and input costs, while working to pass through price increases to customers, though timing and competitive dynamics are expected to create margin pressure in the near term. Despite near-term challenges, management remains focused on share growth through customer service excellence, product bundling for affordability, and technology adoption, with particular emphasis on digital tools that have processed over $5 billion in quotes and $2.5 billion in orders since launch. The company is investing strategically in capacity and capabilities for a market recovery, including expansion of semi-custom modular home offerings and continued productivity initiatives, while maintaining disciplined capital allocation and strong liquidity to position for significant upside when market conditions normalize.
Based on recent SEC filings and earnings calls, Builders FirstSource, Inc. (BLDR) has provided the following forward guidance: Net sales: $14.6 billion–$15.6 billion (FY2026); Adjusted EBITDA: $1.1 billion–$1.5 billion (FY2026); Adjusted EBITDA margin: 7.5%–9.6% (FY2026); Gross margin: 27.5%–29% (FY2026); Free cash flow: $400 million–$500 million (FY2026).