olivLaw · US equity research
Builders FirstSource, Inc. BLDR
Retail-Lumber & Other Building Materials Dealers · SIC 5211 · Vertical: Building materials and hardware retail (SIC 52xx)
Builders FirstSource (BLDR) is the largest supplier of building materials to professional homebuilders in the US, combining prefabricated components with integrated installation services for new residential construction and remodeling. Its network of more than 565 locations is now tested by lower construction volumes, and quarterly profitability contracted sharply.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 05 Nov 2026, Builders FirstSource, Inc. (BLDR) stock was 65.50 USD (−5.76% on the day), with market capitalisation 7.0 bn USD, P/E 175.2 on diluted EPS of 0.37 USD over the last 12 months, beta 1.22, 52-week range 50.52–128.96 USD. Latest reported quarter (Q3 2026): revenue of 3.9 bn USD (−2.2% YoY), net income of 60.4 m USD (−50.6% YoY), diluted EPS 0.56 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 59.5
- strong (55–70)
- Bollinger (20, 2)
- 46.30 – 69.05
- in the upper half of the band · %B 0.84 · band width 39.5%
- SMA 50 / 200
- 59.03 / 79.01
- mixed trend
- MACD (12, 26, 9)
- 2.27 / 0.69
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +16.5% | −5.9% | +22.5 pp | — |
| 3 months | −9.7% | −4.6% | −5.0 pp | — |
| 6 months | −17.5% | +0.2% | −17.7 pp | — |
| Year to date | −36.3% | +7.4% | −43.8 pp | — |
| 1 year | −41.3% | +8.2% | −49.5 pp | −5.7% |
| 3 years | −47.8% | +68.4% | −116.3 pp | −9.8% |
| 5 years | −2.6% | +56.5% | −59.1 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 3.8 bn | 3.7 bn | 4.2 bn | 3.9 bn | 3.4 bn | 3.3 bn | 3.9 bn | 3.9 bn |
| Cost of revenue | 2.6 bn | 2.5 bn | 2.9 bn | 2.7 bn | 2.4 bn | 2.4 bn | 2.8 bn | 2.8 bn |
| Gross profit | 1.2 bn | 1.1 bn | 1.3 bn | 1.2 bn | 1.0 bn | 929.0 m | 1.1 bn | 1.1 bn |
| SG&A | 930.0 m | 930.8 m | 987.8 m | 970.7 m | 940.2 m | 912.5 m | 958.3 m | 973.2 m |
| Operating income | 304.1 m | 184.4 m | 311.3 m | 228.8 m | 61.8 m | 16.5 m | 128.5 m | 99.1 m |
| Depreciation & amortisation | 136.5 m | 145.0 m | 147.5 m ≈ | 147.5 m ≈ | 151.3 m | 148.4 m | 150.0 m ≈ | 148.8 m ≈ |
| Pre-tax income | 251.0 m | 119.5 m | 239.3 m | 159.5 m | -6.0 m | -57.9 m | 52.4 m | 26.8 m |
| Income tax | 60.8 m | 23.2 m | 54.3 m | 37.1 m | -37.5 m | -10.5 m | 56.3 m | -33.6 m |
| Net income | 190.2 m | 96.3 m | 185.0 m | 122.4 m | 31.5 m | -47.4 m | -3.9 m | 60.4 m |
| Diluted EPS | 1.65 ≈ | 0.84 | 1.66 | 1.10 | 0.28 ≈ | -0.43 | -0.04 | 0.56 |
| Operating cash flow | 373.5 m | 132.3 m | 341.0 m ≈ | 547.7 m ≈ | 194.8 m | 87.5 m | 68.0 m ≈ | 146.6 m ≈ |
| Capex | 99.7 m | 100.0 m | 88.7 m ≈ | 85.8 m ≈ | 88.1 m | 46.7 m | 38.0 m ≈ | 72.6 m ≈ |
| Share repurchases | 363.8 m | 12.3 m | 401.6 m ≈ | 1.0 k ≈ | 0 | 300.1 m | 3.5 m ≈ | 0 ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 100 percentile of its own 40-quarter history (min 3.6, median 12.8, max 152.5; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 7.7 bn | 7.3 bn | 8.6 bn | 19.9 bn | 22.7 bn | 17.1 bn | 16.4 bn | 15.2 bn |
| Revenue YoY | +9.8% | −5.8% | +17.6% | +132.4% | +14.2% | −24.8% | −4.1% | −7.4% |
| Net income | 205.2 m | 221.8 m | 313.5 m | 1.7 bn | 2.7 bn | 1.5 bn | 1.1 bn | 435.2 m |
| Net income YoY | +429.1% | +8.1% | +41.4% | +450.3% | +59.3% | −44.0% | −30.0% | −59.6% |
| Diluted EPS | 1.76 | 1.90 | 2.66 | 8.48 | 16.82 | 11.94 | 9.06 | 3.89 |
| Diluted EPS YoY | +417.6% | +8.0% | +40.0% | +218.8% | +98.3% | −29.0% | −24.1% | −57.1% |
| net % | 2.7% | 3.0% | 3.7% | 8.7% | 12.1% | 9.0% | 6.6% | 2.9% |
| Free cash flow | 181.4 m | 391.2 m | 148.0 m | 1.5 bn | 3.3 bn | 1.8 bn | 1.5 bn | 853.3 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 181.8 m USD
- Financial debt
- 14.3 m USD
- Net debt
- -167.4 m USD
- Equity
- 4.4 bn USD
- Total assets
- 11.2 bn USD
- Debt / equity
- 0.00x
- Current ratio
- 1.86x
- ROE
- 10.1%
- ROA
- 4.0%
- FCF margin
- 5.6%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 8.6 bn | 19.9 bn | 22.7 bn | 17.1 bn | 16.4 bn | 15.2 bn | SEC (XBRL)· 17 Feb 2026verified |
| Cost of revenue | 6.3 bn | 14.0 bn | 15.0 bn | 11.1 bn | 11.0 bn | 10.6 bn | SEC (XBRL)· 17 Feb 2026verified |
| Gross profit | 2.2 bn | 5.9 bn | 7.7 bn | 6.0 bn | 5.4 bn | 4.6 bn | SEC (XBRL)· 17 Feb 2026verified |
| SG&A | 1.7 bn | 3.5 bn | 4.0 bn | 3.8 bn | 3.8 bn | 3.8 bn | SEC (XBRL)· 17 Feb 2026verified |
| Operating income | 543.9 m | 2.4 bn | 3.8 bn | 2.2 bn | 1.6 bn | 786.3 m | SEC (XBRL)· 17 Feb 2026verified |
| Depreciation & amortisation | 116.6 m | 547.4 m | 497.1 m | 558.3 m | 561.9 m | 591.4 m | SEC (XBRL)· 17 Feb 2026verified |
| EBITDA | 660.4 m ≈ | 2.9 bn ≈ | 4.3 bn ≈ | 2.7 bn ≈ | 2.2 bn ≈ | 1.4 bn ≈ | SEC (XBRL)· 17 Feb 2026derived |
| Pre-tax income | 408.2 m | 2.3 bn | 3.6 bn | 2.0 bn | 1.4 bn | 512.4 m | SEC (XBRL)· 17 Feb 2026verified |
| Income tax | 94.6 m | 526.1 m | 822.5 m | 443.6 m | 309.6 m | 77.2 m | SEC (XBRL)· 17 Feb 2026verified |
| Net income | 313.5 m | 1.7 bn | 2.7 bn | 1.5 bn | 1.1 bn | 435.2 m | SEC (XBRL)· 17 Feb 2026verified |
| Diluted EPS | 2.66 | 8.48 | 16.82 | 11.94 | 9.06 | 3.89 | SEC (XBRL)· 17 Feb 2026verified |
| Weighted average diluted shares | 117.9 m | 203.5 m | 163.5 m | 129.0 m | 119.0 m | 111.8 m | SEC (XBRL)· 17 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 423.8 m | 42.6 m | 80.4 m | 66.2 m | 153.6 m | 181.8 m | SEC (XBRL)· 17 Feb 2026verified |
| Receivables | 822.8 m | 1.7 bn | 1.4 bn | 1.4 bn | 1.2 bn | 1.1 bn | SEC (XBRL)· 17 Feb 2026verified |
| Inventories | 784.5 m | 1.6 bn | 1.4 bn | 1.2 bn | 1.2 bn | 1.1 bn | SEC (XBRL)· 17 Feb 2026verified |
| Current assets | 2.2 bn | 4.0 bn | 3.5 bn | 3.3 bn | 3.1 bn | 2.9 bn | SEC (XBRL)· 17 Feb 2026verified |
| Property, plant & equipment, net | 749.1 m | 1.4 bn | 1.6 bn | 1.8 bn | 2.0 bn | 2.2 bn | SEC (XBRL)· 17 Feb 2026verified |
| Goodwill | 785.3 m | 3.3 bn | 3.5 bn | 3.6 bn | 3.7 bn | 4.1 bn | SEC (XBRL)· 17 Feb 2026verified |
| Intangibles (excl. goodwill) | 119.9 m | 1.6 bn | 1.6 bn | 1.3 bn | 1.1 bn | 1.2 bn | SEC (XBRL)· 17 Feb 2026verified |
| Total assets | 4.2 bn | 10.7 bn | 10.6 bn | 10.5 bn | 10.6 bn | 11.2 bn | SEC (XBRL)· 17 Feb 2026verified |
| Accounts payable | 600.4 m | 1.1 bn | 803.5 m | 881.4 m | 868.1 m | 714.7 m | SEC (XBRL)· 17 Feb 2026verified |
| Short-term debt | 27.3 m | 3.7 m | 6.4 m | 3.6 m | 3.5 m | 14.3 m | SEC (XBRL)· 17 Feb 2026verified |
| Current liabilities | 1.1 bn | 2.1 bn | 1.8 bn | 1.9 bn | 1.8 bn | 1.6 bn | SEC (XBRL)· 17 Feb 2026verified |
| Total liabilities | 3.0 bn | 5.9 bn | 5.6 bn | 5.8 bn | 6.3 bn | 6.9 bn | SEC (XBRL)· 17 Feb 2026verified |
| Equity | 1.2 bn † | 4.8 bn † | 5.0 bn † | 4.7 bn † | 4.3 bn † | 4.4 bn † | SEC (XBRL)· 17 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 260.1 m | 1.7 bn | 3.6 bn | 2.3 bn | 1.9 bn | 1.2 bn | SEC (XBRL)· 17 Feb 2026verified |
| Capex | 112.1 m | 227.9 m | 340.2 m | 476.3 m | 380.6 m | 362.6 m | SEC (XBRL)· 17 Feb 2026verified |
| Free cash flow | 148.0 m ≈ | 1.5 bn ≈ | 3.3 bn ≈ | 1.8 bn ≈ | 1.5 bn ≈ | 853.3 m ≈ | SEC (XBRL)· 17 Feb 2026derived |
| Investing cash flow | -136.2 m | -1.3 bn | -957.5 m | -668.3 m | -710.7 m | -1.5 bn | SEC (XBRL)· 17 Feb 2026verified |
| Financing cash flow | 285.9 m | -780.1 m | -2.6 bn | -1.7 bn | -1.1 bn | 279.4 m | SEC (XBRL)· 17 Feb 2026verified |
| Share repurchases | 4.2 m | 1.7 bn | 2.6 bn | 1.8 bn | 1.5 bn | 414.0 m | SEC (XBRL)· 17 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 43 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: 7.0 bn USD
Key indicators
Coverage and freshness
Score by group
- Growth0
- Returns62
- Balance sheet68
- Valuation48
- Quality47
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 7.54 – 103.24 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · the reported interest expense is far older than the latest period (the filer changed its XBRL tag): a stale figure is not used
- Peers: EV/EBITDA83.34 – 103.24 (Mid 91.07)4 companies used · median multiple 10.8x · quartiles 9.9x – 12.2xFND, HD, LOW, TSCO
- Peers: P/E7.54 – 11.29 (Mid 8.89)6 companies used · median multiple 23.8x · quartiles 20.2x – 30.2xFAST, FND, HD, LOW, SHW, TSCO
- Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 43/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 6.4% | 20 (vs peers) | 12% |
| Net margin · Quality | 0.3% | 40 (vs peers) | 7% |
| FCF conversion · Quality | 619.4% | 100 (on a fixed band) | 7% |
| Revenue CAGR 3Y · Growth | -12.6% | 0 (on a fixed band) | 9% |
| EPS CAGR 3Y · Growth | -38.6% | 0 (on a fixed band) | 9% |
| Net debt / EBITDA · Balance sheet | -0.1x | 60 (vs peers) | 12% |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 1.8x | 87 (on a fixed band) | 5% |
| P/E (TTM) · Valuation | 175.2x | 0 (vs peers) | 12% |
| EV/EBITDA · Valuation | 7.7x | 100 (vs peers) | 12% |
| FCF yield · Valuation | 3.6% | 45 (on a fixed band) | 9% |
| Shareholder yield (distributions) · Returns | 4.3% | 62 (on a fixed band) | 7% |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet68/100 · 2/3 factors with a value
- Growth0/100 · 2/2 factors with a value
- Quality47/100 · 3/3 factors with a value
- Returns· partial62/100 · 1/2 factors with a value
- Valuation48/100 · 3/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
BUILDERS FIRSTSOURCE, INC. (BLDR). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 15.2 bn USD in 2025; YoY growth -7.4%; net margin 0.3%; ROE 1.0%; net debt/EBITDA -0.1x.
The estimated value range is 45.44–57.27 USD per share (median of 2 methods, agreement: low); assumptions are illustrative. Against the central value of 49.98 USD, the price of 65.50 USD leaves a potential of -23.7% (value / price − 1) and a margin of safety of -31.1% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 43/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: returns. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 619.4%
- Current ratio: 1.8x
- EV/EBITDA: 7.7x
What contradicts it
- ROIC: 6.4%
- Revenue CAGR 3Y: -12.6%
- EPS CAGR 3Y: -38.6%
- P/E (TTM): 175.2x
- The price is above the estimated value range
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): Interest coverage, Payout ratio (FCF).
Versus the vertical median
Building materials and hardware retail (SIC 52xx) · same major group (2-digit SIC) · compared with 10 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| HDThe Home Depot, Inc. | 349.1 bn | 24.5 | 104.3% | 8.4% | +3.2% | −2% / +12% |
| LOWLowes Companies Inc | 127.5 bn | 19.2 | — | 7.3% | +3.1% | −6% / +14% |
| SHWThe Sherwin-Williams Company | 84.3 bn | 32.1 | 63.7% | 10.7% | +2.1% | +2% / +25% |
| FASTFastenal Co | 60.7 bn | 42.8 | 35.3% | 15.6% | +8.7% | +31% / +76% |
| TSCOTractor Supply Co | 19.0 bn | 10.5 | 70.5% | 11.6% | +4.3% | −33% / −10% |
| BLDRBuilders Firstsource, Inc. | 7.0 bn | 175.2 | 1.0% | 0.3% | −7.4% | −41% / −48% |
| FNDFloor & Decor Holdings, Inc. | 5.4 bn | 23.1 | 9.9% | 5.1% | +5.1% | −19% / −44% |
| GRWGGrowgeneration Corp. | 86.6 m | — | -17.1% | -10.1% | −14.4% | −5% / −45% |
| JCTCJewett-Cameron Trading Company Ltd. | 10.1 m | — | -43.7% | -20.9% | −12.4% | +16% / −41% |
| IPWiPower Inc. | 1.7 m | — | -66.0% | -58.2% | −68.4% | −100% / −100% |
| ZKHZKH Group Limited | — | — | -4.6% | -1.6% | +2.6% | −60% / unavailable |
1- and 3-year price returns: for BLDR from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 35.31 Total return -46% · Per year -46% | 62.75 Total return -4% · Per year -4% | 94.95 Total return 45% · Per year 45% |
| 3 years | 28.04 Total return -57% · Per year -25% | 56.63 Total return -14% · Per year -5% | 94.95 Total return 45% · Per year 13% |
| 5 years | 22.27 Total return -66% · Per year -19% | 51.11 Total return -22% · Per year -5% | 94.95 Total return 45% · Per year 8% |
- Exit P/E± 14.16
- Net margin± 9.91
- Annual revenue growth± 8.95
- Annual dilution± 0.83
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 30 Jul 2026; since then the company filed 8-K (29 Oct 2026 · results), 10-Q (29 Oct 2026).
In brief
Builders FirstSource (BLDR) is the largest supplier of building materials to professional homebuilders in the US, combining prefabricated components with integrated installation services for new residential construction and remodeling. Its network of more than 565 locations 2 is now tested by lower construction volumes, and quarterly profitability contracted sharply 3.
SWOT
Strengths
- Broad national reach, with a dense network of locations across most major US metropolitan areas, giving a scale advantage that is hard to match 1.
- An integrated portfolio of manufactured products and installation services makes the company a preferred partner for large builders 1.
- Financial capacity supported by earlier cash generation, which funded share repurchases and acquisitions 13.
Weaknesses
- Margins contracted sharply in the latest quarter, and high fixed costs mean lower volumes quickly hit results 3.
- Leverage rose compared with the prior year, which reduces financial flexibility in weak periods 3.
- Dependence on new construction volumes and lumber prices makes revenue volatile from quarter to quarter 1.
Opportunities
- Growth in manufactured products and prefabricated components, with better margins, could offset lower volumes 1.
- Acquisitions of smaller firms in underserved regions could expand market share if prices remain reasonable 1.
- Digitalization through the Paradigm unit and planning tools could increase customer loyalty 1.
Risks
- Residential construction cyclehigh
Sales depend on new construction volumes, which are falling. If the decline continues, high fixed costs could weigh even more on results 13.
- Higher leveragehigh
The ratio of net debt to adjusted EBITDA has risen compared with last year. If results stay weak, flexibility for acquisitions and buybacks could shrink 3.
- Lumber price volatilitymedium
Lumber and panel products face large price swings that can quickly affect sales and margins, especially when prices fall sharply 1.
- Competitive pressuremedium
Dealers, home center chains and direct-selling manufacturers could win customers if the company does not keep its service and cost advantage 1.
- Execution of acquisitions and technology investmentslow
Integrating acquisitions and new systems such as ERP could bring unexpected costs or delays without the anticipated benefits 13.
Investment thesis
What would need to be true (bull case)
- If interest rates and housing affordability improve, construction volumes could recover and support earnings growth, using the company's scale 12.
- Growth in manufactured products, which carry better margins, could improve profitability even in a lower-volume environment 1.
- The company's cash flow could still fund buybacks and acquisitions if financing conditions remain favorable 3.
What would break the thesis
- If new construction keeps falling, margins could stay under pressure and leverage metrics could become harder to manage 23.
- If competitors or home center chains win large customers, the company's share could fall and pricing could be forced lower 1.
- If lumber prices drop sharply or tariffs rise, results could be hit again, without full pass-through of costs to customers 1.
What to watch
- Pace of cost reductions and full-year results versus the adjusted EBITDA guidanceQ3 2026
- Trend in net debt and the ratio to adjusted EBITDAQ3 2026
- US housing starts data and forecasts for 20272027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 30 Jul 2026; since then the company filed 8-K (29 Oct 2026 · results), 10-Q (29 Oct 2026).
The business
The company supplies materials for professional residential construction, covering both new builds and repair and remodeling, by manufacturing and installing structural elements. Manufactured products include trusses, wall panels and Ready-Frame packages, while the range also includes vinyl windows, doors, millwork and semi-custom modular homes 1. It operates in 43 states, with its location count falling from 585 at the end of 2025 to 565 by mid-2026 12.
The business model relies on integrated services: material procurement, planning, installation and turn-key construction, letting builders outsource entire stages. The Paradigm digital unit adds estimating, drafting and virtual design tools 1. This integration explains why large customers consolidate suppliers around the company 1.
The stated strategy emphasizes organic growth in higher-margin products such as trusses, wall panels and millwork, alongside acquisitions that totaled a combined purchase price of 1.1 billion USD in 2025 1. Besides acquisitions, the company has repurchased shares consistently, which has changed its capital structure 12.
Segments
Professional segment and manufactured products
The main segment serves single-family, multi-family and professional remodeling builders. Manufactured products such as factory-built trusses and wall panels are the higher-value category the company intends to expand 1.
Lumber and sheet goods
Lumber and sheet goods such as plywood and OSB are a significant part of sales and are highly sensitive to commodity prices. Their share of net sales shows how exposed the company is to price swings 1.
Windows, doors and millwork
This category includes vinyl windows made in Houston, pre-hung doors and Synboard PVC millwork. It earns better margins than pure distribution and is supported by the company's manufacturing capacity 1.
Market context
The US professional residential building materials market is highly fragmented, with large national dealers, specialty dealers, building supply chains and local truss makers. Demand depends on new construction and remodeling, both influenced by interest rates, confidence and housing affordability 1.
Forecasts for 2026 point to a slightly lower number of housing starts than in 2025, while professional remodeling could grow modestly. For now the focus remains on a downturn, and a recovery that depends on interest rates and affordability remains uncertain 12.
Trends
- Prefabricated componentstailwind
Builders increasingly use prefabricated components, which cut on-site labor and build time. This is a long-term trend that favors suppliers with manufacturing capacity, such as BLDR 1.
- Supplier consolidationtailwind
Large builders are reducing their supplier count and allocating a larger share of purchases to full-range providers, which could help integrated companies gain market share 1.
- Housing affordability and interest ratesheadwind
High interest rates and home costs reduced demand in 2026, and the drop in construction volumes has directly hit the company's sales and margins 23.
- Commodity prices and tariffsmixed
Lumber prices and import tariffs affect both sales and margins. Commodity deflation reduced quarterly sales, but a later recovery in prices could support results 13.
Competitive position
Competition comes from national dealers, home center chains expanding into professional sales, manufacturers selling directly to builders, and regional or local suppliers. The low barrier to entry means new competitors can emerge at any time 1.
The company's advantage lies in scale, manufacturing capacity and integrated services, which smaller suppliers find hard to match. The risk remains that smaller or digital players win customers on price or technology 1.
- Regional and local building material dealers
Regional and local suppliers that compete on price and service, without a comparable national footprint.
- Large home center chains
Retailers expanding their sales to professional builders and using e-commerce.
- Manufacturers selling directly
Building product manufacturers delivering straight to large builders, bypassing distributors.
- Regional truss and panel producers
Local fabricators competing on prefabricated components and fast delivery.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- Builders FirstSource Stock: Is BLDR Underperforming the Industrials Sector?Yahoo Finance — News · 17 Sept 2026 · EN
- Jim Cramer on Builders FirstSource (BLDR): “No, Thank You”Yahoo Finance — News · 12 Sept 2026 · EN
The latest news item in our archive is from 17 Sept 2026; the newest SEC filing is from 29 Oct 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Quarterly report29 Oct 2026
- Current report29 Oct 2026Results of operations · Financial statements and exhibits
- Current report (amendment)16 Oct 2026Departure or appointment of officers
- Current report07 Aug 2026Departure or appointment of officers
- Quarterly report30 Jul 2026
- Current report30 Jul 2026Results of operations · Financial statements and exhibits
- Current report05 Jun 2026Departure or appointment of officers
- Current report18 May 2026Departure or appointment of officers · Shareholder vote · Regulation FD disclosure · Financial statements and exhibits
- Quarterly report30 Apr 2026
- Current report30 Apr 2026Results of operations · Other events · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Builders FirstSource, Inc. · 17 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Builders FirstSource, Inc. · 30 Jul 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Builders FirstSource, Inc. · 30 Jul 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.