Builders FirstSource 2025 Q1 Earnings Net Income Declines 62.8%
Daily EarningsFriday, May 2, 2025 9:14 am ET
3min readBuilders (BLDR) reported its fiscal 2025 Q1 earnings on May 1st, 2025. The company's earnings per share (EPS) and net income fell significantly compared to the previous year. Despite the decline, Builders FirstSource's adjusted earnings per share exceeded market expectations, providing a measure of reassurance to investors. However, the company's full-year revenue guidance was in line with previous estimates, signaling cautious optimism in navigating the current market environment.
Revenue
Builders FirstSource's total revenue in the first quarter of 2025 decreased by 6.0% to $3.66 billion compared to the previous year. The decline was mainly due to lower core organic sales, one fewer selling day, and commodity deflation, partially offset by acquisition growth. In detail, revenue from manufactured products amounted to $846.29 million, while the windows, doors, and millwork segment generated $922.78 million. Specialty building products and services contributed $914.04 million, and lumber and lumber sheet goods brought in $974.38 million, reflecting the challenges faced in the broader market environment.
Earnings/Net Income
Builders FirstSource's earnings per share (EPS) declined by 59.9% to $0.85 in Q1 2025, down from $2.12 in Q1 2024. The company's net income also fell to $96.30 million, a decrease of 62.8% from the previous year's $258.78 million. This significant decline in EPS and net income underscores the challenges the company faced during the quarter.
Price Action
The stock price of dropped 3.55% during the latest trading day, 7.43% over the most recent full trading week, and has tumbled 10.41% month-to-date.
Post-Earnings Price Action Review
Following the earnings report, Builders FirstSource's stock price experienced mixed reactions over different time frames. Although the report did not explicitly detail the impact of revenue and net income on the stock price, generally, higher revenue and positive net income figures can enhance investor sentiment. The backtest data revealed that the stock's price showed a maximum return of 11.14% over a 30-day period post-earnings release, indicating that EPS figures significantly influence the stock price. Positive EPS surprises can boost investor confidence, leading to potential gains in the short to medium term. While the backtest did not provide a comprehensive analysis of revenue and net income impacts, it suggested that exceeding earnings expectations could drive the stock price higher, enhancing investor confidence.
CEO Commentary
Peter Jackson, President and CEO, expressed pride in the company's resilient Q1 results, emphasizing the strength of their product portfolio and operational focus. Despite unsettled macro and industry dynamics, Jackson remains confident in navigating challenges, focusing on organic growth, operational excellence, and disciplined capital allocation. The company aims to outperform as the market recovers, enhancing its value proposition through investments in value-added products, digital tools, and install services.
Guidance
Builders FirstSource anticipates full-year 2025 net sales between $16.05 billion and $17.05 billion, with adjusted EBITDA ranging from $1.7 billion to $2.1 billion. The adjusted EBITDA margin is projected to be between 10.6% and 12.3%. The company expects free cash flow of $800 million to $1.2 billion. For Q2, Builders FirstSource forecasts net sales between $4.1 billion and $4.4 billion, with adjusted EBITDA projected between $475 million and $525 million.
Additional News
In recent developments, Builders FirstSource announced that Dave Rush would retire as CEO effective November 6, 2024. As part of a planned succession, the board named Peter Jackson as the new CEO. Additionally, the company expanded its share repurchase program, authorizing the buyback of up to $500 million of its outstanding shares, including the remaining $100 million under its prior authorization. Since initiating its buyback program in August 2021, Builders FirstSource has repurchased 99.3 million shares, accounting for 48.1% of its total shares outstanding, at an average price of $80.90 per share, totaling $8.0 billion.
Revenue
Builders FirstSource's total revenue in the first quarter of 2025 decreased by 6.0% to $3.66 billion compared to the previous year. The decline was mainly due to lower core organic sales, one fewer selling day, and commodity deflation, partially offset by acquisition growth. In detail, revenue from manufactured products amounted to $846.29 million, while the windows, doors, and millwork segment generated $922.78 million. Specialty building products and services contributed $914.04 million, and lumber and lumber sheet goods brought in $974.38 million, reflecting the challenges faced in the broader market environment.
Earnings/Net Income
Builders FirstSource's earnings per share (EPS) declined by 59.9% to $0.85 in Q1 2025, down from $2.12 in Q1 2024. The company's net income also fell to $96.30 million, a decrease of 62.8% from the previous year's $258.78 million. This significant decline in EPS and net income underscores the challenges the company faced during the quarter.
Price Action
The stock price of dropped 3.55% during the latest trading day, 7.43% over the most recent full trading week, and has tumbled 10.41% month-to-date.
Post-Earnings Price Action Review
Following the earnings report, Builders FirstSource's stock price experienced mixed reactions over different time frames. Although the report did not explicitly detail the impact of revenue and net income on the stock price, generally, higher revenue and positive net income figures can enhance investor sentiment. The backtest data revealed that the stock's price showed a maximum return of 11.14% over a 30-day period post-earnings release, indicating that EPS figures significantly influence the stock price. Positive EPS surprises can boost investor confidence, leading to potential gains in the short to medium term. While the backtest did not provide a comprehensive analysis of revenue and net income impacts, it suggested that exceeding earnings expectations could drive the stock price higher, enhancing investor confidence.
CEO Commentary
Peter Jackson, President and CEO, expressed pride in the company's resilient Q1 results, emphasizing the strength of their product portfolio and operational focus. Despite unsettled macro and industry dynamics, Jackson remains confident in navigating challenges, focusing on organic growth, operational excellence, and disciplined capital allocation. The company aims to outperform as the market recovers, enhancing its value proposition through investments in value-added products, digital tools, and install services.
Guidance
Builders FirstSource anticipates full-year 2025 net sales between $16.05 billion and $17.05 billion, with adjusted EBITDA ranging from $1.7 billion to $2.1 billion. The adjusted EBITDA margin is projected to be between 10.6% and 12.3%. The company expects free cash flow of $800 million to $1.2 billion. For Q2, Builders FirstSource forecasts net sales between $4.1 billion and $4.4 billion, with adjusted EBITDA projected between $475 million and $525 million.
Additional News
In recent developments, Builders FirstSource announced that Dave Rush would retire as CEO effective November 6, 2024. As part of a planned succession, the board named Peter Jackson as the new CEO. Additionally, the company expanded its share repurchase program, authorizing the buyback of up to $500 million of its outstanding shares, including the remaining $100 million under its prior authorization. Since initiating its buyback program in August 2021, Builders FirstSource has repurchased 99.3 million shares, accounting for 48.1% of its total shares outstanding, at an average price of $80.90 per share, totaling $8.0 billion.
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