What is the market's earnings forecast for Builders Firstsource next quarter?

What guidance did Builders Firstsource's management provide for the next earnings period?

Did Builders Firstsource beat or miss consensus estimates last quarter?

What does Builders Firstsource do and what are its main business segments?

What is the revenue and EPS growth rate for Builders Firstsource year over year?

What factors drove the changes in Builders Firstsource's revenue and profit?

What is Builders Firstsource's latest dividend and current dividend yield?

What were the key takeaways from Builders Firstsource's earnings call?

- **Resilient Execution**: Maintained flat market share despite 12% single-family and 20% multifamily volume declines, driven by disciplined pricing and value-added solutions.
- **Strategic Growth**: $2M+ investments in capacity expansion and $11M Q3 productivity savings position for recovery. Acquired 3 companies in Q3 to fill key market gaps.
- **Digital Acceleration**: Digital tools processed $2.5B in orders YTD, with AI-driven quoting and SAP implementation to enhance efficiency. Install business grew 10% YoY.
- **2026 Outlook**: Scenario analysis shows 10.5-12.5% EBITDA margin in normalized starts environment, supported by digital and ERP investments.
- **Financial Discipline**: 8% free cash flow yield, 2.3x net debt/EBITDA, and $500M remaining on share buyback authorization.

**【CEO Summary Section】**
- **Market Resilience**: Despite a 12% decline in single-family starts and 20% drop in multifamily activity,Builders FirstSource maintained flat to slightly increased market share through disciplined pricing and value-added solutions.
- **Strategic Investments**: $2 million+ invested in 2025 to expand millwork and truss manufacturing capacity in 7 states, supporting long-term growth. Q3 productivity savings of $11 million from supply chain initiatives.
- **Digital Transformation**: Digital tools processed $2.5 billion in orders and $5 billion in quotes YTD, with AI-driven quoting and ERP implementation (SAP) underway to enhance operational efficiency.
- **M&A Activity**: Acquired St. George Truss Co., Builders Door & Trim, and Ryston Construction in Q3, closing a key Las Vegas door/millwork gap and adding $200+ million in annualized revenue.

**【CFO Financial Commentary】**
- **Q3 Financials**: Net sales $3.9B (-6.9% YoY), adjusted EBITDA $434M (-31% YoY), adjusted EPS $1.88 (-39% YoY). Free cash flow $465M, 12-month free cash flow yield 8%.
- **2025 Outlook**: Guided to $15.1-15.4B net sales, $1.625-1.675B adjusted EBITDA (10.6-11.1% margin). 2026 scenarios assume single-family starts flat to +5%, with EBITDA margin 10.5-12.5%.
- **Leverage Management**: Net debt/EBITDA 2.3x, fixed charge coverage 6x. $500M remaining on $1B share repurchase authorization.

**【Q&A Highlights】**
- **Market Share Stability**: Flat to slightly up Q3 despite 8% YoY single-family starts decline, driven by value-added solutions and digital tool adoption.
- **Multifamily Recovery**: 8-9% of sales, expected to remain muted in 2025 but green shoots in quoting activity suggest potential 2026 recovery.
- **Digital Tool Impact**: Install business (+10% YoY) and digital quoting tools driving incremental sales, with AI capabilities to accelerate in 2026.
- **2026 Scenario Analysis**: Normalized starts environment could yield 10.5-12.5% EBITDA margin, with key drivers including SAP implementation savings and digital tool efficiency gains.
- **Risk Management**: Maintained 92% on-time delivery rate through 16 facility consolidations YTD, preserving operational flexibility for recovery.


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