Q1 sales fall 10% as Builders FirstSource (NYSE: BLDR) okays $500M buybacks
Rhea-AI Filing Summary
Builders FirstSource reported a weak first quarter of 2026 and unveiled a new share repurchase authorization. Net sales were $3.29 billion, down 10.1%, as lower housing starts and commodity deflation outweighed acquisition-driven growth. Gross profit fell 16.7% to $929 million, and gross margin compressed 220 basis points to 28.3%.
The company posted a net loss of $47.4 million, or $(0.43) per diluted share, versus prior-year net income of $96.3 million. Adjusted EBITDA declined 42.1% to $213.8 million, with margin down to 6.5%. Cash from operations was $87.5 million and free cash flow $42.7 million.
Leverage increased, with net debt of $4.6 billion and LTM Adjusted EBITDA of $1.4 billion, a 3.2x ratio. Management still targets 2026 net sales of $14.6–$15.6 billion and Adjusted EBITDA of $1.1–$1.5 billion. The board authorized repurchases of up to $500 million, including about $200 million remaining under the prior program, after buying back 3.3 million shares in the quarter for $302.9 million.
Positive
- $500 million share repurchase authorization, including about $200 million remaining from the prior program, signals ongoing capital return following Q1 buybacks of 3.3 million shares for $302.9 million.
- Management reaffirmed a sizable 2026 outlook, targeting net sales of $14.6–$15.6 billion, Adjusted EBITDA of $1.1–$1.5 billion, and free cash flow of roughly $0.4–$0.5 billion.
- Liquidity remained solid at approximately $1.5 billion as of March 31, 2026, including $1.4 billion of revolver availability and $0.1 billion of cash on hand.
Negative
- Q1 2026 net sales declined 10.1% to $3.29 billion, with gross profit down 16.7% and gross margin compressing 220 basis points to 28.3% amid a weaker housing starts environment.
- Results swung to a $47.4 million net loss, or $(0.43) per diluted share, from $96.3 million in net income and $0.84 diluted EPS in the prior-year quarter.
- Adjusted EBITDA fell 42.1% to $213.8 million, with margin down 360 basis points to 6.5%, reflecting lower gross margins and reduced operating leverage.
- Net debt rose to $4.6 billion with LTM Adjusted EBITDA of $1.4 billion, increasing net leverage to 3.2x versus 2.0x a year earlier while the company continued substantial share repurchases.
Insights
Quarter shows sharp earnings pressure and higher leverage, partly offset by aggressive buybacks and maintained 2026 outlook.
Builders FirstSource saw Q1 2026 net sales fall 10.1% to $3.29 billion, with core organic sales down and commodity deflation weighing on results. Gross margin slipped to 28.3%, and $47.4 million in net loss contrasts with prior-year profit, highlighting cyclical housing and rate pressures.
Profitability deterioration is clear: $213.8 million Adjusted EBITDA is down 42.1%, margin to 6.5%. Net debt of $4.6 billion against $1.4 billion LTM Adjusted EBITDA lifts leverage to 3.2x, up from 2.0x. This reduces balance sheet flexibility compared with last year, even as cash generation remains positive.
Despite the weaker quarter, management guides 2026 net sales of $14.6–$15.6 billion and Adjusted EBITDA of $1.1–$1.5 billion, plus $0.4–$0.5 billion free cash flow, indicating confidence in a gradual normalization. The new $500 million repurchase authorization, following $302.9 million Q1 buybacks, underscores a continued focus on returning capital while betting on long-term demand recovery.
8-K Event Classification
Key Figures
Key Terms
Adjusted EBITDA financial
free cash flow financial
net debt to LTM Adjusted EBITDA ratio financial
value-added products financial
technology implementation expense financial
Earnings Snapshot
For 2026, Builders FirstSource expects net sales of $14.6–$15.6 billion, gross margin of 27.5–29%, Adjusted EBITDA of $1.1–$1.5 billion, Adjusted EBITDA margin of 7.5–9.6%, and free cash flow of approximately $0.4–$0.5 billion.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On April 30, 2026, Builders FirstSource, Inc. issued the news release attached hereto as Exhibit 99.1 reporting its financial results for the three months ended March 31, 2026.
Item 8.01 Other Events.
On April 30, 2026, the Company issued the news release attached hereto as Exhibit 99.2 announcing that the Company’s board of directors authorized the repurchase of up to $500 million of the Company’s outstanding shares of common stock.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. |
Description |
99.1 |
News release reporting financial results for the three months ended March 31, 2026, issued by Builders FirstSource, Inc. on April 30, 2026. |
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99.2 |
News release announcing $500 million share repurchase plan issued by Builders FirstSource, Inc. on April 30, 2026. |
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104 |
Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document |
All of the information included in Items 2.02 and 9.01 of this report and Exhibit 99.1 hereto is being furnished and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and shall not be incorporated by reference in any filing under the Securities Act of 1933, as amended.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
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BUILDERS FIRSTSOURCE, INC. |
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Date: |
April 30, 2026 |
By: |
/s/ Pete R. Beckmann |
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Pete R. Beckmann, Executive Vice President and Chief Financial Officer |
For Immediate Release
Builders FirstSource Reports First Quarter 2026 Results
April 30, 2026 (Irving, TX) – Builders FirstSource, Inc. (NYSE: BLDR) today reported its results for the first quarter ended March 31, 2026.
First Quarter 2026 Highlights
All Year-Over-Year Comparisons Unless Otherwise Noted:
“Our first quarter results reflect the adaptability of our operating model as we delivered strong strategic share growth in a weak housing market. Across the organization, we remain focused on the factors within our control, including serving our customers, expanding our differentiated portfolio of value-added solutions, and leveraging technology to accelerate growth and drive operational excellence. This disciplined approach continues to strengthen our leading position as a trusted, full-service partner to homebuilders,” commented Peter Jackson, CEO of Builders FirstSource.
Mr. Jackson continued, “By continuing to invest in innovation and the capabilities that matter most to our customers, we are reinforcing our role as a preferred provider and extending our competitive advantages. Our strategy enables us to outperform as the market normalizes and to deliver sustainable, long-term value for our shareholders.”
Pete Beckmann, CFO of Builders FirstSource, added, “Our first quarter performance demonstrates our disciplined execution and focus on cost and working capital management. We are generating strong cash flow through the cycle, investing selectively in high-return opportunities, and maintaining a strong
1
balance sheet. This balanced approach enables us to navigate the current environment while compounding shareholder value over time.”
First Quarter 2026 Financial Performance Highlights
All Year-Over-Year Comparisons Unless Otherwise Noted:
Net Sales
Gross Profit
Selling, General and Administrative Expenses
Net Interest Expense
Income Tax Expense (Benefit)
Net Income (Loss)
2
Adjusted Net Income
Adjusted Earnings Per Diluted Share
Adjusted EBITDA
Capital Structure, Leverage, and Liquidity Information
Productivity Savings From Operational Excellence
2026 Full Year Total Company Outlook
For 2026, the Company expects to achieve the financial performance highlighted below. Projected Net Sales and Adjusted EBITDA include the expected impact of price, commodities, and margins. We are not providing a quantitative reconciliation of our forward-looking guidance of adjusted EBITDA, adjusted
3
EBITDA margin, or free cash flow because we are unable to predict with reasonable certainty all the components required to provide such reconciliation without unreasonable efforts, which are uncertain and could have a material impact on GAAP reported results for the guidance period. See “Non-GAAP Financial Measures” for additional information.
2026 Full Year Assumptions
The Company’s anticipated 2026 performance is based on several assumptions for the full year, including the following:
Conference Call
Builders FirstSource will host a conference call and webcast on Thursday, April 30, 2026, to discuss the Company’s financial results and other business matters. The teleconference will begin at 8:00 a.m. Central Time and will be hosted by Peter Jackson, Chief Executive Officer, and Pete Beckmann, Chief Financial Officer.
The live webcast, archived replay, and the accompanying presentation can be accessed on the Company's investor relations website at investors.bldr.com under the Events and Presentations section. The online archive of the webcast will be available for approximately 90 days.
To participate in the teleconference, please dial into the call a few minutes before the start time at 833-316-2483 (U.S. and Canada) or 785-838-9284 (international), Conference ID: BLDRQ126.
Upcoming Events
Management will participate in investor meetings at the Oppenheimer Industrial Growth Conference (virtually) on May 4, 2026, the KeyBanc Industrials and Basic Materials Conference in Boston on May 28, and the Wells Fargo Industrials and Materials Conference in Chicago on June 9.
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About Builders FirstSource
Builders FirstSource (NYSE: BLDR), headquartered in Irving, Texas, is the nation's leading provider of building materials for professional builders in new residential construction and repair and remodeling. We deliver integrated homebuilding solutions by manufacturing, supplying, and installing a full range of structural and related building products. With approximately 570 locations across 43 states, we serve 48 of the top 50 and 94 of the top 100 Core Based Statistical Areas (CBSAs), ensuring broad geographic coverage and enhancing our ability to partner with our customers. Our leading network of strategically located manufacturing facilities produces factory-built roof and floor trusses, wall panels, vinyl windows, custom millwork and trim, manufactured and semi-custom modular homes, as well as engineered wood that we design and cut specifically for each home. We also assemble interior and exterior doors into pre-hung units for easy installation. Additionally, we distribute a wide range of building products, including lumber, sheet goods, windows, doors, millwork, and specialty items. Our services, which vary by market, include professional installation, turnkey framing, and shell construction. Supported by the latest construction innovations and digital solutions, we help drive greater efficiency across homebuilding. Learn more at www.bldr.com
Forward-Looking Statements
Statements in this news release and the schedules hereto that are not purely historical facts or that necessarily depend upon future events, including statements about expected market share gains, forecasted financial performance, industry and business outlook or other statements about anticipations, beliefs, expectations, hopes, synergies, intentions or strategies for the future, may be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Readers are cautioned not to place undue reliance on forward-looking statements. In addition, oral statements made by the Company’s directors, officers and employees to the investor and analyst communities, media representatives and others, depending upon their nature, may also constitute forward-looking statements. As with the forward-looking statements included in this release, these forward-looking statements are by nature inherently uncertain, and actual results or events may differ materially as a result of many factors. All forward-looking statements are based upon information available to Builders FirstSource on the date this release was submitted. Builders FirstSource undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements involve risks and uncertainties, many of which are beyond the Company’s control or may be currently unknown to the Company, that could cause actual events or results to differ materially from the events or results described in the forward-looking statements; such risks or uncertainties include those related to the Company’s growth strategies, including acquisitions, organic growth and digital and technology strategies, including the Company’s ability to drive growth by incorporating artificial intelligence and machine learning solutions into its platform, or the dependence of the Company’s revenues and operating results on, among other things, the homebuilding industry and, to a lesser extent, repair and remodel activity, which in each case is dependent on economic conditions, including inflation, interest rates, home size and affordability, consumer confidence, labor and supply shortages, tariffs and duties, and also lumber and other commodity prices. The Company may not succeed in addressing these and other risks. Further information regarding factors that could affect our financial and other results can be found in the risk factors section of Builders FirstSource’s most recent annual report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) and may also be described from time to time in the other reports Builders FirstSource files with the SEC. Consequently, all forward-looking statements in this release are qualified by the factors, risks and uncertainties contained therein.
Non-GAAP Financial Measures
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The financial measures entitled Adjusted EBITDA, LTM Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income, Adjusted net income as a percent of net sales, basic Adjusted net income per share, diluted Adjusted net income per share, Adjusted SG&A, Adjusted SG&A as a percent of net sales, and Free cash flow are not financial measures recognized under GAAP and are therefore non-GAAP financial measures. The Company believes that these non-GAAP financial measures provide useful information to management and investors regarding certain financial and business trends relating to the Company’s financial condition and operating results.
Adjusted EBITDA is defined as GAAP net income before depreciation and amortization expense, net interest expense, income tax expense and other non-cash or special items including stock compensation expense, acquisition and related expense, technology implementation expense, debt issuance and refinancing costs, severance and gain on sale of assets and other one-time costs partially offset by the tax effect of those adjustments to net income. LTM Adjusted EBITDA is defined as Adjusted EBITDA for the last twelve consecutive months. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by net sales. Adjusted net income is defined as GAAP net income before non-cash or special items including acquisition and related expense, technology implementation expense, debt issuance and refinancing cost and amortization expense partially offset by the tax effect of those adjustments to net income. Adjusted net income as a percent of net sales is defined as Adjusted net income divided by net sales. Basic Adjusted net income per share is defined as Adjusted net income divided by weighted average basic common shares outstanding while diluted Adjusted net income per share is defined as Adjusted net income divided by weighted average diluted common shares outstanding. Adjusted SG&A is defined as GAAP SG&A expense before non-cash or special items including depreciation expense, amortization expense, stock compensation expense, acquisition and related expense, and technology implementation expense. Adjusted SG&A as a percent of sales is defined as Adjusted SG&A divided by net sales. Free cash flow is defined as GAAP net cash from operating activities less capital expenditures, net of proceeds from the sale of property, plant and equipment.
Company management uses Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income, Adjusted net income as a percent of net sales, basic Adjusted net income per share and diluted Adjusted net income per share as supplemental measures in its evaluation of the Company’s business, including for trend analysis, purposes of determining management incentive compensation and budgeting and planning purposes. Company management believes that these measures provide a meaningful measure of the Company’s performance and a better baseline for comparing financial performance across periods because these measures eliminate the effects of period to period changes, in the case of Adjusted EBITDA and Adjusted EBITDA margin, in taxes, costs associated with capital investments, net interest expense, stock compensation expense, and other non-cash and non-recurring items and, in the case of Adjusted net income, Adjusted net income as a percent of sales, and Adjusted net income per diluted share, in certain non-recurring items. Company management also uses free cash flow as a supplemental measure in its evaluation of the Company’s business, including for purposes of its internal liquidity assessments. Company management believes that free cash flow provides a meaningful evaluation of the Company’s liquidity.
The Company believes that these non-GAAP financial measures provide additional tools for investors to use in evaluating ongoing operating results, cash flows and trends and in comparing the Company’s financial measures with other companies in the Company’s industry, which may present similar non-GAAP financial measures to investors. However, the Company’s calculations of these financial measures are not necessarily comparable to similarly titled measures reported by other companies. Company management does not consider these financial measures in isolation or as alternatives to financial measures determined in accordance with GAAP. Furthermore, items that are excluded and other adjustments and assumptions that are made in calculating these non-GAAP financial measures are significant components in understanding and assessing the Company’s financial performance. These non-GAAP financial measures should be evaluated in conjunction with, and are not a substitute for, the
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Company’s GAAP financial measures. Further, because these non-GAAP financial measures are not determined in accordance with GAAP and are thus susceptible to varying calculations, the non-GAAP financial measures, as presented, may not be comparable to other similarly titled measures of other companies. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables below.
The Company’s Adjusted EBITDA outlook, free cash flow and full-year forecast for its effective tax rate on operations exclude the impact of certain income and expense items that management believes are not part of underlying operations. These items may include, but are not limited to, loss on early extinguishment of debt, restructuring charges, certain tax items, and charges associated with non-recurring costs such as professional and legal fees associated with our acquisitions and enterprise resource planning (ERP) program. The Company’s management cannot estimate on a forward-looking basis without unreasonable effort the impact these income and expense items will have on its reported net income, operating cash flow and its reported effective tax rate because these items, which could be significant, are difficult to predict and may be highly variable. As a result, the Company does not provide a reconciliation to the most comparable GAAP financial measure for its Adjusted EBITDA or free cash flow outlook or its effective tax rate on operations forecast. Please see the Forward-Looking Statements section of this release for a discussion of certain risks relevant to the Company’s outlook.
# # #
Contact:
Heather Kos
SVP, Investor Relations
Builders FirstSource, Inc.
investorrelations@bldr.com
7
BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(unaudited)
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Three Months Ended |
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(in thousands, except per share amounts) |
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2026 |
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2025 |
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Net sales |
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$ |
3,287,077 |
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$ |
3,657,496 |
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Cost of sales |
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2,358,111 |
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2,542,255 |
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Gross margin |
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928,966 |
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1,115,241 |
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Selling, general and administrative expenses |
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912,450 |
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930,800 |
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Income from operations |
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16,516 |
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184,441 |
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Interest expense, net |
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74,392 |
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64,892 |
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Income (loss) before income taxes |
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(57,876 |
) |
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119,549 |
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Income tax expense (benefit) |
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(10,462 |
) |
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23,245 |
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Net income (loss) |
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$ |
(47,414 |
) |
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$ |
96,304 |
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Net income (loss) per share: |
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Basic |
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$ |
(0.43 |
) |
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$ |
0.85 |
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Diluted |
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$ |
(0.43 |
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$ |
0.84 |
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Weighted average common shares: |
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Basic |
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109,870 |
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113,675 |
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Diluted |
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109,870 |
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114,339 |
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BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited)
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Three Months Ended |
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(in thousands) |
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2026 |
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2025 |
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Cash flows from operating activities: |
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Net income (loss) |
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$ |
(47,414 |
) |
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$ |
96,304 |
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Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
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Depreciation and amortization |
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148,360 |
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145,031 |
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Deferred income taxes |
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51,054 |
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(10,638 |
) |
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Stock-based compensation expense |
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13,628 |
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14,238 |
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Other non-cash adjustments |
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1,919 |
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(6,774 |
) |
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Changes in assets and liabilities, net of assets acquired and liabilities assumed: |
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Receivables |
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(157,768 |
) |
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30,599 |
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Inventories, net |
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(88,382 |
) |
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(82,503 |
) |
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Contract assets |
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(17,600 |
) |
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(10,851 |
) |
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Other current assets |
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(2,141 |
) |
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(15,013 |
) |
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Other assets and liabilities |
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550 |
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(16,213 |
) |
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Accounts payable |
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211,270 |
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142,891 |
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Accrued liabilities |
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(37,744 |
) |
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(166,294 |
) |
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Contract liabilities |
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11,722 |
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11,551 |
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Net cash provided by operating activities |
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87,454 |
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132,328 |
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Cash flows from investing activities: |
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Cash used for acquisitions, net of cash acquired |
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(12,407 |
) |
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(824,795 |
) |
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Purchases of property, plant and equipment |
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(46,745 |
) |
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(99,974 |
) |
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Proceeds from sale of property, plant and equipment |
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1,969 |
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12,713 |
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Cash used for equity investments |
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(664 |
) |
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— |
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Net cash used in investing activities |
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(57,847 |
) |
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(912,056 |
) |
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Cash flows from financing activities: |
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Borrowings under revolving credit facility |
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240,000 |
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1,142,000 |
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Repayments under revolving credit facility |
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(40,000 |
) |
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(367,000 |
) |
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Repayments of long-term debt and other loans |
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(679 |
) |
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(754 |
) |
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Payments of acquisition-related deferred and contingent consideration |
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(900 |
) |
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(322 |
) |
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Tax withholdings on and exercises of equity awards |
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(11,372 |
) |
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(20,102 |
) |
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Repurchase of common stock |
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(300,067 |
) |
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(12,347 |
) |
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Net cash provided by (used in) financing activities |
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(113,018 |
) |
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741,475 |
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Net change in cash and cash equivalents |
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(83,411 |
) |
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(38,253 |
) |
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Cash and cash equivalents at beginning of period |
|
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181,753 |
|
|
|
153,624 |
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Cash and cash equivalents at end of period |
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$ |
98,342 |
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$ |
115,371 |
|
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9
BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(unaudited)
(in thousands, except par value amounts) |
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March 31, |
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December 31, |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
98,342 |
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$ |
181,753 |
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Accounts receivable, less allowances of $43,461 and $42,511, respectively |
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1,163,011 |
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1,061,011 |
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Other receivables |
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385,779 |
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330,013 |
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Inventories, net |
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1,189,402 |
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1,094,684 |
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Contract assets |
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150,611 |
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|
133,011 |
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Other current assets |
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|
128,958 |
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|
|
126,811 |
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Total current assets |
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3,116,103 |
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2,927,283 |
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Property, plant and equipment, net |
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2,155,071 |
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2,204,184 |
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Operating lease right-of-use assets, net |
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616,612 |
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|
622,188 |
|
Goodwill |
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4,139,898 |
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|
|
4,137,377 |
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Intangible assets, net |
|
|
1,112,852 |
|
|
|
1,183,793 |
|
Deferred income taxes |
|
|
23,662 |
|
|
|
23,000 |
|
Other assets, net |
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|
138,896 |
|
|
|
139,705 |
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Total assets |
|
$ |
11,303,094 |
|
|
$ |
11,237,530 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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|
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|
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Accounts payable |
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$ |
924,611 |
|
|
$ |
714,710 |
|
Accrued liabilities |
|
|
531,002 |
|
|
|
566,325 |
|
Contract liabilities |
|
|
180,543 |
|
|
|
168,440 |
|
Current portion of operating lease liabilities |
|
|
111,423 |
|
|
|
111,132 |
|
Current maturities of long-term debt |
|
|
24,285 |
|
|
|
14,334 |
|
Total current liabilities |
|
|
1,771,864 |
|
|
|
1,574,941 |
|
Noncurrent portion of operating lease liabilities |
|
|
542,933 |
|
|
|
547,772 |
|
Long-term debt, net of current maturities, discounts and issuance costs |
|
|
4,613,278 |
|
|
|
4,427,033 |
|
Deferred income taxes |
|
|
229,691 |
|
|
|
177,975 |
|
Other long-term liabilities |
|
|
141,108 |
|
|
|
157,558 |
|
Total liabilities |
|
|
7,298,874 |
|
|
|
6,885,279 |
|
Commitments and contingencies (Note 11) |
|
|
|
|
|
|
||
Stockholders’ equity: |
|
|
|
|
|
|
||
Preferred stock, $0.01 par value, 10,000 shares authorized; zero shares issued and outstanding |
|
|
— |
|
|
|
— |
|
Common stock, $0.01 par value, 300,000 shares authorized; 107,518 and 110,585 shares issued and outstanding, respectively |
|
|
1,075 |
|
|
|
1,106 |
|
Additional paid-in capital |
|
|
4,003,145 |
|
|
|
4,197,279 |
|
Retained earnings |
|
|
— |
|
|
|
153,866 |
|
Total stockholders’ equity |
|
|
4,004,220 |
|
|
|
4,352,251 |
|
Total liabilities and stockholders’ equity |
|
$ |
11,303,094 |
|
|
$ |
11,237,530 |
|
10
BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES
Reconciliation of GAAP Net Income to Adjusted Net Income
(unaudited)
|
Three Months Ended |
|
|
Twelve Months Ended |
|
||||||
|
March 31, |
|
|
March 31, |
|
||||||
(in millions, except per share amounts) |
2026 |
|
|
2025 |
|
|
2026 |
|
|||
Reconciliation to Adjusted Net Income: |
|
|
|
|
|
|
|
|
|||
GAAP net income (loss) |
$ |
(47.4 |
) |
|
$ |
96.3 |
|
|
$ |
291.5 |
|
Acquisition and related expense |
|
1.4 |
|
|
|
3.4 |
|
|
|
5.4 |
|
Technology implementation expense |
|
27.5 |
|
|
|
24.1 |
|
|
|
139.1 |
|
Debt issuance and refinancing cost |
|
— |
|
|
|
— |
|
|
|
0.2 |
|
Amortization expense |
|
72.9 |
|
|
|
73.3 |
|
|
|
296.8 |
|
Tax-effect of adjustments to net income (loss) |
|
(24.4 |
) |
|
|
(24.2 |
) |
|
|
(106.0 |
) |
Adjusted net income |
$ |
30.0 |
|
|
$ |
172.9 |
|
|
$ |
627.0 |
|
Adjusted net income as a % of sales |
|
0.9 |
% |
|
|
4.7 |
% |
|
|
4.2 |
% |
|
|
|
|
|
|
|
|
|
|||
GAAP common shares outstanding |
|
109.9 |
|
|
|
113.7 |
|
|
|
|
|
GAAP diluted common shares outstanding |
|
109.9 |
|
|
|
114.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Basic adjusted net income per share: |
$ |
0.27 |
|
|
$ |
1.52 |
|
|
|
|
|
Diluted adjusted net income per share: |
$ |
0.27 |
|
|
$ |
1.51 |
|
|
|
|
|
BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES
Reconciliation of GAAP Net Income to Adjusted EBITDA
(unaudited)
|
Three Months Ended |
|
|
Twelve Months Ended |
|
||||||
|
March 31, |
|
|
March 31, |
|
||||||
(in millions) |
2026 |
|
|
2025 |
|
|
2026 |
|
|||
Reconciliation to Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|||
GAAP net income (loss) |
$ |
(47.4 |
) |
|
$ |
96.3 |
|
|
$ |
291.5 |
|
Interest expense, net |
|
74.4 |
|
|
|
64.9 |
|
|
|
283.3 |
|
Income tax expense |
|
13.9 |
|
|
|
47.4 |
|
|
|
149.3 |
|
Depreciation expense |
|
75.5 |
|
|
|
71.7 |
|
|
|
298.0 |
|
Amortization expense |
|
72.9 |
|
|
|
73.3 |
|
|
|
296.8 |
|
Stock compensation expense |
|
13.6 |
|
|
|
14.2 |
|
|
|
52.9 |
|
Acquisition and related expense |
|
1.4 |
|
|
|
3.4 |
|
|
|
5.4 |
|
Technology implementation expense |
|
27.5 |
|
|
|
24.1 |
|
|
|
139.1 |
|
Debt issuance and refinancing cost |
|
— |
|
|
|
— |
|
|
|
0.2 |
|
Tax-effect of adjustments to net income (loss) |
|
(24.4 |
) |
|
|
(24.2 |
) |
|
|
(106.0 |
) |
Other management-identified adjustments (1) |
|
6.4 |
|
|
|
(1.9 |
) |
|
|
17.9 |
|
Adjusted EBITDA |
$ |
213.8 |
|
|
$ |
369.2 |
|
|
$ |
1,428.4 |
|
Adjusted EBITDA margin |
|
6.5 |
% |
|
|
10.1 |
% |
|
|
9.6 |
% |
|
|
|
|
|
|
|
|
|
|||
(1) Primarily relates to severance, net gain/loss on sale of assets, and other one-time costs. |
|
|
|||||||||
11
BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES
Reconciliation of GAAP Selling, General & Administrative Expenses to Adjusted Selling, General & Administrative Expenses
(unaudited)
|
Three Months Ended |
|
|||||
|
March 31, |
|
|||||
(in millions) |
2026 |
|
|
2025 |
|
||
Reconciliation to Adjusted SG&A Expense: |
|
|
|
|
|
||
GAAP SG&A expense |
$ |
912.5 |
|
|
$ |
930.8 |
|
Depreciation expense |
|
(53.7 |
) |
|
|
(49.4 |
) |
Amortization expense |
|
(70.2 |
) |
|
|
(70.6 |
) |
Stock compensation expense |
|
(13.6 |
) |
|
|
(14.2 |
) |
Acquisition and related expense |
|
(1.4 |
) |
|
|
(3.4 |
) |
Technology implementation expense |
|
(27.5 |
) |
|
|
(24.1 |
) |
Other management-identified adjustments (1) |
|
(6.4 |
) |
|
|
1.9 |
|
Adjusted SG&A expense |
$ |
739.7 |
|
|
$ |
771.0 |
|
|
|
|
|
|
|
||
GAAP SG&A expense as a % of sales |
|
27.8 |
% |
|
|
25.4 |
% |
Adjusted SG&A expense as a % of sales |
|
22.5 |
% |
|
|
21.1 |
% |
|
|
|
|
|
|
||
(1) Primarily relates to severance, net gain/loss on sale of assets, and other one-time costs. |
|
||||||
BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES
Interest Reconciliation
(unaudited)
|
Three Months Ended |
|
|||||
|
March 31, 2026 |
|
|||||
(in millions) |
Interest |
|
|
Net Debt Outstanding |
|
||
Revolving credit facility @ 4.70% weighted average interest rate |
$ |
1.8 |
|
|
$ |
200.0 |
|
2032 Unsecured notes @ 4.25% |
|
13.8 |
|
|
|
1,300.0 |
|
2034 Unsecured notes @ 6.375% |
|
15.9 |
|
|
|
1,000.0 |
|
2035 Unsecured notes @ 6.75% |
|
12.7 |
|
|
|
750.0 |
|
2032 Unsecured notes @ 6.375% |
|
11.2 |
|
|
|
700.0 |
|
2030 Unsecured notes @ 5.00% |
|
6.9 |
|
|
|
550.0 |
|
Amortization of debt issuance costs, discount and premium |
|
2.0 |
|
|
|
— |
|
Finance leases and other finance obligations |
|
10.7 |
|
|
|
179.9 |
|
Cash |
|
— |
|
|
|
(98.3 |
) |
Total (1) |
$ |
75.0 |
|
|
$ |
4,581.6 |
|
|
|
|
|
|
|
||
(1) Total interest expense does not include interest income of approximately $0.6 million received during the three month period. |
|
||||||
BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES
Free Cash Flow
(unaudited)
|
Three Months Ended |
|
|
(in millions) |
March 31, 2026 |
|
|
Free Cash Flow |
|
|
|
Operating activities |
$ |
87.5 |
|
Less: Capital expenditures, net of proceeds |
|
(44.8 |
) |
Free cash flow |
$ |
42.7 |
|
12
BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES
Sales by Product Category
(unaudited)
|
Three Months Ended March 31, |
|
|||||||||||||||||
|
2026 |
|
|
2025 |
|
|
|
|
|||||||||||
(in millions) |
Net Sales |
|
|
% of |
|
|
Net Sales |
|
|
% of |
|
|
% Change |
|
|||||
Manufactured products |
$ |
734.5 |
|
|
|
22.3 |
% |
|
$ |
850.8 |
|
|
|
23.3 |
% |
|
|
(13.7 |
)% |
Windows, doors & millwork |
|
853.8 |
|
|
|
26.0 |
% |
|
|
934.4 |
|
|
|
25.5 |
% |
|
|
(8.6 |
)% |
Value-added products |
|
1,588.3 |
|
|
|
48.3 |
% |
|
|
1,785.2 |
|
|
|
48.8 |
% |
|
|
(11.0 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Specialty building products & services |
|
853.4 |
|
|
|
26.0 |
% |
|
|
903.8 |
|
|
|
24.7 |
% |
|
|
(5.6 |
)% |
Lumber & lumber sheet goods |
|
845.4 |
|
|
|
25.7 |
% |
|
|
968.5 |
|
|
|
26.5 |
% |
|
|
(12.7 |
)% |
Total net sales |
$ |
3,287.1 |
|
|
|
100.0 |
% |
|
$ |
3,657.5 |
|
|
|
100.0 |
% |
|
|
(10.1 |
)% |
13
For Immediate Release
Builders FirstSource Announces $500 Million Share Repurchase Authorization
April 30, 2026 (Irving, TX) – Builders FirstSource, Inc. (NYSE: BLDR) announced its Board of Directors has authorized the repurchase of up to $500 million of the Company’s outstanding shares of common stock, which includes the approximately $200 million remaining under its prior April 2025 authorization.
Since the inception of its buyback program in August 2021, the Company has repurchased 102.6 million shares of its common stock, or 49.7% of its total shares outstanding, at an average price of $81.26 per share for a total cost of $8.3 billion, inclusive of applicable fees and taxes. As of April 30, 2026, shares outstanding were 107,559,876.
The timing and amount of any share repurchases under the share repurchase program will be determined by Builders FirstSource in its discretion based on several factors, including ongoing assessments of the capital needs of the business, the market price of Builders FirstSource’s common stock, and general market conditions. Share repurchases under the program may be made through a variety of methods, which may include open market purchases, block trades, accelerated share repurchase transactions, or trading plans adopted in accordance with Rule 10b5-1 or Rule 10b-18 under the Securities Exchange Act of 1934, or any combination of such methods. The program does not obligate Builders FirstSource to acquire any particular amount of its common stock, and the share repurchase program may be modified, suspended or discontinued at any time at the Company’s discretion.
About Builders FirstSource
Builders FirstSource (NYSE: BLDR), headquartered in Irving, Texas, is the nation's leading provider of building materials for professional builders in new residential construction and repair and remodeling. We deliver integrated homebuilding solutions by manufacturing, supplying, and installing a full range of structural and related building products. With approximately 570 locations across 43 states, we serve 48 of the top 50 and 94 of the top 100 Core Based Statistical Areas (CBSAs), ensuring broad geographic coverage and enhancing our ability to partner with our customers. Our leading network of strategically located manufacturing facilities produces factory-built roof and floor trusses, wall panels, vinyl windows, custom millwork and trim, manufactured and semi-custom modular homes, as well as engineered wood that we design and cut specifically for each home. We also assemble interior and exterior doors into pre-hung units for easy installation. Additionally, we distribute a wide range of building products, including lumber, sheet goods, windows, doors, millwork, and specialty items. Our services, which vary by market, include professional installation, turnkey framing, and shell construction. Supported by the latest construction innovations and digital solutions, we help drive greater efficiency across homebuilding. Learn more at www.bldr.com
Forward-Looking Statements
Statements in this news release and the schedules hereto that are not purely historical facts or that necessarily depend upon future events, including statements about expected market share gains, forecasted financial performance, industry and business outlook or other statements about anticipations,
1
beliefs, expectations, hopes, synergies, intentions or strategies for the future, may be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Readers are cautioned not to place undue reliance on forward-looking statements. In addition, oral statements made by the Company’s directors, officers and employees to the investor and analyst communities, media representatives and others, depending upon their nature, may also constitute forward-looking statements. As with the forward-looking statements included in this release, these forward-looking statements are by nature inherently uncertain, and actual results or events may differ materially as a result of many factors. All forward-looking statements are based upon information available to Builders FirstSource on the date this release was submitted. Builders FirstSource undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements involve risks and uncertainties, many of which are beyond the Company’s control or may be currently unknown to the Company, that could cause actual events or results to differ materially from the events or results described in the forward-looking statements; such risks or uncertainties include those related to the Company’s growth strategies, including acquisitions, organic growth and digital and technology strategies, including the Company’s ability to drive growth by incorporating artificial intelligence and machine learning solutions into its platform, or the dependence of the Company’s revenues and operating results on, among other things, the homebuilding industry and, to a lesser extent, repair and remodel activity, which in each case is dependent on economic conditions, including inflation, interest rates, home size and affordability, consumer confidence, labor and supply shortages, tariffs and duties, and also lumber and other commodity prices. The Company may not succeed in addressing these and other risks. Further information regarding factors that could affect our financial and other results can be found in the risk factors section of Builders FirstSource’s most recent annual report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) and may also be described from time to time in the other reports Builders FirstSource files with the SEC. Consequently, all forward-looking statements in this release are qualified by the factors, risks and uncertainties contained therein.
Heather Kos
SVP, Investor Relations
Builders FirstSource, Inc.
investorrelations@bldr.com
Source: Builders FirstSource, Inc.
2