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Builders FirstSource missed on earnings in Q1 2026. It was the second miss in a row.
The company cut full year guidance and analysts slashed 2026-2027 earnings estimates.
Shares of Builders FirstSource have fallen to multi-year lows in 2026.
Builders FirstSource, Inc. (BLDR - Free Report) is not seeing a turnaround in home building this year. This Zacks Rank #5 (Strong Sell) is expected to see another year of declining earnings in 2026.
Builders FirstSource provides building materials for professional builders in new residential construction, repair and remodeling. It has approximately 570 locations across 43 states.
It distributes a wide range of building products, including lumber, sheet goods, windows, doors, millwork, and specialty items.
Builders FirstSource Misses on Earnings in the First Quarter 2026
On Apr 30, 2026, Builders FirstSource reported first quarter 2026 results and missed on the Zacks Consensus by $0.12. Earnings were $0.27 compared to the Zacks Consensus of $0.39.
It was the second earnings miss in a row.
Net sales fell 10.1% to $3.3 billion, primarily due to a lower starts environment. The builders aren’t building at the same rate as prior years.
Gross profit margin decreased 220 basis points to 28.3%, also driven by a lower starts environment.
Builders FirstSource Lowers 2026 Guidance
The company has gotten more bearish since February, when it first gave its 2026 guidance.
It now expects net sales in the range of $14.6 billion to $14.8 billion, down from the previous guidance range of $14.8 billion to $15.8 billion.
Gross profit margins also fell to a range of 27.5% to 29% from 28.5% to 30%.
Analysts Slash 2026 and 2027 Earnings Estimates
It’s not surprising, given the headwinds the company faces, that the analysts are also bearish.
Five estimates were cut for 2026 in the last week, which pushed the Zacks Consensus down to $4.49 from $5.58. That’s an earnings decline of 34.8%.
It would be the fourth year in a row of earnings declines. The Federal Reserve began raising interest rates, which slowed the housing market, in 2022.
Four estimates were also cut for 2027 which pushed the Zacks Consensus down to $5.94 from $7.20.
Here’s what it looks like on the price and consensus chart.
Image Source: Zacks Investment Research
Shares Plunge in 2026
The shares are now trading at multi-year lows but they have plunged further in 2026.
Image Source: Zacks Investment Research
It has a low forward price-to-earnings (P/E) ratio of just 16.4. However, a P/E under 15 usually indicates the company is a value.
Builders FirstSource is shareholder friendly. While it’s not paying a dividend, the company has a share repurchase program. In the first quarter, Builders FirstSource repurchased 3.3 million shares for $302.9 million.
On Apr 29, 2026, the Board of Directors authorized the repurchase of an additional $500 million of shares, which includes the approximately $200 million remaining under the April 2025 authorization.
Since the inception of the share buyback program in Aug 2021, it has repurchased 49.7% of its total shares outstanding for a total cost of $8.3 billion.
The new home market is not going to rebound this year.
Investors might want to wait for green shoots in the 2027 earnings estimates before jumping in.
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Bear of the Day: Builders FirstSource (BLDR)
Key Takeaways
Builders FirstSource, Inc. (BLDR - Free Report) is not seeing a turnaround in home building this year. This Zacks Rank #5 (Strong Sell) is expected to see another year of declining earnings in 2026.
Builders FirstSource provides building materials for professional builders in new residential construction, repair and remodeling. It has approximately 570 locations across 43 states.
It distributes a wide range of building products, including lumber, sheet goods, windows, doors, millwork, and specialty items.
Builders FirstSource Misses on Earnings in the First Quarter 2026
On Apr 30, 2026, Builders FirstSource reported first quarter 2026 results and missed on the Zacks Consensus by $0.12. Earnings were $0.27 compared to the Zacks Consensus of $0.39.
It was the second earnings miss in a row.
Net sales fell 10.1% to $3.3 billion, primarily due to a lower starts environment. The builders aren’t building at the same rate as prior years.
Gross profit margin decreased 220 basis points to 28.3%, also driven by a lower starts environment.
Builders FirstSource Lowers 2026 Guidance
The company has gotten more bearish since February, when it first gave its 2026 guidance.
It now expects net sales in the range of $14.6 billion to $14.8 billion, down from the previous guidance range of $14.8 billion to $15.8 billion.
Gross profit margins also fell to a range of 27.5% to 29% from 28.5% to 30%.
Analysts Slash 2026 and 2027 Earnings Estimates
It’s not surprising, given the headwinds the company faces, that the analysts are also bearish.
Five estimates were cut for 2026 in the last week, which pushed the Zacks Consensus down to $4.49 from $5.58. That’s an earnings decline of 34.8%.
It would be the fourth year in a row of earnings declines. The Federal Reserve began raising interest rates, which slowed the housing market, in 2022.
Four estimates were also cut for 2027 which pushed the Zacks Consensus down to $5.94 from $7.20.
Here’s what it looks like on the price and consensus chart.
Image Source: Zacks Investment Research
Shares Plunge in 2026
The shares are now trading at multi-year lows but they have plunged further in 2026.
Image Source: Zacks Investment Research
It has a low forward price-to-earnings (P/E) ratio of just 16.4. However, a P/E under 15 usually indicates the company is a value.
Builders FirstSource is shareholder friendly. While it’s not paying a dividend, the company has a share repurchase program. In the first quarter, Builders FirstSource repurchased 3.3 million shares for $302.9 million.
On Apr 29, 2026, the Board of Directors authorized the repurchase of an additional $500 million of shares, which includes the approximately $200 million remaining under the April 2025 authorization.
Since the inception of the share buyback program in Aug 2021, it has repurchased 49.7% of its total shares outstanding for a total cost of $8.3 billion.
The new home market is not going to rebound this year.
Investors might want to wait for green shoots in the 2027 earnings estimates before jumping in.