Builders FirstSource sales slip and adjusted EBITDA drops 28% as single-family starts weaken
Builders FirstSource, the Irving, Texas, supplier of lumber, trusses and wall panels to home builders, said third-quarter sales fell 2.2% to $3.9 billion and adjusted EBITDA dropped 28.3% from a year earlier, landing at $311.1 million, as its single-family sales fell 6.2%.
The company earned $60.4 million, or 56 cents a share, down from $122.4 million, or $1.10, a year before, it said Thursday. Gross margin narrowed 2.6 points to 27.8%. Core organic sales fell 3.9%. Single-family sales were down 6.2%, while multifamily sales rose 2.0%, and repair and remodeling 0.3%. Acquisitions added 1.8% to sales.
For the full year, the company assumes single-family starts in its markets will fall by a percentage in the mid to high single digits, multifamily starts by a percentage in the mid single digits and repair and remodel activity by 1%. It narrowed its 2026 outlook to sales between $14.2 billion and $14.6 billion and adjusted EBITDA between $1.075 billion and $1.125 billion. Its free cash flow forecast of $400 million to $450 million assumes commodity prices average $390 to $410 for each thousand board feet.
Lumber and sheet goods were the only product category to grow in the quarter, up 4.7% to $1.04 billion. Windows, doors and millwork fell 7.3%, and manufactured products fell 2.8%. Free cash flow fell 83.7% to $76 million, and net debt rose to 4.1 times trailing adjusted EBITDA from 2.3 times a year earlier. The company, with about 575 locations in 43 states, holds an investor day in New York on November 17.
Why it matters: With about 575 locations in 43 states, Builders FirstSource sees framing demand early, and it expects single-family volume to keep shrinking this year. Its $390 to $410 lumber assumption is a benchmark to hold against supplier quotes.
Sources
- Builders FirstSource Reports Third Quarter 2026 ResultsBusiness Wire, Oct 29