Builders FirstSource, Inc. · BLDR · FY2026 Q1 · Calendar Q2 2026

BLDR Q1 2026: Revenue Beats but EPS Misses 31%, Guidance Cut on Housing Weakness

Builders FirstSource delivered a mixed Q1 2026: revenue topped consensus by 3.6% but EPS fell short by 31%, reflecting gross margin compression in specialty products and inflationary cost pressures on fuel and commodities. Management lowered full-year guidance, citing continued housing market weakness and affordability constraints, while projecting a stronger second half. The stock's abnormal decline of 6.1% on the report, followed by an additional 3.6% downside drift, signals investor concern about the margin trajectory despite management's confident tone, continued share repurchases, and progress on cost-reduction and digital initiatives. With shares at $66.44 versus an analyst consensus target of $90.54, the market is pricing in a materially weaker near-term outlook than the Street's longer-term view.

Reported Before market openNYSEBasic Materials $7.10B market cap
90quality score

Earnings scorecard

Reported versus consensus
Reported EPS $0.27 Consensus $0.39
EPS surprise -30.8% Reported versus consensus
Reported revenue $3.29B Consensus $3.17B
Revenue surprise +3.6% Reported versus consensus

Market reaction

prior-close to event-session close
Stock move -5.1% Event window
SPY move +1.0% Same window
Abnormal move -6.1% Stock minus SPY
Volume 2.9× Versus trailing sessions
Subsequent drift -3.6% Up to 20 sessions
BLDRSPY benchmark

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Why did BLDR fall 5.1% after missing EPS estimates in FY2026 Q1?What changed in BLDR's guidance and outlook in FY2026 Q1?Give me the bull and bear case for BLDR after FY2026 Q1 earnings.

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What changed

Q1 revenue of $3.29B beat the $3.17B estimate by 3.6%, but EPS of $0.27 missed the $0.39 consensus by 31%. Gross margin contracted to 28.3% due to specialty product headwinds and higher fuel and inflation costs. The company realized $6M of its targeted $100M in annual productivity savings. Management revised full-year guidance lower, now expecting sales of $14.6–15.6B and adjusted EBITDA of $1.1–1.5B, while still projecting a stronger second half. The board authorized an additional $500M in share repurchases, with $303M executed in Q1 despite leverage near the upper end of the target range.

Guidance delta

Full-year guidance was lowered. Revenue range revised to $14.6–15.6B and adjusted EBITDA to $1.1–1.5B, down from prior expectations. Management projects a stronger second half driven by spring selling season benefits and cost-reduction initiatives. Capex outlook remains stable.

Key takeaways

  • Q1 sales fell 10% year-over-year to $3.3B, but management claimed market share gains through value-added solutions
  • Revenue beat consensus by 3.6% while EPS missed by 31%, reflecting gross margin compression to 28.3% from specialty product headwinds and inflationary costs
  • Cost-reduction program targets $100M in annual savings; $6M realized in Q1, on track for $50–70M of productivity savings
  • Strong liquidity of $1.5B and ongoing share repurchases ($303M in Q1) despite net debt-to-EBITDA near 3.2x, the upper end of the target range
  • Board authorized an additional $500M share repurchase, signaling management confidence even amid higher leverage

Management priorities

  • Launch next-generation digital platform with four integrated hubs later this year
  • Continue SAP implementation with broader rollout anticipated in 2027
  • Achieve $50–70M of full-year productivity savings as part of $100M cost-reduction target
  • Pursue strategic acquisitions to expand value-added product offerings
  • Maintain disciplined capital allocation including ongoing share repurchases
  • Expand digital quoting platform and AI-enabled tools for share-gain initiatives

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Earnings History

Estimate Beat Miss Match
BLDR REVENUE earnings history estimate and actual scatter chart 10 reported fiscal quarters and 2 future estimate-only quarters. Q2 '24 estimate $4B Q2 '24 actual $4B, miss Q3 '24 estimate $4B Q3 '24 actual $4B, beat Q2 '25 estimate $4B Q2 '25 actual $4B, beat Q3 '25 estimate $4B Q3 '25 actual $4B, beat Q4 '25 estimate $3B Q4 '25 actual $3B, miss Q1 '26 estimate $3B Q1 '26 actual $3B, beat Q2 '26 estimate $4B Q2 '26 actual $4B, miss Q3 '26 estimate $4B Q3 '26 actual $4B, beat Q4 '26 estimate $4B Q1 '27 estimate $3B
Show 2 more >

Analyst Consensus ?

ConsensusHold44 ratings
Bullish2147.7%
Neutral2250.0%
Bearish12.3%

Analyst 52W Price Targets

$63.87Current
$55Low
$98.74Average
$220High

Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Oct 30, 2026. Not an FN2 forecast.

Firm-level rating actions

FMP grade actions identify the grading firm, not a named analyst.

FirmRatingPrior ratingActionDate
Stifel Hold HoldMaintainOct 26, 2026
Loop Capital Hold BuyDowngradeOct 26, 2026
William Blair Market Perform OutperformDowngradeOct 22, 2026
Wells Fargo Equal Weight Equal WeightMaintainOct 16, 2026
Oppenheimer Outperform OutperformMaintainOct 16, 2026
Show 39 more rating actions

Named analyst price targets

Upside is calculated against the persisted current price $63.86. FMP does not supply a rating on these named-analyst rows.

FirmAnalyst52W targetPrice when postedUpsideDate
Stifel NicolausAnalyst unavailable$55$56.85 -13.9%Oct 26, 2026
Loop Capital MarketsJeffrey Stevenson$62$56.85 -2.9%Oct 26, 2026
OppenheimerTyler Batory$78$53.68 +22.1%Oct 16, 2026
Wells FargoSam Reid$55$53.68 -13.9%Oct 16, 2026
Truist FinancialKeuth Hughes$70$53.55 +9.6%Oct 8, 2026
See 64 more

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Company context

Snapshot as of publication

Builders FirstSource, Inc. engages in the supply and manufacture of building materials, manufactured components, and construction services to professional homebuilders, sub-contractors, remodelers, and consumers. Its products include factory-built roof and floor trusses, wall panels and stairs, vinyl windows, custom millwork and trim, and engineered wood. The company was founded by Kevin P. O'Meara, Donald F. McAleenan and John D. Roach in March 1998 and is headquartered in Irving, TX.

Historical context

All BLDR earnings
+12.8%FY2026 Q3 · Calendar Q4 2026-2.6%FY2026 Q2 · Calendar Q3 2026-3.1%FY2025 Q3 · Calendar Q4 2025

Basic Materials peers this season

Latest reports in the same sector
CompanyQuarterEPS surpriseMarket moveHeadline
CRH CRH plc FY2026 Q3 · Calendar Q4 2026 +1.5% +4.7% CRH lowers EBITDA guidance as it leans on Arcosa and Velocity
VMC Vulcan Materials Company FY2026 Q3 · Calendar Q4 2026 +0.7% +5.8% Vulcan Materials: pricing and acquisitions offset energy pressure
LIN Linde plc FY2026 Q3 · Calendar Q4 2026 +1.5% -1.0% Linde posts record sales as restructuring weighs on the outlook

Latest beats and misses

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Sources

  1. Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
  2. FN2 earnings calendar · 2026-07-26T00:37:12.209961+00:00
  3. Polygon adjusted daily market bars · 2026-07-31T20:51:22.089995+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-07-31T20:51:22.086603+00:00

Methodology

Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.

Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.

Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.

By FN2 Research · Updated · As of 2026-07-31. For educational purposes only; not investment advice.