Builders FirstSource : First Quarter 2026 Earnings Presentation

Published: 2026-04-30 07:37:14 ET BLDR

Published on 04/30/2026 at 07:37 am EDT

PET ER JAC KSO N , C EO PET E BEC KMAN N , C F O

Footnote

A pr i l 30, 2026

Organic Growth with a Focus on Value-Added Products and Services

Drive Operational Excellence & Invest in Digital and Innovation

Continue to Build Our High-Performing Culture

Disciplined Capital Allocation

Footnote

Net Sales

10.1%

Decrease1

Gross Profit

16.7%

Decrease1

28.3%

Gross Margin

Adjusted EBITDA2

42.1%

Decrease1

6.5%

Adj. EBITDA Margin2

Adjusted Diluted EPS2

82.1%

Decrease1

0.9%

Adj. Net Income

% of Sales2

Generated $43M in Free Cash Flow in Q1

Comparison reflects change relative to prior year.

Footnote

Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Diluted EPS, and Adjusted Net Income Percent of Sales are non-GAAP financial measures. See the non-GAAP Financial Measures slide in this presentation for a definition thereof and a discussion of certain matters regarding non-GAAP guidance.

BFS ADVANTAGES

Optionality to Manage Across Environments

Weaker Economy

Right-size network and optimize capacity

Tighter controls on discretionary spending and SG&A overhead

Manage fixed and variable headcount

Reduce capital expenditures

Stronger Economy

Differentiated Scale

Accelerate digital and technology transformation

Operational and

Commercial Excellence

Leverage cost discipline to capitalize on economies of scale and expand margins

Identify and accelerate strong ROI projects

Significant Free Cash

Flow Generation Through The Cycle

Utilize excess free cash flow to increase share repurchases

Industry-Leading Digital

Offerings and Technology

Ongoing Actions

Drive productivity initiatives and automation

Deploy capital in a disciplined manner and prudently manage cash

Balance need for variable cost reduction and future capacity

Align working capital closely to demand signals

~$100M of Cost Actions in 2026

Delivered strong strategic share growth in a weak housing market

~48% value-added product mix in Q1

Delivered $6M in productivity savings in Q1 related to supply chain initiatives

Progressing steadily on our comprehensive SAP implementation after the launch of two pilots in 2025 and successful conversion of centralized accounting functions and financial reporting

Sustained best-in-class safety performance in Q1 and continued our relentless drive toward zero incidents

Received Comparably's Best Company Outlook and Best Company for Women awards, reflecting our people-focused culture

Deployed $360M million in Q1 toward return-enhancing opportunities aligned with our priorities

Continuing to Compound Value Creation with Strong Execution

Repurchased $303M in Q1 and ~$8.3B, or ~50%, of total shares outstanding since inception in August 2021

$360M

$303M

$45M

$12M

Key Highlights

$45M allocated to sustaining the business, as well as ROI generating growth investments in value-added capacity and Digital

$12M deployed on one acquisition to expand our footprint into high-growth geographies and enhance our value-added offerings

Q1 2026

$303M deployed to repurchase common shares

Successfully Deployed $360 Million in Q1

Net Sales

Growth in Value-Added Product Mix

Value-Added Product Mix:

Acquisition Date Benefits

Q1 2026 ▪ Establishes truss and wall panel operations in New York Q4 2025 ▪ Leading supplier of lumber serving Central Texas

Q4 2025

Wholesale manufacturer of factory-built housing serving ten northeastern states

19%

25%

~45%

26%

22%

~48%

Q4 2025

Trusted partner to leading Las Vegas homebuilders specializing in premium residential door solutions

36%

Q4 2021

20%

26%

Q1 2026

26%

Family-owned finish carpentry subcontractor offering a complete range of millwork products in Las Vegas

Q4 2025

Q3 2025

Truss manufacturer serving builders in southern Utah and southern Nevada

Leading supplier of lumber and building materials in the

Q2 2025

Q1 2025

Northern California and Nevada markets

Leading supplier of lumber, building materials, and installation services with locations in Pennsylvania, Maryland, and West Virginia

Q1 2025

Largest independently operated supplier of building materials in Colorado and northern New Mexico with broad portfolio including value-added products

41 Acquisitions Completed Since the BMC Merger in 20211

Footnote

1) Acquisitions completed through March 31, 2026.

Digital Amplifies Our Core and Streamlines the Homebuilding Industry for All Stakeholders

Core to How We Operate Amplifies Organic Growth Evolves the Digital Ecosystem

Build consumer-grade solutions to improve team member efficiency, engagement, and performance

Digitally enable team members, customer relationships, and value-added product development

Evolves the digital ecosystem for builders, suppliers, and technology partners

Net Sales Mix by Product Category Net Sales Mix by End Market

26% 22%

Value-Added Product Mix: ~48%

Repair & Remodel / Other

20%

$3.3B

Multi-Family

11%

$3.3B

26%

69%

Single-Family

Net Sales ($M) by Product Category

Manufactured Products

Value-Added Products

Windows, Doors & Millwork

Specialty Building Products & Services

Lumber & Lumber Sheet Goods

$851

-14%

$735

$934

-9%

$854

$904

-6%

$853

$968

-13%

$845

Q1 2025 Q1 2026

Core Organic Sales1 Highlights by End Market

Core Organic Sales1 Highlights by Product

Single Family (SF): -11% attributable to lower starts activity and value per start

Multi-Family (MF): -1% amid muted activity levels as higher interest rates defer certain projects

R&R / Other: -1% given consumer uncertainty

Value-Added Core Organic Sales1 decreased 11%

Manufactured Products decreased 13%, primarily due to declines in EWP pricing and trusses/wall panels

Windows, Doors & Millwork decreased 10% driven primarily by pricing and volume/mix declines in millwork and doors

Specialty Building Products & Services Core Organic Sales1 decreased 7%, primarily due to lower product pricing and volumes

Lumber & Lumber Sheet Goods Core Organic Sales1 decreased 4%

Net Sales ($M) Bridge

-$120

$3,657

-$250

$3,287

-3.3% Deflation

-8.3% Core Organic1

+1.5% Acquisitions

Q1 2025 Non-Commodity2 Commodity Q1 2026

Adjusted EBITDA3 ($M) Bridge

$214

$369

-$136 -$19

Q1 2025 Non-Commodity2 Commodity Q1 2026

Note: Bridge values may not sum to total due to rounding.

Consistent Capital Allocation Priorities

Maintain a Strong Balance Sheet Organic Growth

Inorganic Growth

Return Capital to Shareholders

Low Net Leverage1 Profile

3.2x

2.7x

1.9x

1.3x

1.5x

1.0x

1.1x

0.7x

2019PF 2020PF 2021 2022 2023 2024 2025 Q1 2026

Strong Free Cash Flow

($M)

Weighted Average Debt Maturity of ~7 Years2

($M)

$2,750

~$1.5B

Liquidity4

$2,000

$2,200

ABL Facility

$1,000

$750

$550

$200

$3,270

$1,877

$1,529

$1,506

$559

$874

$286

$450

2019PF 2020PF 2021 2022 2023 2024 2025 2026E3

2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036

Net Leverage calculated as principal value of debt and lease obligations less cash and cash equivalents divided by LTM Adjusted EBITDA. Adjusted EBITDA is a non-GAAP financial measure. See the non-GAAP Financial Measures slide in this presentation for a definition thereof and a discussion of certain matters regarding non-GAAP guidance.

Footnote

Excludes finance leases and other finance obligations. Solid shading on ABL reflects drawn portion of ABL ($200M as of 3/31). 2030 debt includes $550M of 5.0% notes and an ABL facility of up to $2.2B. 2032 debt includes $1.3B of 4.25% and $0.7B of 6.375% notes.

2026 Full Year Outlook

Metrics

Current Guidance

Prior Guidance

2025 Actual

Total Net Sales1

$14.6 to $15.6 billion

$14.8 to $15.8 billion

$15.2 billion

Gross Profit Margin1

27.5% to 29%

28.5% to 30%

30.4%

Total Adjusted EBITDA1,4

$1.1 to $1.5 billion

$1.3 to $1.7 billion

$1.6 billion

Total Adjusted EBITDA Margin1,4

7.5% to 9.6%

8.8% to 10.8%

10.4%

Free Cash Flow2

$0.4 to $0.5 billion

~$0.5 billion

$0.9 billion

Base Business Sales3

$15.1 billion

$15.8 billion

$15.5 billion

Base Business Adjusted EBITDA3,4

$1.3 billion

$1.6 billion

Base Business Adjusted EBITDA Margin3,4

8.6%

10.1%

10.3%

Capital Expenditures5

$225 to $275 million

$250 to $300 million

$342 million

Interest Expense

$275 to $285 million

$270 to $280 million

$274 million

Effective Tax Rate

20% to 22%

17.6%

Depreciation & Amortization Expense6

$525 to $575 million

$591 million

Q2 2026 Color:

Net Sales - $3.75 to $4.05B Adjusted EBITDA4 - $300 to $350M

Note: Assumptions are mutually exclusive, and guidance may not account for compounding effects.

Projected Total Net Sales, Gross Profit Margin, and Adjusted EBITDA include the expected net benefit of price, commodity, and margin impacts for full year 2026.

Reflects SAP ERP implementation expense for 2026.

Assumes $400/mbf commodity price for all periods and maintained for the full year. Base Business is based on management estimates to provide investors another method for evaluating our performance. Base Business should be considered in addition to results prepared in accordance with GAAP and should not be considered a substitute for or superior to GAAP results.

Adjusted EBITDA and Adjusted EBITDA margin are Non-GAAP financial measures. See the Non-GAAP Financial Measures slide in this presentation for a definition thereof and a discussion of certain matters regarding non-GAAP guidance.

Footnote

The capital expenditure expectation is net of proceeds from the sale of property, equipment, and real estate.

Depreciation expense forecast includes depreciation accounted for within cost of sales.

We are not providing a quantitative reconciliation of our forward-looking guidance of adjusted EBITDA, adjusted 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.

Prior Assumptions

Current Assumptions

Metrics

2026 Full Year Assumptions

Single-Family Starts Growth (BLDR geographies) Multi-Family Starts Growth (BLDR geographies)1 Repair & Remodel Growth (BLDR geographies) Selling Days

Average Commodity Prices ($/mbf) Productivity Savings

Sales Growth From Acquisitions Completed in LTM

Down Low-Single Digits Down Low-Single Digits Down 1%

No change vs. 2025

$390 to $410

$50 to $70 million

~1%

Flat Flat Up 1%

No change vs. 2025

$365 to $385

$50 to $70 million

~1%

Note: Assumptions are mutually exclusive, and guidance may not account for compounding effects.

Footnote

1) Reflects industry starts for five story and below wood structures.

Footnote

10-Year Single Family Starts Trend

thousands

1,200

991

1,005

948

1,013

940

849

876

888

916

1,100

1,000

900

800

700

1,127

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026E

Aggregated2

Actuals

Outlook1

2017

2018

2021

2022

2023

2024

2025

2026E1

Net Sales

$10,400

$11,407

$19,894

$22,726

$17,097

$16,400

$15,191

$15,100

Gross Margin

24.3%

24.8%

29.4%

34.1%

35.2%

32.8%

30.4%

28.2%

Adj. EBITDA4

$669

$842

$3,060

$4,377

$2,899

$2,331

$1,584

$1,300

Adj. EBITDA %4

6.4%

7.4%

15.4%

19.3%

17.0%

14.2%

10.4%

8.6%

Commodity5

$405

$434

$885

$760

$408

$406

$384

$400

($/mbf)

Pro Forma3

2019

2020

$10,907

$12,766

26.9%

25.8%

$777

$1,072

7.1%

8.4%

$321

$546

$ in millions, except where noted

Based on 2026 outlook.

Aggregated represents the combination of BLDR and BMC information from historical Form 10-Ks submitted to the SEC.

Footnote

Pro Forma represents the estimated combined results of BLDR and BMC as represented during merger activities.

Represents 70%/30% split between Lumber composite and OSB composite, respectively, for each year.

~63% of BFS's Base Business1 is Non-Commodity

Underlying Base Business Assumptions

Base Business Value-Added

Lumber & Lumber Sheet Goods Specialized Products & Other

Assumes $400/mbf lumber and lumber sheet goods pricing (in line with long-term average commodity prices)

Commodity margins reflect historical trends and relative

Product Mix 47%

25%

2026 Base Business

26%

market strength (contemplates approximately one-third of

sales mix impacted by commodity prices)

Expense structure is adjusted to reflect changes in

22%

Product Sales

Mix at

$400/mbf

commodity prices

27%

Commodity Exposed:

Base Business Showcases Underlying Strength, Profitability of Core Business Adjusting for Commodity Price Fluctuations

~37%

Footnote

1) Base Business is based on management estimates to provide investors another method for evaluating our performance. Base Business should be considered in addition to results prepared in accordance with GAAP but should not be considered a substitute for or superior to GAAP results.

Base Business Performance Aligned with Long-Term Plan

Sales ($B) Adjusted EBITDA2 ($B)

$11.5

$22.7

$19.9

$4.2

~4%

$5.0

$10.9

$12.8

$0.3

$17.1

$0.6

$16.4

$15.2

$15.1

$17.7

$16.5

$12.5

$15.7

$15.5

($0.6)

($0.3)

$0.0

$15.1

$0.0

$16.4

$4.4

~5%

$3.1

$1.3

$2.1

$2.9

$0.6

$2.3

$1.1

$1.6

$0.8

$0.9

($0.1)

$2.3

$1.3

$1.1

$1.8

$0.0

$1.3

$1.6

$0.0

$2.3

$0.0

2019PF

2020PF

2021

2022

2023

2024

2025

2026E

2019PF

2020PF

2021

2022

2023

2024

2025

2026E

SF Starts

888

991

1,127

1,005

948

1,013

940

~916

SF Starts

888

991

1,127

1,005

948

1,013

940

~916

Base Business1

Commodity <>$400/mbf

Single-Family Housing

Starts (000s)3

2019PF-2026E

Base Business CAGR

Adjusted EBITDA2 Margin (On Base Business)

+100 bps

+270 bps

+150 bps +90 bps +10 bps

(370 bps)

(170 bps)

7.8%

8.8%

11.5%

13.0%

13.9%

14.0%

10.3%

8.6%

2019PF

2020PF

2021 2022 2023 2024

2025

2026E

Footnote

1) Assumes a $400/mbf commodity price for all periods and maintained for the full year. Base Business is based on management estimates to provide investors another method for evaluating our performance. Base Business should be considered in addition to results prepared in accordance with GAAP but should not be considered a substitute for or superior to GAAP results.

Footnote

Disclaimer

Builders FirstSource Inc. published this content on April 30, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 30, 2026 at 11:33 UTC.