Anticipated Financial Results: A Look at Builders FirstSource's Upcoming Financial Statement
Builders FirstSource Inc. (BLDR), a leading building materials supplier based in Irving, Texas, is set to report its second-quarter 2025 earnings on July 31, 2025. The company, which operates in 43 states and 90 of the top 100 Metropolitan Statistical Areas, is expected to face a significant earnings decline due to challenges in the housing market, particularly in single-family housing starts.
Analysts forecast a 33.4% drop in earnings per share (EPS) for the quarter, with a projected profit of $2.33 per share on a diluted basis, down from $3.48 in the same quarter last year. However, for the full fiscal year 2025, the EPS is projected to be $8.32, representing a 28% decline from 2024.
Despite this earnings pressure, Builders FirstSource has shown resilience, beating consensus estimates in three of the last four quarters. The company's annual revenue is forecasted between $16.1 billion and $17.1 billion for 2025.
The company's stock has underperformed over the past year, falling about 23.8%, trailing the gains of the S&P 500 Index and the Industrial Select Sector SPDR Fund. Yet, analyst sentiment remains cautiously optimistic, with a consensus rating of "Moderate Buy." Among 19 analysts, 12 recommend a "Strong Buy," with an average price target of $140.84, indicating an approximate upside potential of 11.8% from current levels.
Two analysts suggest a "Moderate Buy" rating, while five analysts give a "Hold" rating for BLDR stock. The analysts' consensus opinion on BLDR stock is reasonably bullish, expecting a rebound in earnings by 2026, with EPS anticipated to rise by 18.2% to $9.83.
It's worth noting that BLDR's adjusted EPS for Q1 was $1.51, surpassing Wall Street expectations of $1.50. However, the company's Q1 revenue of $3.66 billion missed Wall Street forecasts of $3.69 billion. On May 1, BLDR shares closed down more than 6%.
With approximately 570 distribution and manufacturing locations, Builders FirstSource has a market cap of $13.9 billion. The company's stock has underperformed the S&P 500 Index's 10.5% gains over the past 52 weeks.
In summary, while Builders FirstSource faces near-term earnings challenges due to market conditions, analyst opinions are moderately bullish on the stock, expecting a recovery in earnings by 2026 and some upside potential in the stock price.
Disclosure: The author, Neha Panjwani, did not have positions in any of the securities mentioned in this article at the time of publication.
- Amidst the challenges in the housing market, investors might want to consider diversifying their portfolios to include personal-finance related stocks like Builders FirstSource, a technology-driven business in the building materials sector.
- Despite the projected earnings decline in the second quarter, technology advancements in the company's operations could potentially lead to long-term growth in the business and personal-finance sector, making it an attractive investing opportunity for some.
