At a glance
Builders FirstSource Inc is worth $7.30B, about 17 times its fiscal 2025 earnings. Revenue fell 7.4% to $15.19B in fiscal 2025, with 2.9% kept as profit; over 5 years it has grown 12.2% a year. It pays no dividend; it spent $8.05B buying back its shares over FY2021–FY2025. The stock returned −41.6% over the past year with dividends reinvested and +3.1% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 62.2% in the 2020 crash (S&P 500: 33.7%) and 41.4% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 5 months and 8 months after the lows.
The business in plain English
Builders FirstSource supplies building materials to professional builders across the United States. Its revenue depends mainly on new home construction and, to a lesser extent, on repair and remodeling. It runs about 585 locations in 43 states. Customers range from small custom builders, multi-family builders and remodeling contractors to the largest national production homebuilders (companies that build homes in volume), including D.R. Horton, Lennar, Pulte Homes, Toll Brothers and Meritage Homes. For the fiscal year ended December 31, 2025, its top 10 customers made up 14% of net sales, and the largest one made up 4%.
Net sales were $15.19 billion for fiscal 2025, split almost evenly across four product groups. Specialty building products and services, such as siding, roofing, insulation and professional installation, made up 26.8%. Lumber and sheet goods (structural wood panels) made up 25.5%. Windows, doors and millwork (interior trim and custom features) made up 25.3%, and manufactured products made up 22.5%.
Manufactured products are factory-built parts that replace cutting and framing at the job site. They include roof and floor trusses (pre-built support frames), wall panels, engineered wood cut for each home, and Ready-Frame pre-cut framing packages. The company also builds manufactured and modular homes. It reports everything as one business segment. Its prices reflect the level of service it provides and the volumes customers purchase.
Price history
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BLDR -41.6% over the year to Nov 2, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Specialty Building Products And Services | $4.07B | 26.8% |
| Lumber And Lumber Sheet Goods | $3.88B | 25.5% |
| Windows Doors And Millwork | $3.84B | 25.3% |
| Manufactured Products | $3.41B | 22.5% |
Latest results
- In Q3 FY2026 (ended Sep 30, 2026), revenue was $3.85B, down 2.2% from a year earlier, and net income was $60.4M (-50.6%).
- For fiscal 2025, revenue was $15.19B (-7.4% year over year; +12.2% a year from FY2020 to FY2025) with a 2.9% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +12.2% good |
|---|---|
| Operating margin | 5.2% watch |
| Free cash flow margin | 5.6% watch |
| Return on equity (FY2025) | 10% watch |
| Return on assets (FY2025) | 3.9% watch |
| Net cash (cash minus debt) | $-4.56B weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $8.56B | $313.5M | $148.0M |
| FY2021 | $19.89B | $1.73B | $1.52B |
| FY2022 | $22.73B | $2.75B | $3.26B |
| FY2023 | $17.10B | $1.54B | $1.83B |
| FY2024 | $16.40B | $1.08B | $1.49B |
| FY2025 | $15.19B | $435.2M | $853.3M |
Valuation snapshot
| Market value | $7.30B |
|---|---|
| P/E ratio | 17.4 |
| Dividend yield | None |
Rank among 1514 US companies
Market value at each year end
Builders FirstSource’s market value went from $1.22B at the end of 2016 to $7.30B on Nov 2, 2026, about 6.0 times as much; since the end of 2025 it is down 36%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Nov 2, 2026 | $7.30B | -35.9% |
| 2025 | $11.38B | -30.8% |
| 2024 | $16.45B | -20.1% |
| 2023 | $20.59B | +115.6% |
| 2022 | $9.55B | -41.8% |
| 2021 | $16.41B | +244.3% |
| 2020 | $4.77B | +62.0% |
| 2019 | $2.94B | +135.1% |
| 2018 | $1.25B | -49.1% |
| 2017 | $2.46B | +101.1% |
| 2016 | $1.22B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| BLDR price data to Nov 2, 2026 | -34.1% | -41.6% | -17.6% | +3.1% | +21.8% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -34.1% |
| 2025 | -28.0% |
| 2024 | -14.4% |
| 2023 | +157.3% |
| 2022 | -24.3% |
| 2021 | +110.0% |
| 2020 | +60.6% |
| 2019 | +132.9% |
| 2018 | -49.9% |
| 2017 | +98.6% |
| 2016 | -1.0% |
| 2015 | +61.3% |
| 2014 | -3.6% |
| 2013 | +27.8% |
| 2012 | +173.5% |
| 2011 | +3.5% |
| 2010 | -48.7% |
| 2009 | +151.0% |
| 2008 | -78.8% |
| 2007 | -59.5% |
| 2006 | -16.6% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 89.5% over that stretch · deepest drop along the way 92.2%, back to its old high 76.3 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 60.2% over that stretch · deepest drop along the way 62.2%, back to its old high 4.8 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 24.8% over that stretch · deepest drop along the way 41.4%, back to its old high 8.3 months after the low |
Insider activity
Form 4 filings from 2025-10-31 to 2026-10-31 (25 read): 0 open-market purchases and 0 sales ($0.00).
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 12% | Sep 30, 2026 |
| Vanguard Capital Management | 5.13% | Sep 30, 2026 |
| Vanguard Portfolio Management | 5.03% | Sep 30, 2026 |
| FMR LLC | 3.3% | Nov 28, 2025 |
ETFs with the most weight in BLDR
| ZIG Acquirers Fund | 3.53% |
| XHB SPDR S&P Homebuilders ETF | 3.37% |
| AMID Argent Mid Cap ETF | 2.73% |
| MVPA Miller Value Partners Appreciation ETF | 2.58% |
| ITB iShares U.S. Home Construction ETF | 2.31% |
| DSMC Distillate Small/Mid Cash Flow ETF | 1.46% |
| FLOW Global X U.S. Cash Flow Kings 100 ETF | 1.45% |
| FXR First Trust Industrials/Producer Durables AlphaDEX Fund | 1.29% |
What could go wrong
- Heavy reliance on new home construction. Demand depends on homebuilding, which is hurt by rising mortgage rates, worse affordability or a weaker economy. The company has substantial fixed costs, so even modest drops in builder activity can hit profits hard.
- Lumber price swings affect sales. Lumber and sheet goods were about 26% of net sales in fiscal 2025. A sustained drop in wood prices can shrink sales and profits. The company has limited control over the timing of price changes.
- Pricing pressure from large homebuilder customers. The company faces pricing pressure from its customers, led by large production builders such as D.R. Horton and Lennar. The top 10 made up 14% of fiscal 2025 net sales, so losing one could hurt.
- Large debt load and variable rates. Total debt was about $4.6 billion against about $66 million of cash as of June 30, 2026. Variable-rate debt costs more when rates climb, and loan rules (covenants) restrict some business decisions.
- Homebuyers may shift to smaller homes. If homebuyers move toward smaller homes, each new house uses fewer materials. That could cut demand for the company's products even if the number of homes built holds steady.
- Fragmented market with low entry barriers. It competes with national chains, large retailers, regional distributors and small local lumberyards. Low entry costs let new rivals appear, and some may offer similar products at lower cost or adopt technology faster.
Recent events
- Quarterly results released
- Executive or board change
- Quarterly results released
- Executive or board change
- Executive or board change; Shareholder vote results; Investor presentation or announcement
- Quarterly results released; Other company announcement
- Quarterly results released
For income and retirement investors
Builders FirstSource does not pay a dividend, so it provides no regular income. Investors who want cash from this holding would have to raise it by reducing their shares. Instead, the company returns cash through buybacks, meaning it repurchases its own stock. It spent about $8.05 billion on buybacks from fiscal 2021 through 2025. The share count fell 48%, from about 207 million on August 3, 2021 to about 108 million on July 23, 2026. Buybacks slowed to about $414 million in fiscal 2025, while net income fell 60%.
The stock has fallen hard in past downturns. It dropped 92% during the 2008 financial crisis and took about 76 months to recover. It fell 62% in the 2020 COVID crash and took about 5 months to recover. It fell 41% in the 2022 bear market and took about 8 months. As of October 28, 2026, the share price was down 53% over one year. Single stocks carry more risk than diversified funds.
Questions investors ask
Does Builders FirstSource pay a dividend?
No. Builders FirstSource paid no dividends from fiscal 2021 through fiscal 2025. Instead, it returned cash through share buybacks, spending about $8.05 billion over those five years. Over a similar period, its share count fell from about 207 million on August 3, 2021 to about 108 million on July 23, 2026. For income investors, any cash from this stock would have to come from reducing their holdings, not from regular payouts.
How does Builders FirstSource make money?
It makes money by supplying, manufacturing and installing building materials for professional homebuilders and remodelers. Net sales were $15.19 billion for the fiscal year ended December 31, 2025. That was split across specialty building products and services (26.8%), lumber and sheet goods (25.5%), windows, doors and millwork (25.3%), and factory-built products such as roof trusses and wall panels (22.5%). Its prices reflect the level of service it provides and the volumes customers purchase.
Why is Builders FirstSource stock down so much?
The share price fell 53% in the year to October 28, 2026, alongside a sharp drop in profits. Net sales fell 7.4% in fiscal 2025 to $15.19 billion, and net income fell about 60% to $435 million. In the quarter ended June 30, 2026, sales were down 8.8% from a year earlier, and the company reported a net loss of $3.9 million. Its annual report notes that the business depends heavily on new home construction and lumber prices.
Who are Builders FirstSource's biggest customers?
Its biggest customers are mostly large national production homebuilders, including D.R. Horton, Lennar, Pulte Homes, Toll Brothers and Meritage Homes. Sales are fairly spread out. For fiscal 2025, the top 10 customers made up 14% of net sales, and the largest single customer made up 4%. The company also serves regional and local custom homebuilders, multi-family builders, remodeling contractors and light commercial contractors from about 585 locations in 43 states.
How much debt does Builders FirstSource have?
Total debt was about $4.59 billion as of June 30, 2026. That compares with cash and investments of about $66 million and shareholders' equity of about $4.01 billion. Some of the debt carries variable interest rates, so rising rates can raise interest costs. The loan agreements also include covenants, which are rules that limit certain business decisions. The company lists its debt level among its risk factors.