AI Takeaway
BLDR reported a significant FY2025 earnings decline, with revenue falling 7.4% to $15.19B and net income dropping 59.6% to $435.2M, reflecting margin compression and a challenging housing market environment.
Revenue
$15.19B
-7.38% YoY
EPS (Basic)
$3.91
-57.17% YoY
Gross Margin
30.4%
-2.44% YoY
Operating Income
$786.28M
-50.71% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Total revenue fell 7.4% year-over-year from $16.40B to $15.19B in FY2025, indicating meaningful volume and/or pricing headwinds likely tied to a slowdown in residential construction activity and elevated mortgage rates suppressing housing demand.
Source: Source: 10-K Income Statement, Financial Data
Gross margin contracted approximately 240 basis points from 32.8% to 30.4%, while operating margin fell sharply from 9.7% to 5.2% — a decline of roughly 455 basis points — suggesting cost pressures outpaced revenue declines and SG&A remained sticky at $3.83B (+1.1% YoY).
Source: Source: 10-K Income Statement & Key Ratios, Financial Data
Operating cash flow declined 35.1% from $1.87B to $1.22B in FY2025, reflecting the lower profitability environment, though the company maintained positive free cash flow generation to support ongoing operations and capital allocation.
Source: Source: 10-K Cash Flow Statement, Financial Data
2 more insights available
Upgrade to unlockBLDR's revenues are highly correlated with U.S. residential construction activity. The 7.4% revenue decline in FY2025 illustrates the company's exposure to housing starts and mortgage rate fluctuations. A prolonged downturn in housing demand could further compress revenues and margins.
Source: Source: 10-K Income Statement, Financial Data
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $1.12 versus the $1.27 analyst consensus — a -11.6% miss for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $15.19B | $16.4B | -7.38% |
Cost of Revenue | $10.57B | $11.02B | -4.02% |
Gross Profit | $4.62B | $5.38B | -14.25% |
Operating Income | $786.28M | $1.6B | -50.71% |
Net Income | $435.2M | $1.08B | -59.63% |
EPS (Basic) | $3.91 | $9.13 | -57.17% |
EPS (Diluted) | $3.89 | $9.06 | -57.06% |
SG&A Expense | $3.83B | $3.79B | +1.10% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $11.24B | $10.58B | +6.18% |
Current Assets | $2.93B | $3.14B | -6.81% |
Total Liabilities | $6.89B | $6.29B | +9.52% |
Current Liabilities | $1.57B | $1.78B | -11.38% |
Stockholders' Equity | $4.35B | $4.3B | +1.30% |
Cash & Equivalents | $181.75M | $153.62M | +18.31% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $1.22B | $1.87B | -35.07% |
Investing Cash Flow | $-1.47B | $-710.72M | -106.44% |
Financing Cash Flow | $279.42M | $-1.07B | +126.00% |
Share Buybacks | $413.96M | $1.52B | -72.71% |
D&A | $591.43M | $561.93M | +5.25% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 30.4% | 32.8% | -2.44% |
Operating Margin | 5.2% | 9.7% | -4.55% |
Net Margin | 2.9% | — | — |
ROE | 10.0% | — | — |
ROA | 3.9% | — | — |
Current Ratio | $1.859 | — | — |
Debt to Equity | $1.582 | — | — |
Other companies in Building Products
BLDR reported a challenging FY2025, with revenue declining 7.4% to $15.19B and net income falling 59.6% to $435.2M. Diluted EPS dropped to $3.89 from $9.06 in the prior year, reflecting significant margin compression and a softer housing market.
BLDR's operating income fell 50.7% to $786.3M primarily because gross margin contracted from 32.8% to 30.4% while SG&A expenses remained elevated at $3.83B — rising 1.1% even as revenue declined. This operating leverage effect amplified the earnings impact of the revenue shortfall.
Key risks include exposure to U.S. housing market cyclicality (revenue fell 7.4% in FY2025), rising leverage with debt-to-equity at 1.58x as total liabilities grew to $6.89B, and integration risk from significantly increased acquisition spending (investing outflows nearly doubled to $1.47B).
Yes, BLDR repurchased $413.96M in shares during FY2025, but this was a 72.7% reduction from the $1.52B in buybacks executed in the prior year. The pullback in repurchases reflects lower earnings and the company's decision to prioritize investment spending.
BLDR maintains a current ratio of 1.86x and positive operating cash flow of $1.22B, suggesting adequate near-term liquidity, though the debt-to-equity ratio of 1.58x and a cash balance of only $181.8M warrant monitoring. Profitability recovery will depend on a rebound in residential construction demand and the company's ability to control its cost structure.