AI Takeaway
Builders FirstSource reported a sharp Q1 2026 earnings decline, swinging to a net loss of $47.4M on a 10.1% revenue drop to $3.29B, as margin compression and elevated SG&A costs overwhelmed the business amid a challenging housing market.
Revenue
$3.29B
-10.13% YoY
EPS (Basic)
$-0.43
-150.59% YoY
Gross Margin
28.3%
-2.23% YoY
Operating Income
$16.52M
-91.05% YoY
Filed · Source: SEC EDGAR 10-Q filing
Total revenue fell 10.1% year-over-year to $3.29B in Q1 2026 from $3.66B in Q1 2025, reflecting continued softness in new residential construction and repair & remodel activity as elevated mortgage rates weighed on housing starts and demand.
Source: Source: 10-Q Income Statement (XBRL Financial Data)
Gross margin contracted 220 basis points to 28.3% from 30.5%, while operating margin collapsed to just 0.50% from 5.04% a year ago — a 450 bps decline — indicating that fixed cost deleveraging and pricing pressure are significantly outpacing any cost-reduction efforts.
Source: Source: 10-Q Income Statement & Key Ratios (XBRL Financial Data)
SG&A expense of $912.5M declined only 2.0% YoY despite a 10.1% revenue drop, meaning SG&A as a percentage of revenue rose materially, directly driving the near-elimination of operating income ($16.5M vs. $184.4M prior year, down 91%).
Source: Source: 10-Q Income Statement (XBRL Financial Data)
2 more insights available
Upgrade to unlockBLDR's revenue is highly dependent on new residential construction volumes, which are directly impacted by mortgage rates and housing affordability. With rates remaining elevated, new housing starts remain under pressure, directly reducing demand for the company's building products and services. A prolonged high-rate environment could extend the current revenue downturn beyond near-term expectations.
Source: Source: 10-Q Income Statement (XBRL Financial Data)
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Upgrade to unlockReported EPS of $0.27 versus the $0.38 analyst consensus — a -28.4% miss for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $3.29B | $3.66B | -10.13% |
Cost of Revenue | $2.36B | $2.54B | -7.24% |
Gross Profit | $928.97M | $1.12B | -16.70% |
Operating Income | $16.52M | $184.44M | -91.05% |
Net Income | $-47.41M | $96.3M | -149.23% |
EPS (Basic) | $-0.43 | $0.85 | -150.59% |
EPS (Diluted) | $-0.43 | $0.84 | -151.19% |
SG&A Expense | $912.45M | $930.8M | -1.97% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $11.3B | $11.45B | -1.26% |
Current Assets | $3.12B | $3.28B | -5.01% |
Total Liabilities | $7.3B | $7.07B | +3.19% |
Current Liabilities | $1.77B | $1.8B | -1.64% |
Stockholders' Equity | $4B | $4.37B | -8.46% |
Cash & Equivalents | $98.34M | $115.37M | -14.76% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $87.45M | $132.33M | -33.91% |
Investing Cash Flow | $-57.85M | $-912.06M | +93.66% |
Financing Cash Flow | $-113.02M | $741.48M | -115.24% |
Share Buybacks | $300.07M | $12.35M | +2330.28% |
D&A | $148.36M | $145.03M | +2.30% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 28.3% | 30.5% | -2.23% |
Operating Margin | 0.5% | 5.0% | -4.54% |
Net Margin | -1.4% | — | — |
ROE | -1.2% | — | — |
ROA | -0.4% | — | — |
Current Ratio | $1.759 | — | — |
Debt to Equity | $1.823 | — | — |
Other companies in Building Products
BLDR reported a net loss of $47.4M and diluted EPS of -$0.43 in Q1 2026, a dramatic reversal from net income of $96.3M and EPS of $0.84 in Q1 2025. Without consensus estimate data in the filing, it is not possible to confirm whether results beat or missed Wall Street expectations, but the magnitude of the loss relative to prior year performance suggests a significant earnings miss versus historical trends.
The key takeaways are a 10.1% revenue decline to $3.29B, a 91% collapse in operating income to $16.5M, and a swing to a $47.4M net loss, all driven by weak housing demand and a high fixed SG&A cost base of $912.5M. Despite the losses, the company aggressively repurchased $300.1M in shares and maintained positive operating cash flow of $87.5M.
BLDR's net loss of $47.4M stemmed from a combination of a 10.1% revenue decline due to weak residential construction demand and SG&A expenses of $912.5M that fell only 2.0%, creating severe negative operating leverage. Gross margin also contracted 220 basis points to 28.3%, leaving operating income at just $16.5M before interest and other expenses pushed the bottom line into a loss.
BLDR maintains adequate short-term liquidity with a current ratio of 1.76x, but its balance sheet shows rising leverage with a debt-to-equity ratio of 1.82x and total liabilities of $7.3B against $4.0B in equity. Cash on hand declined to $98.3M, and the company spent $300.1M on share buybacks during a loss quarter, which warrants monitoring of its financial flexibility going forward.
BLDR's revenue declined 10.1% year-over-year to $3.29B in Q1 2026 from $3.66B in Q1 2025, reflecting continued weakness in new residential construction activity driven by elevated mortgage rates and reduced housing affordability. This revenue decline, combined with a relatively fixed cost structure, was the primary driver of the company's sharp profitability deterioration.