Builders Firstsource — Income Statement, Cash Flows & Balance Sheet
Is Builders FirstSource profitable?
Revenue and profitability fell sharply as the housing market weakened, though the business remains solidly in the black.
| Metric | 2023 | 2024 | 2025 | Change (2024–2025) |
|---|---|---|---|---|
| Net sales ($M) | $17,097 | $16,400 | $15,191 | -7.4% |
| Gross margin ($M) | $6,012 | $5,383 | $4,616 | -14.3% |
| Gross margin % | 35.2% | 32.8% | 30.4% | -2.4 pts |
| Net income ($M) | $1,541 | $1,078 | $435 | -59.6% |
| Diluted EPS | $11.94 | $9.06 | $3.89 | -57.1% |
Revenue has fallen roughly 11% over two years as housing activity softened, but the margin compression is more pronounced — gross margin has dropped about five percentage points since 2023. Selling, general and administrative (SG&A) costs barely budged while revenue slid, which means operating leverage worked in reverse and net income was nearly cut in half year-over-year. The effective tax rate also dropped to 15.1% in 2025 (from ~22% prior years) partly due to tax credits and new legislation, which softened the blow to net income somewhat.
Where does Builders FirstSource's revenue come from?
Revenue declined across all four product categories, with manufactured products seeing the steepest drop.
| Product Category | 2024 ($M) | 2025 ($M) | Change |
|---|---|---|---|
| Manufactured products | $3,986 | $3,410 | -14.4% |
| Windows, doors & millwork | $4,238 | $3,836 | -9.5% |
| Specialty building products & services | $3,907 | $4,068 | +4.1% |
| Lumber & lumber sheet goods | $4,269 | $3,876 | -9.2% |
No single category dominates — the four are roughly equal in size — but only specialty building products and services managed growth in 2025. Manufactured products, which include factory-built components like trusses and wall panels, saw the sharpest decline. That said, Builders FirstSource operates as a single reportable segment, so profitability is not broken out by product line.
Does Builders FirstSource generate cash?
The business still generates meaningful operating cash, but a large acquisition spree caused total cash outflows to surge.
| Cash Flow Item | 2023 | 2024 | 2025 |
|---|---|---|---|
| Operating cash flow ($M) | $2,307 | $1,873 | $1,216 |
| Capital expenditures ($M) | ($476) | ($381) | ($363) |
| Free cash flow ($M) | $1,831 | $1,492 | $853 |
| Cash used for acquisitions ($M) | ($239) | ($336) | ($1,123) |
| Share repurchases ($M) | ($1,812) | ($1,517) | ($414) |
Operating cash flow has declined alongside profits but remains healthy. Free cash flow (operating cash minus capital expenditures — a measure of cash left after maintaining and growing the asset base) was cut roughly in half versus 2023. The big shift in 2025 was a more than tripling of acquisition spending to about $1.1 billion, funded partly by issuing $750 million in new bonds. Share buybacks slowed considerably compared to prior years.
How strong is Builders FirstSource's balance sheet?
Debt rose meaningfully due to acquisitions, though the company has ample liquidity and no near-term maturities.
| Balance Sheet Item | Dec 2024 | Dec 2025 | Change |
|---|---|---|---|
| Total long-term debt, gross ($M) | $3,741 | $4,485 | +$744M |
| Cash ($M) | $154 | $182 | +$28M |
| Revolving credit availability ($M) | — | $1,500 | — |
| Goodwill & intangibles ($M) | $4,782 | $5,321 | +$539M |
| Total stockholders' equity ($M) | $4,296 | $4,352 | +$56M |
Debt increased by nearly $750 million to fund the acquisition program, and the next scheduled bond maturity is not until 2030, giving Builders FirstSource a comfortable runway. The revolving credit line was also expanded to $2.2 billion, with $1.5 billion still available. One thing to keep in mind: goodwill and intangible assets — largely stemming from past acquisitions — make up roughly half of total assets, which is common for acquisition-driven businesses but means the balance sheet is less "hard asset" heavy than it might appear.