Builders Firstsource — Financial Results
Revenue Fell 7.4% as a Weaker Housing Market Offset Acquisition Growth
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Net Sales | $15.2B | $16.4B | -7.4% |
| Net Income (% of sales) | 2.9% | 6.5% | -3.6pp |
Sales dropped across nearly every product category, with manufactured products (trusses, wall panels, engineered wood) hit hardest at -14.4% and lumber and lumber sheet goods down 9.2%. The culprit was a softer new-home construction environment combined with falling commodity prices. Acquisitions added 4.6% to sales, partially cushioning the blow.
Profit Margins Compressed Significantly
| Metric | 2025 | 2024 |
|---|---|---|
| Gross margin % | 30.4% | 32.8% |
| Operating income % | 5.2% | 9.7% |
| SG&A % of sales | 25.2% | 23.1% |
Gross margin (revenue minus the direct cost of goods sold) fell 2.4 percentage points. Meanwhile, selling, general and administrative (SG&A) expenses barely budged in dollar terms but ballooned as a share of sales because the business had less revenue to spread those fixed costs across. The combined effect nearly halved the operating income margin from 9.7% to 5.2%.
$1.1 Billion Spent on Acquisitions in 2025 to Expand Footprint
The company completed eight acquisitions during 2025 for a combined $1.1 billion, adding locations across lumber, truss, and wall panel businesses. A ninth deal — Premium Building Components in eastern New York — closed January 2, 2026. This aggressive buying is the main reason investing cash outflows rose by $0.8 billion year-over-year, and it is also what funded the 4.6% acquisition-driven sales boost that partially offset organic declines.
Operating Cash Flow Dropped by $0.7 Billion
Cash provided by operating activities fell from $1.9 billion in 2024 to $1.2 billion in 2025, almost entirely because net income was $0.6 billion lower. The company still generated meaningful cash, but the step-down is notable given the simultaneous increase in acquisition spending and debt issuance.
New $750 Million Debt Issuance Funds Growth, Raises Interest Costs
The company issued $750 million in new senior unsecured notes (long-term bonds not backed by specific assets) at a 6.75% interest rate due 2035. Net interest expense rose to $273.9 million, up $66.2 million from 2024, directly reflecting higher average debt balances. The revolving credit facility (a flexible line of credit) was also expanded from $1.8 billion to $2.2 billion and extended to 2030, giving the company more financial flexibility.
Share Buybacks Continue, but at a Slower Pace
The board authorized a new $500 million share repurchase program in April 2025, replacing a prior $1.0 billion authorization that had nearly run its course. The company repurchased only 3.4 million shares in 2025 at an average of $118.65 — a much smaller buyback than 2024's $1.5 billion — as cash was redirected toward acquisitions. Since 2021, the company has bought back 48.1% of its shares outstanding.