Companies · BLDR
Builders FirstSource
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Latest analysis
Updated Oct 29, 2026
BLDR Q3 2026: Gross margin collapses 260bps to 27.8% as housing starts decline accelerates; Digs AI investment signals digital pivot
Builders FirstSource reported Q3 2026 net sales of $3.854 billion, down 2.2% year-over-year, with gross margin contracting sharply to 27.8% from 30.4% in Q3 2025 — a 260 basis point compression driven entirely by the lower housing starts environment. Operating income margin fell to 2.5% from 5.8%, with nine-month operating cash flow down to $302 million from $1.02 billion in the prior-year period, signaling meaningful earnings deterioration. The $25.3 million lead investment in Digs, an AI platform for homebuilders, marks BLDR's first disclosed AI-native strategic investment and positions the company for digital differentiation as it manages through a prolonged housing downturn.
Tone: defensiveRevenue
$15.2B
BLDR 10-K · FY 2025
Employees
28,000
Revenue FY2024
$16.4B
Founded
1998
Profile
BLDR 10-K Item 1 · Feb 17, 2026Builders FirstSource is the leading U.S. distributor and manufacturer of structural building products and services for professional homebuilders, operating approximately 585 locations across 43 states. The company manufactures trusses, wall panels, engineered wood, windows, millwork, and modular homes, and also distributes lumber, doors, and specialty building products. It offers integrated services including professional installation, turnkey framing, and digital homebuilding solutions through its Paradigm subsidiary.
Read filing description ↓ Collapse description ↑
We are a leading provider of building materials for professional builders in new residential construction and repair and remodeling. We deliver integrated homebuilding solutions by manufacturing, supplying, and installing a full range of structural and related building products. The Company operates approximately 585 locations in 43 states across the United States, which are internally organized into geographic operating divisions. Due to the similar economic characteristics, categories of products, distribution methods and customers, our operating divisions are aggregated into one reportable segment. Our leading network of strategically located manufacturing facilities produces factory-built roof and floor trusses, wall panels, vinyl windows, custom millwork and trim, manufactured and semi-custom modular homes, as well as engineered wood that we design and cut specifically for each home. We also assemble interior and exterior doors into pre-hung units for easy installation. Additionally, we distribute a wide range of building products, including lumber, sheet goods, windows, doors, millwork, and specialty items. Our services, which vary by market, include professional installation, turnkey framing, and shell construction. Supported by the latest construction innovations and digital solutions, we help drive greater efficiency across homebuilding. We operate in the professional segment of the U.S. residential building products supply market. Customers in the Pro Segment primarily include production and custom homebuilders, remodeling contractors, and multi-family builders. The industry remains highly fragmented with competition from large national dealers, specialty dealers, large building supply retailers, regional and local material distributors and smaller privately owned suppliers, truss manufacturers and lumberyards.
Primary products
- Manufactured Products
- Windows, Doors and Millwork
- Specialty Building Products and Services
- Lumber and Lumber Sheet Goods
- Ready-Frame framing system
- Pine Grove Homes
Business segments
End markets
Geographies
Named customers
For the year ended December 31, 2025, our top 10 customers accounted for 14% of net sales, with our largest customer accounting for 4% of net sales.
Named competitors
“We believe that we have competitive advantages over our competitors due to our subject matter expertise, long-standing customer relationships, local market knowledge, competitive pricing, superior service, broad product offering, and large-scale procurement capabilities.” Competitive position, as stated in the filing
Revenue commentary · FY 2025
Net sales declined from $16.4 billion in 2024 to $15.2 billion in 2025, reflecting continued softness in the residential new construction market.
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