Builders FirstSource Q2 FY2026: net loss as sales fall 8.8%
Builders FirstSource posted a net loss of $3.9 million in FY2026 Q2 as revenue fell 8.8% to $3.86 billion, and adjusted EPS of $1.17 missed the $1.293 consensus. Management also cut full-year sales guidance to $14.0 billion to $14.8 billion. The read: costs are falling, but not fast enough to offset weaker housing demand. The scorecard explains the margin math and the balance sheet shows the leverage cost.
1 · Expected vs. Actual
Free preview belowGAAP diluted EPS was $(0.04) versus $1.66 a year ago, and even the adjusted figure of $1.17 came in about 9.5% below the $1.293 consensus. Adjusted net income of $126.1 million was down 52.3%. The gap between the two EPS lines is wide — $72.1 million of amortization expense and $41.0 million of technology implementation expense — so treat $1.17 as management's view of steady-state earnings, not the cash result.
Revenue of $3.86 billion fell 8.8% from $4.23 billion a year earlier, and the decline was broad: core organic net sales dropped 7.0%, commodity deflation took another 2.7%, and acquisitions added just 0.9%. Every product category shrank, with manufactured products down 13.3% and value-added products down 11.1%. This is a demand problem rather than a share problem, but it lands on the same income statement.
The full-year outlook is $14.0 billion to $14.8 billion of net sales, $1.0 billion to $1.2 billion of adjusted EBITDA, and free cash flow of approximately $0.4 billion to $0.5 billion. Gross margin guidance of 27.5% to 28.5% simply brackets the 28.1% just reported, so management is not assuming any margin repair. The sales midpoint was cut from $15.1 billion last quarter to $14.4 billion, a reduction of roughly 4.6%.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-17
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