Builders FirstSource reported first quarter 2025 results showing a decline in performance compared to the prior year.

Net sales fell 6% to $3.66 billion due to lower core organic sales, one fewer selling day, and commodity deflation, partly offset by acquisitions. Gross margin dropped 290 basis points to 30.5%, with net income falling 62.8% to $96.3 million, or $0.84 per diluted share, compared to $2.10 in Q1 2024. Adjusted EBITDA declined 31.7% to $369.2 million, with a margin of 10.1%. Free cash flow decreased sharply to $45.0 million from $227.6 million.

Sales in key segments showed declines: Single-Family fell 5.9% and Multi-Family dropped 32.7%, while Repair and Remodel grew 3.6%. The company repurchased $12.8 million in shares in Q1 and $390.9 million in April. Liquidity at quarter-end stood at $1.1 billion, with net debt of $4.4 billion and a leverage ratio of 2.0x.

For the full year 2025, the company projects:
- net sales of $16.05–$17.05 billion
- adjusted EBITDA of $1.7–$2.1 billion
- adjusted EBITDA margin of 10.6%–12.3%
- free cash flow between $800 million and $1.2 billion