Builders FirstSource, Inc. reported its financial results for the third quarter ended September 30, 2026, revealing a decrease in net sales and profitability driven by a challenging housing market environment.
For the quarter, the company reported net sales of $3.9 billion, a decrease of 2.2%. This decline was attributed to a lower housing starts environment and related headwinds. The company noted a 3.9% decline in core organic net sales, partially offset by growth from acquisitions of 1.8%.
Gross profit for the quarter was $1.1 billion, a decrease of 10.6%. As a result, the gross profit margin percentage decreased by 260 basis points to 27.8%. Net income for the third quarter was $60.4 million, or $0.56 per diluted share, compared to $122.4 million, or $1.10 per diluted share, in the prior year period. Adjusted EBITDA decreased 28.3% to $311.1 million, with the adjusted EBITDA margin declining by 290 basis points to 8.1%.
Operating cash flow was $146.6 million, a decrease of $401.2 million compared to the prior year period. The company’s free cash flow was $76.0 million, a decrease of 83.7% compared to $464.9 million in the prior year. As of September 30, 2026, the company had $1.5 billion in liquidity, consisting of approximately $1.4 billion in net borrowing availability under its revolving credit facility and $0.1 billion of cash on hand.
Regarding capital allocation, the company has $500 million remaining under its share repurchase authorization. Since the inception of its buyback program in August 2021, the company has repurchased 102.6 million shares of its common stock, or 49.7% of its total shares outstanding, at an average price of $81.26 per share for a total cost of $8.3 billion.
The company also provided its 2026 full-year outlook. Builders FirstSource expects net sales to be in a range of $14.2 billion to $14.6 billion, with adjusted EBITDA projected to be between $1.075 billion and $1.125 billion. The company anticipates delivering $60 million to $70 million in productivity savings for the full year.
