Builders FirstSource, Inc.reported its results for the Q2 ended June 30, 2025. Net sales were $4.2 billion, a 5.0% decrease, driven by an 8.5% decline in core organic net sales and commodity deflation of 1.5%, partially offset by growth from acquisitions of 5.0%.
Gross profit was $1.3 billion, a decrease of 11.2%. Gross profit margin percentage decreased 210 basis points to 30.7%, primarily driven by Single- and Multi-Family margin normalization as well as a below-normal starts environment.
Net income was $185.0 million, or $1.66 earnings per diluted share, compared to net income of $344.1 million, or $2.87 earnings per diluted share, in the same period a year ago. The 46.2% decrease in net income was primarily driven by lower gross profit and higher SG&A and net interest expense, partially offset by lower income tax expenses.
Adjusted net income was $264.3 million, a decrease of 37.1%, primarily driven by lower gross profit and higher net interest expense, partially offset by lower income tax expenses.
Adjusted EBITDA decreased 24.4% to $506.1 million, primarily driven by lower gross profit. Adjusted EBITDA margin declined by 300 basis points from the prior year period to 12.0%, primarily due to lower gross profit margins and reduced operating leverage.
Peter Jackson, CEO of Builders FirstSource, commented: “Our durable results in the Q2 reinforce the advantage of our differentiated product offerings and commitment to execution. In this challenging market environment, we are prioritizing what’s within our control – serving customers with excellence, leveraging technology, and managing the business with discipline. We remain focused on building for the future through investments in value-added solutions, digital capabilities, and operational efficiency. These efforts are strengthening our position in the industry and laying the foundation to emerge stronger and accelerate delivery of long-term shareholder value as market conditions improve.”
Headquartered in Irving, Texas, Builders FirstSource is the largest U.S. supplier of building products, prefabricated components, and value-added services to the professional market segment for new residential construction and repair and remodeling.
