Builders FirstSource, Inc. reported a decline in financial performance for the second quarter of 2025, with net sales of $4.23 billion, a decrease of 5.0% compared to $4.46 billion in the same period of 2024. For the first half of 2025, net sales totaled $7.89 billion, down 5.5% from $8.35 billion in the prior year. The company's gross margin also fell, with a gross margin of $1.30 billion for the second quarter, representing 30.7% of net sales, down from 32.8% in the previous year. Net income for the quarter was $185.03 million, or $1.67 per share, compared to $344.09 million, or $2.89 per share, in the second quarter of 2024.
The decline in revenue was attributed to a combination of factors, including a decrease in core organic sales by 8.5%, primarily due to reduced activity in the multi-family and single-family customer segments. Additionally, commodity price deflation contributed to a further 1.5% decrease in net sales. However, the company noted a 5.0% increase in net sales from acquisitions, which included the purchase of Alpine Lumber, Cluss Lumber, and Truckee Tahoe for approximately $891.9 million. These acquisitions are expected to enhance Builders FirstSource's market presence and product offerings.
Operationally, Builders FirstSource expanded its footprint, operating approximately 585 locations across 43 states. The company reported an increase in accounts receivable and inventories, with accounts receivable rising to $1.33 billion from $1.16 billion at the end of 2024. The company’s total assets increased to $11.46 billion, up from $10.58 billion at the end of the previous fiscal year. The employee headcount remained stable, supporting the company's operational capabilities amid ongoing market challenges.
Looking ahead, Builders FirstSource anticipates continued pressure on housing demand due to macroeconomic factors such as fluctuating interest rates and inflation. The company remains optimistic about the long-term outlook for the housing industry, citing an underbuilt market relative to historical levels. Builders FirstSource plans to focus on managing working capital effectively and maintaining operational flexibility to navigate the current economic landscape. The company is also committed to monitoring customer credit exposure and optimizing inventory levels to support future growth.
About Builders FirstSource, Inc.
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