Builders FirstSource reported its 2025 second quarter financial results on July 31, which showed a continued decline in sales and margins against a weak housing market.

The Irving, TX-based company posted total 2Q sales of $4.2 billion, down 5.0% year-over-year, with core organic sales down 8.5% alongside a negative impact of commodity deflation (-1.5%), partially offset by growth from acquisitions (+5.0%). It followed 1Q’s 6.0% sales decline (-8.1% organic).

Within core organic sales, Multi-Family fell 23.3%, Single-Family fell 9.1% and Repair and Remodel/Other increased 3.0%.

BLDR’s 2Q gross margin sunk 210 basis points year-over-year to 30.7%, driven by Single- and Multi-Family margin normalization as well as a below-normal starts environment.

MDM’s 2Q25 MarketPulse Report (store link) 

The company’s 2Q net profit of $185 million was almost half of the $344 million of a year earlier, primarily driven by lower gross profit and higher SG&A and net interest expense, partially offset by lower income tax expenses. Meanwhile, adjusted EBITDA of $506.1 million fell 24.4% year-over-year, with EBITDA margin of 12.0% likewise declining by 300 bps.

In updating its 2025 outlook, BLDR now expects full-year sales of $14.8 billion to $15.6 billion; gross margin between 29.0% to 30.5%; and adjusted EBITDA margin between 10.1% to 10.9%. The company’s 2024 annual sales were $16.4 billion.

“Our durable results in the second quarter reinforce the advantage of our differentiated product offerings and commitment to execution,” Builders FirstSource CEO Peter Jackson said in the company’s financial release. “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.”

In the Store: MDM’s U.S. MRO Market Trends Report 

BLDR announced the appointment of Gayartri Narayan to the newly created role of President of Technology and Digital Solutions on June 4.

The company was ranked No. 2 on MDM’s 2025 Top Distributors List of Building Materials/Construction.