Financial Data and Key Metrics Changes - For the fourth quarter, net sales decreased by 12% to $3.4 billion, driven by lower core organic sales and commodity deflation, partially offset by growth from acquisitions [19] - Gross profit was $1 billion, a decrease of 19% compared to the prior year, with a gross margin of 29.8%, down 250 basis points [22] - Adjusted EBITDA was $275 million, down approximately 44%, with an adjusted EBITDA margin of 8.2%, down 470 basis points from the prior year [23] - Adjusted EPS was $1.12, a decrease of 52% compared to the prior year [23] - Operating cash flow was $195 million, down $179 million, with free cash flow of $109 million for the quarter and $874 million for the year [24] Business Line Data and Key Metrics Changes - Core organic sales decreased by 15% in single-family and 20% in multifamily, with repair and remodel down 7% [20] - The company maintained a gross margin above 30% and an EBITDA margin above 10% for the full year, reflecting operational excellence [5][6] - The install business remained around 16%-17% of overall business, outpacing the market decline [85] Market Data and Key Metrics Changes - The housing market remains weak, characterized by affordability challenges, muted consumer confidence, and depressed commodity prices [6][7] - Commodity prices for OSB were below $350 per thousand board feet as the year ended [7] - The outlook for 2026 includes expectations for flat single-family and multifamily starts, with repair and remodel expected to increase by 1% [25] Company Strategy and Development Direction - The company is focused on reducing barriers to affordable housing and driving a more efficient, integrated supply chain [4] - Investments in technology and operational excellence are prioritized to strengthen competitive positioning and drive long-term value creation [10][28] - The company plans to continue pursuing acquisitions that expand value-added product offerings and enhance leadership in desirable geographies [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating near-term uncertainties while building long-term shareholder value [4] - The company anticipates a challenging macroeconomic environment in 2026, with a focus on managing costs and optimizing operations [19][27] - Management noted that the worst of the downturn is over, with expectations for gradual improvement in the multifamily market [34] Other Important Information - The company consolidated 25 facilities in 2025, maintaining a 92% on-time and in-full delivery rate [9] - The digital platform processed nearly $7 billion of quotes in 2025, representing a year-over-year increase of over 130% [15] - The company has made 40 acquisitions since the BMC merger in 2021, representing over $2.3 billion in annual sales [14] Q&A Session Summary Question: Can you discuss the cadence of the year regarding single-family and R&R? - Management indicated a modest growth expectation, with a slow exit from 2025 and a ramp-up expected in the first half of 2026 [33] Question: Can you provide more detail on the cost actions planned for this year? - Cost actions are primarily SG&A related and are already in place, with benefits expected to materialize throughout the year [36] Question: What is the outlook for gross margins given the current environment? - Management expects stable gross margins around just below 30%, with some variability due to seasonal factors [42] Question: How should we think about incremental margins as volume returns? - Management indicated that incremental margins are generally strong due to fixed overhead leverage, with expectations for higher than average margins during growth [51] Question: Can you discuss the recent acquisition of Pleasant Valley Homes? - The acquisition is seen as a strategic move into modular housing, with a focus on partnerships with home builder customers rather than traditional retail [63][65]

Financial Data and Key Metrics Changes - For Q4 2025, net sales decreased by 12% to $3.4 billion, driven by lower core organic sales and commodity deflation, partially offset by growth from acquisitions [18] - Gross profit was $1 billion, a decrease of 19% year-over-year, with a gross margin of 29.8%, down 250 basis points [20] - Adjusted EBITDA was $275 million, down approximately 44%, with an adjusted EBITDA margin of 8.2%, down 470 basis points from the prior year [21] - Adjusted EPS was $1.12, a decrease of 52% compared to the prior year [21] - Operating cash flow was $195 million, down $179 million, with free cash flow of $109 million for the quarter and $874 million for the year [22] Business Line Data and Key Metrics Changes - Core organic sales decreased by 15% in single-family and 20% in multifamily, with repair and remodel down 7% [19] - The company consolidated 25 facilities in 2025, bringing the total to 55 over the past two years, while maintaining a delivery rate of 92% [9] Market Data and Key Metrics Changes - The housing market remains weak, characterized by affordability challenges, muted consumer confidence, and depressed commodity prices [5][6] - Commodity prices for OSB were below $350 per thousand board feet as of the end of 2025 [6] - Economists have mixed outlooks for 2026, with some predicting further declines in single-family starts and others expecting modest growth [6] Company Strategy and Development Direction - The company is focused on reducing barriers to affordable housing and driving a more efficient, integrated supply chain [4] - Investments in technology and operational excellence are prioritized to strengthen competitive positioning and drive long-term value creation [10][26] - The company plans to continue pursuing acquisitions to expand value-added product offerings and enhance market presence [11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing housing affordability challenges and a weak market environment but expressed confidence in the company's ability to navigate these issues [4][5] - The company expects net sales for 2026 to be in the range of $14.8 billion to $15.8 billion, with adjusted EBITDA of $1.3 billion to $1.7 billion [24] - Guidance for 2026 includes expectations for flat single-family and multifamily starts, with a slight increase in repair and remodel [24] Other Important Information - The company invested over $110 million in new or upgraded value-added operations in 2025 [10] - The digital platform processed nearly $7 billion in quotes through 2025, representing a year-over-year increase of over 130% [14] Q&A Session Summary Question: Can you discuss the cadence of the year and expectations for single-family versus R&R? - Management indicated a slow exit from 2025 but expects a ramp-up in activity as builders prepare for a stronger summer in 2026 [30] Question: Can you provide more detail on the cost actions planned for this year? - Cost actions are primarily SG&A related and are already in place, with benefits expected to materialize throughout the year [33] Question: What is the outlook for gross margins given the current environment? - Management expects gross margins to remain stable but acknowledges potential variability due to market conditions [36][39] Question: How is the install business performing and what are the expectations for growth? - The install business is performing well, outpacing the overall market decline, and is seen as a growth lever for the company [80] Question: What are the expectations for working capital investments in 2026? - The company anticipates higher working capital investments in 2026 due to expected sales growth and commodity price normalization [87]

分组1 - Builders FirstSource reported quarterly earnings of $1.12 per share, missing the Zacks Consensus Estimate of $1.3 per share, and down from $2.31 per share a year ago, representing an earnings surprise of -13.86% [1] - The company posted revenues of $3.36 billion for the quarter, missing the Zacks Consensus Estimate by 2.29%, and down from $3.82 billion year-over-year [2] - Builders FirstSource has surpassed consensus EPS estimates three times over the last four quarters, but has only topped revenue estimates once in the same period [2] 分组2 - The stock has increased approximately 11.5% since the beginning of the year, while the S&P 500 has declined by 0.1% [3] - The current consensus EPS estimate for the upcoming quarter is $0.64 on revenues of $3.29 billion, and for the current fiscal year, it is $6.01 on revenues of $14.93 billion [7] - The Building Products - Retail industry is currently ranked in the bottom 9% of over 250 Zacks industries, indicating a challenging outlook for the sector [8]

Footnote Safe Harbor & Non-GAAP Financial Measures Cautionary Notice Statements in this presentation and the schedules hereto that are not purely historical facts or that necessarily depend upon future events, including statements about forecasted financial performance or other statements about anticipations, beliefs, expectations, hopes, synergies, intentions or strategies for the future, may be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. ...

For Immediate Release Builders FirstSource Reports Fourth Quarter and Full-Year 2025 Results; Provides 2026 Financial Outlook February 17, 2026 (Irving, TX) – Builders FirstSource, Inc. (NYSE: BLDR) today reported its results for the fourth quarter ended December 31, 2025. Fourth Quarter 2025 Highlights All Year-Over-Year Comparisons Unless Otherwise Noted: Selling, General and Administrative Expenses "Driven by focused execution and close customer partnerships, we successfully navigated 2025 despite ongoin ...

Core Insights - Builders FirstSource, Inc. (BLDR) is expected to report its fourth-quarter 2025 results on February 17, with adjusted earnings per share (EPS) and net sales in the last quarter exceeding Zacks Consensus Estimates by 11.2% and 3.8% respectively, although both metrics showed year-over-year declines of 6.9% and 38.8% [1] Group 1: Earnings and Sales Estimates - The Zacks Consensus Estimate for BLDR's fourth-quarter EPS has decreased to $1.30 from $1.31 over the past 30 days, indicating a 43.7% year-over-year decline from $2.31 reported in the same quarter last year [2] - The consensus estimate for net sales is projected at $3.44 billion, reflecting a 10.1% decline from $3.82 billion reported in the year-ago quarter [2] Group 2: Factors Influencing Q4 Results - Net sales are anticipated to decline year-over-year due to challenges in the housing market, including high mortgage rates and persistent inflation affecting housing starts, which directly impacts sales volume [3] - The value-added product category, which constituted 47.1% of third-quarter 2025 net sales, is expected to be negatively impacted by lower volumes, particularly in the multifamily segment and reduced home size [4] - Contributions from Specialty building products & services (27.6% of third-quarter net sales) and Lumber & lumber sheet goods (25.3% of third-quarter net sales) may slightly mitigate the overall decline, supported by stable repair and remodel activity and recent acquisitions [5] Group 3: Earnings Pressure and Market Dynamics - The bottom line is likely to decline year-over-year due to lower sales volumes in a weak housing market, with soft single-family demand and reduced revenue per start contributing to this trend [7] - Gross margins are expected to face pressure from lower volumes and competitive pricing dynamics across product categories, alongside reduced operating leverage from lower sales [8][9] - Despite disciplined cost control and productivity initiatives, profitability is anticipated to be limited due to ongoing margin pressures [9] Group 4: Earnings Prediction Model - The current model does not predict an earnings beat for Builders FirstSource, as the company has an Earnings ESP of -4.95% and a Zacks Rank of 4 (Sell) [10][11]

Company Overview - Builders FirstSource, Inc. (BLDR) is a Texas-based company that manufactures and supplies building materials, components, and construction services to various customers including professional homebuilders and remodelers, with a market cap of $13.7 billion and approximately 570 locations across 43 states [1] Stock Performance - Over the past year, BLDR shares have underperformed the broader market, declining 17.5% compared to a 14.4% increase in the S&P 500 Index [2] - However, in 2026, BLDR stock has increased by 24.8%, outperforming the S&P 500's 1.4% rise year-to-date [2] - Compared to the SPDR S&P Homebuilders ETF (XHB), which gained about 13.4% over the past year, BLDR's year-to-date gains have surpassed the ETF's 16.9% returns [3] Market Challenges and Opportunities - BLDR's struggles are attributed to a weak housing market, low sales, and margin pressure, which have negatively impacted investor confidence [6] - Recent improvements in housing data and expectations for policy support, such as potential rate cuts, have contributed to a rise in the stock this year [6] - While acquisitions have driven some growth, organic sales and commodity deflation have posed challenges [6] Earnings Expectations - For the fiscal year ending December 2025, analysts project a 38.9% decline in BLDR's EPS to $7.06 on a diluted basis [7] - The company has a strong earnings surprise history, beating consensus estimates in the last four quarters [7] - Among 23 analysts covering BLDR, the consensus rating is a "Moderate Buy," with nine "Strong Buy" ratings, one "Moderate Buy," 12 "Holds," and one "Strong Sell" [7] Analyst Ratings - The current analyst configuration is less bullish than a month ago, with only 10 analysts suggesting a "Strong Buy" [8] - DA Davidson maintained a "Neutral" rating on BLDR and lowered the price target to $111 on February 2 [8]

Core Insights - The Heartland Small Cap Value Plus Strategy experienced a decline of 0.35% in the fourth quarter, contrasting with a 3.26% gain in the broader market [3] Attribution Analysis & Portfolio Activity - The performance of the Value Plus Strategy was notably lower than the market benchmark, indicating potential challenges in stock selection or market conditions during this period [3]

Economic Indicators - Nonfarm payrolls are expected to increase by +68,000 in January, with the unemployment rate remaining unchanged at 4.4% [1] - Average hourly earnings are projected to rise by +0.3% month-over-month and +3.7% year-over-year in January [1] - Initial weekly unemployment claims are anticipated to decrease by -7,000 to 224,000 [1] - Existing home sales in January are expected to decline by -4.3% month-over-month to 4.16 million [1] - January CPI is expected to rise by +2.5% year-over-year, with core CPI also expected to increase by +2.5% year-over-year [1] Retail Sales and Employment Costs - US December retail sales were unchanged month-over-month, falling short of expectations of +0.4% [2] - The employment cost index for Q4 rose by +0.7% quarter-over-quarter, which is the smallest increase in 4.5 years and below the expected +0.8% [2] Stock Market Performance - Stock indexes experienced mixed trading, with the Dow Jones reaching a new all-time high while the S&P 500 closed down -0.33% and the Nasdaq down -0.56% [6][5] - The broader market initially found support from weaker-than-expected retail sales and employment cost index reports, which lowered bond yields [5] Earnings Season Insights - Over half of the S&P 500 companies have reported earnings, with 78% beating expectations [7] - S&P earnings growth is expected to rise by +8.4% in Q4, marking the tenth consecutive quarter of year-over-year growth [7] - Excluding the Magnificent Seven tech stocks, Q4 earnings are projected to increase by +4.6% [7] Interest Rates and Bond Market - The markets are pricing in a 23% chance of a -25 basis point rate cut at the next Federal Reserve meeting [8] - The 10-year T-note yield fell to a 3.5-week low of 4.13%, supported by weaker-than-expected economic reports [9] Sector Performance - AI-infrastructure stocks faced pressure, with Western Digital down more than -7% and other tech stocks also declining [12] - Wealth-management stocks dropped significantly, with Raymond James Financial down more than -8% due to concerns over AI disruption [13] - Homebuilding stocks rose after the drop in mortgage rates, with Toll Brothers up more than +6% [14] Company-Specific Developments - Goodyear Tire & Rubber Co reported Q4 adjusted EPS of 39 cents, below the consensus of 49 cents, leading to a decline of more than -14% [15] - Incyte forecasted dull-year total net product revenue of $4.77 billion to $4.94 billion, causing a drop of more than -8% [16] - Spotify reported a record 38 million monthly active users in Q4, leading to a rise of more than +17% [17]

Core Insights - Black Bear Value Fund reported a return of +0.2% in December 2025, resulting in a total return of -12.6% for the year, while the S&P 500 returned +0.1% in December and +17.9% for 2025 [1] - The Fund has underperformed by 10-15% over the past two years in a rising market, indicating a divergence from index performance expectations [1] - The Fund anticipates a significant rerating of its holdings as they are at the end of a capital-investment cycle, despite current market conditions not being favorable [1] Company Insights: Builders FirstSource, Inc. (NYSE:BLDR) - Builders FirstSource, Inc. experienced a one-month return of 0.27% but saw a decline of 20.10% over the last 52 weeks, closing at $124.42 per share with a market capitalization of $13.758 billion on February 6, 2026 [2] - The company faced a 28% decline in 2025 due to weakness in the housing market and pressure from new home starts, yet it is expected to generate significant free cash flow between $800 million and $1 billion in 2025, translating to a trailing yield of 7-9% [3] - The long-term investment thesis for Builders FirstSource remains intact, with expectations of higher cash flows when housing starts improve, despite potential short-term stock fluctuations [3]