(Reuters) – Builders FirstSource on Thursday trimmed its annual revenue forecast, after reporting a decline in first-quarter profit and sales due to persistently weak housing construction as well as affordability issues.
Elevated mortgage rates and tariff-driven macroeconomic uncertainty have prompted potential customers to reconsider buying homes, leading to suppressed demand for new houses.
Shares of the Irving, Texas-based company, which supplies building materials and products for home construction, were down 2.4% in morning trading following the results.
It forecast 2025 net sales between $16.05 billion and $17.05 billion, compared with a prior view of $16.5 billion to $17.5 billion.
Builders FirstSource expects its full-year single-family starts to be down mid-single digits and multi-family starts down mid-teens.
The company’s adjusted profit came in $1.51 per share in the three months ended March 31, below $2.65 per share a year ago.
However, the quarterly profit surpassed analysts’ average estimate of $1.37 per share, according to data compiled by LSEG.
The building solutions provider’s first-quarter net sales fell 6% to $3.66 billion from a year ago, hurt by one fewer selling day and commodity deflation.
(Reporting by Rupali Chaudhary in Bengaluru; Editing by Shreya Biswas)
Comments