Builders FirstSource second quarter revenue fell 8.8% and missed estimates amid housing market headwinds.

Builders FirstSource reported second quarter net sales of $3.86 billion, an 8.8% decrease year-over-year, and a diluted loss per share of $0.04. On an adjusted basis, EPS was $1.17, missing analyst expectations of $1.29. The results reflect a decline in core organic sales driven by a challenging housing market and commodity deflation.

Key Highlights

• Net sales decreased 8.8% to $3.86 billion, driven by a 7.0% decline in core organic sales and 2.7% from commodity deflation.
• Gross margin contracted by 260 basis points to 28.1%, and adjusted EBITDA fell 34.9% year-over-year to $329.3 million.
• The company updated its full-year outlook to reflect a more cautious view, now expecting net sales of $14.0-$14.8 billion and adjusted EBITDA of $1.0-$1.2 billion.