Free cash flow generation has deteriorated sharply, with margins falling to 1.2% in 2026Q1 compared to 14.9% in 2024Q3, highlighting a disconnect between accounting income and cash conversion.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'01 |
|---|
| Cash from Operations | 1.17B | 1.22B | 1.87B | 2.31B | 3.6B | 1.74B | 260.07M | 504.05M | 282.83M | 178.53M | 158.23M | 177.03M | 27.49M | -47.58M | -66.85M | -66.41M | -41.72M | -2.75M | -28.88M | 71.5M | 111.85M | 116.98M | 94.39M | -40.16M | 0 |
| Operating CF Margin % | - | 8% | 11.42% | 13.49% | 15.84% | 8.76% | 3.04% | 6.92% | 3.66% | 2.54% | 2.48% | 4.97% | 1.71% | -3.19% | -6.24% | -8.52% | -5.96% | -0.41% | -2.79% | 4.49% | 4.99% | 5% | 4.59% | -2.4% | - |
| Operating CF Growth % | -131.28% | -35.07% | -18.82% | -35.91% | 106.43% | 570.42% | -48.4% | 78.22% | 58.42% | 12.83% | -10.62% | 543.92% | 157.79% | 28.83% | -0.67% | -59.18% | -1419.3% | 90.49% | -140.39% | -36.08% | -4.39% | 23.94% | 335.01% | - | - |
| Net Income | 291.5M | 435.2M | 1.08B | 1.54B | 2.75B | 1.73B | 313.54M | 221.81M | 205.19M | 38.78M | 144.34M | -22.83M | 18.15M | -42.89M | -55.79M | -65M | -95.51M | -61.85M | -139.49M | -23.75M | 68.89M | 48.63M | 51.58M | 17.58M | 1.54M |
| Depreciation & Amortization | 594.76M | 591.43M | 561.93M | 558.27M | 497.14M | 547.35M | 116.57M | 100.04M | 97.91M | 92.99M | 109.79M | 58.28M | 9.52M | 9.3M | 11.12M | 14.04M | 15.43M | 17.91M | 21.57M | 29.03M | 24.97M | 35.7M | 23.34M | 22.14M | 25.23M |
| Stock-Based Compensation | 52.9M | 53.51M | 63.11M | 48.52M | 31.34M | 31.49M | 17.02M | 12.24M | 14.42M | 13.51M | 10.55M | 6.85M | 6.16M | 4.25M | 3.63M | 4.56M | 4.31M | 2.86M | 8.48M | 7.07M | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 68.5M | 6.81M | -19.03M | -102.46M | -92.46M | -34.57M | 16.61M | 50.99M | 51.82M | 49.1M | -124.79M | 3.29M | 524K | 917K | 458K | 1.82M | -1.24M | 411K | 18.7M | -12.95M | -1.7M | -2.76M | 2.13M | 3.15M | 0 |
| Other Non-Cash Items | 84.44M | 2.99M | 32.98M | -13.15M | 69.18M | -5.07M | 13.86M | 11.12M | 79K | 69.71M | 61.68M | 27.09M | 1.59M | 13.98M | 7.92M | 2.41M | 7.33M | 6.34M | 57.43M | 37.41M | 11.54M | 1.1M | 2.4M | 5.86M | -25.23M |
| Working Capital Changes | 78.91M | 125.94M | 155.81M | 275.13M | 344.67M | -521.06M | -217.53M | 107.85M | -86.59M | -85.57M | -43.35M | 104.36M | -8.45M | -33.14M | -34.19M | -24.24M | 27.96M | 30.85M | 4.89M | 41.76M | 8.15M | 34.3M | 14.94M | -88.88M | 0 |
| Change in Receivables | 10.21M | 200.63M | 264.23M | 5.38M | 405.27M | -577.69M | -264.26M | 42.79M | -9.22M | -75.67M | -44.55M | 74.09M | 1.11M | -25.59M | -41.73M | -17.18M | 40M | 23.03M | 16.83M | 48.19M | 50.1M | -15.92M | -9.36M | -82.05M | 0 |
| Change in Inventory | 192.64M | 198.52M | 51.48M | 231.46M | 271.89M | -282.17M | -220.1M | 44.2M | -5.42M | -60.65M | -33.97M | 46.85M | -13.57M | -14.64M | -31.91M | -9.52M | -15.79M | 20.85M | 26.17M | 28.85M | 31.31M | -11.54M | -15.31M | -16.14M | 0 |
| Change in Payables | -98.8M | -167.18M | -28.6M | 75.75M | -314M | 191.88M | 160.95M | 4.07M | -89.39M | 65.76M | 36.59M | -45.29M | -5.18M | 1.65M | 30.78M | 3.75M | 5.3M | 4.16M | -30.4M | -20.79M | 0 | 28.6M | 0 | 0 | 0 |
| Cash from Investing | -612.97M | -1.47B | -710.72M | -668.29M | -957.48M | -1.34B | -136.22M | -199.18M | -96.66M | -59.43M | -38.33M | -1.51B | -94.84M | 571K | -9.03M | -18.61M | -8.35M | -117K | -2.28M | -26.33M | -60.87M | -25.41M | -18.67M | -13.04M | 0 |
| Capital Expenditures | -309.37M | -362.6M | -380.57M | -476.33M | -340.15M | -227.89M | -112.08M | -112.87M | -101.41M | -62.41M | -42.66M | -43.81M | -25.72M | -15.05M | -10.4M | -4.79M | -8.95M | -2.1M | -8.19M | -10.05M | -27.19M | -29.73M | -20.72M | -15.59M | 0 |
| CapEx % of Revenue | 2.09% | 2.39% | 2.32% | 2.79% | 1.5% | 1.15% | 1.31% | 1.55% | 1.31% | 0.89% | 0.67% | 1.23% | 1.6% | 1.01% | 0.97% | 0.62% | 1.28% | 0.31% | 0.79% | 0.63% | 1.21% | 1.27% | 1.01% | 0.93% | - |
| Acquisitions | -310.94M | -1.12B | -344.14M | -238.67M | -628.01M | -1.13B | -32.64M | -92.86M | 0 | 0 | -3.97M | -1.47B | -69.34M | 0 | 0 | 0 | 0 | 0 | 701K | -18.29M | -35.38M | 0 | 0 | -4.56M | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 7.35M | 18.76M | 13.99M | 46.72M | 10.69M | 13.56M | 8.5M | 6.54M | 4.75M | 2.98M | 8.3M | 4.28M | 213K | 15.62M | 1.36M | -13.82M | 602K | 1.99M | 5.21M | 2.02M | 1.7M | 4.32M | 2.05M | 7.12M | 0 |
| Cash from Financing | -575.08M | 279.42M | -1.07B | -1.65B | -2.6B | -780.11M | 285.87M | -300.9M | -233.58M | -76.02M | -170.51M | 1.38B | 30.42M | -29.73M | 60.48M | 128.62M | 69.21M | -19.93M | 40.48M | -40.85M | 11.54M | -111.45M | -30.67M | 56.54M | 0 |
| Debt Issued (Net) | 574.3M | 727.29M | 519.77M | 193.88M | 44.48M | 938.87M | 311.28M | -293.08M | -232.49M | -32.72M | -133.18M | 1.26B | 29.9M | -30.41M | 60.38M | 128.62M | -105.19M | -20.04M | 39.96M | -39.93M | -132K | 1.5M | 120.17M | 59.31M | 0 |
| Equity Issued (Net) | -1.12B | -413.96M | -1.52B | -1.85B | -2.63B | -1.71B | -2.73M | -5.52M | -950K | 5.41M | 5.54M | 117.04M | 525K | 718K | 100K | -2K | -31K | 733K | 897K | 3.5M | 11.78M | 109.79M | -313K | -1.45M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -201.19M | -139.59M | 0 | 0 |
| Share Repurchases | -1.12B | -413.96M | -1.52B | -1.85B | -2.63B | -1.71B | -4.15M | -10.39M | -4.89M | -2.64M | -1.09M | -986K | -1.31M | -1.04M | -496K | -2K | -31K | -126K | -416K | -722K | -116K | 0 | -351K | -1.45M | 0 |
| Other Financing | -31.61M | -33.92M | -77.15M | 0 | -20.67M | -4.95M | -22.69M | -2.3M | -134K | -48.7M | -42.87M | 0 | 0 | -37K | 0 | 0 | 174.43M | -620K | -380K | -4.42M | -100K | -21.56M | -10.93M | -1.33M | 0 |
| Net Change in Cash | -17.03M | 28.13M | 87.47M | -14.29M | 37.84M | -381.2M | 409.71M | 3.97M | -47.41M | 43.08M | -50.61M | 47.29M | -36.92M | -76.74M | -15.4M | 43.6M | 19.14M | -22.79M | 9.32M | 4.32M | 62.52M | -19.89M | 45.04M | 3.34M | 0 |
| Free Cash Flow | 861.64M | 853.28M | 1.49B | 1.83B | 3.26B | 1.52B | 147.99M | 391.18M | 181.42M | 116.12M | 115.56M | 133.22M | 1.78M | -62.63M | -77.25M | -71.2M | -50.67M | -4.85M | -37.07M | 61.44M | 84.66M | 87.24M | 73.67M | -55.75M | 0 |
| FCF Margin % | 5.81% | 5.62% | 9.1% | 10.71% | 14.34% | 7.62% | 1.73% | 5.37% | 2.35% | 1.65% | 1.81% | 3.74% | 0.11% | -4.2% | -7.21% | -9.14% | -7.24% | -0.72% | -3.58% | 3.86% | 3.78% | 3.73% | 3.58% | -3.33% | - |
| FCF Growth % | -33.75% | -42.81% | -18.49% | -43.83% | 115.03% | 924.2% | -62.17% | 115.62% | 56.23% | 0.48% | -13.25% | 7397.07% | 102.84% | 18.93% | -8.49% | -40.51% | -945.02% | 86.92% | -160.33% | -27.42% | -2.97% | 18.43% | 232.13% | - | - |
| FCF per Share | 7.84 | 7.63 | 12.54 | 14.19 | 19.94 | 7.45 | 1.25 | 3.34 | 1.56 | 1.00 | 1.02 | 1.29 | 0.02 | -0.65 | -0.81 | -0.75 | -0.55 | -0.12 | -0.95 | 1.61 | 2.15 | 2.54 | 2.53 | -2.02 | - |
| FCF Conversion (FCF/Net Income) | 2.96x | 2.79x | 1.74x | 1.50x | 1.31x | 1.01x | 0.83x | 2.27x | 1.38x | 4.60x | 1.10x | -7.75x | 1.51x | 1.11x | 1.18x | 1.02x | 0.44x | 0.04x | 0.21x | -3.01x | 1.62x | 2.41x | 1.83x | -2.29x | - |
| Interest Paid | 171.84M | 260.51M | 188.45M | 186.5M | 169.39M | 105.57M | 110.6M | 100.35M | 107.67M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 70.9M | 0 | 373.06M | 578.73M | 936.42M | 633.06M | 43.4M | 18.11M | 3.15M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Cyclical housing demand sensitivity
According to the provided financial data, the relationship between net income and operating cash flow has become increasingly erratic, with the 2026Q1 OCF/NI ratio reaching -1.84, signaling a significant disconnect between accounting profitability and the actual cash-generating capacity of the underlying business operations during this downturn.
The persistent gap between net income and operating cash flow suggests that non-cash charges and working capital volatility are masking the true cash-generating profile of the firm. Investors should monitor whether this negative conversion ratio reflects a structural inability to convert earnings into cash as the housing cycle troughs.
As reported in recent financial statements, the company's FCF margin has experienced a sharp decline, falling from a peak of 14.9% in 2024Q3 to a marginal 1.2% in 2026Q1, reflecting the combined impact of revenue contraction and the inability to scale back fixed costs effectively.
The rapid erosion of free cash flow margins indicates that the business is struggling to maintain its historical cash-generative efficiency in the face of lower volume. This trend warrants further investigation into whether the current cost structure is too rigid to withstand a prolonged period of suppressed residential construction activity.
Based on reported figures, working capital changes have swung from a positive $287.8 million in 2024Q3 to a cash-consuming $80.1 million in 2026Q1, highlighting the company's sensitivity to inventory management and collection cycles during periods of shifting demand in the construction sector.
The shift toward negative working capital impacts suggests that the company is facing challenges in balancing inventory levels with slowing sales velocity. This volatility may indicate that the firm is holding excess inventory that is becoming increasingly difficult to liquidate at favorable margins.
As evidenced by the quarterly cash flow statements, the company has continued to prioritize share repurchases, including a $300.1 million outlay in 2026Q1, despite the simultaneous emergence of a net loss and a significant reduction in overall free cash flow generation during the same period.
The decision to maintain high levels of share buybacks while operating cash flow is under pressure suggests a management focus on capital returns that may be at odds with the current cyclical reality. Investors should consider whether this capital allocation strategy is sustainable if the current revenue contraction persists.
Quick answers to the most common questions about buying BLDR stock.
Builders FirstSource, Inc. (BLDR) generated $1.22B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Builders FirstSource, Inc. (BLDR) generated $853.3M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Builders FirstSource, Inc. (BLDR) spent $362.6M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Builders FirstSource, Inc. (BLDR) spent $414.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.