Builders FirstSource, Inc. (NYSE:BLDR) shares are trading lower on Thursday.

The company reported second-quarter adjusted earnings per share of $2.38, beating the analyst consensus estimate of $2.29. The company reported quarterly sales of $4.234 billion (+5% year-over-year), which missed the analyst consensus estimate of $4.283 billion.

Gross profit margin decreased 210 basis points to 30.7%, primarily due to normalization of Single- and Multi-Family margins and a below-normal start environment.

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Adjusted net income was $264.3 million, a decrease of 37.1%, primarily driven by lower gross profit and higher net interest expense.

Adjusted EBITDA decreased 24.4% to $506.1 million, primarily driven by lower gross profit. Adjusted EBITDA margin declined by 300 basis points to 12%, attributable to lower gross margin and reduced operating leverage.

For the three months ended June 30, cash provided by operating activities was $341 million, and cash used in investing activities was $147.4 million.

Outlook

The company expects to deliver $45 million to $65 million in productivity savings in 2025.

The company lowered its FY25 sales outlook to a range of $14.8 billion to $15.6 billion. That’s down from the prior range of $16.05 billion to $17.05 billion, and below the $16.318 billion analyst estimate.

The company expects gross profit margin to be between 29.0% and 30.5%, and adjusted EBITDA to range from $1.5 billion to $1.7 billion.

Price Action: BLDR shares are trading lower by 3.45% to $121.74 at last check on Thursday.

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