Sean McAleer

Sean McAleer asked if Builders FirstSource observed increased competition from peers during the weakening revenue environment in Q4 2025 and if industry capacity is normalizing, given BFS's facility consolidations. He also inquired about the growth of the install business in 2025, its size, 2026 growth expectations, and how its margins compare to the overall business.

Answer

CEO Peter Jackson reported no significant change in competition at year-end and noted that while BFS adjusts its footprint, competitors often exit markets when closing facilities, believing the industry is seeing a rational reaction to capacity. CFO Pete Beckmann stated that the install business remained around 16%-17% of overall business, outpacing the single-family market decline in 2025, indicating market share gains. He added that install margins are generally in line with the categories being installed, and it's considered a key growth lever.

Sean McAleer asked if the company observed increased competition from peers during the weakening revenue environment in Q4. He also inquired about industry capacity normalization, given BFS's facility consolidations, and sought details on the install business, including its size in 2025, growth expectations for 2026, and margin trends.

Answer

CEO Peter Jackson noted no significant change in competition in Q4 and observed some competitors shutting down facilities or putting new projects on hold, indicating a rational reaction to capacity in the industry. CFO Pete Beckmann stated that the install business remained around 16%-17% of overall business in 2025, outpacing the single-family market decline and gaining inroads. He added that install margins are generally in line with the categories being installed, and it remains a key growth lever. Peter Jackson emphasized builders' desire for seamless job sites and reliability as reasons for continued success in the install space.