BLDRNEUTRAL

BLDR Gross Margin Analysis

28.1%

Higher than 48% of Industrials sector peers

Updated 273h ago·SEC filings & market data

Key Takeaway

Gross margin is the share of revenue left after paying direct production costs, so Builders FirstSource keeps $0.281 of each sales dollar before other expenses.

Sector Performance

48th percentile

BLDR

28.1%

Sector Median

28.9%

Sector Avg

846.3%

Prior Period

28.3%(Jul 2026)

→ Stable

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Deep Analysis

Gross margin is the share of revenue left after paying direct production costs, so Builders FirstSource keeps $0.281 of each sales dollar before other expenses.

At 28.1%, the company sits just below the sector median of 28.9%, placing it in the 48th percentile among Industrials peers—essentially middle-of-the-pack. The year-over-year change is not available, but the quarter-over-quarter change is -0.7%, moving from 28.3% to 28.1%, so the metric is slightly eroding over the most recent quarter. This combination of an average level with a small quarterly decline suggests a mild margin pressure point, but not enough on its own to signal a major cost or pricing problem. For an investor, the level is acceptable while the direction warrants monitoring, but the risk here is limited given how close the company tracks its sector. This metric neither supports nor contradicts the overall NEUTRAL verdict—it aligns with a view that the stock is fairly balanced between risks and opportunities.

Frequently Asked Questions

What does the Gross Margin tell investors about BLDR?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does BLDR's Gross Margin compare to its sector?

BLDR's Gross Margin of 28.1% compares to a Industrials sector median of 28.9%, placing it in the 48th percentile.

Who are BLDR's closest peers by Gross Margin?

The closest Industrials peers by Gross Margin include: AVY (29.6%), SAVE (31.3%), AAL (26.0%), JOBY (22.4%), RTX (20.8%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.