Builders FirstSource, Inc. (NYSE: BLDR) reported its third-quarter 2024 financial results, reflecting a period of decreased sales but maintained profitability. Net sales were $4.2 billion, a 6.7% decline from the same period in 2023, primarily due to lower core organic sales and commodity deflation, partially offset by growth from acquisitions and an additional selling day.
Despite the revenue decline, the company achieved a gross profit margin of 32.8%, a decrease of 210 basis points, attributed mainly to ongoing multi-family and core organic normalization. Gross profit stood at $1.4 billion, a 12.3% reduction year-over-year. Net income decreased by 36.9% to $284.8 million, equating to $2.44 per diluted share, down from $3.59 per diluted share in the prior year period. Adjusted EBITDA was $626.5 million, a 23% decrease, primarily driven by lower gross profit.
During the earnings call, CEO Dave Rush and CFO Peter Jackson discussed the company’s focus on operational excellence and supply chain initiatives, which delivered approximately $27 million in productivity savings for the quarter.
They also highlighted the company’s strategic investments in value-added products and digital solutions to drive long-term growth.
Looking ahead, Builders FirstSource remains committed to enhancing shareholder value through disciplined capital allocation, operational efficiency, and strategic growth initiatives, despite the challenges posed by market conditions.
