Builders FirstSource reported a decline in revenue and profitability for the fourth quarter and full-year 2024, reflecting the impact of lower core organic sales and commodity deflation. Fourth-quarter net sales dropped 8.0% year-over-year to $3.8 billion, primarily due to an 8.8% decline in core organic sales and a 3.1% impact from commodity deflation, partially offset by a 2.5% contribution from acquisitions. Gross margin decreased 300 basis points to 32.3%, driven by margin normalization in the Single-Family and Multi-Family segments.

Net income for the quarter was $190.2 million, a 45.8% decline from the previous year, with diluted earnings per share (EPS) at $1.65, compared to $2.83 in Q4 2023. Adjusted EBITDA fell 28.0% to $493.6 million, while the adjusted EBITDA margin declined by 360 basis points to 12.9%.

For the full year, Builders FirstSource generated $1.9 billion in cash from operations, with free cash flow of $1.5 billion. The company repurchased 8.9 million shares for $1.5 billion, reducing its total outstanding shares by 6.8%. CEO Peter Jackson emphasized the company’s resilience despite market challenges, attributing success to operational excellence and continued investments in value-added solutions and technology.

Looking ahead, CFO Pete Beckmann highlighted the company’s commitment to maintaining financial flexibility, executing its balanced capital allocation strategy, and driving long-term shareholder value through organic growth and strategic acquisitions.