Building materials distributor Builders FirstSource reported its 2024 first quarter financial results on May 7, showing continued sequential improvements in year-over-year sales growth, which turned positive after a prolonged stretch of considerable declines.

The Irving, TX-based company posted total 1Q sales of $3.9 billion, up 0.2% year-over-year, with organic sales that were essentially flat as growth from acquisition partially offset commodity inflation.

That modest overall gain followed declines of 4.7% in 4Q23; 21.3% in 3Q23; 34.6% in 2Q23; and 31.6% in 1Q23.

Meanwhile, BFS’ 1Q gross margin fell 190 basis points year-over-year to 33.4%, which the company said was primarily driven by a timing shift in product mix toward lower-margin, early stage homebuilding products, as well as margin normalization, particularly in multi-family.

1Q operating profit of $374 million fell 18.8% year-over-year, while net profit of $259 million likewise fell 22.5%. BFS’ 1Q adjusted EBITDA decreased 14.4% to $541 million, primarily driven by lower gross profit and higher operating expenses due to acquisitions. Adjusted EBITDA margin fell by 240 bps to 13.9%.

“Our resilient first quarter results reflect our differentiated product portfolio and scale, our team members’ consistent focus on executing our strategic priorities and our operational efficiency initiatives,” BFS Chief Executive Dave Rush said in the company’s financial release. “As we expected, a weakening Multi-Family market and higher mortgage rates driving affordability challenges were headwinds to start the year.

In updating its full year outlook, BFS said it now expects total 2024 sales to be between $17.5 billion to $18.5 billion. Its 2023 sales totaled $17.1 billion. The company expects 2024 gross margin to be between 30-33%, and adjusted EBITDA margin of 14.0-15.0%.