Building materials distributor Builders FirstSource reported its 2024 third quarter financial results on Nov. 5, showing a decline in sales year-over-year driven by lower core organic sales.

The Irving, TX-based company posted total 3Q sales of $4.2 billion, down 6.7% year-over-year, with organic sales down 7.2% as its Multi-Family segment trended downward, partially offset by growth from acquisitions and one additional selling day.

The decline followed a decrease of 1.6% to $4.5 billion in net sales for 2Q24.

Meanwhile, BFS’ 3Q gross margin decreased 210 basis points year-over-year to 32.8%, which the company said was primarily driven by ongoing Multi-Family and core organic normalization.

3Q net profit of $$284.8 million decreased by 36.9% year-over-year, while adjusted EBITDA decreased by 23% to $626.5 million, primarily driven by lower gross profit, offset by lower operating expenses after adjustments. Adjusted EBITDA margin fell by 310 bps to 14.8%.

“I’m proud of our resilient third quarter performance as we maintained a mid-teens EBITDA margin by leveraging our distinct competitive advantages and differentiated business model,” Builders FirstSource CEO Dave Rush said in the company’s financial release. “Our six acquisitions during the third quarter reinforce our commitment to investing in value-added products to enhance our margin profile. I am confident in our ability to execute our strategy and drive long-term growth.”

In updating its full-year outlook, BFS said it now expects 2024 sales to be between $16.25 billion to $16.55 billion. The company expects 2024 gross margin to be between 32.0% to 33.0%, and adjusted EBITDA margin of 13.8% to 14.2%.

The company’s most recent previous acquisitions were of Reno, NV-based High Mountain Door & Trim Inc., completed on Oct. 7 and Rhode Island-based Douglas Lumber, completed on Oct. 4.

On Sept. 19, Builders FirstSource — No. 2 on MDM’s Top Distributor’s List for Building Materials/Construction — shared news that the company will have a new president & CEO, succeeding David Rush on Nov. 6.