Building materials distributor Builders FirstSource reported its 2024 second quarter financial results on Aug. 6, showing a downward trend after sales growth in the first quarter.

The Irving, TX-based company posted total 2Q sales of $4.5 billion, down 1.6% year-over-year, with organic sales down 3.8% as its Multi-Family segment trended downward, partially offset by growth from acquisitions and Single Family.

The decline follows an increase of $3.9 billion or 0.2% in net sales for 1Q24.

Meanwhile, BFS’ 2Q gross margin fell 240 basis points year-over-year to 32.8% which the company said was primarily driven by ongoing normalization, particularly in Multi-Family.

2Q operating profit of $344.1 million fell 12.9% year-over-year, while net profit of $420.4 million decreased by 15.6%. BFS’s 2Q adjusted EBITDA decreased 12.9% to $669.7 million, primarily driven by lower gross profit, partially offset by lower operating expenses. Adjusted EBITDA margin fell by 200 basis points to 15%.

“As we continue to operate in this complex environment, I am proud of our resilient second quarter results highlighted by maintaining a mid-teens EBITDA margin, which demonstrates the strength of our differentiated business model and the hard work of our extraordinary team members,” Builders FirstSource CEO Dave Rush said in the company’s financial release. “While we continue to see weaker than expected Single-Family starts, slowing Multi-Family and broader housing affordability challenges, we are executing our strategy by controlling what we can control, investing in value-added solutions, and driving adoption of our industry-leading digital platform.”

In updating its full-year outlook, BFS said it now expects 2024 sales to be between $16.4 billion to $18.5 billion. Its 2023 sales totaled $17.1 billion, The company expects 2024 gross margin to be between 31.5% to 32.5%, and adjusted EBITDA margin of 13.4% to 14%.

On Aug. 6, the board of directors for Builders FirstSource — No. 2 on MDM’s Top Distributor’s List for Building Materials/Construction — authorized a $1 billion share repurchasing plan.