Net sales and net income declined on a year-over-year basis in the fiscal second quarter for Builders FirstSource (BFS).
“While we continue to see weaker than expected single-family starts, slowing multifamily, 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,” Dave Rush, CEO of BFS, said in a prepared statement. “Our ability to solve industry pain points with our best-in-class product portfolio and delivering exceptional customer service makes us trusted partners to our customers as they navigate this uncertain macro landscape.”
The dealer reported net sales of $4.5 billion in the second quarter, a 1.6% year-over-year decrease, driven by a 3.8% decline in core organic sales as multifamily continues to trend downward. Core organic net sales declined 3.8%, single-family increased 1.1%, and repair and remodel/other increased 1.5%, while multifamily declined by 31.3%.
Gross profit in the quarter was $1.5 billion, an 8.3% decrease on a year-over-year basis. Gross profit margin percentage decreased 240 basis points to 32.8%. Net income in the quarter declined to $344.1 million from $404.6 million in the year-prior period.
Adjusted EBITDA decreased 12.9% to $669.7 million while adjusted EBITDA margin declined 200 basis points to 15.0%.
“We were able to effectively navigate a softer-than-expected housing environment during the second quarter by leaning into the pillars of our strategy and operating model,” chief financial officer Peter Jackson said. “Looking forward, we believe our sustainable competitive advantages in our value-added solutions and strong financial position are enabling us to successfully manage volatility and deliver long-term value creation.”
