Sales were essentially flat while net income fell by 22.5% in the fiscal first quarter for Builders FirstSource.

“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,” Dave Rush, CEO of Builders FirstSource said in a prepared statement. “As we expected, a weakening multifamily market and higher mortgage rates driving affordability challenges were headwinds to start the year. Despite these macro challenges, we are building on our successes and driving growth through our value-added products portfolio and industry-leading digital platform.”

In the first quarter, net sales increased 0.2% on a year-over-year basis to $3.9 billion. Core organic net sales were flat with the prior year. Single-family sales increased 4.3%, while multifamily declined 13.4% and repair and remodel fell 4.7%.

Gross profit in the quarter was $1.3 billion, a decrease of 5.3% compared to the prior year period. Gross profit margin percentage decreased 190 basis points to 33.4%, driven by a timing shift in product mix toward lower-margin, early-stage home building products, as well as margin normalization, according to the dealer.

“Our first quarter results demonstrate the effectiveness of our strategy and operating model amid a measured start to the year,” Peter Jackson, chief financial officer, said. “We are maintaining our fortress balance sheet and prudently deploying capital to the highest return opportunities, which included acquisitions and share repurchases during the first quarter.”

Builders FirstSource reported net income fell to $258.8 million in the quarter from $333.8 million in the prior-year period. The decrease was primarily driven by lower gross profit and higher operating expenses, largely due to acquisitions. Adjusted EBITDA decreased 14.4% to $540.9 million while adjusted EBITDA margin declined by 240 basis points from the prior year period.