Builders FirstSource, Inc. reported a net sales figure of $16.4 billion for the fiscal year ending December 31, 2024, marking a 4.1% decrease from the previous year's $17.1 billion. This decline was primarily attributed to a 5.1% decrease in core organic sales, particularly in the multi-family customer segment, alongside a 1.8% reduction due to commodity price deflation. The company's gross margin also decreased to 32.8% from 35.2% in 2023, reflecting pressures from both single-family and multi-family market normalization. Net income for the year was $1.08 billion, down from $1.54 billion in 2023, resulting in diluted earnings per share of $9.06 compared to $11.94 the previous year.
In terms of strategic developments, Builders FirstSource completed several acquisitions in 2024, totaling approximately $345.4 million. Notable acquisitions included Quality Door & Millwork, Hanson Truss Components, and RPM Wood Products, among others. These acquisitions are expected to enhance the company's market footprint and expand its value-added product offerings. Additionally, the company announced the acquisition of Alpine Lumber Company, which was finalized on January 2, 2025, further solidifying its presence in the Colorado and northern New Mexico markets.
Operationally, Builders FirstSource maintained a workforce of approximately 29,000 employees as of December 31, 2024. The company operates around 590 locations across 43 states, with a significant presence in 48 of the top 50 U.S. Metropolitan Statistical Areas. The company’s top ten customers accounted for 15% of net sales, with the largest customer representing 4%. The company continues to focus on enhancing its service offerings, particularly in prefabricated components, which are increasingly sought after by homebuilders to improve efficiency and address labor shortages.
Looking ahead, Builders FirstSource anticipates a stable housing market, with forecasts suggesting total housing starts will remain flat at approximately 1.4 million for 2025. The company is well-positioned to capitalize on ongoing construction activity and aims to increase its market share through strategic acquisitions and organic growth. However, it acknowledges potential challenges related to interest rates and inflation, which may impact housing affordability and demand in the near term. The company plans to closely monitor working capital and customer credit exposure while maintaining a focus on operational efficiency and cost control.
About Builders FirstSource, Inc.
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