Builders FirstSource Inc. reported full-year net sales of $16.4 billion for 2024, marking a 4.1% decline compared to the previous year.
The decrease was driven by a 5.1% drop in core organic sales and commodity deflation of 1.8%, partially offset by acquisition growth and two additional selling days. Net income for the year fell to $1.1 billion, reflecting reduced gross profits and market challenges across key sectors. Builders FirstSource is a leading distributor of building materials and construction services.
Despite these challenges, CEO Peter Jackson emphasized the company’s focus on digital innovation as a core growth strategy.
“Our strong organic growth engine is fueled by investments in value-added solutions and digital tools,” Jackson said. “In 2024, we invested over $75 million in value-added facilities to meet growing demand in our key markets.”
Builders FirstSource digital sales in 2024
The company’s digital platform, launched last year, quickly gained traction, with $1 billion in orders processed. This includes $134 million in incremental sales for Builders FirstSource from both new and existing customers. Jackson expressed optimism for continued digital growth in 2025, projecting an additional $200 million in incremental sales as adoption spreads among small production builders and larger clients.
“We’re pleased with our progress and expect to grow wallet share while winning new customers,” Jackson added.
In Q4 2024, Builders FirstSource net sales dropped 8% year-over-year to $3.8 billion. That was primarily due to declining core organic sales and commodity deflation. Net income for the quarter was $190.2 million, a significant decline from $350.7 million in the same period the previous year.
“Digital is a tremendous learning opportunity for us. I remain confident that the technology and the solution is the right answer,” Jackson told analysts. “As we go through the learning process, I think what we’ve identified is that — and you hit the nail on the head, our pace this year isn’t quite what we wanted. And we spent a lot of time at the end of the year to reassess why that is why is the pace not picking up where we thought it would be. And I think the answer has a lot to do with the way we’ve approached adoption.”
In February 2024, the company launched an updated digital platform designed to streamline and enhance the building process for contractors and builders. The platform offers a wide range of features aimed at improving efficiency and collaboration, including:
- Project document storage tools
- 3D home previews
- Online material estimates and ordering
- Delivery status tracking and job scheduling
- Project planning tools, including intake and mark-up
- Structural adjustments and finish selections made online
- Collaboration tools for reviewing frames with suppliers and builders
- Requesting estimates across all product categories
- Reviewing quotes, purchasing materials, and tracking orders
- Aligning material receipt with labor needs through scheduling
- Viewing invoices and tracking overall project costs
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