Building materials distributor Builders FirstSource reported another quarter of year-over-year sales and margin declines to open 2026, as the Irving, TX-based company continued to navigate weak housing starts and commodity deflation.

For the first quarter ended March 31, Builders FirstSource reported net sales of $3.29 billion, down 10.1% year-over-year. The decline reflected an 8.3% drop in core organic net sales and 3.3% commodity deflation, partially offset by 1.5% growth from acquisitions.

By end market, core organic sales declined 11.1% in single-family, 1.4% in multifamily and 1.3% in repair and remodel/other. Single-family accounted for most of the overall sales pressure, lowering net sales by 7.9% on a weighted basis.

Gross profit fell 16.7% to $929 million, while gross margin decreased 220 basis points to 28.3%. Builders FirstSource attributed the margin decline primarily to the lower-starts environment.

The company posted a net loss of $47 million, compared with net income of $96.3 million in the prior-year period. Adjusted net income declined 82.6% to $30 million.

Adjusted EBITDA fell 42.1% to $213.8 million, with margin down 360 basis points to 6.5%, reflecting lower gross margin and reduced operating leverage.

CEO Peter Jackson said BLDR’s first-quarter results showed the “adaptability” of its operating model as the company delivered “strong strategic share growth in a weak housing market.”

Builders FirstSource also reported $87.5 million in operating cash flow and $43 million in free cash flow for the quarter. The company repurchased 3.3 million shares for $302.9 million during the quarter, and its board authorized up to $500 million in additional share repurchases on April 29.

For 2026, BLDR expects net sales of $14.6 billion to $15.6 billion, adjusted EBITDA of $1.1 billion to $1.5 billion and free cash flow of $400 million to $500 million.