Beacon reported record first quarter sales, driven by growth across all three lines of business, according to the company’s quarterly earnings report.
“We generated organic growth across all three lines of business while delivering better than expected margins,” Julian Francis, president and CEO, said in a prepared statement. “Our Ambition 2025 initiatives, including our investments in both organic and inorganic growth contributed to the top and bottom line.”
Net sales increased 10.4% compared to the prior year to $1.91 billion, driven by organic volume growth including greenfields. Beacon reported estimated organic volumes and weighted-average selling price increased approximately 6-7% and 0-1%, respectively. Acquired branches contributed more than 3% to the increase in first quarter net sales.
Residential roofing product sales increased 9.1%, non-residential roofing product sales increased 17.6%, and complementary product sales increased 5.4% compared to the prior year.
“In April, we took an important step in pursuit of our goal to become the premier specialty waterproofing platform with the acquisition of Smalley & Company, an industry leader in both new construction and restoration markets,” Francis said. “Since the end of the fourth quarter, we enhanced our customer reach by acquiring an additional 23 branches and opening five greenfield locations.”
Gross margin in the quarter decreased to 24.7%, from 25.5% in the prior year, as modestly higher product costs and a higher non-residential product mix offset higher average selling prices, according to Beacon.
Net income in the quarter was $5.6 million, compared to $24.8 million in the prior-year period. Adjusted EBITDA was $103.1 million, compared to $113.0 million in the prior year.
“As we enter a key part of the construction season, we stand ready with the products and team members to deliver the high caliber service our customers expect,” Francis said. “Looking forward, we expect the fundamentals of our end markets to remain supportive, underpinned by non-discretionary repair and reroofing demand. Our focus will remain on the areas within our control, including enhancing our customer experience, pricing, and efficiency.”
