Despite overall market uncertainty, a focus on growth and customer experience initiatives helped drive a 13th consecutive quarter of year-over-year sales improvement for Beacon in the fiscal first quarter.

“Record first quarter net sales demonstrated the strength of our business model and the multiple levers of growth we laid out at our Investor Day last year,” Julian Francis, Beacon president and CEO, said in a prepared statement. “We made strategic investments, both organic and inorganic, expanding our branch footprint and customer reach.”

Net sales during the quarter increased 2.7% on a year-over-year basis to $1.73 billion, a company record for net sales in the fiscal first quarter. Beacon said sales increased due to higher prices and the contributions of acquired and newly opened branches over the last four quarters. Weighted-average selling price increased approximately 9-10%, while organic volumes decreased 11-12%.

Residential roofing product sales increased 0.4%, non-residential roofing product sales decreased 7.8%, and complementary product sales increased 22.7% year-over-year in the first quarter. Beacon said the acquisition of Coastal Construction Products contributed significantly to the year-over-year improvement in complementary product sales.

“Looking forward, the fundamentals of residential and commercial re-roofing demand remain supportive, while headwinds related to new single-family construction and commercial contractor destocking are expected to persist near-term,” Francis said. “More importantly, we remain focused on driving the initiatives that are within our control to deliver value to our shareholders and customers.”

Beacon’s gross margin decreased 60 basis points to 25.5% in the first quarter, as higher product costs related to the inventory profit roll-off in a stable price environment offset higher average selling prices. Net income for the quarter decreased from $55.8 million in the first quarter of 2022 to $24.8 million.

Adjusted EBITDA decreased from $139.5 million to $113.0 million in the first quarter of 2023.

Herndon, Va.-based Beacon distributes roofing materials and complementary building products. The company operates over 480 branches throughout all 50 U.S. states and six Canadian provinces.