Continued execution of its Ambition 2025 strategy helped Beacon deliver record quarterly sales in the fiscal third quarter.

“Beacon’s third quarter results demonstrated the resilience of our business model and the team’s strong execution on our Ambition 2025 initiatives,” Julian Francis, president and CEO for Beacon, said. “We have, once again, shown that we can grow in any environment. The majority of our demand is underpinned by non-discretionary repair and reroofing, which remained solid in the third quarter.”

The company delivered net sales of $2.77 billion in the third quarter, a 7.3% increase compared to the prior-year period. Acquired branches contributed 5.6% to the year-over-year increase in third quarter sales, according to Beacon.

“Despite the overall level of activity lower than our expectation, disciplined margin management resulted in favorable price-cost across all lines of business,” Francis said. “In addition, we took action to lower operating expenses by aligning our staffing with current market conditions. We expect these actions will result in annual savings of approximately $45 million.”

Residential roofing product sales increased 2.3% in the third quarter, non-residential roofing product sales increased 9.4%, and complementary product sales increased 17.2% compared to the prior-year period. The increase in residential roofing product sales was attributed to price execution while the increase in non-residential roofing product sales was attributed to strong underlying market demand and solid market execution. The increase in complementary product sales was due to Beacon’s three waterproofing acquisitions since the third quarter of 2023.

“During the quarter, we continued to invest in organic growth by adding four greenfield locations in key markets,” Francis said. “We also continued building on our track record of value-creating acquisition, including enhancing our non-residential and Canadian footprints.”

Beacon delivered net income of $145.3 million in the third quarter, down from $161.3 million in the prior-year period. Adjusted EBITDA for the period was up to $325.2 million from $309.6 million in the third quarter of 2023.

Gross margin in the period increased 30 basis points to 26.3%, with higher average selling prices offsetting higher product costs and a higher non-residential product mix.

Beacon reported it reduced headcount at the end of the third quarter “in response to market conditions.”