Beacon reported a strong fiscal second quarter, highlighted by record quarterly sales and a double-digit adjusted EBITDA margin.
“Our team’s strong execution delivered organic sales growth across all three business lines despite disruptive weather events that reduced the number of roofing days in the quarter,” president and CEO Julian Francis said in a prepared statement. “As a result, we experienced lower-than-expected residential volumes and decreased operating leverage as we maintained staffing to meet a higher level of activity.”
Beacon posted net sales of $2.67 billion, a company record for the second quarter on 6.8% year-over-year growth. The increase was largely driven by price execution and the contributions of acquired and greenfield branches, according to Beacon.
Residential roofing product sales increased 2.4% year-over-year, non-residential roofing product sales increased 11.1%, and complementary product sales increased 12.3% compared to the prior year.
“We also continued to invest in growth initiatives during the quarter expanding our footprint in key markets,” Francis said. “Since the end of the first quarter, we have acquired 21 branches and opened 10 greenfield locations.”
The distributor reported a gross margin of 25.6%, an improvement on the second quarter of 2023. Net income in the quarter was $127.2 million, down from $153.8 million the prior-year period. Adjusted EBITDA was $279.4 million, compared to $290.3 million the prior year period.
“Entering the second half of the year, we will be proactive in responding to local market conditions by adjusting inventory and resources, while maintaining Beacon’s high caliber customer service,” Francis said. “We expect the fundamentals of our end markets to remain supportive, underpinned by repair and reroofing demand, the vast majority of which is non-discretionary. Our focus will remain on the areas within our control, including enhancing our customer experience, pricing discipline, and operational efficiency.”
