Beacon reports its Q4 2024 earnings
Amid its ongoing jousting with QXO over a potential takeover, Beacon has shared results for the fourth quarter and full year ended December 31, 2024. Much of the news was positive for the Va.-based roofing giant, though some numbers fell short of the earnings analysts were expecting.
Beacon's Q4 2024 highlights are below.
Net sales increased to $2.40 billion, which represents 4.5% (2.8% on a per-day basis) growth compared to the prior year. According to Beacon, that's a company record for fourth quarter net sales. Acquired branches contributed approximately 5% to the increase in fourth quarter net sales, per Beacon.
Beacon's residential roofing product sales increased 0.8% (decreased 0.8% on a per-day basis), non-residential roofing product sales increased 5.5% (3.8% on a per-day basis), and complementary product sales increased 11.7% (9.9% on a per-day basis) compared to the prior year. The increase in residential roofing product sales, per Beacon, was primarily due to "price execution." The increase in non-residential roofing product sales was primarily due to higher volumes driven by "solid market execution" above market growth. Meanwhile, the increase in complementary product sales was largely due to two waterproofing acquisitions totaling 15 branches since December 31, 2023.
Net income (loss) was $83.6 million, compared to $95.1 million in the prior year. Adjusted EBITDA was $222.5 million, compared to $216.7 million in the prior year. Net income (loss) per common share on a diluted basis was $1.32, compared to $1.47 in the prior year. Fourth quarter results compared to the prior year period were largely driven by higher operating expenses but was partially offset by higher net sales.
Beacon's investor webcast revealed more context regarding the company's performance over the past year. CEO Julian Francis said the company's "repair and reroofing activity remained healthy," citing factors like storm-recovery demand in the Southeast. He did, however, mention a "steep seasonal slowdown in the back half of the fourth quarter."
Francis also touted various "culture" wins for Beacon in the past year, including:
- Reduced sprains and strains incurred by first year employees by 60% year-over-year.
- Achieved lowest ever OSHA total case rate in company history.
- Employee pulse survey showing nearly 80% would recommend Beacon as a place to work.
Chief Financial Officer Prith Ghandi shared more macro-economic context with investors, noting that "Single-family new construction demand remains subdued." He went on to add that shingle volumes decreased in Q4 2024 compared to Q4 2023 and that the company experienced the "sharpest seasonal slowdown in several years." Despite a tough climate, Ghandi said the company's acquisitions have been a bright spot, driving growth in non-residential and complementary sales.
Full-year results
Net sales increased to $9.76 billion, 7.1% (6.2% on a per-day basis) growth compared to the prior year, which Beacons says is a company record. Acquired branches contributed approximately 4.6% to the increase in net sales.
Residential roofing product sales increased 3.9% (3.1% on per-day basis), non-residential roofing product sales increased 11.6% (10.7% on a per-day basis), and complementary product sales increased 8.9% (8.0% on per-day basis) compared to the prior year.
Net income (loss) was $361.7 million, compared to $435.0 million in the prior year. Adjusted EBITDA was $930.2 million, compared to $929.6 million in the prior year.
“Despite the challenging economic environment in 2024, we delivered record fourth quarter and full year sales and our highest fourth quarter adjusted EBITDA in history,” said Julian Francis, Beacon’s president & CEO. “Notwithstanding these headwinds, our Ambition 2025 plan has delivered multiple paths of growth every year and across all of our business lines. We have also continued to meet our targets, including reporting year-over-year net sales growth for the last 16 quarters."
Read Beacon's full financial report here, and learn more about the company's efforts to fend off QXO's takeover attempt here.
