Roofing and other building materials distributor Beacon reported its 2024 fourth quarter and full-year financial results on Feb. 27, showing a considerable acceleration in sequential year-over-year sales growth.

The Herndon, VA-based company posted total 4Q sales of $2.30 billion (a 4Q company record), up 16.8% year-over-year, driven by organic volume that includes greenfields over the past year. That far exceeded 3Q’s 7.0% growth.

Beacon said 4Q organic volumes (including greenfields) and weighted-average selling price increased approximately 12-13% and 0-1%, respectively, while acquired branches contributed more than 4% to the year-over-year sales increase.

By product segment in 4Q:

• Residential roofing sales increased 20.2% year-over-year
• Non-residential roofing sales increased 11.4% year-over-year
• Complementary product sales increased 16.0% year-over-year

Beacon’s 4Q gross margin of 25.7% decreased 50 basis points year-over-year. Operating margin of 18.6% likewise fell 120 bps year-over-year, while the company’s net profit of $95 million topped the $73 million of a year earlier. Adjusted EBITDA of $217 million (9.4% margin) also topped the $179 million (9.1% margin) of a yea rearlier.

For the full year, Beacon totaled 2023 sales of $9.12 billion (a company record), up 8.2% vs. 2022, driven by contributions of acquired branches and greenfields over the past year. Weighted-average selling price and organic volumes increased approximately 2-3% and 1-2%, respectively, while acquired branches contributed more than 4% to the annual increase in net sales.

Beacon’s 2023 gross margin of 25.7% fell 80 bps vs. 2022. Operating margin of 17.9% likewise slid 30 bps, while the company’s annual net profit of $435 million trailed the $458 million of 2022.. Adjusted EBITDA of $930 million (10.2% margin) topped the $910 million (10.8%) of 2022.

“We delivered record fourth quarter and full year sales, strong net income, and our highest adjusted EBITDA in history,” Beacon President and CEO Julian Francis remarked in the company’s financial report. “We have reported year-over-year net sales growth for the last 12 quarters highlighting the resiliency of our business model and the necessity of our products. We remained focused on those items within our control, including pricing, operating efficiency, and working capital management.”

Beacon was No. 6 on MDM’s 2023 List of Top Building Materials/Construction Distributors.

Metro Sealant Acquisition

On Feb. 12, Beacon announced the acquisition of Metro Sealant & Waterproofing Supply — a distributor based in Springfield, VA with three additional branches in Ashland, VA; Linthicum, MD; and Virginia Beach, VA.

Metro Sealant has a 35-year history of serving contractors, design professionals and owners with tailored sealant and waterproofing solutions for commercial construction.

It was the distributor’s second deal announced in two weeks, following the acquisition of Greenville, NC-based Roofers Supply, announced Feb. 1.

Other Notes

Carmelo Carruba became Beacon’s interim CFO on Jan. 20 while the company searches for a permanent successor to Frank Lonegro, who left the company on Feb. 1 to become CEO of transportation solutions provider Landstar System.

Beacon shared Jan. 17 that, during 2023, the company opened 28 locations and acquired 21 branches through nine transactions for a total of 49 new branches that year.