Growth across all lines of Beacon’s roofing and building materials distribution business lead to a company record in first quarter net sales.

On May 2, the Herndon, VA-based company posted first quarter 2024 net sales of $1.91 billion, an increase of 10.4% year-over-year driven by organic volume growth. Contributors to the increase in 1Q net sales were estimated organic volumes (including greenfields) up 6-7%, weighted-average selling price up 0-1% and acquired branches, up more than 3%.

Since the end of the fourth quarter, Beacon acquired 23 branches and opened five greenfield locations.

In April, Beacon amped up its specialty waterproofing offering with the acquisition of Denver-based construction and restoration specialist Smalley & Company, and expanded in the Midwest with Omaha, NE-based siding, windows and doors distributor General Siding Supply.

By product segment in 1Q:

• Residential roofing product sales increased 9.1% year-over-year
• Non-residential roofing product sales increased 17.6% year-over-year
• Complementary product sales increased 5.4% year-over-year

The increases in residential and non-residential roofing product sales were primarily due to higher volumes driven by strong underlying market demand.

The increase in complementary product sales was largely due to growth in waterproofing volumes as well as the acquisition of additional waterproofing companies since March 31, 2023, partially offset by a modest decline in siding sales as a result of lower volumes.

Gross margin decreased to 24.7%, from 25.5% in the prior year, as modestly higher product costs and a higher non-residential product mix offset higher average selling prices for our products.

Net income (loss) was $5.6 million, compared to $24.8 million in the prior year. Adjusted EBITDA was $103.1 million, compared to $113.0 million in the prior year. Net income (loss) per common share (“EPS”) on a diluted basis was $0.09, compared to $0.25 in the prior year.

As we enter a key part of the construction season, we stand ready with the products and team members to deliver the high caliber service our customers expect.

“Looking forward, we expect the fundamentals of our end markets to remain supportive, underpinned by non-discretionary repair and reroofing demand,” Beacon President and CEO Julian Francis said in a May 2 earnings release. “Our focus will remain on the areas within our control, including enhancing our customer experience, pricing, and efficiency.”

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

On May 6, Prithvi Gandhi assumed his role as as the company’s Chief Financial Officer.