Roofing, siding and other exterior building products distributor Beacon posted its 2024 fourth quarter and full-year financial results on Feb. 27, showing solid October-December sales growth that was the all-time 4Q best for the company, as well as a new high water mark for full-year sales.

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4Q Results

The Herndon, VA-based distributor reported 4Q sales of $2.4 billion, a 4.5% increase year-over-year. That was despite what Beacon said was the “sharpest seasonal slowdown in several years” as daily sales growth went from 5.6% in 3Q to 2.8% in 4Q.

Contributors to the 4Q overall sales growth were weighted average selling prices (+1-2%) and acquired branches (+5.0%. Meanwhile, organic sales, including greenfields, decreased approximately 1-2%.

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During 4Q24, Beacon announced two acquisitions: Westwood, MA-based Ryan Building Products and South Hadley, MA-based Fairway Wholesale Distribution.

By Product Segment in 4Q:

• Residential roofing products sales increased 0.8%. The increase was primarily due to price execution.
• Non-residential roofing products sales increased 5.5%. The increase was primarily due to higher volumes driven by solid market execution driving above market growth.
• Complementary product sales increased 11.7%. The increase was due to two waterproofing acquisitions totaling 15 branches since Dec. 31, 2023.

Gross margin of 25.7% remained unchanged from the same period a year prior, as higher average selling prices for the company’s products were offset by higher product costs and a modestly higher non-residential product mix.

Net profit of $617.5 million was up from 4Q23’s $592 million. Adjusted EBITDA was $222.5 million, up from 4Q23’s $216.7 million.

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“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,” Beacon President and CEO Julian Francis said in the company’s financial release.

2024 Results

For its full-year, Beacon reported a company record for sales of $9.76 billion, up 7.1% year-over-year.

Gross margin of 25.7% remained unchanged year-over-year as higher average selling prices of the company’s products were offset by higher products costs and a modestly higher non-residential product mix.

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Net profit of $2.5 billion increased from 2023’s $2.3 billion. Adjusted EBITDA was $930.2 million, compared to the prior year’s $435.0 million.

Francis added: “Since the announcement of our Ambition 2025 plan, we have faced the effects of a global pandemic, near-record levels of inflation, escalating interest rates, and an increasingly challenging housing market. 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, highlighting the resilience of our business model.”

Greenfield Branches

On Feb. 26, Beacon shared that the company opened four greenfield branches in Indiana, Wisconsin, Florida and Texas to more efficiently serve both its residential and non-residential customers.

The branches in Lafayette, IN and La Crosse, WI will serve the company’s upper Midwest customers. Both locations are positioned to provide a full range of exterior products to new and current customers within the region. Customers will have access to the company’s range of tools, including online ordering through the company’s Beacon Pro+ app.

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Meanwhile, the branch in St. Augustine, FL will continue to serve the First Coast region. The new location will add another branch to the region and offer the company’s private-label TRI-BUILT product line.

The Frisco, TX branch — the 11th in the region — will serve the Dallas-Fort Worth Metroplex offering products to the new construction, repair and replacement market.

Beacon said adding locations and teams is part of the company’s Ambition 2025 plan. According to the release, Beacon exceeded its Ambition 2025 revenue and shareholder return targets in 2023.

Beacon was No. 5 on MDM’s Top Distributors List for Building Materials/Construction.