Beacon Roofing Supply Reports 7.3% Net Sales Growth, Gross Profit Increase in Q3 2024

Beacon Roofing Supply, Inc. reported significant financial results for the third quarter and the first nine months of fiscal 2024, reflecting a robust performance in net sales and gross profit, despite a decline in net income compared to the previous year.

For the three months ended September 30, 2024, Beacon achieved net sales of $2,772.6 million, a 7.3% increase from $2,584.3 million in the same period of 2023. The nine-month net sales also rose to $7,359.6 million, up 7.9% from $6,820.3 million year-over-year. The growth was driven by strong performance in both residential and non-residential roofing products, with residential roofing sales reaching $1,404.9 million and non-residential roofing sales at $739.0 million for Q3 2024.

Gross profit for the third quarter increased to $730.4 million, compared to $672.6 million in Q3 2023, resulting in a gross margin of 26.3%, slightly up from 26.0% in the prior year. However, income from operations for the quarter decreased to $246.7 million from $253.8 million in the same period last year. For the nine months ended September 30, 2024, income from operations was $507.6 million, down from $548.7 million in 2023.

Net income for the third quarter was $145.3 million, a decrease from $161.3 million in Q3 2023. For the nine months, net income totaled $278.1 million, down from $339.9 million in the prior year. The decline in net income was attributed to increased selling, general, and administrative (SG&A) expenses, which rose to $430.2 million in Q3 2024 from $374.3 million in Q3 2023, driven by higher payroll and operational costs.

The company has been active in acquisitions, completing multiple transactions that contributed to its growth. In the nine months ended September 30, 2024, Beacon spent $399.1 million on acquisitions, significantly higher than $73.7 million in the same period of 2023. The acquisitions are expected to enhance the company’s market position and operational capabilities.

Beacon's balance sheet showed total assets of $7,419.5 million as of September 30, 2024, up from $6,207.7 million at the end of 2023. Total liabilities also increased to $5,521.9 million from $4,384.2 million, reflecting the impact of acquisitions and increased borrowings. The company reported cash and cash equivalents of $68.0 million at the end of the quarter.

In terms of strategic initiatives, Beacon has focused on expanding its branch network, opening 62 new locations and acquiring 83 branches since January 1, 2022. Digital sales have also seen a notable increase, rising by 25.5% compared to the previous year, indicating a strong push towards enhancing its digital commerce capabilities.