Favorable residential demand, strong pricing execution, and an improving non-residential backdrop contributed to record quarterly net sales in the fiscal third quarter for Beacon. Net sales increased 20.8% on a year-over-year (YOY) basis to $1.87 billion, according to the distributor’s quarterly earnings report.
Third quarter sales increased across all three of Beacon’s product categories, driven by higher demand, particularly within complementary and non-residential roofing categories. Residential roofing product sales increased 18.0% YOY, complementary product sales increased 35.1% YOY, and non-residential roofing product sales increased 16.3% YOY in the fiscal third quarter.
“I am extremely proud of the Beacon team, which delivered record-setting performance in the third quarter,” Julian Francis, Beacon’s president and CEO, said in a prepared statement. “Solid demand for our products, combined with strong price performance, drove record quarterly sales and enhanced gross margins. I am especially pleased with the progress we are making on our strategic initiatives that are focused on top line growth and operational improvement, which led to the highest adjusted EBITDA in our history.”
Beacon reported gross margin improved to 23.8% in the third quarter, compared to 27.6% in the prior-year period. The gross margin improvement reflects a pricing execution that drove price-cost improvement, according to Beacon.
The distributor reported a net income of $79.8 million, compared to a loss of $4.1 million in the third quarter of 2020. The company’s adjusted EBITDA was $229.5 million, compared to $130.6 million in the prior-year period. Comparative improvements in the third quarter were driven by higher sales and gross margins, as well as a net $32.8 million tax provision in the third quarter of 2020 stemming from the revaluation of deferred tax assets and liabilities made in conjunction with Beacon’s application of the CARES Act.
Herndon, Va.-based Beacon distributes roofing materials and complementary building products and operates a network of over 400 branches across all 50 states and six Canadian provinces.
