Beacon reported its highest quarterly sales in company history during the fiscal third quarter, driven by price and volume growth across all lines of business. Additionally, the distributor posted record third quarter net income and the 11th consecutive quarter of year-over-year increases in adjusted EBITDA, according to the company’s quarterly earnings report.
Beacon reported net sales increased 28.8% on a year-over-year basis in the fiscal third quarter to $2.42 billion. The company said sales increased due to the successful implementation of price increases and higher demand across all three lines of business. Residential roofing product sales increased 21.5% year-over-year, non-residential roofing product sales increased 54.2% year-over-year, and complementary product sales increased 17.0% year-over-year in the third quarter.
Beacon’s gross margin decreased 100 basis points compared to the third quarter of 2021 to 26.1%. The distributor attributed the decline to product cost increases that offset higher average selling prices and the company’s higher non-residential product sales mix.
Net income in the third quarter for Beacon was $154.8 million, compared to $104.5 million in the prior year. Adjusted EBITDA was $284.2 million, compared to $208.1 million in the third quarter of 2021.
“We continued making strategic investments toward achieving our Ambition 2025 growth and margin targets. We took an important step this week with the acquisition of Coastal Construction Products,” Beacon president and CEO Julian Francis said in a prepared statement. “The combination of Beacon’s specialty waterproofing branches in the West, and Coastal’s strong presence in the Southeast, creates a new national player in waterproofing products and significantly enhances our value proposition by providing a building envelope solution to our commercial and multifamily customers.”
Francis said the greenfield openings by Beacon in the third quarter create capacity and enhance the company’s service to core exterior customers.
Herndon, Va.-based Beacon distributes roofing materials and complementary building products. The company operates over 470 branches throughout all 50 U.S. states and six Canadian provinces.
