Wall Street expects a year-over-year decline in earnings on lower revenues when Beacon Roofing Supply (BECN) reports results for the quarter ended March 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the stoc ...

NEW YORK, March 20, 2025 /PRNewswire/ -- Monteverde & Associates PC (the "M&A Class Action Firm"), has recovered millions of dollars for shareholders and is recognized as a Top 50 Firm in the 2024 ISS Securities Class Action Services Report. We are headquartered at the Empire State Building in New York City and are investigating Beacon Roofing Supply, Inc. (NASDAQ: BECN), relating to the proposed merger with QXO, Inc. Under the terms of the agreement, Beacon shareholders will receive $124.35 per share in ca ...

SAN DIEGO, March 20, 2025 (GLOBE NEWSWIRE) -- Shareholder rights law firm Johnson Fistel, PLLP has launched an investigation into whether the board members of Beacon Roofing Supply, Inc. (NASDAQ: BECN) breached their fiduciary duties in connection with the proposed sale of the Company to QXO, Inc. (NYSE: QXO). On March 20, 2025, Beacon Roofing announced that it had signed a definitive merger agreement with QXO. Under the terms of the agreement, QXO will acquire all the outstanding shares of Beacon Roofing’s ...

Core Insights - Beacon Roofing Supply, Inc. has formed a strategic partnership with Renovate Robotics to develop autonomous roofing robots, with the first robot, Rufus, expected to launch in late 2025 [1][3] - This partnership aims to enhance Beacon's service portfolio, particularly in the residential roofing segment, which is a significant revenue contributor [2] - The CEO of Beacon expressed optimism about the potential of this technology to disrupt the roofing industry, especially in a labor-scarce environment [3] Strategic Initiatives - Beacon is focused on its Ambition 2025 plan, which aims to grow the company, enhance customer experience, and increase value for stakeholders [4] - The launch of a new e-commerce platform, the OTC Delivery Network, is anticipated to improve sales and operational profitability [5] Market Performance - Beacon's stock increased by 6.7% during a recent trading session, reflecting positive investor sentiment regarding the new partnership [3] - Over the past six months, Beacon's shares have risen by 46%, significantly outperforming the Zacks Building Products - Retail industry's growth of 3.3% [7]

Beacon Roofing Supply, Inc. (BECN) acquired DM Figley Company, Inc., (“DM Figley”), a specialty waterproofing distributor. The acquisition aligns with the company's Ambition 2025 plan to expand across multiple platforms and strengthen customer reach.Shares of BECN dropped 1.6% during yesterday’s trading session.BECN Strengthens Market Presence With DM Figley AcquisitionBased in Menlo Park, CA, DM Figley is a wholesale distributor of sealants, waterproofing and concrete repair materials. The company has been ...

Beacon Roofing Supply, Inc. (BECN) reported lower-than-expected fourth-quarter 2024 results, with earnings and net sales missing the Zacks Consensus Estimate. The top line grew while the bottom line declined year over year.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Beacon delivered record fourth-quarter and full-year sales in 2024, along with its highest-ever fourth-quarter adjusted EBITDA (earnings before interest, tax, depreciation and amortization), despite economic challenges ...

Financial Data and Key Metrics Changes - The company achieved record fourth quarter results with net sales reaching over $2.4 billion, up 4.5% year-over-year, driven by acquisitions [26] - Adjusted EBITDA for the fourth quarter was $223 million, with cash flow generated of nearly $360 million [11][36] - Gross margin remained unchanged at 25.7%, at the high end of expectations, with price cost up around 10 basis points year-over-year [31] Business Line Data and Key Metrics Changes - Residential roofing sales were down less than 1% on a per day basis, while non-residential sales per day increased nearly 4% [28][29] - Complementary sales per day increased approximately 10%, driven by acquisitions, including new waterproofing branches [29] - Private label sales grew approximately 7% in the fourth quarter, contributing to overall margin enhancement [18] Market Data and Key Metrics Changes - Organic volumes, including those from greenfields, decreased approximately 3% to 4% on a per day basis, while overall price contributed 1% to 2% [27] - The Architectural Billing Index remains below 50, indicating contraction in new construction activity in the first half of the year [53] Company Strategy and Development Direction - The company is focused on its Ambition 2025 plan, aiming for above-market growth and consistent double-digit adjusted EBITDA margins [13][24] - Investments in greenfield locations and acquisitions are key strategies to enhance market share and customer reach [16][24] - The company plans to open 15 to 20 new greenfield locations in 2025, targeting underserved markets [59][80] Management's Comments on Operating Environment and Future Outlook - Management anticipates continued headwinds in the first half of 2025, including sluggish housing starts and higher interest rates [51][52] - Despite challenges, the underlying demand drivers remain strong, with expectations for improved repair and reroofing activity [54] - For the first quarter, total sales per day are expected to decline in the 3% to 5% range compared to the prior year quarter [55] Other Important Information - The company has returned $225 million to shareholders through share repurchases, reducing the share count significantly [48][41] - The board rejected an unsolicited tender offer from QXO, stating it undervalues the company [62] Q&A Session Summary Question: Dynamics around quarter-to-date sales and improvement - Management noted that January was tough due to weather, but February showed signs of improvement, with demand levels returning to expected ranges [66][68] Question: New greenfield additions and pricing strategy - The company plans for 15 to 20 new greenfield locations in 2025 and has announced a residential price increase for April [79][80] Question: SG&A expectations and achieving operational efficiency - Management acknowledged the need to digest acquisitions and greenfields to return SG&A to targeted levels, with expectations of $60 million in additional expenses from these initiatives [83][86] Question: Non-residential demand trends - Management indicated a steady demand for repair and replace, with a shift away from new construction due to supply chain disruptions [90][92] Question: Clarification on residential pricing and cost trends - The company expects price/cost to be neutral for the year, with a 1% incremental ASP from the April price increase factored into guidance [101][104] Question: Cost assumptions for 2025 - Management emphasized a focus on driving efficiency and productivity to improve EBITDA margins, despite price/cost neutrality [110][113] Question: Capacity utilization and investment needs - The company is focused on service levels rather than overall capacity, with plans to invest in areas where they currently have gaps [120][123]

Financial Performance - Net sales for 2024 reached $9,763.2 million, an increase of 7.1% from $9,119.8 million in 2023[157] - Gross profit for 2024 was $2,504.8 million, compared to $2,342.7 million in 2023, reflecting a gross profit margin of 25.7% for both years[157] - Net income for 2024 was $361.7 million, down from $435.0 million in 2023, resulting in a net income margin of 3.7%[157] - Net sales increased by 7.1% to $9.76 billion in 2024, up from $9.12 billion in 2023[158] - Organic net sales rose by 2.5% to $9.35 billion, driven by a 1-2% increase in weighted-average selling price and estimated organic volume[158] - Total gross profit increased by 6.9% to $2.50 billion in 2024, compared to $2.34 billion in 2023[160] - Adjusted Net Income for 2024 was $456.1 million, down from $507.9 million in 2023, indicating a decrease of 10.2%[180] - Adjusted EBITDA for 2024 was $930.2 million, slightly up from $929.6 million in 2023, showing a marginal increase of 0.1%[181] Operating Expenses - Operating expenses increased to $1,839.4 million in 2024 from $1,630.5 million in 2023, with selling, general and administrative expenses rising to 16.8% of net sales[157] - SG&A expenses rose by 12.6% to $1.64 billion in 2024, primarily due to acquisitions and increased one-time costs[164] - Adjusted Operating Expense for 2024 was $1,720.9 million, up from $1,538.1 million in 2023, representing an increase of 11.8%[179] Share Repurchase and Capital Management - The company repurchased all 400,000 shares of preferred stock for $805.4 million, including accrued dividends, on July 31, 2023[145] - The share repurchase program was increased by approximately $387.9 million, allowing for future repurchases of up to $500.0 million[200] - The company repurchased a total of 2.4 million shares in 2024, compared to 1.6 million shares in 2023[203] - The total amount repurchased in 2024 was $225.0 million, significantly higher than the $110.9 million in 2023[203] - The average price per share for repurchases in 2024 was $92.77, up from $68.82 in 2023[203] - As of December 31, 2024, the company had approximately $164.1 million remaining for repurchases under the Repurchase Program[204] - The company incurred costs of $1.8 million directly attributable to the Repurchase Program in 2024, compared to approximately $0.6 million in 2023[204] Debt and Interest Expenses - Interest expense increased to $177.3 million in 2024 from $126.1 million in 2023, impacting overall profitability[157] - Interest expense rose to $177.3 million in 2024, up from $126.1 million in 2023, due to higher average debt balances[168] - The company had outstanding borrowings of $1.25 billion under its term loan and $1.24 billion under senior notes as of December 31, 2024[212] - The weighted-average effective interest rate on variable-rate debt instruments was 6.34% as of December 31, 2024[212] Cash Flow and Investments - Net cash provided by operating activities decreased to $419.4 million in 2024 from $787.8 million in 2023, a decline of 46.2%[191] - Net cash used in investing activities increased significantly to $540.5 million in 2024, compared to $225.6 million in 2023, an increase of 139.5%[192] - As of December 31, 2024, the company had cash and cash equivalents of $74.3 million and available borrowings of approximately $1.13 billion[187] Strategic Initiatives - The Ambition 2025 Value Creation Framework aims to enhance customer service and expand market presence, with a focus on operational efficiency[140] - The company plans to explore additional acquisition opportunities as part of its Ambition 2025 initiative, indicating a focus on market expansion[189] Market Exposure and Risks - Approximately 3.0% of net sales in 2024 were derived from customers in Canada, exposing the company to foreign currency exchange rate risks[213] - The company does not currently enter into financial instruments to manage minimal foreign currency exchange risks, as a 10% fluctuation would not have a material impact[213] - The company is exposed to commodity price risks, particularly related to energy and raw materials, but had no derivative financial instruments in place as of December 31, 2024[214] Taxation - The effective tax rate was 25.5% in 2024, a slight decrease from 25.8% in 2023, primarily due to lower pre-tax income[170]

Core Insights - Beacon Roofing Supply reported revenue of $2.4 billion for the quarter ended December 2024, reflecting a year-over-year increase of 4.5% [1] - The company's EPS was $1.65, down from $1.72 in the same quarter last year, indicating a decline in earnings per share [1] - Revenue fell short of the Zacks Consensus Estimate of $2.42 billion, resulting in a surprise of -0.79% [1] - The EPS also missed the consensus estimate of $1.67, with a surprise of -1.20% [1] Revenue Growth Metrics - Residential roofing products experienced a revenue growth rate of 0.8%, compared to an average estimate of -1.7% from four analysts [4] - Complementary building products saw a revenue growth rate of 11.7%, exceeding the average estimate of 9.6% from four analysts [4] - Non-residential roofing products had a revenue growth rate of 5.5%, slightly below the average estimate of 5.8% from four analysts [4] Net Sales Performance - Net sales for residential roofing products were reported at $1.17 billion, slightly above the average estimate of $1.16 billion from four analysts, representing a year-over-year change of +0.8% [4] - Net sales for complementary building products were $569.90 million, below the average estimate of $587.74 million from four analysts, with a year-over-year change of +11.8% [4] - Net sales for non-residential roofing products were $661.40 million, compared to the average estimate of $674.45 million from four analysts, reflecting a year-over-year change of +5.5% [4] Stock Performance - Over the past month, shares of Beacon Roofing have returned -2%, which is slightly better than the Zacks S&P 500 composite's -2.2% change [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential for outperformance in the near term [3]

2024 Q4 & FULL YEAR 2024 EARNINGS PRESENTATION February 27, 2025 Disclosure Notice This presentation contains information about management's view of the Company's future expectations, plans and prospects that constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. In addition, oral statements made by our directors, officers and employees to the investor and analyst communities, media representatives and others, depending up ...