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]

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]

Financial Performance - Net sales for Q4 2024 reached $2404 million, a 2.8% increase year-over-year[7, 17] - Adjusted EBITDA for Q4 2024 was a record[11] - Net income for Q4 2024 was $104 million[7] - Full year 2024 net sales grew by 7.1% to a record $9800 million[34] - Full year 2024 Adjusted EBITDA was $930 million[34] Sales and Mix - Residential net sales decreased by 0.8% year-over-year in Q4 2024[19, 20] - Non-residential net sales increased by 3.8% year-over-year in Q4 2024[19, 20] - Complementary net sales increased by 9.9% year-over-year in Q4 2024[19, 20] Capital Allocation and Balance Sheet - Completed an accelerated share repurchase of $225 million in 2024, retiring 24 million shares[11] - Net debt leverage was 28x at the end of Q4[30, 32] - Liquidity was greater than $1100 million as of December 31[32] Outlook - Expect net sales growth of MSD% YoY in 2025[38] - Adjusted EBITDA is projected to be between $950 million and $1030 million in 2025[38]

Beacon Roofing Supply (BECN) came out with quarterly earnings of $1.65 per share, missing the Zacks Consensus Estimate of $1.67 per share. This compares to earnings of $1.72 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -1.20%. A quarter ago, it was expected that this roofing materials distributor would post earnings of $2.88 per share when it actually produced earnings of $2.80, delivering a surprise of -2.78%.Over the last ...

Fourth Quarter Financial Highlights Exhibit 99.1 BEACON REPORTS RECORD FOURTH QUARTER AND FULL YEAR NET SALES, STRONG NET INCOME AND HIGHEST ADJUSTED EBITDA IN HISTORY HERNDON, VA. — (BUSINESS WIRE) — February 27, 2025 — Beacon (Nasdaq: BECN) (the "Company", "we", "our"), the leading publicly-traded wholesale distributor specializing in roofing, waterproofing, and related exterior products, announced results today for the fourth quarter and full year ended December 31, 2024 ("2024"). "Despite the challengin ...

Wall Street analysts expect Beacon Roofing Supply (BECN) to post quarterly earnings of $1.67 per share in its upcoming report, which indicates a year-over-year decline of 2.9%. Revenues are expected to be $2.42 billion, up 5.4% from the year-ago quarter.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.Prior to a company's earnings announcement, it is cr ...

Investors in Beacon Roofing Supply, Inc. (BECN) need to pay close attention to the stock based on moves in the options market lately. That is because the April 17, 2025 $45 Put had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It c ...

Reaffirms Commitment to Acquiring Beacon for $124.25 per Share in Cash All-Cash Offer Provides Significant and Immediate Value to Beacon Shareholders GREENWICH, Conn., Jan. 28, 2025 (GLOBE NEWSWIRE) -- QXO, Inc. (NYSE:QXO) today commented on Beacon Roofing Supply, Inc.'s (NASDAQ:BECN) adoption of a shareholder rights plan, which takes immediate effect and is aimed at blocking QXO's all-cash tender offer to acquire all outstanding shares of Beacon for $124.25 per share. "We launched our all-cash tender offe ...

GREENWICH, Conn., Jan. 27, 2025 (GLOBE NEWSWIRE) -- QXO, Inc. (NYSE:QXO) today announced that it is commencing an all-cash tender offer to acquire all outstanding shares of Beacon Roofing Supply, Inc. (NASDAQ:BECN) for $124.25 per share. This price implies a 37% premium above Beacon's 90-day unaffected volume-weighted average price of $91.02 per share as of November 15, 2024. The total transaction enterprise value is approximately $11 billion. QXO intends to complete the acquisition quickly after the tender ...

Beacon Roofing Supply (BECN) shares ended the last trading session 7.7% higher at $117.18. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 3.4% gain over the past four weeks.The stock price jumped after Beacon Roofing Supply announced on Wednesday that it had rejected an $11 billion takeover bid from QXO, stating that the offer "significantly undervalues" the roofing materials supplier. Earlier that day, QXO's CEO ...