Beacon Roofing Supply (BECN) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 net sales of $2.67 billion, up 6.8% year-over-year, driven by acquisitions, greenfield expansion, and Ambition 2025 initiatives.

• Adjusted EBITDA for Q2 2024 was $279.4 million (10.4% of sales), with net income at $127.2 million, reflecting higher SG&A and interest expenses.

• Digital sales grew 22% year-over-year, reaching 26% of residential sales.

• Ambition 2025 initiatives drove operational excellence, above-market growth, and $1.5B+ returned to shareholders since launch.

• Acquired over 21 branches and opened at least 10 greenfield locations since Q1, expanding commercial and metal offerings.

Financial highlights

• Q2 2024 net sales: $2.67 billion (+6.8% YoY); gross margin: 25.6% (up 20 bps YoY); Adjusted EBITDA: $279.4 million (10.4% of sales).

• Adjusted operating expenses rose to $441 million (16.5% of sales), mainly from headcount increases and M&A.

• Net income for Q2 2024 was $127.2 million; diluted EPS was $1.99.

• Operating cash flow was negative $48 million in Q2, reflecting seasonal inventory build; strong cash generation expected in H2.

• Net debt leverage at 3.2x trailing twelve months Adjusted EBITDA, with liquidity exceeding $800 million.

Outlook and guidance

• Q3 sales per day expected to grow high single digits year-over-year, with gross margin in the high 25% range.

• Full-year 2024 net sales growth projected at 6–8%, including acquisitions; Adjusted EBITDA guidance of $930–$970 million.

• Full-year gross margin expected in the mid-25% range, with price/cost neutrality.

• Adjusted operating expenses as a percentage of sales expected to align with prior year in H2.

• Effective tax rate for 2024 expected at 26.0%–27.0%.