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Mar 31, 2023

Beacon Roofing Q1 2023 Earnings Report

Beacon Roofing's Q1 2023 net sales reached a record high, driven by strategic growth initiatives and acquisitions. However, margins were impacted by higher product costs and operating expenses, resulting in a decrease in net income and EPS compared to the prior year.

Key Takeaways

Beacon Roofing Supply reported record first-quarter net sales of $1.73 billion, a 2.7% increase year-over-year. However, net income decreased to $24.8 million, and EPS was $0.25, impacted by higher operating expenses. The company repurchased $23.1 million of its common stock during the quarter.

Record first quarter net sales driven by execution on Ambition 2025 growth initiatives, including acquisitions and greenfields.

Stable pricing environment, combined with higher product costs reflective of inventory profit roll-off, yielded forecasted gross margin.

Strong operating cash flow generation from substantial cash collections and continued inventory rightsizing.

Continued emphasis on shareholder returns through execution of our recently expanded share buyback program.

Total Revenue
$1.73B
Previous year: $1.69B
+2.7%
EPS
$0.67
Previous year: $1.06
-36.8%
Gross Profit
$442M
Previous year: $462M
-4.3%
Cash and Equivalents
$74.2M
Previous year: $52.4M
+41.6%
Free Cash Flow
$79M
Previous year: -$185M
-142.7%
Total Assets
$5.9B
Previous year: $5.85B
+0.9%

Beacon Roofing

Beacon Roofing

Beacon Roofing Revenue by Segment

Forward Guidance

The fundamentals of residential and commercial re-roofing demand remain supportive, while headwinds related to new single-family residential construction and commercial contractor destocking are expected to persist near-term. More importantly, we remain focused on driving the initiatives that are within our control to deliver value for our shareholders and customers.

Revenue & Expenses

Visualization of income flow from segment revenue to net income