Beacon Building Supply (Nasdaq: BECN) reported record fourth-quarter net sales of $2.40 billion for 2024, up 4.5% from a year earlier. However, adjusted earnings per share of $1.32 fell short of the consensus estimate of $1.65, according to company data released Thursday. 

The roofing distributor also recorded full-year net sales of $9.8 billion, a 7.1% increase over 2023, setting a company record despite a decline in annual net income to $362 million from $435 million.

Beacon's revenue missed the Zacks Consensus Estimate of $2.42 billion by 0.79%, while its EPS of $1.32 underperformed the expected $1.67 by 1.2%. 

Despite this, the company achieved its highest fourth-quarter adjusted EBITDA in history, reaching $222.5 million, a 2.7% increase from the previous year.

In its fourth-quarter breakdown, residential roofing product sales increased 0.8% year over year, outperforming analysts' -1.7% decline. 

Nonresidential roofing sales grew by 5.5%, slightly below the projected 5.8%, while complementary building products saw the strongest growth at 11.7%, exceeding the 9.6% forecast.

"Despite the challenging economic environment in 2024, we delivered record fourth-quarter and full-year sales and our highest fourth-quarter adjusted EBITDA in history," CEO Julian Francis said in a news release. 

Francis highlighted the company's Ambition 2025 strategy as a key growth driver, pointing to expansion efforts through acquisitions and new greenfield locations.

Beacon expanded its footprint by closing 12 acquisitions in 2024, bringing its Ambition 2025 total to 26 acquisitions and 85 branches. Additionally, the company added 19 greenfield locations, reaching 64 new locations under the initiative.

The company also emphasized operational improvements. It cited a $20 million contribution from its bottom-quintile branch initiative and productivity enhancements that led to the highest fourth-quarter sales per hour worked since tracking began.

Despite the lower-than-expected EPS, Beacon returned $225 million to shareholders through a stock repurchase program in 2024 and reduced debt leverage, demonstrating a commitment to long-term shareholder value.

Shares of Beacon edged up about 0.55% in premarket trading following the earnings release, while the stock has declined 2% over the past month, aligning with the broader market's 2.2% drop.

Looking ahead, Beacon projected mid-single-digit net sales growth for 2025 and expects adjusted EBITDA to range between $950 million and $1.03 billion. The company plans to provide further insights into its long-term strategy during its upcoming Investor Day on March 13.

Market Reactions 

Beacon's robust Q4 performance — record net sales of $2.40 billion and strong full‐year growth — could bolster its defense against QXO’s hostile takeover attempt. 

The company’s revenue gains, record fourth‐quarter adjusted EBITDA, and strong cash flow generation, saying it has "ample ability to deploy capital to both profitable growth and shareholder returns" going forward. 

Despite a lower-than-expected adjusted EPS, Beacon’s strategic investments in acquisitions and greenfield expansions have strengthened its market position, making the defensive “poison pill” strategy more compelling. 

However, sell-side analysts expect revenue to grow 4.4% over the next 12 months, a deceleration compared to the last two years. StockStory described this as underwhelming and indicated that its products and services will face some demand challenges.

As QXO extended its tender offer to March 3 and prepares to nominate its own slate of directors, Beacon’s results may just sway investor sentiment toward supporting its current management’s long‑term strategy.