July-September growth at roofing and building products distributor Beacon was driven predominantly by acquired branches — setting a company record for quarterly sales, according to the company’s Oct. 30 third quarter financial report.

The Herndon, VA-based company posted 3Q net sales of $2.77 billion, a 7.3% increase year-over-year increase. Contributors to the growth were weighted average selling price which increased approximately 1-2% and acquired branches, up approximately 5.6%. Meanwhile, organic sales remained flat in 3Q.

During the third quarter of 2024, Beacon announced four acquisitions: Chicago Metal Supply & Fabrication (September); SSR Roof Supply and PAMPCO (August); and Roofers Mart (July).

By Product Segment in 3Q

• Residential roofing products sales increased 2.3%. The increase in residential roofing products was primarily due to price execution.
• Non-residential roofing products increased 9.4%. The increase was primarily due to higher volumes driven by strong underlying market demand and solid market execution.
• Complementary product sales increased 17.2%. The increase was due to three waterproofing acquisitions totaling 20 branches since Sept. 2023.

Gross margin increased to 26.3%, from 26.0% the year prior, as higher average selling prices for the company’s products offset higher product costs and a higher non-residential product mix.

Net profit was $145.3 million, compared to $161.3 million the year prior. Adjusted EBITDA was $325.2 million, compared to $309.6 million in the prior year.

“Beacon’s third quarter results demonstrated the resilience of our business model and the team’s strong execution on our Ambition 2025 initiatives,” Beacon President & CEO Julian Francis said in the company’s financial release. “We have, once again, shown that we can grow in any environment. The majority of our demand is underpinned by non-discretionary repair and reroofing, which remained solid in the third quarter. However, despite the overall level of activity lower than our expectation, disciplined margin management resulted in favorable price-cost across all lines of business.

Earlier in October, Beacon shared a succession for its roles of Chief Commercial Officer and North Division President.

Beacon was No. 5 on MDM’s List of Top Distributors for Building Materials/Construction.