Beacon Roofing Supply Reports $43.1 Million Net Loss and Decline in Sales for Quarter Ended March 31, 2025

Beacon Roofing Supply, Inc. reported a net loss of $43.1 million for the quarter ended March 31, 2025, compared to a net income of $5.6 million for the same period in 2024. The company's net sales decreased slightly by 0.2% to $1.908 billion, down from $1.912 billion in the previous year. The decline in sales was attributed to a decrease in organic volume, estimated at 5-6%, which was partially offset by a marginal increase in average selling prices. The gross profit for the quarter was $467.8 million, down from $473.2 million in the prior year, resulting in a gross margin of 24.5%, a slight decrease from 24.7%.

Significant changes in operating expenses were noted, with total operating expenses rising to $491.2 million from $428.1 million in the previous year. This increase was primarily driven by one-time costs of $37.7 million related to the pending merger with QXO, Inc. Selling, general, and administrative expenses increased by 14.4% to $436.5 million, reflecting higher professional fees and costs associated with acquisitions and new branch openings. The company also reported an increase in depreciation and amortization expenses, totaling $54.7 million, compared to $46.6 million in the prior year.

Operationally, Beacon Roofing Supply continued to expand its footprint, operating 595 branches across all 50 U.S. states and seven Canadian provinces. The company serves approximately 110,000 customers, including professional contractors and home builders. The number of shares outstanding as of April 18, 2025, was 62,161,753. The company’s cash and cash equivalents decreased to $57.4 million from $134.6 million a year earlier, reflecting increased working capital needs and investments in inventory.

Looking ahead, Beacon Roofing Supply is navigating the complexities of the pending merger with QXO, which is expected to close by the end of April 2025. The merger agreement includes a cash offer of $124.35 per share for outstanding shares of the company. The company has also announced a conditional redemption of its senior notes, contingent upon the completion of the merger. Despite the current financial challenges, Beacon remains focused on leveraging its scale and operational efficiencies to enhance customer service and drive future growth.