HERNDON, Va. - Beacon (NASDAQ:BECN), a Fortune 500 distributor of specialty building products, has announced the completion of its acquisition of SSR Roof Supply Ltd., a move aimed at expanding its service to roofing contractors in Vancouver, British Columbia. The acquisition adds two new branches to Beacon's operations, located in Burnaby and Surrey, and enhances the company's reach to nearly 80% of the province's population.
SSR Roof Supply, a family-owned company with over 30 years of service to residential and commercial contractors, is known for its commitment to quality products and customer service. The Bath family, founders of SSR, expressed confidence that the merger with Beacon will provide their customers with a wider range of products and more efficient services.
Charles Michaud, Beacon's Regional Vice President for Canada, welcomed SSR employees to the company and highlighted the strategic importance of the Vancouver market for Beacon's growth. With this acquisition, Beacon now operates three branches in British Columbia, strengthening its customer service in the region.
The acquisition of SSR is part of Beacon's larger strategy for growth, which has included eight acquisitions in 2024 alone. The company has reported that it exceeded its Ambition 2025 revenue and shareholder return targets in 2023 and continues to pursue the full realization of its Ambition 2025 plan.
Beacon, established in 1928, operates over 570 branches across all 50 states in the U.S. and 7 provinces in Canada, serving nearly 100,000 customers. The company's stock is traded on the Nasdaq Global Select Market. This expansion is based on a press release statement and is part of Beacon's ongoing efforts to provide comprehensive support and high-quality products across the building project lifecycle.
In other recent news, Beacon reported a substantial increase in sales and strong performance in its second quarter of 2024 earnings call, despite weather-related challenges and lower-than-expected inventory profits. The company achieved record quarterly sales, marking a 70% increase year-over-year and reaching nearly $2.7 billion. Growth was observed across all three lines of business with residential roofing sales, non-residential sales, and complementary sales all showing an upward trend.
Beacon's digital sales also saw a significant increase, growing approximately 22% year-over-year. The company anticipates high single-digit growth in daily sales for Q3 and projects 6% to 8% full-year net sales growth. Despite a negative operating cash flow in the quarter, Beacon expects stronger cash generation in the second half of the year and anticipates around $750 million in free cash flow for the latter half.
The company is also exploring opportunities to expand its gross margin through pricing models, private label, and digital strategies. These recent developments highlight Beacon's commitment to its growth initiatives and the execution of its Ambition 2025 plan.
InvestingPro Insights
Beacon (NASDAQ:BECN) has recently completed the strategic acquisition of SSR Roof Supply Ltd., which is expected to enhance its presence in the Vancouver market. As Beacon continues to expand its operations, investors and stakeholders are keen to understand the financial health and future prospects of the company. According to InvestingPro's real-time data, Beacon has a market capitalization of approximately $5.37 billion USD, reflecting its substantial size in the industry.
Despite not having paid dividends, Beacon's financial metrics indicate a positive trajectory. The company's revenue for the last twelve months ending in Q1 2024 stands at $9.3 billion USD, with a growth rate of 9.73%. This growth is further evidenced by a 10.4% quarterly revenue increase in Q1 2024, showcasing Beacon's expanding business operations. The gross profit margin for the same period is 25.53%, underlining the company's ability to maintain profitability in its core activities.
InvestingPro Tips suggest that Beacon's stock price movements have been quite volatile, which could be an important consideration for investors looking for stability in their portfolio. However, it is also noteworthy that analysts predict the company will be profitable this year, which could signal a positive outlook for the company's financial performance. For those interested in deeper analysis, InvestingPro offers additional tips on Beacon, highlighting that the company has had a strong return over the last five years and is expected to see net income growth this year.
For investors seeking detailed analytics and forecasts, there are currently 7 additional InvestingPro Tips available for Beacon, which can be found at: https://www.investing.com/pro/BECN. These tips provide valuable insights into the company's financial health and investment potential, allowing for informed decision-making.
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