an electron beam has a wave function equivalent to a plane wave $\psi(x)=Ae^{ikx}$,
however I would like to know why?
In an electrom beam the electron is supposed
to have a well-defined momentum $p_x$, i.e.
measuring the momentum will
with 100% probabilty result in a certain value $p_x$.
Or saying it mathematically: the wave function $\psi(x)$
must be an eigenfunction of the momentum operator
$\frac{\hbar}{i}\frac{\partial}{\partial x}$
with an eigenvalue $p_x$.
$$\frac{\hbar}{i}\frac{\partial}{\partial x}\psi(x)=p_x\psi(x)$$
The solutions of this equation are
$$\psi(x)=Ae^{ikx},\quad \text{ for eigenvalue }p_x=\hbar k \tag{1}$$
with any parameter $k$.
how do we reconcile this with the fact that this function can not be normalized?
You correctly noticed that the eigenfunctions (1) are not normalizable.
That means that such a state is not physically possible.
To overcome this issue, we can modify the solution (1) and make
a wave-function which is confined to a large but finite region of space.
For example, a function like
$$\psi(x)=\begin{cases}
\frac{1}{\sqrt{2L}}e^{ikx} &\text{, if } -L\le x \le +L \\
0 & \text{, else }
\end{cases} \tag{2} $$
with some large length $L$ would be normalized and hence be physically possible.
But of course it would not exactly be an eigenfunction of momentum.
Nevertheless the functions (1) are handy as a mathematical idealization.
Therefore we can (with some care) use them to approximate physical reality.
This is usually much easier than using the functions (2) instead, calculating
the physical results, and at the end doing $\lim_{L\to\infty}$.