TopBuild Reports Third Quarter 2025 Results; Raises Guidance to Include Recent Acquisitions
Delivers third quarter sales of $1.4 billion and adjusted EBITDA margin of 19.8%
Raises 2025 outlook to $5.35 to $5.45 billion in sales and $1.01 to $1.06 billion in adjusted EBITDA, to include contribution from SPI and four recent acquisitions
DAYTONA BEACH, Fla., Nov. 04, 2025 (GLOBE NEWSWIRE) -- TopBuild Corp. (NYSE:BLD), a leading installer of insulation and commercial roofing and a specialty distributor of insulation and related building products to the construction industry in the United States and Canada, today reported results for the third quarter ended September 30, 2025.
Robert Buck, President and CEO of TopBuild, said, “Third quarter results were in line with expectations. Sales totaled $1.4 billion in the third quarter, up 1.4% including acquisitions, as our Installation Services segment sales grew 0.2% and Specialty Distribution sales improved 1.4%. Our team’s efforts to drive productivity and operational excellence are reflected in the continued strength of our profitability.
Mr. Buck continued, “We have accomplished a lot recently, including acquiring Progressive Roofing in July and SPI in October. On a year-to-date basis, we’ve completed acquisitions that total approximately $1.2 billion in annual revenue. These acquisitions have strengthened our insulation businesses, established a new platform for growth in commercial roofing, and further expanded our non-cyclical revenue profile. We are raising our 2025 outlook to incorporate SPI and our four recent acquisitions.
“We remain confident in the long-term fundamentals for our business and are firmly committed to delivering shareholder value. Although weak consumer confidence and economic uncertainty are weighing on demand for residential new construction in the near term, the strength in commercial and industrial is very encouraging, and we are well-positioned to capture opportunities in these important and growing end markets,” Mr. Buck concluded.
Financial Highlights
(comparisons are to the periods ended September 30, 2024)
|
Three Months Ended September 30, 2025 |
|||||||||||||||
| Reported | Adjusted | ||||||||||||||
| ($ in thousands) | 2025 | 2024 | 2025 | 2024 | |||||||||||
| Sales | $1,393,158 | $1,373,268 | $1,393,158 | $1,373,268 | |||||||||||
| Gross Profit | $418,920 | $421,813 | $419,023 | $421,813 | |||||||||||
| Gross Margin | 30.1% | 30.7% | 30.1% | 30.7% | |||||||||||
| SG&A | $203,910 | $177,820 | $190,069 | $175,888 | |||||||||||
| SG&A as % of Sales | 14.6% | 12.9% | 13.6% | 12.8% | |||||||||||
| Operating Profit | $215,010 | $243,993 | $228,954 | $245,925 | |||||||||||
| Operating Margin | 15.4% | 17.8% | 16.4% | 17.9% | |||||||||||
| Net Income | $142,226 | $168,960 | $151,293 | $170,075 | |||||||||||
| Net Income per diluted share | $5.04 | $5.65 | $5.36 | $5.68 | |||||||||||
| EBITDA | $275,609 | $285,057 | |||||||||||||
| EBITDA Margin | 19.8% | 20.8% | |||||||||||||
|
Nine Months Ended September 30, 2025 |
|||||||||||||||
| Reported | Adjusted | ||||||||||||||
| ($ in thousands) | 2025 | 2024 | 2025 | 2024 | |||||||||||
| Sales | $3,923,839 | $4,017,597 | $3,923,839 | $4,017,597 | |||||||||||
| Gross Profit | $1,164,435 | $1,232,885 | $1,176,941 | $1,232,885 | |||||||||||
| Gross Margin | 29.7% | 30.7% | 30.0% | 30.7% | |||||||||||
| SG&A | $552,149 | $563,992 | $533,191 | $534,497 | |||||||||||
| SG&A as % of Sales | 14.1% | 14.0% | 13.6% | 13.3% | |||||||||||
| Operating Profit | $612,286 | $668,893 | $643,750 | $698,388 | |||||||||||
| Operating Margin | 15.6% | 16.6% | 16.4% | 17.4% | |||||||||||
| Net Income | $417,213 | $472,064 | $437,735 | $493,997 | |||||||||||
| Net Income per diluted share | $14.56 | $15.19 | $15.28 | $15.89 | |||||||||||
| EBITDA | $771,669 | $816,570 | |||||||||||||
| EBITDA Margin | 19.7% | 20.3% | |||||||||||||
| Sales Drivers | ||||||||||||||
| (comparisons are to the periods ended September 30, 2024) | ||||||||||||||
| Three Months Ended September 30, 2025 | ||||||||||||||
| Installation Services |
Specialty Distribution |
TopBuild, net of eliminations |
||||||||||||
| Sales($ in millions) | $858 | $609 | $1,393 | |||||||||||
| Sales Drivers | ||||||||||||||
| Volume | (10.4%) | (2.1%) | (6.7%) | |||||||||||
| Price | (0.5%) | 1.2% | 0.3% | |||||||||||
| M&A | 11.0% | 2.3% | 7.9% | |||||||||||
| Total Sales Change | 0.2% | 1.4% | 1.4% | |||||||||||
| Nine Months Ended September 30, 2025 | ||||||||||||||
| Installation Services |
Specialty Distribution |
TopBuild, net of eliminations |
||||||||||||
| Sales($ in millions) | $2,384 | $1,768 | $3,924 | |||||||||||
| Sales Drivers | ||||||||||||||
| Volume | (10.2%) | (2.1%) | (7.3%) | |||||||||||
| Price | 0.5% | 1.1% | 0.8% | |||||||||||
| M&A | 4.8% | 2.7% | 4.2% | |||||||||||
| Total Sales Change | (4.9%) | 1.7% | (2.3%) | |||||||||||
| Segment Profitability | |||||||||||||||
| (comparisons are to the periods ended September 30, 2024) |
|||||||||||||||
| Three Months Ended September 30, 2025 | Nine Months Ended September 30, 2025 | ||||||||||||||
| ($ in thousands) | Installation Services |
Specialty Distribution |
Installation Services |
Specialty Distribution |
|||||||||||
| Operating Profit | $166,762 | $87,114 | $451,819 | $243,655 | |||||||||||
| Change | (3.2%) | (8.2%) | (9.6%) | (7.0%) | |||||||||||
| Operating Margin | 19.4% | 14.3% | 18.9% | 13.8% | |||||||||||
| Adj. Operating Profit | $167,065 | $87,456 | $459,646 | $250,849 | |||||||||||
| Change | (3.0%) | (8.0%) | (8.1%) | (4.0%) | |||||||||||
| Adj. Operating Margin | 19.5% | 14.4% | 19.3% | 14.2% | |||||||||||
| Adj. EBITDA | $193,060 | $102,976 | $524,678 | $297,289 | |||||||||||
| Change | 0.9% | (6.9%) | (5.8%) | (3.3%) | |||||||||||
| Adj. EBITDA Margin | 22.5% | 16.9% | 22.0% | 16.8% | |||||||||||
Capital Allocation
2025 Acquisitions
TopBuild continues to prioritize acquisitions for capital allocation and as of September 30, 2025, spent approximately $851.2 million on acquisitions year-to-date.
In the fourth quarter, the Company completed the acquisitions of Specialty Products and Insulation (SPI), Diamond Door Products, and Performance Insulation Fabricators. The acquisition of L&L Insulation is expected to close in November. Following this, the Company will have spent approximately $1.08 billion for acquisitions in the fourth quarter.
| 2025 Acquisitions | ||||
| Company | Annual Revenue | Month Closed | ||
| ($ in millions) | ||||
| Seal-Rite Insulation (I) | 15.2 | April | ||
| Progressive Roofing (I) | 438.0 | July | ||
| Insulation Fabrics (D) | 6.1 | September | ||
| Specialty Products and Insulation (D) | 698.8 | October | ||
| Diamond Door Products (D) | 30.4 | October | ||
| Performance Insulation Fabricators (D) | 8.9 | October | ||
| L&L Insulation (I) | 7.2 | November1 | ||
| Total | $ | 1,204.6 | ||
| I = Installation Services, D = Specialty Distribution | ||||
| 1 Expected Closing | ||||
Share Repurchases
During the third quarter, TopBuild repurchased 177,983 shares totaling $65.5 million. On a year-to-date basis, the Company bought back 1,326,666 shares for $417.1 million. The remaining availability for share repurchases at the end of the third quarter totaled $770.9 million.
2025 Outlook1
TopBuild updated its full year outlook to include the contribution of its recent acquisitions: Insulation Fabrics, SPI, Diamond Door Products, Performance Insulation Fabricators, and L&L Insulation. The guidance does not contemplate additional transactions that it expects to complete during the remainder of the year.
| ($ in millions) | |||||||
| Low | Mid | High | |||||
| Sales | $ | 5,350 | $ | 5,400 | $ | 5,450 | |
| EBITDA, as adjusted | 1,010 | 1,035 | 1,060 | ||||
| Depreciation and amortization | 171 | 169 | 166 | ||||
| Share-based compensation | 19 | 19 | 18 | ||||
| EBIT, as adjusted | 820 | 848 | 876 | ||||
| Interest expense and other, net | 91 | 90 | 88 | ||||
| Adjusted profit before tax | 729 | 758 | 788 | ||||
| Adjusted income tax expense | 190 | 197 | 205 | ||||
| Income, as adjusted | $ | 539 | $ | 561 | $ | 583 | |
1 This outlook reflects management’s current view of present and future market conditions and is based on assumptions such as housing starts, economic conditions, and interest rates. These targets do not include any effects related to potential acquisitions or divestitures that may occur after the date of this press release. A reconciliation of non-GAAP targets to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, the costs and expenses that may be incurred in the future and therefore cannot be reasonably predicted. The effect of these excluded items may be significant. Factors that could cause actual long-term results to differ materially from TopBuild’s current expectations are discussed below and detailed in the Company’s most recent Annual Report on Form 10-K and subsequent SEC reports.
Conference Call
A conference call to discuss the third quarter 2025 financial results is scheduled for today, Tuesday, November 4th, at 9:00 a.m. Eastern Time. The call can be accessed by dialing (877) 407-9037. A simultaneous webcast of the call, along with management’s formal remarks and a presentation, will be available on the Company’s website at www.topbuild.com shortly before the call begins.
About TopBuild
TopBuild Corp., headquartered in Daytona Beach, Florida, is a leading installer of insulation and commercial roofing and is also a specialty distributor of insulation and related building products to the construction industry in the United States and Canada. We provide insulation and commercial roofing installation services nationwide through our Installation Services segment which has over 200 branches located across the United States. We distribute building and mechanical insulation, insulation accessories, and other building products for the residential, commercial, and industrial end markets through our Specialty Distribution business. Our Specialty Distribution network encompasses more than 250 branches across the United States and Canada. To learn more about TopBuild please visit our website at www.topbuild.com.
Use of Non-GAAP Financial Measures
Adjusted EBITDA, incremental EBITDA margin, adjusted EBITDA margin, the “adjusted” financial measures presented above, and figures presented on a “same branch basis” are not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). The Company believes that these non-GAAP financial measures, which are used in managing the business, may provide users of this financial information with additional meaningful comparisons between current results and results in prior periods. We define same branch sales as sales from branches in operation for at least 12 full calendar months. Such non-GAAP financial measures are reconciled to their closest GAAP financial measures in tables contained in this press release. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company’s reported results under GAAP. Additional information may be found in the Company’s filings with the Securities and Exchange Commission which are available on TopBuild’s website under “SEC Filings” at www.topbuild.com.
Safe Harbor Statement
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements may address, among other things, our expected financial and operational results, the related assumptions underlying our expected results, and our plan to repurchase our common stock under stock repurchase transactions. These forward-looking statements can be identified by words such as “will,” “would,” “anticipate,” “expect,” “believe,” “designed,” “plan,” “may,” “project,” “estimate” or “intend,” the negative of these terms, and similar references to future periods. These views involve risks and uncertainties that are difficult to predict and, accordingly, our actual results may differ materially from the results discussed in our forward-looking statements. Our forward-looking statements contained herein speak only as of the date of this press release. Factors or events that we cannot predict, including those described in the risk factors contained in our filings with the Securities and Exchange Commission, may cause our actual results to differ from those expressed in forward-looking statements. Although TopBuild believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, the Company can give no assurance that its expectations will be achieved and it undertakes no obligation to update any forward-looking statements as a result of new information, future events, or otherwise, except as required by applicable law.
(tables follow)
| TopBuild Corp. | |||||||||||||||||
| Condensed Consolidated Statements of Operations (Unaudited) | |||||||||||||||||
| (in thousands, except share and per common share amounts) | |||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||
| Net sales | $ | 1,393,158 | $ | 1,373,268 | $ | 3,923,839 | $ | 4,017,597 | |||||||||
| Cost of sales | 974,238 | 951,455 | 2,759,404 | 2,784,712 | |||||||||||||
| Gross profit | 418,920 | 421,813 | 1,164,435 | 1,232,885 | |||||||||||||
| Selling, general, and administrative expense | 203,910 | 177,820 | 552,149 | 563,992 | |||||||||||||
| Operating profit | 215,010 | 243,993 | 612,286 | 668,893 | |||||||||||||
| Other income (expense), net: | |||||||||||||||||
| Interest expense | (28,415 | ) | (18,449 | ) | (65,561 | ) | (55,811 | ) | |||||||||
| Other, net | 3,911 | 2,355 | 13,345 | 24,987 | |||||||||||||
| Other expense, net | (24,504 | ) | (16,094 | ) | (52,216 | ) | (30,824 | ) | |||||||||
| Income before income taxes | 190,506 | 227,899 | 560,070 | 638,069 | |||||||||||||
| Income tax expense | (48,280 | ) | (58,939 | ) | (142,857 | ) | (166,005 | ) | |||||||||
| Net income | $ | 142,226 | $ | 168,960 | $ | 417,213 | $ | 472,064 | |||||||||
| Net income per common share: | |||||||||||||||||
| Basic | $ | 5.08 | $ | 5.68 | $ | 14.65 | $ | 15.28 | |||||||||
| Diluted | $ | 5.04 | $ | 5.65 | $ | 14.56 | $ | 15.19 | |||||||||
| Weighted average shares outstanding: | |||||||||||||||||
| Basic | 28,019,746 | 29,751,713 | 28,469,514 | 30,901,788 | |||||||||||||
| Diluted | 28,204,354 | 29,925,400 | 28,653,031 | 31,083,857 | |||||||||||||
| TopBuild Corp. | ||||||||||||||
| Condensed Consolidated Statements of Comprehensive Income (Unaudited) | ||||||||||||||
| (in thousands) | ||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||
| Net income | $ | 142,226 | $ | 168,960 | $ | 417,213 | $ | 472,064 | ||||||
| Other comprehensive (loss) income: | ||||||||||||||
| Foreign currency translation adjustment | (3,880 | ) | 2,463 | 6,217 | (3,464 | ) | ||||||||
| Comprehensive income | $ | 138,346 | $ | 171,423 | $ | 423,430 | $ | 468,600 | ||||||
| TopBuild Corp. | ||||||||
| Condensed Consolidated Balance Sheets and Other Financial Data (Unaudited) | ||||||||
| (dollars in thousands) | ||||||||
| As of | ||||||||
| September 30, 2025 | December 31, 2024 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 1,142,403 | $ | 400,318 | ||||
| Receivables, net of an allowance for credit losses of $28,119 at September 30, 2025, and $18,541 at December 31, 2024 | 874,308 | 751,612 | ||||||
| Inventories | 385,642 | 406,662 | ||||||
| Prepaid expenses and other current assets | 44,563 | 40,382 | ||||||
| Total current assets | 2,446,916 | 1,598,974 | ||||||
| Right of use assets | 200,870 | 189,146 | ||||||
| Property and equipment, net | 271,765 | 266,992 | ||||||
| Goodwill | 2,573,475 | 2,112,259 | ||||||
| Other intangible assets, net | 907,395 | 557,689 | ||||||
| Other assets | 9,879 | 10,366 | ||||||
| Total assets | $ | 6,410,300 | $ | 4,735,426 | ||||
| LIABILITIES | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 463,798 | $ | 456,446 | ||||
| Current portion of long-term debt | 62,500 | 48,750 | ||||||
| Accrued liabilities | 242,931 | 191,786 | ||||||
| Short-term operating lease liabilities | 68,762 | 68,713 | ||||||
| Short-term finance lease liabilities | 4,713 | 1,487 | ||||||
| Total current liabilities | 842,704 | 767,182 | ||||||
| Long-term debt | 2,798,678 | 1,327,159 | ||||||
| Deferred tax liabilities, net | 331,425 | 240,343 | ||||||
| Long-term portion of insurance reserves | 58,120 | 57,700 | ||||||
| Long-term operating lease liabilities | 147,272 | 129,360 | ||||||
| Long-term finance lease liabilities | 6,510 | 2,618 | ||||||
| Other liabilities | 2,343 | 1,446 | ||||||
| Total liabilities | 4,187,052 | 2,525,808 | ||||||
| EQUITY | 2,223,248 | 2,209,618 | ||||||
| Total liabilities and equity | $ | 6,410,300 | $ | 4,735,426 | ||||
| As of September 30, | ||||||||
| 2025 | 2024 | |||||||
| Other Financial Data | ||||||||
| Receivables, net plus inventories less accounts payable | $ | 796,152 | $ | 758,506 | ||||
| Net sales, acquisition adjusted † | $ | 5,597,753 | $ | 5,366,716 | ||||
| Receivables, net plus inventories less accounts payable as a percent of sales (TTM) † | 14.2 | % | 14.1 | % | ||||
| † Trailing 12 months sales have been adjusted for the pro forma effect of acquired branches | ||||||||
| TopBuild Corp. | |||||||||
| Condensed Consolidated Statement of Cash Flows (Unaudited) | |||||||||
| (in thousands) | |||||||||
| Nine Months Ended September 30, | |||||||||
| 2025 | 2024 | ||||||||
| Cash Flows Provided by (Used in) Operating Activities: | |||||||||
| Net income | $ | 417,213 | $ | 472,064 | |||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||
| Depreciation and amortization | 114,018 | 104,777 | |||||||
| Share-based compensation | 14,121 | 13,405 | |||||||
| Loss on sale of assets | 927 | 672 | |||||||
| Amortization of debt issuance costs | 2,438 | 2,161 | |||||||
| Provision for bad debt expense | 12,769 | 13,730 | |||||||
| Provision for inventory obsolescence | 6,714 | 6,713 | |||||||
| Impairment losses | 9,442 | — | |||||||
| Deferred income taxes, net | (1,989 | ) | (622 | ) | |||||
| Change in certain assets and liabilities, net of effects of businesses acquired: | |||||||||
| Receivables, net | (10,648 | ) | (30,294 | ) | |||||
| Inventories | 23,495 | (30,916 | ) | ||||||
| Prepaid expenses and other current assets | (2,407 | ) | (6,849 | ) | |||||
| Accounts payable | (14,783 | ) | (17,441 | ) | |||||
| Accrued liabilities | 12,369 | (15,695 | ) | ||||||
| Other, net | (4,091 | ) | (1,907 | ) | |||||
| Net cash provided by operating activities | 579,588 | 509,798 | |||||||
| Cash Flows Provided by (Used in) Investing Activities: | |||||||||
| Purchases of property and equipment | (42,064 | ) | (56,794 | ) | |||||
| Acquisition of businesses, net of cash acquired | (851,181 | ) | (88,460 | ) | |||||
| Proceeds from sale of assets | 982 | 2,336 | |||||||
| Net cash used in investing activities | (892,263 | ) | (142,918 | ) | |||||
| Cash Flows Provided by (Used in) Financing Activities: | |||||||||
| Proceeds from issuance of long-term debt | 2,000,000 | — | |||||||
| Repayment of long-term debt | (500,000 | ) | (35,651 | ) | |||||
| Excise taxes paid on share repurchases | (9,444 | ) | — | ||||||
| Payment of debt issuance costs | (17,395 | ) | — | ||||||
| Taxes withheld and paid on employees' equity awards | (5,374 | ) | (6,088 | ) | |||||
| Exercise of stock options | 2,771 | 3,224 | |||||||
| Repurchase of shares of common stock | (417,148 | ) | (919,186 | ) | |||||
| Net cash provided by (used in) financing activities | 1,053,410 | (957,701 | ) | ||||||
| Impact of exchange rate changes on cash | 1,350 | (402 | ) | ||||||
| Net increase (decrease) in cash and cash equivalents | 742,085 | (591,223 | ) | ||||||
| Cash and cash equivalents - Beginning of period | 400,318 | 848,565 | |||||||
| Cash and cash equivalents - End of period | $ | 1,142,403 | $ | 257,342 | |||||
| Supplemental disclosure of noncash activities: | |||||||||
| Leased assets obtained in exchange for new operating lease liabilities | $ | 58,662 | $ | 35,718 | |||||
| Leased assets obtained in exchange for new finance lease liabilities | 465 | — | |||||||
| Accruals for property and equipment | 1,713 | 227 | |||||||
| Excise taxes capitalized to treasury stock | 4,171 | 9,342 | |||||||
| TopBuild Corp. | ||||||||||||||||||||||||
| Segment Data (Unaudited) | ||||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
| 2025 | 2024 | Change | 2025 | 2024 | Change | |||||||||||||||||||
| Installation Services | ||||||||||||||||||||||||
| Sales | $ | 858,264 | $ | 856,350 | 0.2 | % | $ | 2,384,475 | $ | 2,506,076 | (4.9 | ) | % | |||||||||||
| Operating profit, as reported | $ | 166,762 | $ | 172,243 | $ | 451,819 | $ | 499,717 | ||||||||||||||||
| Operating margin, as reported | 19.4 | % | 20.1 | % | 18.9 | % | 19.9 | % | ||||||||||||||||
| Rationalization charges | (125 | ) | — | 7,223 | — | |||||||||||||||||||
| Acquisition related costs | 428 | 31 | 604 | 364 | ||||||||||||||||||||
| Operating profit, as adjusted | $ | 167,065 | $ | 172,274 | $ | 459,646 | $ | 500,081 | ||||||||||||||||
| Operating margin, as adjusted | 19.5 | % | 20.1 | % | 19.3 | % | 20.0 | % | ||||||||||||||||
| Share-based compensation | 310 | 71 | 933 | 719 | ||||||||||||||||||||
| Depreciation and amortization | 25,685 | 19,037 | 64,099 | 56,016 | ||||||||||||||||||||
| EBITDA, as adjusted | $ | 193,060 | $ | 191,382 | 0.9 | % | $ | 524,678 | $ | 556,816 | (5.8 | ) | % | |||||||||||
| EBITDA margin, as adjusted | 22.5 | % | 22.3 | % | 22.0 | % | 22.2 | % | ||||||||||||||||
| Specialty Distribution | ||||||||||||||||||||||||
| Sales | $ | 608,892 | $ | 600,387 | 1.4 | % | $ | 1,767,879 | $ | 1,739,007 | 1.7 | % | ||||||||||||
| Operating profit, as reported | $ | 87,114 | $ | 94,911 | $ | 243,655 | $ | 261,862 | ||||||||||||||||
| Operating margin, as reported | 14.3 | % | 15.8 | % | 13.8 | % | 15.1 | % | ||||||||||||||||
| Rationalization charges | 342 | 194 | 7,143 | (556 | ) | |||||||||||||||||||
| Acquisition related costs | — | 4 | 51 | 14 | ||||||||||||||||||||
| Operating profit, as adjusted | $ | 87,456 | $ | 95,109 | $ | 250,849 | $ | 261,320 | ||||||||||||||||
| Operating margin, as adjusted | 14.4 | % | 15.8 | % | 14.2 | % | 15.0 | % | ||||||||||||||||
| Share-based compensation | 398 | 374 | 1,282 | 1,187 | ||||||||||||||||||||
| Depreciation and amortization | 15,122 | 15,117 | 45,158 | 45,000 | ||||||||||||||||||||
| EBITDA, as adjusted | $ | 102,976 | $ | 110,600 | (6.9 | ) | % | $ | 297,289 | $ | 307,507 | (3.3 | ) | % | ||||||||||
| EBITDA margin, as adjusted | 16.9 | % | 18.4 | % | 16.8 | % | 17.7 | % | ||||||||||||||||
| TopBuild Corp. | ||||||||||||||||||||||||||
| Adjusted EBITDA (Unaudited) | ||||||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| 2025 | 2024 | Change | 2025 | 2024 | Change | |||||||||||||||||||||
| Total net sales | ||||||||||||||||||||||||||
| Sales before eliminations | $ | 1,467,156 | $ | 1,456,737 | $ | 4,152,354 | $ | 4,245,083 | ||||||||||||||||||
| Intercompany eliminations | (73,998 | ) | (83,469 | ) | (228,515 | ) | (227,486 | ) | ||||||||||||||||||
| Net sales after eliminations | $ | 1,393,158 | $ | 1,373,268 | 1.4 | % | $ | 3,923,839 | $ | 4,017,597 | (2.3 | ) | % | |||||||||||||
| Operating profit, as reported - segments | $ | 253,876 | $ | 267,154 | $ | 695,474 | $ | 761,579 | ||||||||||||||||||
| General corporate expense, net | (24,152 | ) | (9,685 | ) | (42,914 | ) | (55,610 | ) | ||||||||||||||||||
| Intercompany eliminations | (14,714 | ) | (13,476 | ) | (40,274 | ) | (37,076 | ) | ||||||||||||||||||
| Operating profit, as reported | $ | 215,010 | $ | 243,993 | $ | 612,286 | $ | 668,893 | ||||||||||||||||||
| Operating margin, as reported | 15.4 | % | 17.8 | % | 15.6 | % | 16.6 | % | ||||||||||||||||||
| Rationalization charges | 218 | 485 | 14,556 | (7 | ) | |||||||||||||||||||||
| Refinancing costs | — | — | 226 | — | ||||||||||||||||||||||
| Acquisition related costs † | 13,726 | 1,447 | 16,682 | 6,502 | ||||||||||||||||||||||
| Acquisition termination fee | — | — | — | 23,000 | ||||||||||||||||||||||
| Operating profit, as adjusted | $ | 228,954 | $ | 245,925 | $ | 643,750 | $ | 698,388 | ||||||||||||||||||
| Operating margin, as adjusted | 16.4 | % | 17.9 | % | 16.4 | % | 17.4 | % | ||||||||||||||||||
| Share-based compensation | 4,314 | 3,646 | 14,121 | 13,405 | ||||||||||||||||||||||
| Depreciation and amortization | 42,341 | 35,486 | 113,798 | 104,777 | ||||||||||||||||||||||
| EBITDA, as adjusted | $ | 275,609 | $ | 285,057 | (3.3 | ) | % | $ | 771,669 | $ | 816,570 | (5.5 | ) | % | ||||||||||||
| EBITDA margin, as adjusted | 19.8 | % | 20.8 | % | 19.7 | % | 20.3 | % | ||||||||||||||||||
| Sales change period over period | 19,890 | (93,758 | ) | |||||||||||||||||||||||
| EBITDA, as adjusted, change period over period | (9,448 | ) | (44,901 | ) | ||||||||||||||||||||||
| Decremental EBITDA, as adjusted, as a percentage of change in sales | NM | (47.9 | ) | % | ||||||||||||||||||||||
| † Acquisition related costs include corporate level adjustments as well as segment operating adjustments | ||||||||||||||||||||||||||
| NM Not meaningful | ||||||||||||||||||||||||||
| TopBuild Corp. | |||||||||||||||||
| Same Branch and Acquisition Metrics (Unaudited) | |||||||||||||||||
| (dollars in thousands) | |||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||
| Net sales | |||||||||||||||||
| Same branch: | |||||||||||||||||
| Installation Services | $ | 763,729 | $ | 856,350 | $ | 2,263,271 | $ | 2,506,076 | |||||||||
| Specialty Distribution | 594,921 | 600,387 | 1,721,789 | 1,739,007 | |||||||||||||
| Eliminations | (73,998 | ) | (83,469 | ) | (228,515 | ) | (227,486 | ) | |||||||||
| Total same branch | $ | 1,284,652 | $ | 1,373,268 | $ | 3,756,545 | $ | 4,017,597 | |||||||||
| Acquisitions (a): | |||||||||||||||||
| Installation Services | $ | 94,535 | $ | — | $ | 121,204 | $ | — | |||||||||
| Specialty Distribution | 13,971 | — | 46,090 | — | |||||||||||||
| Total acquisitions | 108,506 | — | 167,294 | — | |||||||||||||
| Total net sales | $ | 1,393,158 | $ | 1,373,268 | $ | 3,923,839 | $ | 4,017,597 | |||||||||
| EBITDA, as adjusted | |||||||||||||||||
| Same branch | $ | 256,601 | $ | 285,057 | $ | 742,460 | $ | 816,570 | |||||||||
| Acquisitions (a) | 19,008 | — | 29,209 | — | |||||||||||||
| Total | $ | 275,609 | $ | 285,057 | $ | 771,669 | $ | 816,570 | |||||||||
| EBITDA, as adjusted, as a percentage of sales | |||||||||||||||||
| Same branch (b) | 20.0 | % | 19.8 | % | |||||||||||||
| Acquisitions (c) | 17.5 | % | 17.5 | % | |||||||||||||
| Total (d) | 19.8 | % | 20.8 | % | 19.7 | % | 20.3 | % | |||||||||
| As Adjusted (Decremental)/Incremental EBITDA, as a percentage of change in sales | |||||||||||||||||
| Same branch (e) | (32.1 | ) | % | (28.4 | ) | % | |||||||||||
| Acquisitions (c) | 17.5 | % | 17.5 | % | |||||||||||||
| Total (f) | NM | (47.9 | ) | % | |||||||||||||
| (a) Represents current year impact of acquisitions in their first twelve months | |||||||||||||||||
| (b) Same branch metric, as adjusted, as a percentage of same branch sales | |||||||||||||||||
| (c) Acquired metric, as adjusted, as a percentage of acquired sales | |||||||||||||||||
| (d) Total EBITDA, as adjusted, as a percentage of total sales | |||||||||||||||||
| (e) Change in same branch EBITDA, as adjusted, as a percentage of change in same branch sales | |||||||||||||||||
| (f) Change in total EBITDA, as adjusted, as a percentage of change in total sales | |||||||||||||||||
| NM Not meaningful | |||||||||||||||||
| TopBuild Corp. | ||||||||||||||||||||||
| Same Branch Revenue by Line of Business (Unaudited) | ||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
| 2025 | 2024 | Change | 2025 | 2024 | Change | |||||||||||||||||
| Residential: | ||||||||||||||||||||||
| Same branch (a) | $ | 800,987 | $ | 890,356 | (10.0 | ) | % | $ | 2,356,843 | $ | 2,609,299 | (9.7 | ) | % | ||||||||
| Acquisitions | 3,157 | — | 26,553 | — | ||||||||||||||||||
| Total Residential sales | 804,144 | 890,356 | (9.7 | ) | % | 2,383,396 | 2,609,299 | (8.7 | ) | % | ||||||||||||
| Commercial/Industrial: | ||||||||||||||||||||||
| Same branch (a) | $ | 483,669 | $ | 482,912 | 0.2 | % | $ | 1,399,706 | $ | 1,408,298 | (0.6 | ) | % | |||||||||
| Acquisitions | 105,345 | — | 140,737 | — | ||||||||||||||||||
| Total Commercial/Industrial sales | 589,014 | 482,912 | 22.0 | % | 1,540,443 | 1,408,298 | 9.4 | % | ||||||||||||||
| Total net sales | $ | 1,393,158 | $ | 1,373,268 | 1.4 | % | $ | 3,923,839 | $ | 4,017,597 | (2.3 | ) | % | |||||||||
| (a) Represents current year impact of acquisitions in their first twelve months | ||||||||||||||||||||||
| TopBuild Corp. | |||||||||||||||||
| Non-GAAP Reconciliations (Unaudited) | |||||||||||||||||
| (in thousands, except share and per common share amounts) | |||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||
| Gross Profit Reconciliation | |||||||||||||||||
| Net sales | $ | 1,393,158 | $ | 1,373,268 | $ | 3,923,839 | $ | 4,017,597 | |||||||||
| Gross profit, as reported | $ | 418,920 | $ | 421,813 | $ | 1,164,435 | $ | 1,232,885 | |||||||||
| Rationalization charges | 103 | — | 12,506 | — | |||||||||||||
| Gross profit, as adjusted | $ | 419,023 | $ | 421,813 | $ | 1,176,941 | $ | 1,232,885 | |||||||||
| Gross margin, as reported | 30.1 | % | 30.7 | % | 29.7 | % | 30.7 | % | |||||||||
| Gross margin, as adjusted | 30.1 | % | 30.7 | % | 30.0 | % | 30.7 | % | |||||||||
| Selling, General and Administrative Expense Reconciliation | |||||||||||||||||
| Selling, general, and administrative expense, as reported | $ | 203,910 | $ | 177,820 | $ | 552,149 | $ | 563,992 | |||||||||
| Rationalization charges | 115 | 485 | 2,050 | (7 | ) | ||||||||||||
| Refinancing costs | — | — | 226 | — | |||||||||||||
| Acquisition related costs | 13,726 | 1,447 | 16,682 | 6,502 | |||||||||||||
| Acquisition termination fee | — | — | — | 23,000 | |||||||||||||
| Selling, general, and administrative expense, as adjusted | $ | 190,069 | $ | 175,888 | $ | 533,191 | $ | 534,497 | |||||||||
| Operating Profit Reconciliation | |||||||||||||||||
| Operating profit, as reported | $ | 215,010 | $ | 243,993 | $ | 612,286 | $ | 668,893 | |||||||||
| Rationalization charges | 218 | 485 | 14,556 | (7 | ) | ||||||||||||
| Refinancing costs | — | — | 226 | — | |||||||||||||
| Acquisition related costs | 13,726 | 1,447 | 16,682 | 6,502 | |||||||||||||
| Acquisition termination fee | — | — | — | 23,000 | |||||||||||||
| Operating profit, as adjusted | $ | 228,954 | $ | 245,925 | $ | 643,750 | $ | 698,388 | |||||||||
| Operating margin, as reported | 15.4 | % | 17.8 | % | 15.6 | % | 16.6 | % | |||||||||
| Operating margin, as adjusted | 16.4 | % | 17.9 | % | 16.4 | % | 17.4 | % | |||||||||
| Income Per Common Share Reconciliation | |||||||||||||||||
| Income before income taxes, as reported | $ | 190,506 | $ | 227,899 | $ | 560,070 | $ | 638,069 | |||||||||
| Rationalization charges | 218 | 485 | 14,556 | (7 | ) | ||||||||||||
| Refinancing costs | — | — | 226 | — | |||||||||||||
| Acquisition related costs | 13,726 | 1,447 | 16,682 | 6,502 | |||||||||||||
| Acquisition termination fee | — | — | — | 23,000 | |||||||||||||
| Income before income taxes, as adjusted | 204,450 | 229,831 | 591,534 | 667,564 | |||||||||||||
| Tax rate at 26.0% | (53,157 | ) | (59,756 | ) | (153,799 | ) | (173,567 | ) | |||||||||
| Income, as adjusted | $ | 151,293 | $ | 170,075 | $ | 437,735 | $ | 493,997 | |||||||||
| Income per common share, as adjusted | $ | 5.36 | $ | 5.68 | $ | 15.28 | $ | 15.89 | |||||||||
| Weighted average diluted common shares outstanding | 28,204,354 | 29,925,400 | 28,653,031 | 31,083,857 | |||||||||||||
| TopBuild Corp. | |||||||||||||
| Reconciliation of Adjusted EBITDA to Net Income (Unaudited) | |||||||||||||
| (in thousands) | |||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||
| Net income, as reported | $ | 142,226 | $ | 168,960 | $ | 417,213 | $ | 472,064 | |||||
| Adjustments to arrive at EBITDA, as adjusted: | |||||||||||||
| Interest expense and other, net | 24,504 | 16,094 | 52,216 | 30,824 | |||||||||
| Income tax expense | 48,280 | 58,939 | 142,857 | 166,005 | |||||||||
| Depreciation and amortization | 42,341 | 35,486 | 113,798 | 104,777 | |||||||||
| Share-based compensation | 4,314 | 3,646 | 14,121 | 13,405 | |||||||||
| Rationalization charges | 218 | 485 | 14,556 | (7 | ) | ||||||||
| Refinancing costs | — | — | 226 | — | |||||||||
| Acquisition related costs | 13,726 | 1,447 | 16,682 | 6,502 | |||||||||
| Acquisition termination fee | — | — | — | 23,000 | |||||||||
| EBITDA, as adjusted | $ | 275,609 | $ | 285,057 | $ | 771,669 | $ | 816,570 | |||||
| TopBuild Corp. | ||||||||||||||
| Acquisition Adjusted Net Sales (Unaudited) | ||||||||||||||
| (in thousands) | ||||||||||||||
| 2024 | 2025 | Trailing Twelve Months Ended |
||||||||||||
| Q4 | Q1 | Q2 | Q3 | September 30, 2025 | ||||||||||
| Net sales | $ | 1,312,206 | $ | 1,233,278 | $ | 1,297,403 | $ | 1,393,158 | $ | 5,236,045 | ||||
| Acquisitions proforma adjustment † | 115,966 | 114,778 | 115,841 | 15,123 | 361,708 | |||||||||
| Net sales, acquisition adjusted | $ | 1,428,172 | $ | 1,348,056 | $ | 1,413,244 | $ | 1,408,281 | $ | 5,597,753 | ||||
| † Trailing 12 months sales have been adjusted for the pro forma effect of acquired branches | ||||||||||||||
| TopBuild Corp. | ||||||||||||
| 2025 Estimated Guidance Ranges (Unaudited) | ||||||||||||
| (in millions) | ||||||||||||
| Twelve Months Ending December 31, 2025 | ||||||||||||
| Low | Mid | High | ||||||||||
| Estimated net income | $ | 497.0 | $ | 519.9 | $ | 542.0 | ||||||
| Adjustments to arrive at estimated adjusted measures: | ||||||||||||
| Interest expense and other, net | 91.0 | 89.5 | 88.0 | |||||||||
| Income tax expense | 175.0 | 182.6 | 191.0 | |||||||||
| Rationalization charges | 15.0 | 15.0 | 15.0 | |||||||||
| Acquisition related costs | 42.0 | 41.0 | 40.0 | |||||||||
| Estimated EBIT, as adjusted | 820.0 | 848.0 | 876.0 | |||||||||
| Share-based compensation | 19.0 | 18.5 | 18.0 | |||||||||
| Depreciation and amortization | 171.0 | 168.5 | 166.0 | |||||||||
| Estimated EBITDA, as adjusted | $ | 1,010.0 | $ | 1,035.0 | $ | 1,060.0 | ||||||
| Twelve Months Ending December 31, 2025 | ||||||||||||
| Low | Mid | High | ||||||||||
| Estimated net income | $ | 497.0 | $ | 519.9 | $ | 542.0 | ||||||
| Adjustments to arrive at estimated income, as adjusted: | ||||||||||||
| Rationalization charges | 15.0 | 15.0 | 15.0 | |||||||||
| Acquisition related costs | 42.0 | 41.0 | 40.0 | |||||||||
| Normalized income tax impact of rationalization charges and acquisition related costs (26%) | (14.8 | ) | (14.6 | ) | (14.3 | ) | ||||||
| Estimated income, as adjusted | $ | 539.2 | $ | 561.3 | $ | 582.7 | ||||||
This press release was published by a CLEAR® Verified individual.
Investor Relations and Media Contact PI Aquino pi.aquino@topbuild.com 386-763-8801
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