BLD TopBuild Corp

TopBuild Corp. (NYSE:BLD) a leading installer and specialty distributor of insulation and building material products to the construction industry in the United States and Canada today reported results for the first quarter ended March 31, 2025.

“Our first quarter results were in line with our expectations,” said Robert Buck, President and CEO of TopBuild. “While total sales declined 3.6%, we are encouraged by Specialty Distribution growth of 2.6% as commercial and industrial projects have moved forward and our bidding activity and backlog are solid. Installation segment sales declined 6.7%, a reflection of the slow start to the year in new residential construction. Our profitability continues to be healthy, as we delivered first quarter adjusted EBITDA margin of 19.0%.

“While there is uncertainty in the near-term economic environment, we are confident in our ability to adapt our business and outperform in a changing environment. We are taking steps to align our cost structure with the current demand landscape, while we continue to make targeted investments across our business, drive operational improvements and work together to turn challenges into opportunities. We are optimistic around the mid-term and long-term fundamentals for TopBuild, as underlying demand for housing in the United States is strong, and we see positive trends in the commercial and industrial end markets.

“Acquisitions continue to be our number one priority for our free cash flow, and we are disciplined as we evaluate M&A opportunities and deploy capital to generate strong returns. In the first quarter, we returned $215.6 million in capital to shareholders through our share repurchase program,” concluded Mr. Buck.

Financial Highlights(comparisons are to the quarter ended March 31, 2024)

Three Months Ended March 31, 2025
	Reported							Adjusted
($ in thousands)		2025			2024				2025			2024
Sales	$1,233,278			$1,278,717				$1,233,278			$1,278,717
Gross Profit	$351,473			$387,150				$364,976			$387,150
Gross Margin		28.5%			30.3%				29.6%			30.3%
SG&A	$173,984			$172,642				$170,829			$172,716
SG&A as % of Sales		14.1%			13.5%				13.9%			13.5%
Operating Profit	$177,489			$214,508				$194,147			$214,434
Operating Margin		14.4%			16.8%				15.7%			16.8%
Net Income	$123,385			$152,381				$135,147			$153,122
Net Income per diluted share	$4.23			$4.79				$4.63			$4.81
EBITDA								$234,759			$253,818
EBITDA Margin									19.0%			19.8%

Sales Drivers
		Three Months Ended March 31, 2025
($ in millions)		Installation				Specialty Distribution				TopBuild, net of eliminations
Sales		$746				$560				$1,233
Sales Drivers
Volume			(9.6%)				(2.2%)				(7.4%)
Price			1.1%				1.4%				1.2%
M&A			1.8%				3.4%				2.6%
Total Sales Change			(6.7%)				2.6%				(3.6%)

Segment Profitability
	Three Months Ended March 31, 2025
($ in thousands)	Installation	Specialty Distribution
Operating Profit	$129,616	$69,059
Operating Margin	17.4%	12.3%
Adj. Operating Profit	$138,040	$75,964
Adj. Operating Margin	18.5%	13.6%
Adj. EBITDA	$157,556	$91,366
Adj. EBITDA Margin	21.1%	16.3%

Capital Allocation

2025 AcquisitionsIn the first quarter, TopBuild announced the acquisition of Seal-Rite Insulation, based in Omaha, Neb., a fiberglass and spray foam insulation installer for the residential and commercial end markets in Omaha and Lincoln for over 25 years. The business generates approximately $15 million in annual revenue and the transaction was completed in April.

Share RepurchasesDuring the first quarter, TopBuild repurchased 693,881 shares totaling $215.6 million. Availability for share repurchases at the end of the quarter totaled $972.4 million.

2025 Outlook1TopBuild confirmed its full year outlook issued in February, noting that the guidance does not contemplate transactions that it expects to complete during the year.

($ in millions)
2025 Outlook	Low		High
Sales	$	5,050	$	5,350
Adjusted EBITDA	$	925	$	1,075

1 This outlook reflects management’s current view of present and future market conditions and is based on assumptions such as housing starts, general and administrative expenses, 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.

Sustainability Report

The Company also announced that it published its 2024 Sustainability Report, which is available by visiting the Sustainability section of the TopBuild website.

Conference Call

A conference call to discuss the first quarter 2025 financial results is scheduled for today, Tuesday, May 6th, 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 and specialty distributor of insulation and related building material products to the construction industry in the United States and Canada. We provide insulation installation services nationwide through our Installation segment which has more than 200 branches located across the United States. We distribute building and mechanical insulation, insulation accessories and other building product materials for the residential, commercial, and industrial end markets through our Specialty Distribution business. Our Specialty Distribution network encompasses more than 150 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 March 31,
		2025				2024
Net sales		$	1,233,278			$	1,278,717
Cost of sales			881,805				891,567
Gross profit			351,473				387,150
Selling, general, and administrative expense			173,984				172,642
Operating profit			177,489				214,508
Other income (expense), net:
Interest expense			(16,602	)			(18,795	)
Other, net			5,086				11,282
Other expense, net			(11,516	)			(7,513	)
Income before income taxes			165,973				206,995
Income tax expense			(42,588	)			(54,614	)
Net income		$	123,385			$	152,381
Net income per common share:
Basic		$	4.25			$	4.82
Diluted		$	4.23			$	4.79
Weighted average shares outstanding:
Basic			29,028,234				31,641,454
Diluted			29,174,892				31,843,818

TopBuild Corp.
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
(in thousands)
		Three Months Ended March 31,
		2025				2024
Net income		$	123,385			$	152,381
Other comprehensive income (loss):
Foreign currency translation adjustment			229				(4,092	)
Comprehensive income		$	123,614			$	148,289

TopBuild Corp.
Condensed Consolidated Balance Sheets and Other Financial Data (Unaudited)
(dollars in thousands)
		As of
		March 31, 2025			December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents		$	308,811		$	400,318
Receivables, net of an allowance for credit losses of $21,257 at March 31, 2025, and $18,541 at December 31, 2024			748,726			751,612
Inventories			406,057			406,662
Prepaid expenses and other current assets			30,723			40,382
Total current assets			1,494,317			1,598,974
Right of use assets			178,948			189,146
Property and equipment, net			259,691			266,992
Goodwill			2,113,416			2,112,259
Other intangible assets, net			539,582			557,689
Other assets			10,342			10,366
Total assets		$	4,596,296		$	4,735,426
LIABILITIES
Current liabilities:
Accounts payable		$	422,786		$	456,446
Current portion of long-term debt			52,500			48,750
Accrued liabilities			193,599			191,786
Short-term operating lease liabilities			68,257			68,713
Short-term finance lease liabilities			1,365			1,487
Total current liabilities			738,507			767,182
Long-term debt			1,312,879			1,327,159
Deferred tax liabilities, net			238,248			240,343
Long-term portion of insurance reserves			57,728			57,700
Long-term operating lease liabilities			129,243			129,360
Long-term finance lease liabilities			2,312			2,618
Other liabilities			1,355			1,446
Total liabilities			2,480,272			2,525,808
EQUITY			2,116,024			2,209,618
Total liabilities and equity		$	4,596,296		$	4,735,426
		As of March 31,
		2025			2024
Other Financial Data
Receivables, net plus inventories less accounts payable		$	731,997		$	736,414
Net sales, acquisition adjusted †		$	5,329,105		$	5,272,731
Receivables, net plus inventories less accounts payable as a percent of sales (TTM) †			13.7	%		14.0	%
† 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)
		Three Months Ended March 31,
		2025				2024
Cash Flows Provided by (Used in) Operating Activities:
Net income		$	123,385			$	152,381
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			35,791				34,257
Share-based compensation			5,042				5,127
Loss (gain) on sale of assets			829				(561	)
Amortization of debt issuance costs			720				720
Provision for bad debt expense			3,666				4,464
Provision for inventory obsolescence			2,820				2,902
Impairment losses			9,868				—
Deferred income taxes, net			(1,822	)			(240	)
Change in certain assets and liabilities, net of effects of businesses acquired:
Receivables, net			(1,118	)			(28,486	)
Inventories			(2,215	)			(12,056	)
Prepaid expenses and other current assets			9,646				7,541
Accounts payable			(32,342	)			(2,659	)
Accrued liabilities			(1,050	)			16,170
Other, net			(631	)			(783	)
Net cash provided by operating activities			152,589				178,777
Cash Flows Provided by (Used in) Investing Activities:
Purchases of property and equipment			(13,395	)			(19,881	)
Acquisition of businesses, net of cash acquired			294				(22,240	)
Proceeds from sale of assets			248				1,608
Net cash used in investing activities			(12,853	)			(40,513	)
Cash Flows Provided by (Used in) Financing Activities:
Repayment of long-term debt			(11,250	)			(12,059	)
Taxes withheld and paid on employees' equity awards			(4,466	)			(6,059	)
Exercise of stock options			—				1,020
Repurchase of shares of common stock			(215,628	)			—
Net cash used in financing activities			(231,344	)			(17,098	)
Impact of exchange rate changes on cash			101				(922	)
Net (decrease) increase in cash and cash equivalents			(91,507	)			120,244
Cash and cash equivalents - Beginning of period			400,318				848,565
Cash and cash equivalents - End of period		$	308,811			$	968,809
Supplemental disclosure of noncash activities:
Leased assets obtained in exchange for new operating lease liabilities		$	17,547			$	13,737
Accruals for property and equipment			444				307
Excise taxes capitalized to treasury stock			2,156				—

TopBuild Corp.
Segment Data (Unaudited)
(dollars in thousands)
		Three Months Ended March 31,
			2025			2024			Change
Installation
Sales		$	745,533		$	798,743				(6.7	)	%
Operating profit, as reported		$	129,616		$	156,757
Operating margin, as reported			17.4	%		19.6		%
Rationalization charges			8,281			—
Acquisition related costs			143			45
Operating profit, as adjusted		$	138,040		$	156,802
Operating margin, as adjusted			18.5	%		19.6		%
Share-based compensation			349			330
Depreciation and amortization			19,167			18,267
EBITDA, as adjusted		$	157,556		$	175,399				(10.2	)	%
EBITDA margin, as adjusted			21.1	%		22.0		%
Specialty Distribution
Sales		$	559,804		$	545,794				2.6		%
Operating profit, as reported		$	69,059		$	77,579
Operating margin, as reported			12.3	%		14.2		%
Rationalization charges			6,868			(750	)
Acquisition related costs			37			—
Operating profit, as adjusted		$	75,964		$	76,829
Operating margin, as adjusted			13.6	%		14.1		%
Share-based compensation			463			433
Depreciation and amortization			14,939			14,836
EBITDA, as adjusted		$	91,366		$	92,098				(0.8	)	%
EBITDA margin, as adjusted			16.3	%		16.9		%

TopBuild Corp.
Adjusted EBITDA (Unaudited)
(dollars in thousands)
		Three Months Ended March 31,
		2025				2024					Change
Total net sales
Sales before eliminations		$	1,305,337			$	1,344,537
Intercompany eliminations			(72,059	)			(65,820	)
Net sales after eliminations		$	1,233,278			$	1,278,717				(3.6	)	%
Operating profit, as reported - segments		$	198,675			$	234,336
General corporate expense, net			(9,259	)			(9,067	)
Intercompany eliminations			(11,927	)			(10,761	)
Operating profit, as reported		$	177,489			$	214,508
Operating margin, as reported			14.4		%		16.8		%
Rationalization charges			15,358				(750	)
Acquisition related costs †			1,300				676
Operating profit, as adjusted		$	194,147			$	214,434
Operating margin, as adjusted			15.7		%		16.8		%
Share-based compensation			5,042				5,127
Depreciation and amortization			35,570				34,257
EBITDA, as adjusted		$	234,759			$	253,818				(7.5	)	%
EBITDA margin, as adjusted			19.0		%		19.8		%
Sales change period over period			(45,439	)
EBITDA, as adjusted, change period over period			(19,059	)
Decremental EBITDA, as adjusted, as a percentage of change in sales			(41.9	)	%
† Acquisition related costs include corporate level adjustments as well as segment operating adjustments.

TopBuild Corp.
Same Branch and Acquisition Metrics (Unaudited)
(dollars in thousands)
		Three Months Ended March 31,
		2025				2024
Net sales
Same branch:
Installation		$	730,825			$	798,743
Specialty Distribution			541,258				545,794
Eliminations			(72,059	)			(65,820	)
Total same branch		$	1,200,024			$	1,278,717
Acquisitions (a):
Installation		$	14,708			$	—
Specialty Distribution			18,546				—
Total acquisitions		$	33,254			$	—
Total net sales		$	1,233,278			$	1,278,717
EBITDA, as adjusted
Same branch		$	229,915			$	253,818
Acquisitions (a)			4,844				—
Total		$	234,759			$	253,818
EBITDA, as adjusted, as a percentage of sales
Same branch (b)			19.2		%
Acquisitions (c)			14.6		%
Total (d)			19.0		%		19.8		%
As Adjusted Incremental/(Decremental) EBITDA, as a percentage of change in sales
Same branch (e)			(30.4	)
Acquisitions (c)			14.6		%
Total (f)			(41.9	)	%
(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

TopBuild Corp.
Same Branch Revenue by Line of Business (Unaudited)
(dollars in thousands)
		Three Months Ended March 31,
		2025			2024			Change
Residential:
Same branch (a)		$	754,824		$	834,843			(9.6	)	%
Acquisitions			14,927			—
Total Residential sales			769,751			834,843			(7.8	)	%
Commercial/Industrial:
Same branch (a)		$	445,200		$	443,874			0.3		%
Acquisitions			18,327			—
Total Commercial/Industrial sales			463,527			443,874			4.4		%
Total net sales		$	1,233,278		$	1,278,717			(3.6	)	%
(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 March 31,
		2025				2024
Gross Profit Reconciliation
Net sales		$	1,233,278			$	1,278,717
Gross profit, as reported		$	351,473			$	387,150
Rationalization charges			13,503				—
Gross profit, as adjusted		$	364,976			$	387,150
Gross margin, as reported			28.5		%		30.3		%
Gross margin, as adjusted			29.6		%		30.3		%
Selling, General and Administrative Expense Reconciliation
Selling, general, and administrative expense, as reported		$	173,984			$	172,642
Rationalization charges			1,855				(750	)
Acquisition related costs			1,300				676
Selling, general, and administrative expense, as adjusted		$	170,829			$	172,716
Operating Profit Reconciliation
Operating profit, as reported		$	177,489			$	214,508
Rationalization charges			15,358				(750	)
Acquisition related costs			1,300				676
Operating profit, as adjusted		$	194,147			$	214,434
Operating margin, as reported			14.4		%		16.8		%
Operating margin, as adjusted			15.7		%		16.8		%
Income Per Common Share Reconciliation
Income before income taxes, as reported		$	165,973			$	206,995
Rationalization charges			15,358				(750	)
Acquisition related costs			1,300				676
Income before income taxes, as adjusted			182,631				206,921
Tax rate at 26.0%			(47,484	)			(53,799	)
Income, as adjusted		$	135,147			$	153,122
Income per common share, as adjusted		$	4.63			$	4.81
Weighted average diluted common shares outstanding			29,174,892				31,843,818

TopBuild Corp.
Reconciliation of Adjusted EBITDA to Net Income (Unaudited)
(in thousands)
		Three Months Ended March 31,
		2025			2024
Net income, as reported		$	123,385		$	152,381
Adjustments to arrive at EBITDA, as adjusted:
Interest expense and other, net			11,516			7,513
Income tax expense			42,588			54,614
Depreciation and amortization			35,570			34,257
Share-based compensation			5,042			5,127
Rationalization charges			15,358			(750	)
Acquisition related costs			1,300			676
EBITDA, as adjusted		$	234,759		$	253,818

TopBuild Corp.
Acquisition Adjusted Net Sales (Unaudited)
(in thousands)
	2024									2025			Trailing Twelve Months Ended
	Q2			Q3			Q4			Q1			March 31, 2025
Net sales	$	1,365,612		$	1,373,268		$	1,312,206		$	1,233,278		$	5,284,364
Acquisitions proforma adjustment †		22,616			13,363			8,762			—			44,741
Net sales, acquisition adjusted	$	1,388,228		$	1,386,631		$	1,320,968		$	1,233,278		$	5,329,105
† Trailing 12 months sales have been adjusted for the pro forma effect of acquired branches

TopBuild Corp.
2025 Estimated Adjusted EBITDA Range (Unaudited)
(in millions)
	Twelve Months Ending December 31, 2025
		Low			High
Estimated net income, as reported	$	508.0		$	630.0
Adjustments to arrive at estimated EBITDA, as adjusted:
Interest expense and other, net		54.0			48.0
Income tax expense		179.0			221.0
Depreciation and amortization		147.0			142.0
Share-based compensation		20.0			17.0
Rationalization charges		15.0			15.0
Acquisition related costs		2.0			2.0
Estimated EBITDA, as adjusted	$	925.0		$	1,075.0

This press release was published by a CLEAR® Verified individual.

Investor Relations and Media Contact
PI Aquino        
pi.aquino@topbuild.com
386-763-8801