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TopBuild Reports First Quarter 2025 Results; Confirms Full Year Outlook
المصدر: Nasdaq GlobeNewswire / 06 مايو 2025 06:45:00 America/New_York
First quarter sales declined 3.6% to $1.23 billion
Installation sales declined 6.7%, offset in part by Specialty Distribution growth of 2.6%
Delivered adjusted gross margin of 29.6% and adjusted EBITDA margin of 19.0%
DAYTONA BEACH, Fla., May 06, 2025 (GLOBE NEWSWIRE) -- 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 Acquisitions
In 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 Repurchases
During the first quarter, TopBuild repurchased 693,881 shares totaling $215.6 million. Availability for share repurchases at the end of the quarter totaled $972.4 million.2025 Outlook1
TopBuild confirmed its full year outlook issued in February, noting that the guidance does not contemplate transactions that it expects to complete during the year.($ 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
