Slide 1: Fourth Quarter and Year End 2024
Fourth Quarter and Year End 2024 Robert Buck, President & CEO Rob Kuhns, CFO Published February 25, 2025 1
Slide 2: Safe Harbor
Safe Harbor Statements contained herein reflect our views about future periods, including our future plans and performance, constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “will,” “would
Slide 3: Q4 & FY 2024 Key Takeaways
Q4 & FY 2024 Key Takeaways Continued Focus on Driving Growth and Profitability • Ninth consecutive year delivering sales and profit growth • Choppiness across residential construction landscape • Market sentiment remains cautious • Soft demand driven by affordability challenges and economic uncertai
Slide 4: 9-Year Track Record of Driving Growth and Profitability
9-Year Track Record of Driving Growth and Profitability Delivering Outperformance in Changing Environments SALES ADJUSTED EBITDA1 FREE CASH FLOW2 ($ in millions) $707 $5,330 14.2% 29.2% 36.7% CAGR CAGR $1,075 CAGR $1,617 $107 $42 2015 2024 2015 2024 2015 2024 1 See Appendix for reconciliation 2 Free
Slide 5: Q4 2024 Financial Results
Q4 2024 Financial Results Performance In Line with Expectations Comparisons are to the period ended Dec 31, 2023 ($ in 000s) Three Months Ended December 31, 2024 Sales $1,312,206 Change 2.0% Adj. Operating Profit* $219,137 Change 3.3% Adj. Operating Margin* 16.7% Change 20 bps Adj. EBITDA Margin* 19
Slide 6: Installation
Installation Managing Consistently through Choppy Environment Comparisons are to the period ended Dec 31, 2023 ($ in 000s) Three Months Ended December 31, 2024 Sales $788,554 Change (0.2%) Adj. Operating Profit* $149,537 Change (0.3%) Adj. Operating Margin* 19.0% Change 0 bps Adj. EBITDA Margin* 21.
Slide 7: Specialty Distribution
Specialty Distribution Continued Profit Expansion Comparisons are to the period ended Dec 31, 2023 ($ in 000s) Three Months Ended December 31, 2024 Sales $601,830 Change 6.6% Adj. Operating Profit* $91,160 Change 9.4% Adj. Operating Margin* 15.1% Change 30 bps Adj. EBITDA Margin* 17.7% Change 20 bps
Slide 8: Healthy Balance Sheet and Strong Cash Flow
Healthy Balance Sheet and Strong Cash Flow ($ in millions) Free Cash Flow1 ($ in millions) Cash, Available Liquidity & Working Capital $785.4 $706.7 Cash & Cash Equivalents $ 400.3 Available Credit Under Revolver 436.2 Total Available Liquidity $836.5 18.8% Net Debt and Leverage Net Debt $987.2 FY 2
Slide 9: Capital Allocation
Capital Allocation 8 Acquisitions and ~2.5M Shares Repurchased in 2024 Annual Sales Company ($ in millions) Month Closed 5 Year Capital Allocation Brabble Insulation (I) $ 5.2 February (1/1/20 - 12/31/24) Morris Black & Sons (I) 3.8 March Pest Control Insulation (D) 25.4 March 5% 9% Green Space Insu
Slide 10: Commercial Building Insulation
Commercial Building Insulation Insulating the Building Envelope Across Diverse Customer Base Light Commercial Heavy Commercial • Restaurants • Airports • Leisure & Hospitality • Institutional Buildings • Low Rise Hospitality • Data Centers • Manufacturing (Education, Healthcare, • Tilt Wall Construc
Slide 11: Commercial/Industrial Mechanical Insulation
Commercial/Industrial Mechanical Insulation Includes Recurring Revenue Stream of Maintenance and Repair Work Providing equipment insulation and custom fabrication for commercial and industrial construction projects • Industrial Manufacturing • Pharmaceuticals & Biotech • Oil & Gas • Food and Beverag
Slide 12: 2025 Outlook
2025 Outlook Uncertain Demand Outlook Throughout the Year; Does Not Include 2025 M&A (as of February 25, 2025) RESIDENTIAL COMMERCIAL & INDUSTRIAL SALES $5,050M to $5,350M MID SINGLE DIGIT DECLINE LOW SINGLE DIGIT GROWTH ADJUSTED INTEREST EXP WORKING $925M to $1,075M TAX RATE CAPEX EBITDA* & OTHER,
Slide 13: About Us
About Us
Slide 14: TopBuild Snapshot
TopBuild Snapshot Leading Installer and Specialty Distributor of Insulation and Related Building Material Products Key Stats as of 12/31/24 Sales Breakdown as of 12/31/24 SEGMENT PRODUCT MIX CHANNEL Headquarters Daytona Beach, FL 11% 5% 35% Employees 13,984 38% 62% 65% Total Branches 440 84% Install
Slide 15: We Serve Large, Highly Fragmented Insulation End Markets
We Serve Large, Highly Fragmented Insulation End Markets Total Addressable Market of ~$18.25B to Grow Organically and Via Acquisition STRUCTURE Residential Commercial / Industrial Building Envelope Mechanical MARKET SIZE ~$6.25B ~$6.25B ~$5.75B SUB-MARKETS/ Multi Industrial Energy & Single Family Li
Slide 16: Our Values and Core Strengths
Our Values and Core Strengths Best In Class Execution, Making a Difference Locally Our Values 16
Slide 17: Strong M&A Track Record
Strong M&A Track Record Disciplined Acquisition Strategy Drives Significant Shareholder Returns Strategic Rationale Integration Expertise Track Record of Success ROIC1 18.2% • Continued focus on core of • Completed 42 acquisitions • Focus on driving operational +450 bps insulation since 2015 spin-of
Slide 18: Appendix
Appendix
Slide 19: Reconciliation of Adjusted EBITDA to Net Income
Reconciliation of Adjusted EBITDA to Net Income (Unaudited) (dollars in thousands) Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 Net income, as reported $ 150,540 $ 146,382 $ 622,602 $ 614,254 Adjustments to arrive at EBITDA, as adjusted: Interest expense and other, net
Slide 20: Acquisition Adjusted Net Sales
Acquisition Adjusted Net Sales (Unaudited) (dollars in thousands) 2024 Year Ended Q1 Q2 Q3 Q4 December 31, 2024 Net sales $ 1,278,717 $ 1,365,612 $ 1,373,268 $ 1,312,206 $ 5,329,803 Acquisitions proforma adjustment † 35,308 22,616 13,363 8,762 80,049 Net sales, acquisition adjusted $ 1,314,025 $ 1,3
Slide 21: Segment Data
Segment Data (Unaudited) (dollars in thousands) Three Months Ended December 31, Year Ended December 31, 2024 2023 Change 2024 2023 Change Installation Sales $ 788,554 $ 790,414 (0.2) % $ 3,294,630 $ 3,188,232 3.3 % Operating profit, as reported $ 149,445 $ 149,999 $ 649,162 $ 644,392 Operating margi
Slide 22: Margin Reconciliation
Margin Reconciliation (Unaudited) (dollars in thousands) Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 Operating profit, as reported - segments $ 240,014 $ 233,354 $ 1,001,593 $ 975,330 General corporate expense, net (9,807) (16,787) (65,416) (52,067) Intercompany elimi
Slide 23: 2025 Estimated Adjusted EBITDA Range
2025 Estimated Adjusted EBITDA Range (Unaudited) (dollars in millions) Twelve Months Ending December 31, 2025 Low High Estimated net income $ 519.0 $ 640.0 Adjustments to arrive at estimated EBITDA, as adjusted: Interest expense and other, net 55.0 49.0 Income tax expense 182.0 225.0 Depreciation an