Slide 1: Third Quarter 2024
Third Quarter 2024 Robert Buck, President & CEO Rob Kuhns, CFO Published November 5, 2024 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: Q3 2024 Key Takeaways
Q3 2024 Key Takeaways Driving Improved Performance • Strong third quarter performance, delivering highest level of revenue and adjusted EBITDA* in our history • Macro environment largely unchanged from Q2 • Residential demand still uneven across the country • Commercial & industrial project delays p
Slide 4: Q3 2024 Financial Results
Q3 2024 Financial Results Continuing to Deliver Strong Performance Comparisons are to the period ended Sept 30, 2023 ($ in 000s) Three Months Ended Sept 30, 2024 Revenue $1,373,268 Change 3.6% Adjusted Operating Profit* 245,925 Change 0.0% Adjusted Operating Margin* 17.9% Change (60) bps Adjusted EB
Slide 5: Installation
Installation Continued Growth in an Uneven Housing Environment Comparisons are to the period ended Sept 30, 2023 ($ in 000s) Three Months Ended Sept 30, 2024 Revenue $856,350 Change 4.2% Adjusted Operating Profit* 172,274 Change (2.7)% Adjusted Operating Margin* 20.1% Change (150) bps Adjusted EBITD
Slide 6: Specialty Distribution
Specialty Distribution Ongoing Profitable Growth Comparisons are to the period ended Sept 30, 2023 ($ in 000s) Three Months Ended Sept 30, 2024 Revenue $600,387 Change 5.1% Adjusted Operating Profit* 95,109 Change 7.7% Adjusted Operating Margin* 15.8% Change 30 bps Adjusted EBITDA Margin* 18.4% Chan
Slide 7: Healthy Balance Sheet and Strong Cash Flow
Healthy Balance Sheet and Strong Cash Flow ($ in millions) Free Cash Flow1 ($ in millions) Cash, Available Liquidity & Working Capital $680.2 $698.0 Cash & Cash Equivalents $ 257.3 Available Credit Under Revolver 436.2 Total Available Liquidity $693.6 18.8% Net Debt and Leverage Net Debt $1,141.5 LT
Slide 8: Capital Allocation
Capital Allocation YTD 2024, 7 Acquisitions and 2.3M Shares Repurchased Annual Revenue 5 Year Capital Allocation Company Month Closed (10/1/19 - 9/30/24) ($ in millions) Brabble Insulation, Inc. (I) $5.2 February 5% 9% Morris Black & Sons, Inc. (I) 3.8 March Pest Control Insulation LLC (D) 25.4 Marc
Slide 9: Commercial Building Insulation
Commercial Building Insulation Insulating the Building Envelope Across Diverse Customer Base Light Commercial Heavy Commercial • Restaurants • Data Centers • Institutional Buildings • Municipal Buildings • Low Rise Hospitality • Entertainment Venues (Education, Healthcare, • Warehouses and Research,
Slide 10: 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 11: 2024 Outlook
2024 Outlook Another Year of Profitable Growth Expected (as of November 5, 2024) SALES ADJUSTED EBITDA* $5,300M to $5,350M $1,055M to $1,085M *See Appendix for Reconciliation 11
Slide 12: About Us
About Us
Slide 13: TopBuild Snapshot
TopBuild Snapshot Leading Installer and Specialty Distributor of Insulation and Related Building Material Products Key Stats Sales Breakdown SEGMENT PRODUCT MIX CHANNEL Headquarters Daytona Beach, FL 12% 5% 35% Employees ~14,000 39% 61% 65% Total Branches ~410 83% Installation Insulation & Accessori
Slide 14: 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 15: Our Business Model
Our Business Model Best In Class Execution and Making a Difference Locally Core Strengths Our Values • Unique model, diversified end markets • Laser focus on core business of insulation • Unrivaled North American size and scale • Multiple avenues for growth • M&A a core competency • Safety of our pe
Slide 16: M&A: A Core Competency
M&A: A Core Competency Disciplined Acquisition Strategy Creating Significant Shareholder Returns Strategic Rationale Integration Expertise Track Record of Success ROIC1 • Focus on core • Completed 31 acquisitions • Exceeded projected 18.5% 18.3% Insulation products since 1/1/2019 synergies, includin
Slide 17: Appendix
Appendix
Slide 18: Reconciliation of Adjusted EBITDA to Net Income
Reconciliation of Adjusted EBITDA to Net Income (Unaudited) (in thousands) Trailing Twelve Three Months Ended September 30, Nine Months Ended September 30, Months Ended 2024 2023 2024 2023 September 30, 2024 Net income, as reported $ 168,960 $ 167,602 $ 472,064 $ 467,870 $ 618,446 Adjustments to arr
Slide 19: Acquisition Adjusted Net Sales
Acquisition Adjusted Net Sales (Unaudited) (dollars in thousands) Trailing Twelve 2023 2024 Months Ended Q4 Q1 Q2 Q3 September 30, 2024 Net Sales $ 1,286,074 $ 1,278,717 $ 1,365,612 $ 1,373,268 $ 5,303,671 Acquisitions proforma adjustment † 28,367 24,075 10,603 - 63,045 Net sales, acquisition adjust
Slide 20: Segment Data
Segment Data (Unaudited) (dollars in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 Change 2024 2023 Change Installation Sales $ 856,350 $ 821,673 4.2 % $ 2,506,076 $ 2,397,818 4.5 % Operating profit, as reported $ 172,243 $ 175,218 $ 499,717 $ 494,394 Operatin
Slide 21: Margin Reconciliations
Margin Reconciliations (Unaudited) (dollars in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Operating profit, as reported - segments $ 267,154 $ 263,487 $ 761,579 $ 741,977 General corporate expense, net (9,685) (14,494) (55,610) (35,280) Intercompa
Slide 22: 2024 Estimated Adjusted EBITDA Range
2024 Estimated Adjusted EBITDA Range (Unaudited) (in millions) Twelve Months Ending December 31, 2024 Low High Estimated net income $ 606.0 $ 634.0 Adjustments to arrive at estimated EBITDA, as adjusted: Interest expense and other, net 48.0 45.0 Income tax expense 213.0 222.0 Depreciation and amorti