Topbuild Corp. · NYSE:BLD
Topbuild — Q1 2025 Earnings Presentation
21 slides from Topbuild's earnings presentation, May 6, 2025
Slide 1: First Quarter 2025
FIRST QUARTER 2025 Robert Buck, President & CEO Rob Kuhns, CFO Published May 6, 2025
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,” “woul
Slide 3: Q1 2025 Key Takeaways
Q1 2025 KEY TAKEAWAYS Continued Focus on Outperformance • Delivered Q1 performance in line with expectations • Ongoing effort to drive operational excellence − Optimization of network footprint • Confirming full year 2025 guidance − Headcount reduction to align with current demand environment • Unce
Slide 4: Q1 2025 Financial Results
Q1 2025 FINANCIAL RESULTS Performance In Line with Expectations Comparisons are to the period ended March 31, 2024 ($ in 000s) Three Months Ended March 31, 2025 Sales $1,233,278 TruTeam insulation installation Change (3.6)% Adjusted Operating Profit* $194,147 Change (9.5)% Adjusted Operating Margin*
Slide 5: Installation
INSTALLATION Managing Effectively through Soft Demand Environment Comparisons are to the period ended March 31, 2024 ($ in 000s) Three Months Ended March 31, 2025 Sales $745,533 Change (6.7%) TruTeam commercial insulation installation Adjusted Operating Profit* $138,040 Change (12.0)% Adjusted Opera
Slide 6: Specialty Distribution
SPECIALTY DISTRIBUTION Solid Growth in Commercial & Industrial Comparisons are to the period ended March 31, 2024 ($ in 000s) Three Months Ended March 31, 2025 Sales $559,804 Change 2.6% Distribution International custom fabrication of mechanical insulation Adjusted Operating Profit* $75,964 Change
Slide 7: Healthy Balance Sheet and Strong Cash Flow
HEALTHY BALANCE SHEET AND STRONG CASH FLOW FREE CASH FLOW1 ($ in millions) ($ in millions) $790.1 $687.0 Cash, Available Liquidity & Working Capital Cash & Cash Equivalents $ 308.8 Available Credit Under Revolver 437.6 Total Available Liquidity $746.4 Net Debt and Leverage Net Debt $1,067.4 LTM 3/31
Slide 8: Capital Allocation
CAPITAL ALLOCATION Acquisitions Strategy Built On Core Strengths • Robust M&A pipeline − Completed the acquisition of Seal-Rite Insulation in April − Remain disciplined, focused on generating strong returns • Returned $215.6 million in capital to shareholders in Q1 − Market sentiment remains cautiou
Slide 9: Commercial Building Insulation
COMMERCIAL BUILDING INSULATION Insulating the Building Envelope Across Diverse Customer Base Light Commercial Heavy Commercial • Retail and Strip Malls • Airports • Leisure & Hospitality • Institutional Buildings • Restaurants • Data Centers • Manufacturing (Education, Healthcare, • Low Rise Hospita
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 Bever
Slide 11: 2025 Outlook
2025 OUTLOOK Confirming Guidance for the Year HIGH SINGLE (as of May 6, 2025) RESIDENTIAL1 DIGIT DECLINE COMMERCIAL LOW SINGLE DIGIT GROWTH & INDUSTRIAL1 SALES ADJUSTED EBITDA* $5,050M to $5,350M $925M to $1,075M M&A2 SALES OF ~$85M 1 Same branch basis, inclusive of pricing 2 2024 carry-over & Seal-
Slide 12: About Us
4TopBuild ABOUT US
Slide 13: TopBuild Snapshot
TOPBUILD SNAPSHOT Leading Installer and Specialty Distributor of Insulation and Related Building Material Products SALES BREAKDOWN as of 12/31/24 11% 5% 38% 35% PRODUCT SEGMENT CHANNEL MIX 62% 65% 84% Installation Insulation & Accessories Residential Specialty Distribution Gutters Commercial/Industr
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- Multi Industrial Energy & Single Family Light Comm
Slide 15: 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 • Continued focus on core of • Completed 43 acquisitions • Focus on driving operational insulation since 2015 spin-off excellence +4
Slide 16: Appendix
4TopBuild APPENDIX
Slide 17: Reconciliation of Adjusted EBITDA to Net Income
RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME (Unaudited) (dollars in thousands) Trailing Twelve Three Months Ended March 31, Months Ended 2025 2024 March 31, 2025 Net income, as reported $ 123,385 $ 152,381 $ 593,606 Adjustments to arrive at EBITDA, as adjusted: Interest expense and other, net 11
Slide 18: Acquisition Adjusted Net Sales
ACQUISITION ADJUSTED NET SALES (Unaudited) (dollars in thousands) Trailing Twelve 2024 2025 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 $
Slide 19: Segment Data
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
Slide 20: Margin Reconciliation
MARGIN RECONCILIATION (Unaudited) (dollars in thousands) Three Months Ended March 31, 2025 2024 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 Op
Slide 21: 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, 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 De