Slide 1: Second Quarter 2024
Second Quarter 2024 Robert Buck, President & CEO Rob Kuhns, CFO Published August 6, 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: Q2 2024 Key Takeaways
Q2 2024 Key Takeaways Our Teams Continued to Drive Solid Performance, Fundamentals Remain Strong • Delivered strong second quarter results • Volumes for both segments improved sequentially and vs 2023 • Strong profit growth • Material supply remains tight • Higher interest rates have persisted • Sin
Slide 4: Q2 2024 Financial Results
Q2 2024 Financial Results Building on Strong Track Record of Profitable Growth Comparisons are to the period ended June 30, 2023 ($ in 000s) Three Months Ended June 30, 2024 Revenue $1,365,612 Change 3.7% Adjusted Operating Profit* 238,029 Change 0.0% Adjusted Operating Margin* 17.4% Change (80) bps
Slide 5: Installation
Installation Solid Performance as Single-Family Housing Environment Slowly Improves Comparisons are to the period ended June 30, 2023 ($ in 000s) Three Months Ended June 30, 2024 Revenue $850,983 Change 5.2% Adjusted Operating Profit* 171,006 Change (0.9)% Adjusted Operating Margin* 20.1% Change (12
Slide 6: Specialty Distribution
Specialty Distribution Profit Continues to Expand, Driven by Pricing and Productivity Comparisons are to the period ended June 30, 2023 ($ in 000s) Three Months Ended June 30, 2024 Revenue $ 592,826 Change 3.2% Adjusted Operating Profit* 89,383 Change 4.0% Adjusted Operating Margin* 15.1% Change 10
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 Cash & Cash Equivalents $ 463.2 $663.4 $592.9 Available Credit Under Revolver 436.2 Total Available Liquidity $899.5 18.8% Net Debt and Leverage Net Debt $947.4 LTM
Slide 8: Capital Allocation
Capital Allocation YTD 2024, 6 acquisitions and $505.2M in shares repurchased @ ~$405 per share 5 Year Capital Allocation Annual Revenue (7/1/19 - 6/30/24) Company ($ millions) Month Closed Brabble Insulation (I) $ 5.2 February 5% 10% Morris Black & Sons (I) 3.8 March Pest Control Insulation (D) 25.
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 • Office Buildings • Retail Buildings • Entertainment Venues (Education, Healthcare, • Warehouses and Research, Religi
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 August 6, 2024) SALES ADJUSTED EBITDA* $5,300M to $5,500M $1,055M to $1,125M • Mid single digit residential growth • Low single digit commercial/industrial growth *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% Employees ~14,000 39% 36% 61% 64% 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 June 30, Six Months Ended June 30, Months Ended 2024 2023 2024 2023 June 30, 2024 Net income, as reported $ 150,723 $ 164,400 $ 303,104 $ 300,270 $ 617,088 Adjustments to arrive at EBITDA, a
Slide 19: Acquisition Adjusted Net Sales
Acquisition Adjusted Net Sales (unaudited) (dollars in thousands) Trailing Twelve 2023 2024 Months Ended Q3 Q4 Q1 Q2 June 30, 2024 Net Sales $ 1,326,120 $ 1,286,074 $ 1,278,717 $ 1,365,612 $ 5,256,523 Acquisitions proforma adjustment † 33,549 28,367 24,075 10,603 96,594 Net sales, acquisition adjust
Slide 20: Segment Data
Segment Data (dollars in thousands) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 Change 2024 2023 Change Installation Sales $ 850,983 $ 809,055 5.2 % $ 1,649,726 $ 1,576,145 4.7 % Operating profit, as reported $ 170,718 $ 172,278 $ 327,475 $ 319,176 Operating margin, a
Slide 21: Margin Reconciliations
Margin Reconciliations (unaudited) (dollars in thousands) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Operating profit, as reported - segments $ 260,091 $ 258,258 $ 494,426 $ 478,489 General corporate expense, net (36,859) (9,957) (45,926) (20,786) Intercompany eliminat
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 $ 603.0 $ 663.0 Adjustments to arrive at estimated EBITDA, as adjusted: Interest expense and other, net 48.0 45.0 Income tax expense 212.0 230.0 Depreciation and amorti