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.
CONTACT: Investor Relations and Media Contact PI Aquino [email protected] 386-763-8801