TopBuild posts 2025 results and 2026 outlook
TopBuild Corp. reported mixed fourth quarter and full-year 2025 results driven largely by acquisitions.
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Rhea-AI Filing Summary
TopBuild Corp. reported mixed fourth quarter and full-year 2025 results driven largely by acquisitions. Fourth quarter sales reached $1.49 billion, up 13.2% from 2024, as the SPI and Progressive Roofing deals offset weaker residential and light commercial new construction. Adjusted EBITDA for the quarter was $265.2 million with a 17.9% margin, while reported net income fell to $104.5 million, or $3.71 per diluted share.
For 2025, sales edged up to $5.41 billion, but net income declined to $521.7 million and adjusted EBITDA to $1.04 billion, reflecting higher SG&A, interest expense, and integration costs. The company completed seven acquisitions adding about $1.20 billion in annual revenue and repurchased 1.37 million shares for $434.2 million, funded alongside a step-up in long-term debt to $2.78 billion.
Looking to 2026, TopBuild guides to sales of $5.925–$6.225 billion and adjusted EBITDA of $1.005–$1.155 billion. Management assumes a mid–single digit residential sales decline, low–single digit commercial and industrial growth, and $800–$850 million in M&A-driven sales contribution, with acquisitions remaining the top capital priority.
Insights
Acquisitions drive TopBuild’s growth while margins and leverage move the other way.
TopBuild is leaning heavily on deals to grow. 2025 sales rose to $5.41 billion, but organic volume declined and adjusted EBITDA slipped to $1.04 billion. Seven acquisitions adding roughly $1.20 billion in annual revenue, including SPI and Progressive Roofing, now shape the revenue mix.
Profitability softened, with full-year adjusted EBITDA margin at 19.2% versus 20.2%, and net income down to $521.7 million as SG&A, interest expense and integration costs increased. Long-term debt climbed to $2.78 billion, raising balance sheet leverage even as cash declined to $184.7 million.
For 2026, management targets sales of $5.93–$6.23 billion and adjusted EBITDA of $1.01–$1.16 billion, assuming residential softness but commercial and industrial growth plus $800–$850 million of M&A contribution. Future filings will clarify how quickly integration, margins, and leverage trends evolve relative to this outlook.
8-K Event Classification
FAQ
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How much stock did TopBuild Corp. (BLD) repurchase in 2025?
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported):
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On February 26, 2026, TopBuild Corp., a Delaware corporation (the “Company”), issued a press release announcing its financial results for the quarter and year ended December 31, 2025 (the “Press Release”). The Press Release, which is furnished as Exhibit 99.1, and the information included in Item 7.01 of this Current Report on Form 8-K (this “Report”) are incorporated by reference in this Item 2.02.
The information in the Press Release and in this Item 2.02 is “furnished” and not “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section. Such information shall not be incorporated by reference in another filing under the Exchange Act or the Securities Act of 1933, as amended (the “Securities Act”), except to the extent such other filing specifically incorporates such information by reference.
Item 7.01. Regulation FD Disclosure.
On February 26, 2026, the Company issued the Press Release. The Press Release, which is furnished as Exhibit 99.1, and the information included in Item 2.02 of this Report are incorporated by reference in this Item 7.01.
The information in the Press Release and in this Item 7.01 is “furnished” and not “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section. Such information shall not be incorporated by reference in another filing under the Exchange Act or the Securities Act except to the extent such other filing specifically incorporates such information by reference.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
Exhibit | | Description |
99.1 | Press release issued by TopBuild Corp., dated February 26, 2026, announcing its financial results for the quarter and year ended December 31, 2025. | |
104 | Cover Page Interactive Data File (formatted as Inline XBRL) |
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
TOPBUILD CORP. | |||
By: | /s/ Madeline Otero | ||
|
| Name: | Madeline Otero |
|
| Title: | Vice President and Chief Accounting Officer |
Dated: February 26, 2026 |
|
| |
3
Exhibit 99.1
TopBuild Reports Fourth Quarter and Year-End 2025 Results,
Provides 2026 Outlook
Fourth Quarter Highlights
Fourth quarter sales totaled $1.49 billion, up 13.2% driven by acquisitions
Completed SPI Acquisition
Full Year Highlights
Completed seven acquisitions, adding approximately $1.2 billion in annual sales
Returned $434.2 million in capital to stockholders through the repurchase of ~1.4 million shares
2026 Outlook
Expects 2026 sales between $5.925 to $6.225 billion and
adjusted EBITDA in the range of $1.005 billion to $1.155 billion
Acquisitions continue to be top priority for deploying capital
DAYTONA BEACH, FL – February 26, 2026 — TopBuild Corp. (NYSE:BLD) a leading installer of insulation and commercial roofing and a specialty distributor of insulation and related building products to the construction industry in the United States and Canada, today reported results for the fourth quarter and year ended December 31, 2025.
“We are incredibly proud of everything we accomplished in 2025 as our teams demonstrated resilience, strength and an unwavering commitment to drive operational excellence and increase shareholder value.
“Last year we adapted our business to address the uncertain housing environment and continued to make targeted investments across the company. We completed seven acquisitions which together add about $1.2 billion in annual revenue to TopBuild, diversify our end-market exposure and further position us for long-term growth. We see tremendous runway for growth in commercial roofing, and the SPI acquisition reinforces our leadership position in mechanical insulation in the commercial and industrial space. While M&A will continue to be the highest priority for deploying our strong free cash flow, we also returned $434.2 million in capital to shareholders through our share buyback program, a testament to our unique business model and ongoing confidence in our ability to continue compounding strong returns.
NYSE:BLD | February 26, 2026 | topbuild.com |
“The acquisitions of SPI and Progressive Roofing fueled our top line growth of 13.2% in the fourth quarter, more than offsetting ongoing weakness in residential and light commercial new construction. Profitability remains solid, with Installation Services delivering 21.0% adjusted EBITDA margin. While Specialty Distribution margins declined due to the impact of the SPI acquisition, we have a very clear path to drive operating improvements and generate meaningful synergies over the next two years,” concluded Mr. Buck.
Financial Highlights
Three Months Ended December 31, 2025 | |||||
Reported | Adjusted | ||||
($ in thousands) | 2025 | 2024 | 2025 | 2024 | |
Sales | $1,485,247 | $1,312,206 | $1,485,247 | $1,312,206 | |
Gross Profit | $404,562 | $392,033 | $415,988 | $392,033 | |
Gross Margin | 27.2% | 29.9% | 28.0% | 29.9% | |
SG&A | $224,915 | $174,583 | $208,692 | $172,896 | |
SG&A as % of Sales | 15.1% | 13.3% | 14.1% | 13.2% | |
Operating Profit | $179,647 | $217,450 | $207,296 | $219,137 | |
Operating Margin | 12.1% | 16.6% | 14.0% | 16.7% | |
Net Income | $104,515 | $150,540 | $126,661 | $151,262 | |
Net Income per diluted share | $3.71 | $5.11 | $4.50 | $5.13 | |
EBITDA |
|
| $265,175 | $258,025 | |
EBITDA Margin |
|
| 17.9% | 19.7% | |
Year Ended December 31, 2025 | |||||
Reported | Adjusted | ||||
($ in thousands) | 2025 | 2024 | 2025 | 2024 | |
Sales | $5,409,086 | $5,329,803 | $5,409,086 | $5,329,803 | |
Gross Profit | $1,568,997 | $1,624,918 | $1,592,929 | $1,624,918 | |
Gross Margin | 29.0% | 30.5% | 29.4% | 30.5% | |
SG&A | $777,064 | $738,575 | $741,883 | $707,393 | |
SG&A as % of Sales | 14.4% | 13.9% | 13.7% | 13.3% | |
Operating Profit | $791,933 | $886,343 | $851,046 | $917,525 | |
Operating Margin | 14.6% | 16.6% | 15.7% | 17.2% | |
Net Income | $521,727 | $622,602 | $564,395 | $645,258 | |
Net Income per diluted share | $18.28 | $20.29 | $19.77 | $21.03 | |
EBITDA |
| | $1,036,842 | $1,074,595 | |
EBITDA Margin |
| | 19.2% | 20.2% | |
NYSE:BLD | February 26, 2026 | topbuild.com |
Sales Drivers
(comparisons are to the periods ended December 31, 2024)
Three Months Ended December 31, 2025 | ||||||
|
| Installation Services |
| Specialty Distribution |
| TopBuild, |
Sales (in millions) |
| $798 |
| $755 |
| $1,485 |
Sales Drivers | ||||||
Volume |
| (14.5%) |
| (5.5%) |
| (10.5%) |
Price | (0.5%) | 2.2% | 0.7% | |||
M&A |
| 16.3% |
| 28.9% |
| 23.0% |
Total Sales Change |
| 1.2% |
| 25.5% |
| 13.2% |
Year Ended December 31, 2025 | ||||||
|
| Installation Services |
| Specialty Distribution |
| TopBuild, |
Sales (in millions) |
| $3,183 |
| $2,523 |
| $5,409 |
Sales Drivers | ||||||
Volume |
| (11.2%) |
| (3.0%) |
| (8.1%) |
Price | 0.2% | 1.4% | 0.8% | |||
M&A |
| 7.6% |
| 9.4% |
| 8.8% |
Total Sales Change |
| (3.4%) |
| 7.8% |
| 1.5% |
Segment Profitability
(comparisons are to the periods ended December 31, 2024)
Three Months Ended December 31, 2025 | Year Ended December 31, 2025 | ||||
($ in thousands) | Installation Services | Specialty Distribution | Installation Services | Specialty Distribution | |
Operating Profit | $137,675 | $79,311 | $589,494 | $322,966 | |
Change | (7.9%) | (12.4%) | (9.2%) | (8.4%) | |
Operating Margin | 17.2% | 10.5% | 18.5% | 12.8% | |
Adj. Operating Profit | $138,013 | $91,656 | $597,659 | $342,504 | |
Change | (7.7%) | 0.5% | (8.0%) | (2.8%) | |
Adj. Operating Margin | 17.3% | 12.1% | 18.8% | 13.6% | |
Adj. EBITDA | $167,321 | $116,154 | $691,998 | $413,443 | |
Change | (1.0%) | 8.9% | (4.7%) | (0.2%) | |
Adj. EBITDA Margin | 21.0% | 15.4% | 21.7% | 16.4% | |
NYSE:BLD | February 26, 2026 | topbuild.com |
Capital Allocation
2025 Acquisitions
| ||||
Company | Annual Revenue ($ in millions) | Month Closed | ||
Seal-Rite Insulation (I) | 15.2 | | April | |
Progressive Roofing (I) | | 438.0 | | July |
Insulation Fabrics (D) | | 6.1 | | September |
Specialty Products and Insulation (D) | | 698.8 | | October |
Diamond Door Products (D) | | 30.4 | | October |
Performance Insulation Fabricators (D) | | 8.9 | | October |
L&L Insulation (I) | 7.2 | | November | |
Total | $ | 1,204.6 | |
|
I = Installation Services, D = Specialty Distribution
2026 Acquisitions
In February, TopBuild completed the acquisitions of Applied Coatings and Upstate Spray Foam, which together total approximately $20 million in annual revenue. Earlier this week, the Company announced that it has signed an agreement to acquire Johnson Roofing with approximately $29 million in annual revenue. The Johnson Roofing transaction is expected to close in the first quarter.
Share Repurchases
During the fourth quarter, TopBuild repurchased 43,200 shares totaling $17.0 million. For the full year, the Company bought back 1.37 million shares for a total of $434.2 million. The remaining availability for share repurchases at the end of the year totaled $753.9 million.
2026 Outlook1
TopBuild provided its full year outlook which assumes ongoing uncertainty in the residential new construction market and continued growth across a variety of verticals in the commercial and industrial end market. The Company noted that its 2026 guidance does not contemplate transactions that it expects to complete during the year.
$ in millions | | ||||
2026 Outlook | Low | | High | ||
Sales | $ | 5,925.0 | | $ | 6,225.0 |
Adjusted EBITDA | $ | 1,005.0 | | $ | 1,155.0 |
2026 Assumptions | | |
Residential Sales | | Mid-single digit decline |
Commercial/Industrial Sales | | Low-single digit growth |
M&A Sales Contribution | | $800 - $850 million |
Interest Expense and Other, net | | $143 - $149 million |
Tax Rate | | ~26% |
Capital Expenditures | | 1.0% - 2.0% of sales |
Working Capital | | 15% - 17% of sales |
NYSE:BLD | February 26, 2026 | topbuild.com |
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 are also detailed in the Company’s most recent Annual Report on Form 10-K and subsequent SEC reports.
Conference Call
A conference call to discuss the fourth quarter 2025 financial results is scheduled for today, Thursday, February 26, at 9:00 a.m. Eastern Time. The call may 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/investors shortly before the call begins.
About TopBuild
TopBuild Corp., headquartered in Daytona Beach, Florida, is a leading installer of insulation and commercial roofing and is also a specialty distributor of insulation and related building products to the construction industry in the United States and Canada. We provide insulation and commercial roofing installation services nationwide through our Installation Services segment which has over 200 branches located across the United States. We distribute building and mechanical insulation, insulation accessories, and other building products for the residential, commercial, and industrial end markets through our Specialty Distribution business. Our Specialty Distribution network encompasses more than 250 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.
NYSE:BLD | February 26, 2026 | 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.
Investor Relations and Media Contact
PI Aquino
pi.aquino@topbuild.com
386-763-8801
(tables follow)
NYSE:BLD | February 26, 2026 | topbuild.com |
TopBuild Corp.
Consolidated Statements of Operations
(in thousands, except share and per common share amounts)
| | Three Months Ended December 31, | | Year Ended December 31, | ||||||||
| | 2025 | | 2024 | | 2025 | | 2024 | ||||
Net sales | | $ | 1,485,247 | | $ | 1,312,206 | | $ | 5,409,086 | | $ | 5,329,803 |
Cost of sales | | | 1,080,685 | | | 920,173 | | | 3,840,089 | | | 3,704,885 |
Gross profit | | | 404,562 | | | 392,033 | | | 1,568,997 | | | 1,624,918 |
| | | | | | | | | | | | |
Selling, general, and administrative expense | | | 224,915 | | | 174,583 | | | 777,064 | | | 738,575 |
Operating profit | | | 179,647 | | | 217,450 | | | 791,933 | | | 886,343 |
| | | | | | | | | | | | |
Other income (expense), net: | | | | | | | | | | | | |
Interest expense | | | (38,207) | | | (17,280) | | | (103,768) | | | (73,092) |
Other, net | | | 2,074 | | | 2,551 | | | 15,418 | | | 27,537 |
Other expense, net | | | (36,133) | | | (14,729) | | | (88,350) | | | (45,555) |
Income before income taxes | | | 143,514 | | | 202,721 | | | 703,583 | | | 840,788 |
| | | | | | | | | | | | |
Income tax expense | | | (38,999) | | | (52,181) | | | (181,856) | | | (218,186) |
Net income | | $ | 104,515 | | $ | 150,540 | | $ | 521,727 | | $ | 622,602 |
| | | | | | | | | | | | |
Net income per common share: | | | | | | | | | | | | |
Basic | | $ | 3.74 | | $ | 5.13 | | $ | 18.41 | | $ | 20.41 |
Diluted | | $ | 3.71 | | $ | 5.11 | | $ | 18.28 | | $ | 20.29 |
| | | | |
| | | | | | | |
Weighted average shares outstanding: | | | | | | | | | | | | |
Basic | | | 27,930,422 | | | 29,319,538 | | | 28,333,633 | | | 30,504,064 |
Diluted | | | 28,135,351 | | | 29,485,271 | | | 28,541,263 | | | 30,679,660 |
NYSE:BLD | February 26, 2026 | topbuild.com |
TopBuild Corp.
Consolidated Statements of Comprehensive Income
(in thousands)
| | Three Months Ended December 31, | | Year Ended December 31, | ||||||||
| | 2025 | | 2024 | | 2025 | | 2024 | ||||
Net income | | $ | 104,515 | | $ | 150,540 | | $ | 521,727 | | $ | 622,602 |
Other comprehensive income (loss): | | | | | | | | | | | | |
Foreign currency translation adjustment | | | 3,166 | | | (11,076) | | | 9,383 | | | (14,541) |
Comprehensive income | | $ | 107,681 | | $ | 139,464 | | $ | 531,110 | | $ | 608,061 |
NYSE:BLD | February 26, 2026 | topbuild.com |
TopBuild Corp.
Consolidated Balance Sheets and Other Financial Data
(dollars in thousands)
| | As of December 31, | ||||
| | 2025 | | 2024 | ||
ASSETS | | | | | | |
Current assets: | | | | | | |
Cash and cash equivalents | | $ | 184,742 | | $ | 400,318 |
Receivables, net of an allowance for credit losses of $29,081 at December 31, 2025, and $18,541 at December 31, 2024 | | | 894,408 | |
| 751,612 |
Inventories | | | 505,167 | |
| 406,662 |
Prepaid expenses and other current assets | | | 50,478 | |
| 40,382 |
Total current assets | | | 1,634,795 | |
| 1,598,974 |
| | | | | | |
Right of use assets | | | 271,396 | |
| 189,146 |
Property and equipment, net | | | 291,556 | |
| 266,992 |
Goodwill | | | 3,045,227 | |
| 2,112,259 |
Other intangible assets, net | | | 1,351,612 | |
| 557,689 |
Other assets | | | 10,726 | |
| 10,366 |
Total assets | | $ | 6,605,312 | | $ | 4,735,426 |
| | | | | | |
LIABILITIES | | | | | | |
Current liabilities: | | | | | | |
Accounts payable | | $ | 440,214 | | $ | 456,446 |
Current portion of long-term debt | | | 62,500 | | | 48,750 |
Accrued liabilities | | | 249,361 | |
| 191,786 |
Short-term operating lease liabilities | | | 86,170 | |
| 68,713 |
Short-term finance lease liabilities | | | 6,571 | | | 1,487 |
Total current liabilities | | | 844,816 | |
| 767,182 |
| | | | | | |
Long-term debt | | | 2,784,197 | |
| 1,327,159 |
Deferred tax liabilities, net | | | 387,594 | |
| 240,343 |
Long-term portion of insurance reserves | | | 58,681 | | | 57,700 |
Long-term operating lease liabilities | | | 200,729 | | | 129,360 |
Long-term finance lease liabilities | | | 11,020 | | | 2,618 |
Other liabilities | | | 2,115 | |
| 1,446 |
Total liabilities | | | 4,289,152 | |
| 2,525,808 |
| | | | | | |
EQUITY | | | 2,316,160 | |
| 2,209,618 |
Total liabilities and equity | | $ | 6,605,312 | | $ | 4,735,426 |
| | | | | | |
| | As of December 31, | | ||||
| | 2025 | | 2024 | | ||
Other Financial Data | | | | | | | |
Receivables, net plus inventories less accounts payable | | $ | 959,361 | | $ | 701,828 | |
Net sales, acquisition adjusted † | | $ | 6,214,054 | | $ | 5,409,852 | |
Receivables, net plus inventories less accounts payable as a percent of sales (TTM) † | | | 15.4 | % | | 13.0 | % |
† Trailing 12 months sales have been adjusted for the pro forma effect of acquired branches
NYSE:BLD | February 26, 2026 | topbuild.com |
TopBuild Corp.
Consolidated Statements of Cash Flows
(in thousands)
| | Year Ended December 31, | ||||
| | 2025 | | 2024 | ||
Cash Flows Provided by (Used in) Operating Activities: | | | | | | |
Net income | | $ | 521,727 | | $ | 622,602 |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | |
Depreciation and amortization | | | 169,372 | | | 140,491 |
Share-based compensation | | | 16,644 | | | 16,579 |
Loss on sale of assets | | | 1,080 | | | 1,014 |
Amortization of debt issuance costs | | | 3,616 | | | 2,881 |
Provision for bad debt expense | | | 14,498 | | | 15,742 |
Provision for inventory obsolescence | | | 8,917 | | | 7,586 |
Impairment losses | | | 9,442 | | | — |
Deferred income taxes, net | | | (14,613) | | | (3,462) |
Change in certain assets and liabilities, net of effects of businesses acquired: | | | | | | |
Receivables, net | | | 79,774 | | | 56,017 |
Inventories | | | 17,089 | | | (41,723) |
Prepaid expenses and other current assets | | | (2,643) | | | (3,143) |
Accounts payable | | | (65,427) | | | (30,420) |
Accrued liabilities | | | (798) | | | (5,816) |
Other, net | | | (2,359) | | | (2,322) |
Net cash provided by operating activities | | | 756,319 | | | 776,026 |
| | | | | | |
Cash Flows Provided by (Used in) Investing Activities: | | | | | | |
Purchases of property and equipment | | | (59,431) | | | (69,349) |
Acquisition of businesses, net of $7,853 cash acquired | | | (1,932,229) | | | (136,767) |
Proceeds from sale of assets | | | 1,219 | | | 2,593 |
Net cash used in investing activities | | | (1,990,441) | | | (203,523) |
| | | | | | |
Cash Flows Provided by (Used in) Financing Activities: | | | | | | |
Proceeds from issuance of long-term debt | | | 2,000,000 | | | — |
Repayment of long-term debt | | | (515,625) | | | (47,039) |
Excise taxes paid on share repurchases | | | (9,444) | | | — |
Payment of debt issuance costs | | | (17,429) | | | — |
Proceeds from revolving credit facility | | | 178,000 | | | — |
Repayment of revolving credit facility | | | (178,000) | | | — |
Principal payments on finance lease obligations | | | (3,597) | | | — |
Taxes withheld and paid on employees' equity awards | | | (5,759) | | | (6,107) |
Exercise of stock options | | | 2,772 | | | 3,226 |
Repurchase of shares of common stock | | | (434,151) | | | (966,352) |
Net cash provided by (used in) financing activities | | | 1,016,767 | | | (1,016,272) |
Impact of exchange rate changes on cash | | | 1,779 | | | (4,478) |
Net decrease in cash and cash equivalents | | | (215,576) | | | (448,247) |
Cash and cash equivalents - Beginning of period | |
| 400,318 | |
| 848,565 |
Cash and cash equivalents - End of period | | $ | 184,742 | | $ | 400,318 |
| | | | | | |
Supplemental disclosure of cash paid for: | | | | | | |
Interest | | $ | 88,460 | | $ | 69,975 |
Income taxes | | | | | | |
U.S. Federal | | | 136,514 | | | 164,000 |
U.S. state and local | | | 37,841 | | | 47,974 |
Canada | | | 12,569 | | | 7,510 |
Total cash paid for income taxes | | | 186,924 | | | 219,484 |
| | | | | | |
Supplemental disclosure of noncash activities: | | | | | | |
Leased assets obtained in exchange for new operating lease liabilities | | $ | 102,496 | | $ | 50,502 |
Leased assets obtained in exchange for new finance lease liabilities | | | 642 | | | — |
Accruals for property and equipment | | | 773 | | | 1,023 |
Excise taxes capitalized to treasury stock | | | 4,074 | | | 9,444 |
NYSE:BLD | February 26, 2026 | topbuild.com |
TopBuild Corp.
Segment Data (Unaudited)
(dollars in thousands)
| | Three Months Ended December 31, | | | | | | | Year Ended December 31, | | | | | ||||||||
| | 2025 | | 2024 | | Change | | | | 2025 | | 2024 | | Change | | ||||||
Installation Services | | | | | | | | | | | | | | | | | | | | | |
Sales | | $ | 798,377 | | $ | 788,554 | | | 1.2 | % | | | $ | 3,182,853 | | $ | 3,294,630 | | | (3.4) | % |
| | | | | | | | | | | | | | | | | | | | | |
Operating profit, as reported | | $ | 137,675 | | $ | 149,445 | | | | | | | $ | 589,494 | | $ | 649,162 | | | | |
Operating margin, as reported | | | 17.2 | % | | 19.0 | % | | | | | | | 18.5 | % | | 19.7 | % | | | |
| | | | | | | | | | | | | | | | | | | | | |
Rationalization charges | | | − | | | − | | | | | | | | 7,223 | | | − | | | | |
Acquisition related costs | | | 338 | | | 92 | | | | | | | | 942 | | | 456 | | | | |
Operating profit, as adjusted | | $ | 138,013 | | $ | 149,537 | | | | | | | $ | 597,659 | | $ | 649,618 | | | | |
Operating margin, as adjusted | | | 17.3 | % | | 19.0 | % | | | | | | | 18.8 | % | | 19.7 | % | | | |
| | | | | | | | | | | | | | | | | | | | | |
Share-based compensation | | | 61 | | | 258 | | | | | | | | 993 | | | 976 | | | | |
Depreciation and amortization | | | 29,247 | | | 19,214 | | | | | | | | 93,346 | | | 75,230 | | | | |
EBITDA, as adjusted | | $ | 167,321 | | $ | 169,009 | | | (1.0) | % | | | $ | 691,998 | | $ | 725,824 | | | (4.7) | % |
EBITDA margin, as adjusted | | | 21.0 | % | | 21.4 | % | | | | | | | 21.7 | % | | 22.0 | % | | | |
| | | | | | | | | | | | | | | | | | | | | |
Specialty Distribution | | | | | | | | | | | | | | | | | | | | | |
Sales | | $ | 755,444 | | $ | 601,830 | | | 25.5 | % | | | $ | 2,523,323 | | $ | 2,340,837 | | | 7.8 | % |
| | | | | | | | | | | | | | | | | | | | | |
Operating profit, as reported | | $ | 79,311 | | $ | 90,569 | | | | | | | $ | 322,966 | | $ | 352,431 | | | | |
Operating margin, as reported | | | 10.5 | % | | 15.0 | % | | | | | | | 12.8 | % | | 15.1 | % | | | |
| | | | | | | | | | | | | | | | | | | | | |
Rationalization charges | | | − | | | 80 | | | | | | | | 7,143 | | | (476) | | | | |
Acquisition related costs | | | 919 | | | 511 | | | | | | | | 969 | | | 525 | | | | |
Acquisition purchase accounting (inventory step-up) | | | 11,426 | | | − | | | | | | | | 11,426 | | | − | | | | |
Operating profit, as adjusted | | $ | 91,656 | | $ | 91,160 | | | | | | | $ | 342,504 | | $ | 352,480 | | | | |
Operating margin, as adjusted | | | 12.1 | % | | 15.1 | % | | | | | | | 13.6 | % | | 15.1 | % | | | |
| | | | | | | | | | | | | | | | | | | | | |
Share-based compensation | | | (45) | | | 358 | | | | | | | | 1,238 | | | 1,545 | | | | |
Depreciation and amortization | | | 24,543 | | | 15,156 | | | | | | | | 69,701 | | | 60,157 | | | | |
EBITDA, as adjusted | | $ | 116,154 | | $ | 106,674 | | | 8.9 | % | | | $ | 413,443 | | $ | 414,182 | | | (0.2) | % |
EBITDA margin, as adjusted | | | 15.4 | % | | 17.7 | % | | | | | | | 16.4 | % | | 17.7 | % | | | |
NYSE:BLD | February 26, 2026 | topbuild.com |
TopBuild Corp.
Adjusted EBITDA (Unaudited)
(dollars in thousands)
| | Three Months Ended December 31, | | | | | | | Year Ended December 31, | | | | | ||||||||
| | 2025 | | 2024 | | Change | | | 2025 | | 2024 | | Change | ||||||||
Total net sales | | | | | | | | | | | | | | | | | | | | | |
Sales before eliminations | | $ | 1,553,821 | | $ | 1,390,384 | | | | | | | $ | 5,706,176 | | $ | 5,635,467 | | | | |
Intercompany eliminations | | | (68,574) | | | (78,178) | | | | | | | | (297,090) | | | (305,664) | | | | |
Net sales after eliminations | | $ | 1,485,247 | | $ | 1,312,206 | | | 13.2 | % | | | $ | 5,409,086 | | $ | 5,329,803 | | | 1.5 | % |
| | | | | | | | | | | | | | | | | | | | | |
Operating profit, as reported - segments | | $ | 216,986 | | $ | 240,014 | | | | | | | $ | 912,460 | | $ | 1,001,593 | | | | |
General corporate expense, net | | | (23,733) | | | (9,807) | | | | | | | | (66,647) | | | (65,416) | | | | |
Intercompany eliminations | | | (13,606) | | | (12,757) | | | | | | | | (53,880) | | | (49,834) | | | | |
Operating profit, as reported | | $ | 179,647 | | $ | 217,450 | | | | | | | $ | 791,933 | | $ | 886,343 | | | | |
Operating margin, as reported | | | 12.1 | % | | 16.6 | % | | | | | | | 14.6 | % | | 16.6 | % | | | |
| | | | | | | | | | | | | | | | | | | | | |
Rationalization charges | | | - | | | 80 | | | | | | | | 14,556 | | | 73 | | | | |
Refinancing costs | | | - | | | - | | | | | | | | 226 | | | - | | | | |
Acquisition related costs † | | | 16,223 | | | 1,607 | | | | | | | | 32,905 | | | 8,109 | | | | |
Acquisition purchase accounting (inventory step-up) | | | 11,426 | | | - | | | | | | | | 11,426 | | | - | | | | |
Acquisition termination fee | | | - | | | - | | | | | | | | - | | | 23,000 | | | | |
Operating profit, as adjusted | | $ | 207,296 | | $ | 219,137 | | | | | | | $ | 851,046 | | $ | 917,525 | | | | |
Operating margin, as adjusted | | | 14.0 | % | | 16.7 | % | | | | | | | 15.7 | % | | 17.2 | % | | | |
| | | | | | | | | | | | | | | | | | | | | |
Share-based compensation | | | 2,524 | | | 3,174 | | | | | | | | 16,644 | | | 16,579 | | | | |
Depreciation and amortization | | | 55,355 | | | 35,714 | | | | | | | | 169,152 | | | 140,491 | | | | |
EBITDA, as adjusted | | $ | 265,175 | | $ | 258,025 | | | 2.8 | % | | | $ | 1,036,842 | | $ | 1,074,595 | | | (3.5) | % |
EBITDA margin, as adjusted | | | 17.9 | % | | 19.7 | % | | | | | | | 19.2 | % | | 20.2 | % | | | |
| | | | | | | | | | | | | | | | | | | | | |
Sales change period over period | | | 173,041 | | | | | | | | | | | 79,283 | | | | | | | |
EBITDA, as adjusted, change period over period | | | 7,150 | | | | | | | | | | | (37,753) | | | | | | | |
Incremental EBITDA, as adjusted, as a percentage of change in sales | | | 4.1 | % | | | | | | | | | | NM | | | | | | | |
† Acquisition related costs include corporate level adjustments as well as segment operating adjustments.
NM Not meaningful
NYSE:BLD | February 26, 2026 | topbuild.com |
TopBuild Corp.
Same Branch and Acquisition Metrics (Unaudited)
(dollars in thousands)
| | Three Months Ended December 31, | | Year Ended December 31, | | ||||||||
| | 2025 | | 2024 | | 2025 | | 2024 | | ||||
Net sales | | | | | | | | | | | | | |
Same branch: | | | | | | | | | | | | | |
Installation Services | | $ | 670,046 | | $ | 788,554 | | $ | 2,933,318 | | $ | 3,294,630 | |
Specialty Distribution | | | 581,549 | | | 601,830 | | | 2,303,338 | | | 2,340,837 | |
Eliminations | | | (68,367) | | | (78,178) | | | (296,879) | | | (305,664) | |
Total same branch | | $ | 1,183,228 | | $ | 1,312,206 | | $ | 4,939,777 | | $ | 5,329,803 | |
| | | | | | | | | | | | | |
Acquisitions (a): | | | | | | | | | | | | | |
Installation Services | | $ | 128,331 | | $ | - | | $ | 249,535 | | $ | - | |
Specialty Distribution | | | 173,895 | | | - | | | 219,985 | | | - | |
Eliminations | | | (207) | | | - | | | (211) | | | - | |
Total acquisitions | | | 302,019 | | | - | | | 469,309 | | | - | |
Total net sales | | $ | 1,485,247 | | $ | 1,312,206 | | $ | 5,409,086 | | $ | 5,329,803 | |
| | | | | | | | | | | | | |
EBITDA, as adjusted | | | | | | | | | | | | | |
Same branch | | $ | 221,024 | | $ | 258,025 | | $ | 963,483 | | $ | 1,074,595 | |
Acquisitions (a) | | | 44,151 | | | - | | | 73,359 | | | - | |
Total | | $ | 265,175 | | $ | 258,025 | | $ | 1,036,842 | | $ | 1,074,595 | |
| | | | | | | | | | | | | |
EBITDA, as adjusted, as a percentage of sales | | | | | | | | | | | | | |
Same branch (b) | | | 18.7 | % | | | | | 19.5 | % | | | |
Acquisitions (c) | | | 14.6 | % | | | | | 15.6 | % | | | |
Total (d) | | | 17.9 | % | | 19.7 | % | | 19.2 | % | | 20.2 | % |
| | | | | | | | | | | | | |
As Adjusted (Decremental)/Incremental EBITDA, as a percentage of change in sales | | | | | | | | | | | | | |
Same branch (e) | | | (28.7) | % | | | | | (28.5) | % | | | |
Acquisitions (c) | | | 14.6 | % | | | | | 15.6 | % | | | |
Total (f) | | | 4.1 | % | | | | | NM | | | | |
(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
NM Not meaningful
NYSE:BLD | February 26, 2026 | topbuild.com |
TopBuild Corp.
Same Branch Revenue by Line of Business (Unaudited)
(dollars in thousands)
| | Three Months Ended December 31, | | | | | | Year Ended December 31, | | | | | ||||||||
| | 2025 | | 2024 | | | Change | | 2025 | | 2024 | | | Change | ||||||
Residential: | | | | | | | | | | | | | | | | | | | | |
Same branch (a) | | $ | 718,133 | | $ | 839,041 | | | (14.4) | % | | $ | 3,074,976 | | $ | 3,448,340 | | | (10.8) | % |
Acquisitions | | | 25,172 | | | — | | | | | | | 51,724 | | | — | | | | |
Total Residential sales | | | 743,305 | | | 839,041 | | | (11.4) | % | | | 3,126,700 | | | 3,448,340 | | | (9.3) | % |
| | | | | | | | | | | | | | | | | | | | |
Commercial/Industrial: | | | | | | | | | | | | | | | | | | | | |
Same branch (a) | | $ | 465,095 | | $ | 473,165 | | | (1.7) | % | | $ | 1,864,801 | | $ | 1,881,463 | | | (0.9) | % |
Acquisitions | | | 276,847 | | | — | | | | | | | 417,585 | | | — | | | | |
Total Commercial/Industrial sales | | | 741,942 | | | 473,165 | | | 56.8 | % | | | 2,282,386 | | | 1,881,463 | | | 21.3 | % |
Total net sales | | $ | 1,485,247 | | $ | 1,312,206 | | | 13.2 | % | | $ | 5,409,086 | | $ | 5,329,803 | | | 1.5 | % |
(a) Represents current year impact of acquisitions in their first twelve months | | |
NYSE:BLD | February 26, 2026 | topbuild.com |
TopBuild Corp.
Non-GAAP Reconciliations (Unaudited)
(in thousands, except share and per common share amounts)
| | Three Months Ended December 31, | | Year Ended December 31, | | ||||||||
| | 2025 | | 2024 | | 2025 | | 2024 | | ||||
Gross Profit Reconciliation | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Net sales | | $ | 1,485,247 | | $ | 1,312,206 | | $ | 5,409,086 | | $ | 5,329,803 | |
| | | | | | | | | | | | | |
Gross profit, as reported | | $ | 404,562 | | $ | 392,033 | | $ | 1,568,997 | | $ | 1,624,918 | |
| | | | | | | | | | | | | |
Acquisition purchase accounting (inventory step-up) | | | 11,426 | | | - | | | 11,426 | | | - | |
Rationalization charges | | | - | | | - | | | 12,506 | | | - | |
Gross profit, as adjusted | | $ | 415,988 | | $ | 392,033 | | $ | 1,592,929 | | $ | 1,624,918 | |
| | | | | | | | | | | | | |
Gross margin, as reported | | | 27.2 | % | | 29.9 | % | | 29.0 | % | | 30.5 | % |
Gross margin, as adjusted | | | 28.0 | % | | 29.9 | % | | 29.4 | % | | 30.5 | % |
| | | | | | | | | | | | | |
Selling, General and Administrative Expense Reconciliation | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Selling, general, and administrative expense, as reported | | $ | 224,915 | | $ | 174,583 | | $ | 777,064 | | $ | 738,575 | |
| | | | | | | | | | | | | |
Rationalization charges | | | - | | | 80 | | | 2,050 | | | 73 | |
Refinancing costs | | | - | | | - | | | 226 | | | - | |
Acquisition related costs | | | 16,223 | | | 1,607 | | | 32,905 | | | 8,109 | |
Acquisition termination fee | | | - | | | - | | | - | | | 23,000 | |
Selling, general, and administrative expense, as adjusted | | $ | 208,692 | | $ | 172,896 | | $ | 741,883 | | $ | 707,393 | |
| | | | | | | | | | | | | |
Operating Profit Reconciliation | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Operating profit, as reported | | $ | 179,647 | | $ | 217,450 | | $ | 791,933 | | $ | 886,343 | |
| | | | | | | | | | | | | |
Rationalization charges | | | - | | | 80 | | | 14,556 | | | 73 | |
Refinancing costs | | | - | | | - | | | 226 | | | - | |
Acquisition related costs | | | 16,223 | | | 1,607 | | | 32,905 | | | 8,109 | |
Acquisition purchase accounting (inventory step-up) | | | 11,426 | | | - | | | 11,426 | | | - | |
Acquisition termination fee | | | - | | | - | | | - | | | 23,000 | |
Operating profit, as adjusted | | $ | 207,296 | | $ | 219,137 | | $ | 851,046 | | $ | 917,525 | |
| | | | | | | | | | | | | |
Operating margin, as reported | | | 12.1 | % | | 16.6 | % | | 14.6 | % | | 16.6 | % |
Operating margin, as adjusted | | | 14.0 | % | | 16.7 | % | | 15.7 | % | | 17.2 | % |
| | | | | | | | | | | | | |
Income Per Common Share Reconciliation | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Income before income taxes, as reported | | $ | 143,514 | | $ | 202,721 | | $ | 703,583 | | $ | 840,788 | |
| | | | | | | | | | | | | |
Rationalization charges | | | - | | | 80 | | | 14,556 | | | 73 | |
Refinancing costs | | | - | | | - | | | 226 | | | - | |
Acquisition related costs | | | 16,223 | | | 1,607 | | | 32,905 | | | 8,109 | |
Acquisition purchase accounting (inventory step-up) | | | 11,426 | | | - | | | 11,426 | | | - | |
Acquisition termination fee | | | - | | | - | | | - | | | 23,000 | |
Income before income taxes, as adjusted | | | 171,163 | | | 204,408 | | | 762,696 | | | 871,970 | |
| | | | | | | | | | | | | |
Tax rate at 26.0% | | | (44,502) | | | (53,146) | | | (198,301) | | | (226,712) | |
Income, as adjusted | | $ | 126,661 | | $ | 151,262 | | $ | 564,395 | | $ | 645,258 | |
| | | | | | | | | | | | | |
Income per common share, as adjusted | | $ | 4.50 | | $ | 5.13 | | $ | 19.77 | | $ | 21.03 | |
| | | | | | | | | | | | | |
Weighted average diluted common shares outstanding | | | 28,135,351 | | | 29,485,271 | | | 28,541,263 | | | 30,679,660 | |
NYSE:BLD | February 26, 2026 | topbuild.com |
TopBuild Corp.
Reconciliation of Adjusted EBITDA to Net Income (Unaudited)
(in thousands)
| | Three Months Ended December 31, | | | Year Ended December 31, | |||||||
| | 2025 | | 2024 | | | 2025 | | 2024 | |||
Net income, as reported | | $ | 104,515 | | $ | 150,540 | | $ | 521,727 | | $ | 622,602 |
Adjustments to arrive at EBITDA, as adjusted: | | | | | | | | | | | | |
Interest expense and other, net | | | 36,133 | | | 14,729 | | | 88,350 | | | 45,555 |
Income tax expense | | | 38,999 | | | 52,181 | | | 181,856 | | | 218,186 |
Depreciation and amortization | | | 55,355 | | | 35,714 | | | 169,152 | | | 140,491 |
Share-based compensation | | | 2,524 | | | 3,174 | | | 16,644 | | | 16,579 |
Rationalization charges | | | - | | | 80 | | | 14,556 | | | 73 |
Refinancing costs | | | - | | | - | | | 226 | | | - |
Acquisition related costs | | | 16,223 | | | 1,607 | | | 32,905 | | | 8,109 |
Acquisition purchase accounting (inventory step-up) | | | 11,426 | | | - | | | 11,426 | | | - |
Acquisition termination fee | | | - | | | - | | | - | | | 23,000 |
EBITDA, as adjusted | | $ | 265,175 | | $ | 258,025 | | $ | 1,036,842 | | $ | 1,074,595 |
| | | | | | | | | | | | |
Pro forma acquisition EBITDA (a) | | | | | | | | | 105,100 | | | |
Pro forma TTM EBITDA, as adjusted | | | | | | | | $ | 1,141,942 | | | |
| | | | | | | | | | | | |
(a) Represents the trailing twelve months pro forma impact of acquisitions completed in 2025. | | | | | | | | | | | | |
NYSE:BLD | February 26, 2026 | topbuild.com |
TopBuild Corp.
Acquisition Adjusted Net Sales (Unaudited)
(in thousands)
| 2025 | | Year Ended | |||||||||||
| Q1 | | Q2 | | Q3 | | Q4 | | December 31, 2025 | |||||
Net sales | $ | 1,233,278 | | $ | 1,297,403 | | $ | 1,393,158 | | $ | 1,485,247 | | $ | 5,409,086 |
Acquisitions pro forma adjustment † | | 289,594 | | | 308,195 | | | 194,047 | | | 13,132 | | | 804,968 |
Net sales, acquisition adjusted | $ | 1,522,872 | | $ | 1,605,598 | | $ | 1,587,205 | | $ | 1,498,379 | | $ | 6,214,054 |
| | | | | | | | | | | | | | |
† Sales have been adjusted for the pro forma effect of acquired branches
NYSE:BLD | February 26, 2026 | topbuild.com |
TopBuild Corp.
2026 Estimated Guidance Range (Unaudited)
(in millions)
| Twelve Months Ending December 31, 2026 | |||||||
| | Low | | | Mid | | | High |
Estimated net income | $ | 446.0 | | $ | 507.0 | | $ | 568.0 |
Adjustments to arrive at estimated adjusted measures: | | | | | | | | |
Interest expense and other, net | | 149.0 | | | 146.0 | | | 143.0 |
Income tax expense | | 157.0 | | | 178.0 | | | 199.0 |
Estimated EBIT, as adjusted | | 752.0 | | | 831.0 | | | 910.0 |
Share-based compensation | | 23.0 | | | 21.5 | | | 20.0 |
Depreciation and amortization | | 230.0 | | | 227.5 | | | 225.0 |
Estimated EBITDA, as adjusted | $ | 1,005.0 | | $ | 1,080.0 | | $ | 1,155.0 |
NYSE:BLD | February 26, 2026 | topbuild.com |