TopBuild Corp. (NYSE: BLD ) installs and distributes insulation and other construction material products, used in residential, commercial, and industrial construction. After a very strong past decade with housing market tailwinds, the company’s more recent performance has reflected a much weaker housingI am an avid investor with a major focus on small cap companies with experience in investing in US, Canadian, and European markets. My investment philosophy to generating great returns on the stock market rev ...

Major market indices were mostly lower on February 25th. However, one company that bucked that trend was TopBuild (NYSE: BLD ), a firm that is focused on the installation and distribution of insulation. As of this writingCrude Value Insights offers you an investing service and community focused on oil and natural gas. We focus on cash flow and the companies that generate it, leading to value and growth prospects with real potential.Subscribers get to use a 50+ stock model account, in-depth cash flow analyse ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-36870 TopBuild Corp. (Exact Name of Registrant as Specified in its Charter) Delaware (State or Other Jurisdiction of ...

Financial Data and Key Metrics Changes - In Q4 2024, TopBuild Corp. reported sales growth of 2% to $1.3 billion, with adjusted EBITDA increasing by 2.5% to $258 million, resulting in an adjusted EBITDA margin of 19.7%, which improved by ten basis points year over year [12][25][29] - The company has achieved a compounded annual growth rate of 14% in sales since its spin-off in 2015, with adjusted EBITDA margins expanding from 6.6% to 20.2% [25] Business Line Data and Key Metrics Changes - The residential business saw single-family sales grow slightly, while multifamily sales declined by double digits [11] - Installation sales were relatively flat year over year at $788.6 million, with a volume decline of 4.1% offset by M&A contributions of 2.3% and pricing increases of 1.5% [26] - Specialty distribution sales grew by 6.6% to $601.8 million, with volume rising by 4.4% due to growth in commercial industrial sales and spray foam sales [27] Market Data and Key Metrics Changes - The commercial industrial business experienced growth in Q4, with strong bidding activity and delayed projects moving forward [11][23] - The overall housing market fundamentals remain strong, despite external forecasts for housing starts in 2025 being trimmed [8][22] Company Strategy and Development Direction - TopBuild Corp. continues to prioritize acquisitions, having completed eight acquisitions in 2024, contributing approximately $153 million in annual revenue [15][32] - The company is focused on maintaining a healthy M&A pipeline and is optimistic about growth opportunities in both organic and inorganic avenues [24][59] - The management emphasizes a decentralized operating model, empowering local teams to make decisions and drive operational excellence [18][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledges persistent inflation and high interest rates as challenges for the construction industry, but remains optimistic about long-term residential demand recovery [22][34] - The company expects continued choppiness in residential markets but anticipates an inflection point in demand [35] - Management is cautious about the timing of recovery and has not included potential M&A in their guidance for 2025 [24][34] Other Important Information - The company returned nearly $1 billion to shareholders through a share repurchase program in 2024, with a new authorization of up to $1 billion demonstrating confidence in the business [15][33] - Total liquidity at the end of Q4 was $836.5 million, with cash of $400.3 million and net debt of $987.2 million, resulting in a net debt leverage ratio of 0.91 times trailing twelve months adjusted EBITDA [31] Q&A Session Summary Question: Pricing environment and builder pressures - Management noted that affordability is a top concern for builders, leading to pressure in slower markets, but they are not chasing market share [48][49] Question: M&A pipeline and adjacent market opportunities - The company has a robust M&A pipeline, with potential larger opportunities in adjacent markets being considered [56][60] Question: Strategic pricing and volume decisions - Management is making strategic decisions to balance pricing and volume, particularly in the spray foam and distribution segments [66][68] Question: Bidding activity in commercial industrial - Bidding activity remains strong across various verticals, with optimism for growth in the commercial industrial side of the business [86][88] Question: Guidance assumptions and market conditions - The guidance for 2025 includes a range for single-family starts and anticipates low single-digit declines in volume, with Q1 expected to be the weakest [109][111] Question: Labor market pressures and competitive advantages - Management believes their strong workforce provides a competitive advantage, and they are cautious about labor reductions in the current environment [138][142]

For the quarter ended December 2024, TopBuild (BLD) reported revenue of $1.31 billion, up 2% over the same period last year. EPS came in at $5.13, compared to $4.69 in the year-ago quarter.The reported revenue represents a surprise of +0.06% over the Zacks Consensus Estimate of $1.31 billion. With the consensus EPS estimate being $5.08, the EPS surprise was +0.98%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectati ...

Fourth Quarter and Year End 2024 Robert Buck, President & CEO Rob Kuhns, CFO Published February 25, 2025 1 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," "anticipate," "expect," "believe," "designed," "plan," or "intend," the negative of these terms, and s ...

TopBuild (BLD) came out with quarterly earnings of $5.13 per share, beating the Zacks Consensus Estimate of $5.08 per share. This compares to earnings of $4.69 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 0.98%. A quarter ago, it was expected that this insulation products company would post earnings of $5.62 per share when it actually produced earnings of $5.68, delivering a surprise of 1.07%.Over the last four quarters, th ...

Sales Performance - Fourth quarter sales increased by 2.0% to $1.31 billion, with Specialty Distribution growing by 6.6%[2] - Full year 2024 sales reached a record $5.33 billion, with adjusted EBITDA of $1.07 billion[3] - The company expects mid-single digit decline in residential sales and low-single digit growth in commercial/industrial sales for 2025[17] - Net sales for Q4 2024 reached $1,312,206 thousand, a 2.0% increase from $1,286,074 thousand in Q4 2023[26] - The company's total net sales after eliminations for Q4 2024 were $1,312,206, a 2.0% increase from $1,286,074 in Q4 2023, with annual net sales growing by 2.6% to $5,329,803 from $5,194,694[31] - Installation segment sales for Q4 2024 were $788,554, a slight decrease of 0.2% from $790,414 in Q4 2023, while annual sales increased by 3.3% to $3,294,630 from $3,188,232[30] - Specialty Distribution segment sales increased by 6.6% to $601,830 in Q4 2024 compared to $564,468 in Q4 2023, with annual sales rising by 3.2% to $2,340,837 from $2,268,339[30] Financial Metrics - The adjusted EBITDA margin improved by 10 basis points to 19.7% in the fourth quarter[7] - Operating profit for the year ended December 31, 2024, was $886.3 million, with an operating margin of 16.6%[10] - Gross profit for the year ended December 31, 2024, was $1,624,918 thousand, compared to $1,603,820 thousand in 2023, reflecting a growth of 1.3%[26] - Net income for the year ended December 31, 2024, was $622,602 thousand, up from $614,254 thousand in 2023, representing a 1.1% increase[29] - Basic net income per share increased to $20.41 in 2024 from $19.44 in 2023, a rise of 5.0%[26] - Operating profit, as reported, for Q4 2024 was $217,450, up from $204,800 in Q4 2023, with an operating margin of 16.6% compared to 15.9% in the prior year[31] - Adjusted EBITDA for Q4 2024 was $258,025, reflecting a 2.5% increase from $251,641 in Q4 2023, while annual adjusted EBITDA rose by 2.4% to $1,074,595 from $1,049,160[31] - The adjusted EBITDA margin for the total company in Q4 2024 was 19.7%, slightly up from 19.6% in Q4 2023, with same branch EBITDA margin at 19.8%[33] Shareholder Returns - The company returned $966.4 million to shareholders through share repurchases, totaling approximately 2.5 million shares[3][14] - The new share repurchase authorization allows for up to $1 billion in additional stock buybacks, bringing total availability to $1.2 billion[15] - The company repurchased shares of common stock amounting to $966,352 thousand during the year[29] Acquisitions and Growth Strategy - The company completed 8 acquisitions in 2024, totaling $153.1 million in annual sales[3] - The company maintains a robust pipeline of M&A opportunities, prioritizing acquisitions for capital deployment[8] - Total acquisitions contributed $31,012 in sales for Q4 2024, with a total of $129,863 for the year, indicating growth from zero sales in the previous year[33] Cash Flow and Assets - Cash and cash equivalents at the end of 2024 were $400,318 thousand, down from $848,565 thousand at the end of 2023, a decrease of 52.8%[29] - The net cash provided by operating activities for 2024 was $776,026 thousand, compared to $849,409 thousand in 2023, a decrease of 8.6%[29] - Total assets decreased to $4,735,426 thousand in 2024 from $5,162,851 thousand in 2023, a decline of 8.3%[28] Expenses and Taxation - Selling, general, and administrative expenses for Q4 2024 were reported at $174,583, down from $186,316 in Q4 2023, with annual expenses totaling $738,575 compared to $724,995 in 2023[34] - The tax rate for the year was reported at 26.0%, with income tax expense for 2024 amounting to $218,186[35] Future Projections - For 2025, the company anticipates sales between $5.05 billion and $5.35 billion, with adjusted EBITDA ranging from $925 million to $1.075 billion[4] - For 2025, the estimated adjusted EBITDA range is projected between $925 million and $1,075 million, with estimated net income ranging from $519 million to $640 million[38]

Fourth Quarter HighlightsFourth quarter sales grew 2.0% to $1.31 billion, driven by 6.6% improvement in Specialty DistributionDelivered gross margin of 29.9% and adjusted EBITDA margin of 19.7% Full Year HighlightsAchieved record 2024 results: sales of $5.3 billion and adjusted EBITDA of $1.07 billionCompleted 8 acquisitions totaling $153.1 million in annual salesReturned $966.4 million in capital to stockholders through the repurchase of ~2.5 million shares 2025 OutlookAnticipates full year 2025 sales betw ...

Core Insights - TopBuild Corp. reported a 2.0% increase in fourth quarter sales to $1.31 billion, primarily driven by a 6.6% growth in Specialty Distribution [2][6] - The company achieved record results for 2024, with total sales of $5.3 billion and adjusted EBITDA of $1.07 billion [3][9] - For 2025, TopBuild anticipates sales between $5.05 billion and $5.35 billion, with adjusted EBITDA projected between $925 million and $1.075 billion [4][18] Fourth Quarter Highlights - Fourth quarter sales reached $1,312.2 million, up from $1,286.1 million in the same period last year [8] - Gross margin for the quarter was 29.9%, a slight decrease from 30.4% year-over-year [8] - Adjusted EBITDA margin improved to 19.7%, up from 19.6% in the previous year [8] Full Year Highlights - Total sales for 2024 were $5,329.8 million, compared to $5,194.7 million in 2023, marking a 2.6% increase [9] - The company completed eight acquisitions totaling $153.1 million in annual sales [3][7] - TopBuild returned $966.4 million to shareholders through share repurchases, demonstrating strong capital allocation [3][15] 2025 Outlook - The company expects residential sales to decline in the mid-single digits while commercial and industrial sales are projected to grow in the low single digits [19] - Interest expenses are anticipated to be between $49 million and $55 million, with capital expenditures estimated at 1.5% to 2.0% of sales [19][20] - The guidance does not include potential acquisitions or divestitures expected during the year [17][20] Capital Allocation - TopBuild's acquisitions remain a top priority for capital deployment, with a robust pipeline of opportunities [7][16] - The company has authorized up to $1.0 billion for share repurchases, in addition to the remaining $188.1 million from the previous authorization [16] Segment Performance - In the fourth quarter, Installation sales were $789 million, while Specialty Distribution sales were $602 million, reflecting a 6.6% increase in the latter [11] - For the full year, Installation sales totaled $3.3 billion, a 3.3% increase, while Specialty Distribution sales reached $2.34 billion, up 3.2% [11][12] Financial Metrics - Net income for the fourth quarter was $150.5 million, compared to $146.4 million in the prior year [8] - The company reported an operating profit of $217.5 million for the fourth quarter, up from $204.8 million year-over-year [8] - Adjusted EBITDA for the year was $1,074.6 million, a 2.4% increase from $1,049.2 million in 2023 [10][34]