Exhibit 99.1
TopBuild Reports Fourth Quarter and Year-End 2024 Results,
Provides 2025 Outlook and
Announces New $1 Billion Share Repurchase Authorization
Fourth Quarter Highlights
Fourth quarter sales grew 2.0% to $1.31 billion, driven by 6.6% improvement in Specialty Distribution
Delivered gross margin of 29.9% and adjusted EBITDA margin of 19.7%
Full Year Highlights
Achieved record 2024 results: sales of $5.3 billion and adjusted EBITDA of $1.07 billion
Completed 8 acquisitions totaling $153.1 million in annual sales
Returned $966.4 million in capital to stockholders through the repurchase of ~2.5 million shares
2025 Outlook
Anticipates full year 2025 sales between $5.05 to $5.35 billion and
adjusted EBITDA in the range of $925 million to $1.075 billion
Acquisitions continue to be top priority for deploying capital
DAYTONA BEACH, FL – February 25, 2025 — 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 fourth quarter and year ended December 31, 2024.
“Our performance in 2024 was driven by consistent execution within our unique operating model and the entire TopBuild team’s relentless pursuit of operational excellence and focus on driving improvements across the business.
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NYSE:BLD | February 25, 2025 | topbuild.com |
“Our fourth quarter results were as expected given the ongoing choppiness across the residential construction landscape. Sales improved 2.0%, driven by 6.6% growth in Specialty Distribution, while Installation was relatively flat in the quarter. We also improved adjusted EBITDA margin by 10 basis points to 19.7%. Broad macro fundamentals continue to support long-term demand growth across our end markets. Low housing inventory, population growth and demographic shifts, as well as ongoing initiatives to reduce energy consumption, decrease utility costs, and manage emissions are tailwinds for our business.
“We have a very robust pipeline of M&A opportunities and acquisitions continue to be the highest priority for our free cash flow. In 2024 we remained disciplined around capital allocation, completing eight acquisitions which total $153.1 million in annual sales. We also returned $966.4 million in capital to shareholders through our share repurchase program, demonstrating our continued confidence in our outlook and ability to successfully deploy capital to generate excellent returns,” concluded Mr. Buck.
Financial Highlights
(comparisons are to the periods ended December 31, 2023)
| | | | |||||||||
Three Months Ended December 31, 2024 | | | | | | | | | ||||
| Reported | | Adjusted | |||||||||
($ in thousands) |
| 2024 |
| 2023 |
| 2024 |
| 2023 | ||||
Sales | | $ | 1,312,206 | | $ | 1,286,074 | | $ | 1,312,206 | | $ | 1,286,074 |
Gross Profit | | $ | 392,033 | | $ | 391,116 | | $ | 392,033 | | $ | 391,116 |
Gross Margin | | | 29.9% | | 30.4% | | 29.9% | | 30.4% | |||
SG&A | | $ | 174,583 | | $ | 186,316 | | $ | 172,896 | | $ | 178,894 |
SG&A as % of Sales | | | 13.3% | | 14.5% | | 13.2% | | 13.9% | |||
Operating Profit | | $ | 217,450 | | $ | 204,800 | | $ | 219,137 | | $ | 212,222 |
Operating Margin | | | 16.6% | | 15.9% | | 16.7% | | 16.5% | |||
Net Income | | $ | 150,540 | | $ | 146,382 | | $ | 151,262 | | $ | 149,305 |
Net Income per diluted share | | $ | 5.11 | | $ | 4.60 | | $ | 5.13 | | $ | 4.69 |
EBITDA | | | | | | | | $ | 258,025 | | $ | 251,641 |
EBITDA Margin | | | | | | | | | 19.7% | | 19.6% | |
| | | | |||||||||
Year Ended December 31, 2024 | | | | | | | | | ||||
| | Reported | | Adjusted | ||||||||
($ in thousands) |
| 2024 |
| 2023 |
| 2024 |
| 2023 | ||||
Sales | | $ | 5,329,803 | | $ | 5,194,694 | | $ | 5,329,803 | | $ | 5,194,694 |
Gross Profit | | $ | 1,624,918 | | $ | 1,603,820 | | $ | 1,624,918 | | $ | 1,603,820 |
Gross Margin | | | 30.5% | | 30.9% | | 30.5% | | 30.9% | |||
SG&A | | $ | 738,575 | | $ | 724,995 | | $ | 707,393 | | $ | 703,374 |
SG&A as % of Sales | | | 13.9% | | 14.0% | | 13.3% | | 13.5% | |||
Operating Profit | | $ | 886,343 | | $ | 878,825 | | $ | 917,525 | | $ | 900,446 |
Operating Margin | | | 16.6% | | 16.9% | | 17.2% | | 17.3% | |||
Net Income | | $ | 622,602 | | $ | 614,254 | | $ | 645,258 | | $ | 626,857 |
Net Income per diluted share | | $ | 20.29 | | $ | 19.33 | | $ | 21.03 | | $ | 19.73 |
EBITDA | | | | | | | | $ | 1,074,595 | | $ | 1,049,160 |
EBITDA Margin | | | | | | | | | 20.2% | | 20.2% | |
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NYSE:BLD | February 25, 2025 | topbuild.com |
Sales Drivers
(comparisons are to the periods ended December 31, 2023)
| | | |||||||
| | Three Months Ended December 31, 2024 | |||||||
|
| Installation |
| Specialty |
| TopBuild, | |||
Sales (in millions) | | $ | 789 | | $ | 602 | | $ | 1,312 |
Sales Drivers | | | | | | | | | |
Volume | | | (4.1%) | | 4.4% | | (1.3%) | ||
Price | | | 1.5% | | 0.0% | | 0.9% | ||
M&A | | | 2.3% | | 2.2% | | 2.4% | ||
Total Sales Change | | | (0.2%) | | 6.6% | | 2.0% | ||
| | | |||||||
| | Year Ended December 31, 2024 | |||||||
|
| Installation |
| Specialty |
| TopBuild, | |||
Sales (in millions) | | $ | 3,295 | | $ | 2,341 | | $ | 5,330 |
Sales Drivers | | | | | | | | | |
Volume | | | (0.6%) | | 1.0% | | (0.7%) | ||
Price | | | 1.3% | | 0.9% | | 1.1% | ||
M&A | | | 3.1% | | 1.3% | | 2.5% | ||
Dispositions | | | (0.5%) | | | | | | (0.3%) |
Total Sales Change | | | 3.3% | | 3.2% | | 2.6% | ||
Segment Profitability
(comparisons are to the periods ended December 31, 2023)
| | | | |||||||||
| | Three Months Ended December 31, 2024 | | Year Ended December 31, 2024 | ||||||||
($ in thousands) |
| Installation |
| Specialty |
| Installation |
| Specialty | ||||
Operating Profit | | $ | 149,445 | | $ | 90,569 | | $ | 649,162 | | $ | 352,431 |
Change | | | (0.4%) | | 8.7% | | 0.7% | | 6.5% | |||
Operating Margin | | | 19.0% | | 15.0% | | 19.7% | | 15.1% | |||
Adj. Operating Profit | | $ | 149,537 | | $ | 91,160 | | $ | 649,618 | | $ | 352,480 |
Change | | | (0.3%) | | 9.4% | | 0.4% | | 6.4% | |||
Adj. Operating Margin | | | 19.0% | | 15.1% | | 19.7% | | 15.1% | |||
Adj. EBITDA | | $ | 169,009 | | $ | 106,674 | | $ | 725,824 | | $ | 414,182 |
Change | | | 0.1% | | 7.9% | | 1.2% | | 5.6% | |||
Adj. EBITDA Margin | | | 21.4% | | 17.7% | | 22.0% | | 17.7% | |||
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NYSE:BLD | February 25, 2025 | topbuild.com |
Capital Allocation
2024 Acquisitions
| | | |||
| Annual Sales | | |||
Company |
| ($ in millions) |
| Month Closed | |
Brabble Insulation (I) | | $ | 5.2 | | February |
Morris Black & Sons (I) | | | 3.8 | | March |
Pest Control Insulation (D) | | | 25.4 | | March |
Green Space Insulation (I) | | | 6.0 | | April |
Insulation Works (I) | | | 28.0 | | May |
Texas Insulation (I) | | | 38.9 | | May |
Shannon Global Energy Solutions (D) | | | 10.8 | | December |
Metro Supply Company (D) | | | 35.0 | | December |
Total | | $ | 153.1 | | |
I = Installation, D = Specialty Distribution | |||||
Share Repurchases
During the fourth quarter, TopBuild repurchased 134,872 shares totaling $47.2 million. For the full year, the Company repurchased 2.5 million shares for a total of $966.4 million.
New Share Repurchase Authorization
TopBuild announced today that its Board of Directors authorized the repurchase of up to $1.0 billion of the Company’s outstanding common stock. The new authorization is in addition to the $188.1 million remaining from the prior authorization (as of December 31, 2024), bringing total availability for share repurchases to $1.2 billion. The authorization reflects the continued confidence of management and the Board in TopBuild’s long-term strategy and demonstrates the Company’s commitment to returning capital to shareholders.
2025 Outlook1
TopBuild provided its full year outlook which assumes ongoing choppiness in the residential new construction market throughout 2025. The Company noted that its 2025 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 |
| | ||||
2025 Assumptions |
| ||||
Residential Sales | Mid-single digit decline | ||||
Commercial/Industrial Sales | Low-single digit growth | ||||
Interest Expense | $49 - $55 million | ||||
Capital Expenditures | 1.5 – 2.0% of sales | ||||
Tax Rate | 25 – 27% | ||||
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NYSE:BLD | February 25, 2025 | 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 2024 financial results is scheduled for today, Tuesday, February 25, 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 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 approximately 250 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 approximately 190 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.
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NYSE:BLD | February 25, 2025 | 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)
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NYSE:BLD | February 25, 2025 | 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, | ||||||||
| | 2024 | | 2023 | | 2024 | | 2023 | ||||
Net sales | | $ | 1,312,206 |
| $ | 1,286,074 |
| $ | 5,329,803 |
| $ | 5,194,694 |
Cost of sales | | | 920,173 | | | 894,958 | | | 3,704,885 | | | 3,590,874 |
Gross profit | | | 392,033 | | | 391,116 | | | 1,624,918 | | | 1,603,820 |
| | | | | | | | | | | | |
Selling, general, and administrative expense | | | 174,583 | | | 186,316 | | | 738,575 | | | 724,995 |
Operating profit | | | 217,450 | | | 204,800 | | | 886,343 | | | 878,825 |
| | | | | | | | | | | | |
Other income (expense), net: | | | | | | | | | | | | |
Interest expense | | | (17,280) | | | (19,187) | | | (73,092) | | | (74,614) |
Other, net | | | 2,551 | | | 8,729 | | | 27,537 | | | 21,272 |
Other expense, net | | | (14,729) | | | (10,458) | | | (45,555) | | | (53,342) |
Income before income taxes | | | 202,721 | | | 194,342 | | | 840,788 | | | 825,483 |
| | | | | | | | | | | | |
Income tax expense | | | (52,181) | | | (47,960) | | | (218,186) | | | (211,229) |
Net income | | $ | 150,540 | | $ | 146,382 | | $ | 622,602 | | $ | 614,254 |
| | | | | | | | | | | | |
Net income per common share: | | | | | | | | | | | | |
Basic | | $ | 5.13 | | $ | 4.63 | | $ | 20.41 | | $ | 19.44 |
Diluted | | $ | 5.11 | | $ | 4.60 | | $ | 20.29 | | $ | 19.33 |
| | | | |
| | | | | | | |
Weighted average shares outstanding: | | | | | | | | | | | | |
Basic | | | 29,319,538 | | | 31,623,506 | | | 30,504,064 | | | 31,597,508 |
Diluted | | | 29,485,271 | | | 31,805,569 | | | 30,679,660 | | | 31,776,901 |
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NYSE:BLD | February 25, 2025 | topbuild.com |
TopBuild Corp.
Consolidated Statements of Comprehensive Income
(in thousands)
| | | | | | | | | | | | |
| | Three Months Ended December 31, | | Year Ended December 31, | ||||||||
| | 2024 | | 2023 | | 2024 | | 2023 | ||||
Net income | | $ | 150,540 | | $ | 146,382 | | $ | 622,602 | | $ | 614,254 |
Other comprehensive (loss) income: | | | | | | | | | | | | |
Foreign currency translation adjustment | | | (11,076) | | | 4,227 | | | (14,541) | | | 7,255 |
Comprehensive income | | $ | 139,464 | | $ | 150,609 | | $ | 608,061 | | $ | 621,509 |
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NYSE:BLD | February 25, 2025 | topbuild.com |
TopBuild Corp.
Consolidated Balance Sheets and Other Financial Data
(dollars in thousands)
| | | | | | |
| | As of December 31, | ||||
| | 2024 | | 2023 | ||
ASSETS | | | | | | |
Current assets: | | | | | | |
Cash and cash equivalents | | $ | 400,318 | | $ | 848,565 |
Receivables, net of an allowance for credit losses of $18,541 at December 31, 2024, and $23,948 at December 31, 2023 | | | 751,612 | |
| 799,009 |
Inventories | | | 406,662 | |
| 364,731 |
Prepaid expenses and other current assets | | | 40,382 | |
| 36,939 |
Total current assets | | | 1,598,974 | |
| 2,049,244 |
| | | | | | |
Right of use assets | | | 189,146 | |
| 204,629 |
Property and equipment, net | | | 266,992 | |
| 264,487 |
Goodwill | | | 2,112,259 | |
| 2,042,568 |
Other intangible assets, net | | | 557,689 | |
| 591,058 |
Other assets | | | 10,366 | |
| 10,865 |
Total assets | | $ | 4,735,426 | | $ | 5,162,851 |
| | | | | | |
LIABILITIES | | | | | | |
Current liabilities: | | | | | | |
Accounts payable | | $ | 456,446 | | $ | 469,585 |
Current portion of long-term debt | | | 48,750 | | | 47,039 |
Accrued liabilities | | | 191,786 | |
| 187,217 |
Short-term operating lease liabilities | | | 68,713 | |
| 65,780 |
Short-term finance lease liabilities | | | 1,487 | | | 1,917 |
Total current liabilities | | | 767,182 | |
| 771,538 |
| | | | | | |
Long-term debt | | | 1,327,159 | |
| 1,373,028 |
Deferred tax liabilities, net | | | 240,343 | |
| 243,930 |
Long-term portion of insurance reserves | | | 57,700 | | | 58,783 |
Long-term operating lease liabilities | | | 129,360 | | | 146,213 |
Long-term finance lease liabilities | | | 2,618 | | | 4,150 |
Other liabilities | | | 1,446 | |
| 1,554 |
Total liabilities | | | 2,525,808 | |
| 2,599,196 |
| | | | | | |
EQUITY | | | 2,209,618 | |
| 2,563,655 |
Total liabilities and equity | | $ | 4,735,426 | | $ | 5,162,851 |
| | | | | | |
| | | | | | | |
| | As of December 31, | | ||||
|
| 2024 | | 2023 | | ||
Other Financial Data | | | | | | | |
Receivables, net plus inventories less accounts payable | | $ | 701,828 | | $ | 694,155 | |
Net sales, acquisition adjusted † | | $ | 5,409,852 | | $ | 5,258,974 | |
Receivables, net plus inventories less accounts payable as a percent of sales (TTM) † | | | 13.0 | % | | 13.2 | % |
† Trailing 12 months sales have been adjusted for the pro forma effect of acquired branches
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NYSE:BLD | February 25, 2025 | topbuild.com |
TopBuild Corp.
Consolidated Statements of Cash Flows
(in thousands)
| | | | | | |
| | Year Ended December 31, | ||||
| | 2024 | | 2023 | ||
Cash Flows Provided by (Used in) Operating Activities: | | | |
| |
|
Net income | | $ | 622,602 | | $ | 614,254 |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | |
Depreciation and amortization | | | 140,491 | | | 132,878 |
Share-based compensation | | | 16,579 | | | 15,838 |
Loss on sale of assets | | | 1,014 | | | 2,349 |
Amortization of debt issuance costs | | | 2,881 | | | 2,881 |
Provision for bad debt expense | | | 15,742 | | | 6,481 |
Provision for inventory obsolescence | | | 7,586 | | | 4,794 |
Deferred income taxes, net | | | (3,462) | | | (7,476) |
Change in certain assets and liabilities, net of effects of businesses acquired: | | | | | | |
Receivables, net | | | 56,017 | | | 20,812 |
Inventories | | | (41,723) | | | 74,529 |
Prepaid expenses and other current assets | | | (3,143) | | | (2,598) |
Accounts payable | | | (30,420) | | | (8,867) |
Accrued liabilities | | | (5,816) | | | (4,444) |
Other, net | | | (2,322) | | | (2,022) |
Net cash provided by operating activities | | | 776,026 | | | 849,409 |
| | | | | | |
Cash Flows Provided by (Used in) Investing Activities: | | | | | | |
Purchases of property and equipment | | | (69,349) | | | (63,998) |
Acquisition of businesses, net of cash acquired | | | (136,767) | | | (149,154) |
Proceeds from sale of assets | | | 2,593 | | | 14,982 |
Net cash used in investing activities | | | (203,523) | | | (198,170) |
| | | | | | |
Cash Flows Provided by (Used in) Financing Activities: | | | | | | |
Repayment of long-term debt | | | (47,039) | | | (40,138) |
Taxes withheld and paid on employees' equity awards | | | (6,107) | | | (6,528) |
Exercise of stock options | | | 3,226 | | | 3,130 |
Repurchase of shares of common stock | | | (966,352) | | | — |
Payment of contingent consideration | | | — | | | (300) |
Net cash used in financing activities | | | (1,016,272) | | | (43,836) |
Impact of exchange rate changes on cash | | | (4,478) | | | 1,093 |
Net (decrease) increase in cash and cash equivalents | | | (448,247) | | | 608,496 |
Cash and cash equivalents - Beginning of period | |
| 848,565 | |
| 240,069 |
Cash and cash equivalents - End of period | | $ | 400,318 | | $ | 848,565 |
| | | | | | |
Supplemental disclosure of cash paid for: | | | | | | |
Interest | | $ | 69,975 | | $ | 71,463 |
Income taxes | | | 219,484 | | | 220,773 |
| | | | | | |
Supplemental disclosure of noncash activities: | | | | | | |
Leased assets obtained in exchange for new operating lease liabilities | | $ | 50,502 | | $ | 56,255 |
Accruals for property and equipment | | | 1,023 | | | 912 |
Excise taxes capitalized to treasury stock | | | 9,444 | | | — |
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NYSE:BLD | February 25, 2025 | topbuild.com |
TopBuild Corp.
Segment Data (Unaudited)
(dollars in thousands)
| | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended December 31, | | | | | | | Year Ended December 31, | | | | | ||||||||
| | 2024 | | 2023 | | Change | | | | 2024 | | 2023 | | Change | | ||||||
Installation | | | | | | | | | | | | | | | | | | | | | |
Sales | | $ | 788,554 | | $ | 790,414 | | | (0.2) | % | | | $ | 3,294,630 | | $ | 3,188,232 | | | 3.3 | % |
| | | | | | | | | | | | | | | | | | | | | |
Operating profit, as reported | | $ | 149,445 | | $ | 149,999 | | | | | | | $ | 649,162 | | $ | 644,392 | | | | |
Operating margin, as reported | | | 19.0 | % | | 19.0 | % | | | | | | | 19.7 | % | | 20.2 | % | | | |
| | | | | | | | | | | | | | | | | | | | | |
Rationalization charges | | | − | | | 41 | | | | | | | | − | | | 1,923 | | | | |
Acquisition related costs | | | 92 | | | 11 | | | | | | | | 456 | | | 527 | | | | |
Operating profit, as adjusted | | $ | 149,537 | | $ | 150,051 | | | | | | | $ | 649,618 | | $ | 646,842 | | | | |
Operating margin, as adjusted | | | 19.0 | % | | 19.0 | % | | | | | | | 19.7 | % | | 20.3 | % | | | |
| | | | | | | | | | | | | | | | | | | | | |
Share-based compensation | | | 258 | | | 372 | | | | | | | | 976 | | | 1,496 | | | | |
Depreciation and amortization | | | 19,214 | | | 18,422 | | | | | | | | 75,230 | | | 69,123 | | | | |
EBITDA, as adjusted | | $ | 169,009 | | $ | 168,845 | | | 0.1 | % | | | $ | 725,824 | | $ | 717,461 | | | 1.2 | % |
EBITDA margin, as adjusted | | | 21.4 | % | | 21.4 | % | | | | | | | 22.0 | % | | 22.5 | % | | | |
| | | | | | | | | | | | | | | | | | | | | |
Specialty Distribution | | | | | | | | | | | | | | | | | | | | | |
Sales | | $ | 601,830 | | $ | 564,468 | | | 6.6 | % | | | $ | 2,340,837 | | $ | 2,268,339 | | | 3.2 | % |
| | | | | | | | | | | | | | | | | | | | | |
Operating profit, as reported | | $ | 90,569 | | $ | 83,355 | | | | | | | $ | 352,431 | | $ | 330,938 | | | | |
Operating margin, as reported | | | 15.0 | % | | 14.8 | % | | | | | | | 15.1 | % | | 14.6 | % | | | |
| | | | | | | | | | | | | | | | | | | | | |
Rationalization charges | | | 80 | | | − | | | | | | | | (476) | | | − | | | | |
Acquisition related costs | | | 511 | | | − | | | | | | | | 525 | | | 350 | | | | |
Operating profit, as adjusted | | $ | 91,160 | | $ | 83,355 | | | | | | | $ | 352,480 | | $ | 331,288 | | | | |
Operating margin, as adjusted | | | 15.1 | % | | 14.8 | % | | | | | | | 15.1 | % | | 14.6 | % | | | |
| | | | | | | | | | | | | | | | | | | | | |
Share-based compensation | | | 358 | | | 298 | | | | | | | | 1,545 | | | 1,286 | | | | |
Depreciation and amortization | | | 15,156 | | | 15,193 | | | | | | | | 60,157 | | | 59,607 | | | | |
EBITDA, as adjusted | | $ | 106,674 | | $ | 98,846 | | | 7.9 | % | | | $ | 414,182 | | $ | 392,181 | | | 5.6 | % |
EBITDA margin, as adjusted | | | 17.7 | % | | 17.5 | % | | | | | | | 17.7 | % | | 17.3 | % | | | |
| | |
NYSE:BLD | February 25, 2025 | topbuild.com |
TopBuild Corp.
Adjusted EBITDA (Unaudited)
(dollars in thousands)
| | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended December 31, | | | | | | | Year Ended December 31, | | | | | ||||||||
| | 2024 | | 2023 | | Change | | | 2024 | | 2023 | | Change | ||||||||
Total net sales | | | | | | | | | | | | | | | | | | | | | |
Sales before eliminations | | $ | 1,390,384 | | $ | 1,354,882 | | | | | | | $ | 5,635,467 | | $ | 5,456,571 | | | | |
Intercompany eliminations | | | (78,178) | | | (68,808) | | | | | | | | (305,664) | | | (261,877) | | | | |
Net sales after eliminations | | $ | 1,312,206 | | $ | 1,286,074 | | | 2.0 | % | | | $ | 5,329,803 | | $ | 5,194,694 | | | 2.6 | % |
| | | | | | | | | | | | | | | | | | | | | |
Operating profit, as reported - segments | | $ | 240,014 | | $ | 233,354 | | | | | | | $ | 1,001,593 | | $ | 975,330 | | | | |
General corporate expense, net | | | (9,807) | | | (16,787) | | | | | | | | (65,416) | | | (52,067) | | | | |
Intercompany eliminations | | | (12,757) | | | (11,767) | | | | | | | | (49,834) | | | (44,438) | | | | |
Operating profit, as reported | | $ | 217,450 | | $ | 204,800 | | | | | | | $ | 886,343 | | $ | 878,825 | | | | |
Operating margin, as reported | | | 16.6 | % | | 15.9 | % | | | | | | | 16.6 | % | | 16.9 | % | | | |
| | | | | | | | | | | | | | | | | | | | | |
Rationalization charges | | | 80 | | | 41 | | | | | | | | 73 | | | 1,923 | | | | |
Acquisition related costs † | | | 1,607 | | | 7,381 | | | | | | | | 8,109 | | | 19,698 | | | | |
Acquisition termination fee | | | - | | | - | | | | | | | | 23,000 | | | - | | | | |
Operating profit, as adjusted | | $ | 219,137 | | $ | 212,222 | | | | | | | $ | 917,525 | | $ | 900,446 | | | | |
Operating margin, as adjusted | | | 16.7 | % | | 16.5 | % | | | | | | | 17.2 | % | | 17.3 | % | | | |
| | | | | | | | | | | | | | | | | | | | | |
Share-based compensation | | | 3,174 | | | 4,757 | | | | | | | | 16,579 | | | 15,836 | | | | |
Depreciation and amortization | | | 35,714 | | | 34,662 | | | | | | | | 140,491 | | | 132,878 | | | | |
EBITDA, as adjusted | | $ | 258,025 | | $ | 251,641 | | | 2.5 | % | | | $ | 1,074,595 | | $ | 1,049,160 | | | 2.4 | % |
EBITDA margin, as adjusted | | | 19.7 | % | | 19.6 | % | | | | | | | 20.2 | % | | 20.2 | % | | | |
| | | | | | | | | | | | | | | | | | | | | |
Sales change period over period | | | 26,132 | | | | | | | | | | | 135,109 | | | | | | | |
EBITDA, as adjusted, change period over period | | | 6,384 | | | | | | | | | | | 25,435 | | | | | | | |
Incremental EBITDA, as adjusted, as a percentage of change in sales | | | 24.4 | % | | | | | | | | | | 18.8 | % | | | | | | |
† Acquisition related costs include corporate level adjustments as well as segment operating adjustments.
| | |
NYSE:BLD | February 25, 2025 | topbuild.com |
Same Branch and Acquisition Metrics (Unaudited)
(dollars in thousands)
| | | | | | | | | | | | | |
| | Three Months Ended December 31, | | Year Ended December 31, | | ||||||||
| | 2024 | | 2023 | | 2024 | | 2023 | | ||||
Net sales | | | | | | | | | | | | | |
Same branch: | | | | | | | | | | | | | |
Installation | | $ | 769,980 | | $ | 790,414 | | $ | 3,194,945 | | $ | 3,172,854 | |
Specialty Distribution | | | 589,392 | | | 564,468 | | | 2,310,659 | | | 2,268,339 | |
Eliminations | | | (78,178) | | | (68,808) | | | (305,664) | | | (261,877) | |
Total same branch | | $ | 1,281,194 | | $ | 1,286,074 | | $ | 5,199,940 | | $ | 5,179,316 | |
| | | | | | | | | | | | | |
Acquisitions (a): | | | | | | | | | | | | | |
Installation | | $ | 18,574 | | $ | - | | $ | 99,685 | | $ | - | |
Specialty Distribution | | | 12,438 | | | - | | | 30,178 | | | - | |
Total acquisitions | | $ | 31,012 | | $ | - | | $ | 129,863 | | $ | - | |
| | | | | | | | | | | | | |
Dispositions (b): | | | | | | | | | | | | | |
Installation | | $ | - | | $ | - | | $ | - | | $ | 15,378 | |
Total dispositions | | $ | - | | $ | - | | $ | - | | $ | 15,378 | |
Total net sales | | $ | 1,312,206 | | $ | 1,286,074 | | $ | 5,329,803 | | $ | 5,194,694 | |
| | | | | | | | | | | | | |
EBITDA, as adjusted | | | | | | | | | | | | | |
Same branch | | $ | 253,145 | | $ | 251,641 | | $ | 1,054,680 | | $ | 1,046,120 | |
Acquisitions (a) | | | 4,880 | | | - | | | 19,915 | | | - | |
Dispositions (b) | | | - | | | - | | | - | | | 3,040 | |
Total | | $ | 258,025 | | $ | 251,641 | | $ | 1,074,595 | | $ | 1,049,160 | |
| | | | | | | | | | | | | |
EBITDA, as adjusted, as a percentage of sales | | | | | | | | | | | | | |
Same branch (c) | | | 19.8 | % | | | | | 20.3 | % | | | |
Acquisitions (d) | | | 15.7 | % | | | | | 15.3 | % | | | |
Total (e) | | | 19.7 | % | | 19.6 | % | | 20.2 | % | | 20.2 | % |
| | | | | | | | | | | | | |
As Adjusted Incremental EBITDA, as a percentage of change in sales | | | | | | | | | | | | | |
Same branch (f) | | | NM | | | | | | 41.5 | % | | | |
Acquisitions (d) | | | 15.7 | % | | | | | 15.3 | % | | | |
Total (g) | | | 24.4 | % | | | | | 18.8 | % | | | |
(a) Represents current year impact of acquisitions in their first twelve months
(b) Represents operating results in prior period previously classified as same branch
(c) Same branch metric, as adjusted, as a percentage of same branch sales
(d) Acquired metric, as adjusted, as a percentage of acquired sales
(e) Total EBITDA, as adjusted, as a percentage of total sales
(f) Change in same branch EBITDA, as adjusted, as a percentage of change in same branch sales
(g) Change in total EBITDA, as adjusted, as a percentage of change in total sales
NM Not Meaningful
| | |
NYSE:BLD | February 25, 2025 | 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, | | ||||||||
| | 2024 | | 2023 | | 2024 | | 2023 | | ||||
Gross Profit Reconciliation | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Net sales | | $ | 1,312,206 | | $ | 1,286,074 | | $ | 5,329,803 | | $ | 5,194,694 | |
| | | | | | | | | | | | | |
Gross profit, as reported | | $ | 392,033 | | $ | 391,116 | | $ | 1,624,918 | | $ | 1,603,820 | |
| | | | | | | | | | | | | |
Acquisition related costs | | | - | | | - | | | - | | | - | |
Gross profit, as adjusted | | $ | 392,033 | | $ | 391,116 | | $ | 1,624,918 | | $ | 1,603,820 | |
| | | | | | | | | | | | | |
Gross margin, as reported | | | 29.9 | % | | 30.4 | % | | 30.5 | % | | 30.9 | % |
Gross margin, as adjusted | | | 29.9 | % | | 30.4 | % | | 30.5 | % | | 30.9 | % |
| | | | | | | | | | | | | |
Selling, General and Administrative Expense Reconciliation | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Selling, general, and administrative expense, as reported | | $ | 174,583 | | $ | 186,316 | | $ | 738,575 | | $ | 724,995 | |
| | | | | | | | | | | | | |
Rationalization charges | | | 80 | | | 41 | | | 73 | | | 1,923 | |
Acquisition related costs | | | 1,607 | | | 7,381 | | | 8,109 | | | 19,698 | |
Acquisition termination fee | | | - | | | - | | | 23,000 | | | - | |
Selling, general, and administrative expense, as adjusted | | $ | 172,896 | | $ | 178,894 | | $ | 707,393 | | $ | 703,374 | |
| | | | | | | | | | | | | |
Operating Profit Reconciliation | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Operating profit, as reported | | $ | 217,450 | | $ | 204,800 | | $ | 886,343 | | $ | 878,825 | |
| | | | | | | | | | | | | |
Rationalization charges | | | 80 | | | 41 | | | 73 | | | 1,923 | |
Acquisition related costs | | | 1,607 | | | 7,381 | | | 8,109 | | | 19,698 | |
Acquisition termination fee | | | - | | | - | | | 23,000 | | | - | |
Operating profit, as adjusted | | $ | 219,137 | | $ | 212,222 | | $ | 917,525 | | $ | 900,446 | |
| | | | | | | | | | | | | |
Operating margin, as reported | | | 16.6 | % | | 15.9 | % | | 16.6 | % | | 16.9 | % |
Operating margin, as adjusted | | | 16.7 | % | | 16.5 | % | | 17.2 | % | | 17.3 | % |
| | | | | | | | | | | | | |
Income Per Common Share Reconciliation | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Income before income taxes, as reported | | $ | 202,721 | | $ | 194,342 | | $ | 840,788 | | $ | 825,483 | |
| | | | | | | | | | | | | |
Rationalization charges | | | 80 | | | 41 | | | 73 | | | 1,923 | |
Acquisition related costs | | | 1,607 | | | 7,381 | | | 8,109 | | | 19,698 | |
Acquisition termination fee | | | - | | | - | | | 23,000 | | | - | |
Income before income taxes, as adjusted | | | 204,408 | | | 201,764 | | | 871,970 | | | 847,104 | |
| | | | | | | | | | | | | |
Tax rate at 26.0% | | | (53,146) | | | (52,459) | | | (226,712) | | | (220,247) | |
Income, as adjusted | | $ | 151,262 | | $ | 149,305 | | $ | 645,258 | | $ | 626,857 | |
| | | | | | | | | | | | | |
Income per common share, as adjusted | | $ | 5.13 | | $ | 4.69 | | $ | 21.03 | | $ | 19.73 | |
| | | | | | | | | | | | | |
Weighted average diluted common shares outstanding | | | 29,485,271 | | | 31,805,569 | | | 30,679,660 | | | 31,776,901 | |
| | |
NYSE:BLD | February 25, 2025 | topbuild.com |
TopBuild Corp.
Reconciliation of Adjusted EBITDA to Net Income (Unaudited)
(in thousands)
| | | | | | | | | | | | |
| | Three Months Ended December 31, | | | Year Ended December 31, | |||||||
| | 2024 | | 2023 | | | 2024 | | 2023 | |||
Net income, as reported | | $ | 150,540 | | $ | 146,382 | | $ | 622,602 | | $ | 614,254 |
Adjustments to arrive at EBITDA, as adjusted: | | | | | | | | | | | | |
Interest expense and other, net | | | 14,729 | | | 10,458 | | | 45,555 | | | 53,342 |
Income tax expense | | | 52,181 | | | 47,960 | | | 218,186 | | | 211,229 |
Depreciation and amortization | | | 35,714 | | | 34,662 | | | 140,491 | | | 132,878 |
Share-based compensation | | | 3,174 | | | 4,757 | | | 16,579 | | | 15,836 |
Rationalization charges | | | 80 | | | 41 | | | 73 | | | 1,923 |
Acquisition related costs | | | 1,607 | | | 7,381 | | | 8,109 | | | 19,698 |
Acquisition termination fee | | | - | | | - | | | 23,000 | | | - |
EBITDA, as adjusted | | $ | 258,025 | | $ | 251,641 | | $ | 1,074,595 | | $ | 1,049,160 |
| | | | | | | | | | | | |
Proforma acquisition EBITDA (a) | | | | | | | | | 11,395 | | | |
Proforma TTM EBITDA, as adjusted | | | | | | | | $ | 1,085,990 | | | |
| | | | | | | | | | | | |
(a) Represents the trailing twelve months proforma impact of acquisitions completed in 2024. | | | | | | | | | | | | |
| | |
NYSE:BLD | February 25, 2025 | topbuild.com |
TopBuild Corp.
Acquisition Adjusted Net Sales (Unaudited)
(in thousands)
| | | | | | | | | | | | | | |
| 2024 | | Year Ended | |||||||||||
| Q1 | | Q2 | | Q3 | | Q4 |
| December 31, 2024 | |||||
Net sales | $ | 1,278,717 | | $ | 1,365,612 | | $ | 1,373,268 | | $ | 1,312,206 | | $ | 5,329,803 |
Acquisitions proforma adjustment † | | 35,308 | | | 22,616 | | | 13,363 | | | 8,762 | | | 80,049 |
Net sales, acquisition adjusted | $ | 1,314,025 | | $ | 1,388,228 | | $ | 1,386,631 | | $ | 1,320,968 | | $ | 5,409,852 |
† Trailing 12 months sales have been adjusted for the pro forma effect of acquired branches
| | |
NYSE:BLD | February 25, 2025 | topbuild.com |
TopBuild Corp.
2025 Estimated Adjusted EBITDA Range (Unaudited)
(in millions)
| | | | | |
| Twelve Months Ending December 31, 2025 | ||||
| | Low | | | High |
Estimated net income, as reported | $ | 519.0 | | $ | 640.0 |
Adjustments to arrive at estimated EBITDA, as adjusted: | | | | | |
Interest expense and other, net | | 55.0 | | | 49.0 |
Income tax expense | | 182.0 | | | 225.0 |
Depreciation and amortization | | 148.0 | | | 143.0 |
Share-based compensation | | 20.0 | | | 17.0 |
Acquisition related costs & rationalization charges | | 1.0 | | | 1.0 |
Estimated EBITDA, as adjusted | $ | 925.0 | | $ | 1,075.0 |
| | |
NYSE:BLD | February 25, 2025 | topbuild.com |