TopBuild Corp. (NYSE:BLD) is one of the stocks Jim Cramer recently offered insights on. During the lightning round, a caller asked about the stock, and Cramer replied: “Yeah, okay. Building stock, I can’t, I think the stock is well ahead of where it should be. Even though I like the company, the rest of the cohort is down. I would do some trimming of that stock.” TopBuild Corp. (NYSE:BLD) supplies and installs insulation and building materials, including glass, roofing, gutters, and shelving, for resid ...

Core Insights - TopBuild Corp. has enhanced its growth trajectory through the $1 billion acquisition of Specialty Products and Insulation (SPI) [1][8] - The acquisition is expected to significantly strengthen TopBuild's non-cyclical revenue base and expand its presence in key commercial and industrial markets [2][4] Financial Impact - SPI generated approximately $700 million in revenues and $75 million in EBITDA for the 12 months ending June 30, 2025, with the acquisition reflecting a valuation of 12.4x EBITDA, which could drop to 8.3x when considering expected synergies of $35-$40 million within two years [3][8] - The deal is immediately accretive to TopBuild's earnings per share, indicating strong financial benefits from the acquisition [3] Strategic Positioning - The acquisition enhances TopBuild's presence in commercial and industrial markets, which account for nearly 87% of SPI's sales, and approximately 55% of SPI's revenues are derived from recurring maintenance and repair, providing a stable revenue stream [4][8] - This move deepens TopBuild's insulation fabrication capabilities, allowing the company to serve a fragmented market more effectively and unlock operational efficiencies [4] Growth Strategy - Acquisitions are a crucial part of TopBuild's growth strategy, with 45 acquisitions completed since the company's spin-off in 2015, including the recent acquisition of Progressive Roofing, which added around $438 million in annual revenues [5][6] - The company is well-positioned for sustained margin expansion and growth, supported by a solid balance sheet and a robust acquisition pipeline [6] Market Performance - TopBuild's stock has increased by 40.1% year-to-date, outperforming the Zacks Building Products - Miscellaneous industry's growth of 2.6% [7] - The company's Specialty Distribution segment continues to drive cost efficiencies and margin expansion, although macroeconomic headwinds and a weak residential market pose challenges [7]

Company Overview - TopBuild shares increased by 10.1% to $436.17, following a significant trading volume, contrasting with a 5.8% decline over the past four weeks [1] - The company successfully acquired Specialty Products and Insulation (SPI) for $1 billion in cash, enhancing its distribution and fabrication capabilities in mechanical insulation across North America [2] Financial Performance - TopBuild is projected to report quarterly earnings of $5.23 per share, reflecting a year-over-year decrease of 7.9%, with expected revenues of $1.37 billion, down 0.1% from the previous year [3] - The consensus EPS estimate for TopBuild has been revised 0.6% lower in the last 30 days, indicating a negative trend in earnings estimate revisions, which typically does not lead to price appreciation [4] Industry Context - TopBuild operates within the Zacks Building Products - Miscellaneous industry, where another company, Hillman Solutions Corp., closed 1.5% higher at $9.41, with a -3.8% return over the past month [4] - Hillman Solutions Corp. has an unchanged consensus EPS estimate of $0.18 for the upcoming report, representing a 12.5% increase from the previous year [5]

Core Insights - TopBuild (BLD) has consistently beaten earnings estimates, particularly in the last two quarters, with an average surprise of 4.62% [1][2] - The company reported earnings of $5.31 per share against an estimate of $5.07, marking a surprise of 4.73% for the last quarter [2] - The positive Earnings ESP of +0.55% indicates bullish sentiment among analysts regarding TopBuild's near-term earnings potential [8] Earnings Performance - In the previous quarter, TopBuild's earnings were $4.63 per share, surpassing the expected $4.43, resulting in a surprise of 4.51% [2] - The favorable earnings surprises have led to a positive shift in earnings estimates for TopBuild [5] Earnings ESP and Zacks Rank - The Zacks Earnings ESP for TopBuild is currently positive, which is a strong indicator of potential earnings beats, especially when paired with a Zacks Rank of 3 (Hold) [5][8] - Stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [6] Upcoming Earnings Report - TopBuild's next earnings report is anticipated to be released on November 4, 2025 [8]

PresentationI would now like to turn the conference over to your host, P.I. Aquino, Vice President, Investor Relations for TopBuild. Thank you. You may begin.Greetings, and welcome to the TopBuild acquisition of Specialty Products and Insulation SPI in an all-cash transaction valued at $1 billion conference call. [Operator Instructions] As a reminder, this conference is being recorded.P.I. AquinoVice President of Investor Relations Good morning, everyone, and thanks for joining us on such short notice. With ...

Summary of TopBuild's Acquisition of Specialty Products and Insulation (SPI) Company and Industry - **Company**: TopBuild (NYSE: BLD) - **Acquisition Target**: Specialty Products and Insulation (SPI) - **Industry**: Mechanical insulation solutions for commercial, industrial, and residential markets Core Points and Arguments - **Acquisition Details**: TopBuild has completed the acquisition of SPI in an all-cash transaction valued at **$1 billion** [1][2][4] - **SPI Overview**: SPI is a leading specialty distributor and fabricator of mechanical insulation solutions, operating **90 branches** and employing approximately **1,000 employees** across North America [4][5] - **Strategic Rationale**: The acquisition is aimed at expanding TopBuild's mechanical insulation business and enhancing its installation solutions across various sectors, including data centers, energy, and industrial manufacturing [5][6] - **Geographic Expansion**: The acquisition allows TopBuild to enter key markets, such as Florida, where it previously had no mechanical insulation distribution presence [7] - **Revenue Resilience**: More than **50%** of SPI's sales are driven by maintenance, repair, and replacement activities, improving TopBuild's revenue resiliency [8][12] - **Synergy Expectations**: TopBuild anticipates achieving **$35 to $40 million** in annual run-rate synergies within two years, which would reduce the acquisition multiple to **8.3 times EBITDA** post-synergies [10][11] - **Financial Performance**: SPI generated approximately **$700 million** in revenue and **$75 million** in EBITDA for the trailing twelve months ended June 30, 2025, representing a margin of **10.7%** [10] - **Pro Forma Revenue**: Following the acquisition, TopBuild's total pro forma revenue is projected to be **$6.4 billion**, with specialty distribution (including SPI) accounting for **43%** of annual revenue [11] Other Important Information - **M&A Expertise**: TopBuild has completed **45 acquisitions** in the last 10 years, showcasing its strong track record in integrating companies and realizing synergies [9] - **Non-GAAP Measures**: The conference call included discussions of non-GAAP financial measures, which are reconciled to GAAP measures in the company's press release [2][3] - **Leadership and Culture**: Both TopBuild and SPI share similar corporate values, emphasizing people, safety, integrity, and execution, which is expected to facilitate a smooth integration [5]

Acquisition Highlights - TopBuild acquired Specialty Products & Insulation (SPI) for $1 billion in an all-cash transaction[1,7] - The acquisition is expected to generate $35 million to $40 million in annual run-rate cost synergies within two years[7,21] - The transaction closed on October 7, 2025[20] SPI Snapshot - SPI's sales mix consists of 85% building insulation and 15% mechanical insulation[4] - SPI's end market is comprised of 87% residential and 13% commercial & industrial[4] - SPI's demand drivers are 45% maintenance and repair and 55% new construction[4] - SPI's revenue was approximately $700 million as of June 30, 2025, with an EBITDA of $75 million and an EBITDA margin of 10.7%[20] Financial Impact - The acquisition is immediately accretive to EPS[20] - Inclusive of tax asset, represents 12.4x EBITDA or 8.3x EBITDA post-synergies[20] - TopBuild's pro forma net debt to adjusted EBITDA is approximately 2.4x as of June 30, 2025[20] - TopBuild pro forma revenue is $6.4 billion[24] - Approximately 22% of TopBuild's total revenue is non-cyclical[25]

TopBuild Corp. (NYSE:BLD) on Wednesday announced that it has finalized its purchase of Specialty Products and Insulation, better known as SPI, for approximately $1 billion in cash.The deal, completed on October 7, bolsters TopBuild's standing as a dominant player in mechanical insulation and specialty distribution across North America.The company funded the acquisition with existing liquidity and proceeds from its September senior notes offering.Also Read: Intel To Reportedly Unveil Details Of Upcoming Lapt ...

TopBuild Corp said on Wednesday it has acquired Specialty Products and Insulation (SPI) for $1 billion in cash, about a year after the two building material makers had terminated their initial agreeme... ...

Reinforces TopBuild’s Leadership Position in Specialty Distribution, Extends Geographic Footprint and Expands Mechanical Insulation Fabrication Capabilities Further Grows TopBuild’s Presence in Commercial and Industrial End Markets and Strengthens Non-Cyclical Revenue Stream Expects $35 to $40M in Annual Run-Rate Cost Synergies DAYTONA BEACH, Fla., Oct. 08, 2025 (GLOBE NEWSWIRE) -- TopBuild Corp. (NYSE:BLD), a leading installer of insulation and commercial roofing and a specialty distributor of insulation a ...