Financial Performance - First quarter sales decreased by 3.6% to $1.23 billion compared to $1.28 billion in the same quarter of 2024[1][6] - Net income for the first quarter was $123.4 million, a decrease from $152.4 million year-over-year[6][20] - Operating profit for the first quarter was $177.5 million, down from $214.5 million in the same quarter of 2024[6][20] - Total net sales for the three months ended March 31, 2025, were $1,233,278, a decrease of 3.6% compared to $1,278,717 in the same period of 2024[25] - Net income for the first quarter of 2025 was $123,385, down from $152,381 in the first quarter of 2024[23] - Adjusted EBITDA for the three months ended March 31, 2025, was $234,759, a decrease of 7.5% from $253,818 in the same period of 2024[25] - Gross profit for Q1 2025 was $351,473, down from $387,150 in Q1 2024, resulting in a gross margin of 28.5% compared to 30.3% in the previous year[30] - Adjusted EBITDA for Q1 2025 was $234,759, a decline from $253,818 in Q1 2024[31] - The company reported a net income of $123,385 for Q1 2025, down from $152,381 in Q1 2024[31] Sales Performance by Segment - Installation sales declined by 6.7%, while Specialty Distribution sales grew by 2.6%[2][7] - Installation segment sales decreased by 6.7% to $745,533 in Q1 2025 from $798,743 in Q1 2024[24] - Specialty Distribution segment sales increased by 2.6% to $559,804 in Q1 2025 compared to $545,794 in Q1 2024[24] Margins and Expenses - Adjusted gross margin was reported at 29.6%, down from 30.3% in the previous year[6][20] - Adjusted EBITDA margin for the first quarter was 19.0%[2][6] - Operating profit for Q1 2025 was $177,489, compared to $214,508 in Q1 2024, reflecting an operating margin of 14.4% versus 16.8%[30] - Selling, general, and administrative expenses, as adjusted, were $170,829 in Q1 2025, slightly lower than $172,716 in Q1 2024[30] Shareholder Actions - The company repurchased 693,881 shares totaling $215.6 million during the first quarter[4][10] Future Outlook - TopBuild confirmed its full-year sales outlook between $5.05 billion and $5.35 billion[11][12] - The estimated adjusted EBITDA range for the twelve months ending December 31, 2025, is projected between $925.0 million and $1,075.0 million[33] Acquisitions - The company announced the acquisition of Seal-Rite Insulation, expected to generate approximately $15 million in annual revenue[9] Balance Sheet Highlights - Total current assets decreased to $1,494,317 as of March 31, 2025, from $1,598,974 as of December 31, 2024[22] - Total liabilities decreased to $2,480,272 as of March 31, 2025, from $2,525,808 as of December 31, 2024[22] - Cash and cash equivalents at the end of Q1 2025 were $308,811, down from $400,318 at the beginning of the period[23] Other Financial Metrics - The company reported a decremental EBITDA, as adjusted, of 41.9% as a percentage of change in sales for the period[25] - Income per common share, as adjusted, was $4.63 for Q1 2025, down from $4.81 in Q1 2024[30] - The company incurred rationalization charges of $15,358 in Q1 2025, compared to a credit of $750 in Q1 2024[31]

Core Insights - TopBuild Corp. reported a 3.6% decline in first quarter sales, totaling $1.23 billion, with installation sales down 6.7% but partially offset by a 2.6% growth in Specialty Distribution [1][2][5] - The company achieved an adjusted gross margin of 29.6% and an adjusted EBITDA margin of 19.0% for the quarter [1][5][29] - The CEO expressed confidence in the company's ability to adapt to economic uncertainties and highlighted strong underlying demand for housing in the U.S. [3][4] Financial Performance - Total sales for the first quarter of 2025 were $1,233,278, compared to $1,278,717 in the same quarter of 2024, reflecting a decrease of 3.6% [5][19] - Gross profit decreased to $351,473 from $387,150 year-over-year, with a gross margin of 28.5% compared to 30.3% in the previous year [5][32] - Net income for the quarter was $123,385, down from $152,381 in the prior year, resulting in a diluted net income per share of $4.23 [5][19][34] Segment Analysis - The Installation segment reported sales of $746 million, down 6.7%, while the Specialty Distribution segment saw sales of $560 million, up 2.6% [6][26] - Operating profit for the Installation segment was $129,616 with an operating margin of 17.4%, while the Specialty Distribution segment had an operating profit of $69,059 and an operating margin of 12.3% [8][26] Capital Allocation and Shareholder Returns - TopBuild prioritized acquisitions for its free cash flow, completing the acquisition of Seal-Rite Insulation, which generates approximately $15 million in annual revenue [4][9] - The company returned $215.6 million to shareholders through share repurchases during the first quarter, with a total availability for repurchases of $972.4 million at the end of the quarter [10][4] 2025 Outlook - The company confirmed its full-year sales outlook, projecting sales between $5.05 billion and $5.35 billion and adjusted EBITDA between $925 million and $1.075 billion [11][12] - The outlook is based on current market conditions and does not include potential impacts from future acquisitions or divestitures [12]

Since the start of 2025, the United States construction sector has been navigating through choppy waters, hit by several unfavorable market factors, including a still-high mortgage rate scenario and an unhinged interest rate environment. With the 30-year mortgage rate lingering between 6.9% and 6.7% (during the January-March 2025 period), reaching as high as 7.04% for the week ending on Jan. 16, 2025, the residential construction market is likely to have remained soft, mainly for the multi-family starts. Ho ...

Core Viewpoint - The market anticipates a year-over-year decline in TopBuild's earnings due to lower revenues, with a focus on how actual results will compare to estimates [1][3]. Earnings Expectations - TopBuild is expected to report quarterly earnings of $4.43 per share, reflecting a year-over-year decrease of 7.9% [3]. - Revenue projections stand at $1.24 billion, which is a 3% decline from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 2.96% over the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][10]. - The current Earnings ESP for TopBuild is -1.03%, suggesting that the Most Accurate Estimate is lower than the Zacks Consensus Estimate [11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, particularly when combined with a favorable Zacks Rank [8]. - However, TopBuild currently holds a Zacks Rank of 4, which complicates the prediction of an earnings beat [11]. Historical Performance - In the last reported quarter, TopBuild exceeded the expected earnings of $5.08 per share by delivering $5.13, resulting in a surprise of +0.98% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [13]. Conclusion - TopBuild does not appear to be a strong candidate for an earnings beat based on current estimates and rankings, but other factors should also be considered when evaluating the stock ahead of its earnings release [16].

Core Viewpoint - TopBuild Corp. has been certified by Great Place to Work® for the third consecutive year, highlighting its commitment to workplace culture and employee experience [1][2]. Company Overview - TopBuild Corp. is a leading installer and specialty distributor of insulation and building material products in the construction industry across the United States and Canada [4]. - The company operates more than 250 branches for insulation installation services and over 150 branches for its Specialty Distribution business [4]. Employee Commitment - The company emphasizes its dedication to employee development, career opportunities, fair treatment, and values such as safety, integrity, focus, innovation, unity, community, and empowerment [2]. - The Great Place to Work® Certification is recognized globally as a standard for identifying and recognizing great workplace cultures [3].

Conference Call and Webcast at 9:00 A.M. ETDAYTONA BEACH, Fla., April 08, 2025 (GLOBE NEWSWIRE) -- TopBuild Corp. (NYSE:BLD), a leading installer and specialty distributor of insulation and building material products to the construction industry in the United States and Canada, will release its first quarter 2025 results prior to 7:00 a.m. on Tuesday, May 6. The Company will host a conference call at 9:00 a.m. Eastern time that same day to review its financial results. To participate in the live call, dial ...

A month has gone by since the last earnings report for TopBuild (BLD) . Shares have added about 2.3% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is TopBuild due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.How Have Estimates Been Moving Since Then?It turns out, fre ...

Core Viewpoint - TopBuild Corp. is enhancing its insulation business through the acquisition of Seal-Rite Insulation, which is expected to strengthen its regional presence and service capabilities in Nebraska [1][3]. Company Strategy - The acquisition of Seal-Rite, generating approximately $15 million in annual revenue, aligns with TopBuild's growth strategy and is part of its targeted expansion through bolt-on acquisitions [1][5]. - TopBuild's president and CEO, Robert Buck, expressed excitement about the acquisition, emphasizing the strategic fit and potential for increased profitability and service expansion [3]. Financial Performance - In 2024, TopBuild completed eight acquisitions totaling $153.1 million in annual sales and returned $966.4 million to shareholders through share repurchases, indicating confidence in its capital deployment strategy [7]. - Despite a 9.5% decline in share price over the past six months, TopBuild remains optimistic due to growing demand for energy efficiency and a housing supply shortage [10][12]. Market Outlook - Earnings estimates for 2025 have slightly decreased to $22.02 per share, reflecting a 4.7% growth from 2024 [11]. - The company is positioned to benefit from ongoing residential and commercial construction activity in the Midwest, where demand for insulation services is robust [5].

Company Overview - TopBuild Corp. is a leading installer and specialty distributor of insulation and related building material products in the United States and Canada [3] - The company operates approximately 250 branches for insulation installation services and around 190 branches for specialty distribution across the two countries [3] Acquisition Announcement - TopBuild has entered into an agreement to acquire Seal-Rite Insulation, which is based in Omaha, Nebraska [1] - Seal-Rite generates approximately $15 million in annual revenue and has been in operation for over 25 years, focusing on fiberglass and spray foam installation for residential and commercial markets [1][4] - The transaction is expected to close in the second quarter of 2025 [1] Strategic Intent - The acquisition aims to strengthen TopBuild's installation presence in Nebraska, leveraging Seal-Rite's proven track record and strong reputation in the area [2] - Both companies express enthusiasm about the merger, with a focus on driving growth and profitability while providing superior customer experiences [2]

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