TopBuild Corp. (BLD) reported impressive results for the fourth quarter of 2024, wherein its adjusted earnings and net sales topped the Zacks Consensus Estimate and grew year over year.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The company’s exceptional quarterly results reflect robust contributions from the Specialty Distribution segment, driven by solid performance from commercial & industrial. The sales volume growth of spray foam supported the uptrend. Although soft contribut ...

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 ...

Part I [Business Overview](index=6&type=section&id=Item%201.%20Business) TopBuild Corp. is a leading installer and specialty distributor of insulation and building materials in the U.S. and Canada, operating through Installation and Specialty Distribution segments, driven by construction and strategic acquisitions Segment Sales Distribution | Segment | Sales Contribution | | :--- | :--- | | Installation | ~62% | | Specialty Distribution | ~38% | - The company's competitive advantages include its scale, dual avenues to market (installation and distribution), diversified business lines across residential and commercial sectors, and a strong local presence supported by centralized functions[22](index=22&type=chunk)[23](index=23&type=chunk)[25](index=25&type=chunk) - TopBuild has a diversified customer base, with its top customer accounting for approximately **4% of total revenues** and the top ten customers accounting for about **12% in 2024**[30](index=30&type=chunk) Human Capital Metrics (as of Dec 31, 2024) | Metric | Value | | :--- | :--- | | Total Employees | 13,984 | | Installers | 8,394 | | Employees under Collective Bargaining | 714 | | 2024 Voluntary Turnover | 24.7% (down from 30% in 2023) | - The company's safety performance in 2024 includes an injury rate of **1.95** and a lost time case rate of **0.61**, both significantly below the industry averages of **3.6** and **1.5**, respectively[45](index=45&type=chunk) [Risk Factors](index=21&type=section&id=Item%201A.%20Risk%20Factors) The company faces material risks including supply chain dependency, margin compression, cyclical construction, labor challenges, acquisition integration, litigation, regulatory compliance, cybersecurity, and indebtedness - The company is dependent on a limited number of large suppliers for building products, primarily insulation. The loss of a major supplier or supply shortages could adversely affect operating results[63](index=63&type=chunk) - Business performance is highly sensitive to the cyclical nature of residential new construction, commercial construction, and industrial manufacturing activity, influenced by macroeconomic conditions like interest rates and consumer confidence[99](index=99&type=chunk) - The ability to attract, develop, and retain talented personnel, including installers, branch managers, and drivers, is critical, as high turnover and competition for qualified labor could increase costs and impact operations[73](index=73&type=chunk)[74](index=74&type=chunk) - Strategic acquisitions involve risks such as failure to identify attractive targets, incorrect valuation assumptions, and difficulties in successfully integrating acquired businesses, potentially affecting operating results[79](index=79&type=chunk)[80](index=80&type=chunk) - Operations are dependent on information technology systems, where a disruption or cybersecurity incident could lead to operational interruptions, data corruption, and significant remediation costs[108](index=108&type=chunk)[110](index=110&type=chunk) - Existing indebtedness and associated covenants could limit financial flexibility, making it more difficult to fund working capital, acquisitions, and other corporate requirements[113](index=113&type=chunk) [Unresolved Staff Comments](index=43&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None[126](index=126&type=chunk) [Cybersecurity Risk Management, Strategy and Governance](index=43&type=section&id=Item%201C.%20Cybersecurity%20Risk%20Management%2C%20Strategy%20and%20Governance) TopBuild implements a comprehensive cybersecurity risk management program based on the NIST framework, overseen by the Board, and has not experienced a material cyber breach in the last three years - The company's cybersecurity program is based on the National Institute of Standards and Technology (NIST) framework and includes periodic independent third-party reviews[130](index=130&type=chunk) - Oversight is provided by the full Board of Directors, which receives regular updates from the Chief Information Officer, with cybersecurity risk integrated into the company-wide enterprise risk management (ERM) process[135](index=135&type=chunk)[137](index=137&type=chunk) - The company has not experienced a material cyber breach in the last three years and does not believe that known cybersecurity threats are reasonably likely to have a material impact on its business, operations, or financial condition[132](index=132&type=chunk) [Properties](index=47&type=section&id=Item%202.%20Properties) The company operates approximately 440 leased locations, including 250 Installation branches and 190 Specialty Distribution centers, plus its leased corporate headquarters - TopBuild operates approximately **440 locations**, including **250 Installation branches** and **190 Specialty Distribution centers**, the majority of which are leased properties[138](index=138&type=chunk) [Legal Proceedings](index=47&type=section&id=Item%203.%20Legal%20Proceedings) Information regarding legal proceedings is incorporated by reference from Note 11 of the Financial Statements and Supplementary Data - For details on legal proceedings, refer to Note 11 in Item 8 of this report[139](index=139&type=chunk) [Mine Safety Disclosures](index=47&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[140](index=140&type=chunk) Part II [Market for Registrant's Common Equity, Related Shareholder Matters, and Issuer Purchases of Equity Securities](index=48&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Shareholder%20Matters%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) TopBuild's common stock trades on the NYSE under "BLD", with no dividends paid in 2023 or 2024, and the company repurchased shares for approximately **$47.1 million** in Q4 2024, with **$188.1 million** remaining under its program - The company's common stock is traded on the New York Stock Exchange (NYSE) under the ticker symbol **"BLD"**[141](index=141&type=chunk) - No dividends were paid in 2024 or 2023, and the company does not expect to declare cash dividends in the foreseeable future[142](index=142&type=chunk) Q4 2024 Share Repurchases | Period | Total Shares Purchased | Average Price Paid per Share | Total Cost (approx., in millions) | | :--- | :--- | :--- | :--- | | Oct 2024 | - | - | - | | Nov 2024 | 56,642 | $364.95 | $20.7M | | Dec 2024 | 78,230 | $338.67 | $26.5M | | **Total Q4** | **134,872** | **$349.71** | **$47.2M** | - As of December 31, 2024, **$188.1 million** remained available for repurchase under the 2024 Share Repurchase Program[143](index=143&type=chunk) [Reserved](index=49&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=50&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In fiscal year 2024, TopBuild's net sales increased **2.6%** to **$5.33 billion**, operating profit remained flat at **$886.3 million**, and net income grew to **$622.6 million**, maintaining strong liquidity with **$836.5 million** available, driven by acquisitions and operational efficiencies amidst uneven demand [Results of Operations](index=52&type=section&id=Results%20of%20Operations) For 2024, net sales rose **2.6%** to **$5.33 billion**, driven by acquisitions and pricing, while gross profit margin slightly decreased to **30.5%** and operating profit margin contracted to **16.6%** due to higher material costs, with net income increasing to **$622.6 million** Consolidated Results of Operations (in thousands) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Net sales | $5,329,803 | $5,194,694 | | Gross profit | $1,624,918 | $1,603,820 | | Gross profit margin | 30.5% | 30.9% | | Operating profit | $886,343 | $878,825 | | Operating profit margin | 16.6% | 16.9% | | Net income | $622,602 | $614,254 | - The **2.6% increase** in net sales for 2024 was driven by a **2.5% increase** from acquisitions and a **1.1% increase** from higher selling prices, partially offset by a **0.7% decline** in sales volume[158](index=158&type=chunk) - The decline in operating margin from **16.9% to 16.6%** was primarily attributed to higher material costs and a less favorable sales mix, partially offset by higher selling prices and productivity initiatives[160](index=160&type=chunk) [Business Segment Results](index=53&type=section&id=Business%20Segment%20Results) In 2024, Installation segment sales grew **3.3%** to **$3.29 billion** but operating margin declined to **19.7%**, while Specialty Distribution sales increased **3.2%** to **$2.34 billion** with an improved operating margin of **15.1%** Segment Performance (Year Ended Dec 31) | Segment | 2024 Net Sales (in millions) | 2023 Net Sales (in millions) | % Change | 2024 Operating Margin | 2023 Operating Margin | | :--- | :--- | :--- | :--- | :--- | :--- | | Installation | $3,294.6M | $3,188.2M | 3.3% | 19.7% | 20.2% | | Specialty Distribution | $2,340.8M | $2,268.3M | 3.2% | 15.1% | 14.6% | - Installation segment sales growth was driven by acquisitions (**+3.1%**) and higher selling prices (**+1.3%**), partially offset by lower volume (**-0.6%**), with the operating margin decrease due to higher material costs and sales mix changes[167](index=167&type=chunk)[168](index=168&type=chunk) - Specialty Distribution segment sales growth was attributed to acquisitions (**+1.3%**), higher sales volume (**+1.0%**), and higher selling prices (**+0.9%**), with the operating margin increasing due to productivity initiatives and pricing offsetting higher material costs[169](index=169&type=chunk)[170](index=170&type=chunk) [Liquidity and Capital Resources](index=55&type=section&id=Liquidity%20and%20Capital%20Resources) As of December 31, 2024, TopBuild had total liquidity of **$836.5 million**, with net cash from operating activities decreasing to **$776.0 million**, and **$1.02 billion** used in financing activities, primarily for **$966.4 million** in common stock repurchases Total Liquidity (in thousands) | Component | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $400,318 | $848,565 | | Availability under Revolving facility | $436,230 | $436,230 | | **Total liquidity** | **$836,548** | **$1,284,795** | Summary of Cash Flows (in thousands) | Cash Flow Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $776,026 | $849,409 | | Net cash used in investing activities | ($203,523) | ($198,170) | | Net cash used in financing activities | ($1,016,272) | ($43,836) | - Net cash used in financing activities in 2024 was **$1.0 billion**, primarily driven by **$966.4 million** used for the repurchase of common stock[178](index=178&type=chunk) [Critical Accounting Policies and Estimates](index=58&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) The company's critical accounting policies involve significant judgments in Revenue Recognition (cost-to-cost method), Business Combinations (purchase price allocation and goodwill valuation), Goodwill and Other Intangible Assets (annual impairment testing), and Income Taxes (deferred tax assets and uncertain tax positions) - Revenue for the Installation segment is recognized over time using a cost-to-cost measure of progress, which requires judgment in estimating total expected costs for each project[181](index=181&type=chunk) - For business combinations, the company allocates the purchase price to the fair values of acquired assets and liabilities, with goodwill recorded when consideration exceeds the fair value of identifiable net assets[186](index=186&type=chunk) - Goodwill is tested for impairment annually in the fourth quarter at the reporting unit level (Installation and Specialty Distribution), with qualitative assessments performed in 2024 and 2023 indicating no impairment[187](index=187&type=chunk)[188](index=188&type=chunk)[191](index=191&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=64&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company is exposed to interest rate risk from its variable-rate Term Loan of **$487.5 million**, where a **100-basis point** increase would raise annualized interest expense by **$4.7 million** - The primary market risk is interest rate fluctuations on the variable-rate Term Loan, which has a principal balance of **$487.5 million**[198](index=198&type=chunk) - A **100-basis point (1%)** increase in the interest rate would lead to an estimated **$4.7 million** increase in the company's annual interest expense[199](index=199&type=chunk) [Financial Statements and Supplementary Data](index=65&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for the fiscal year ended December 31, 2024, along with the independent auditor's report from PricewaterhouseCoopers LLP - The independent auditor, PricewaterhouseCoopers LLP, issued an unqualified opinion, stating that the financial statements are presented fairly in all material respects and that the company maintained effective internal control over financial reporting as of December 31, 2024[203](index=203&type=chunk) Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $400,318 | $848,565 | | Total current assets | $1,598,974 | $2,049,244 | | Goodwill | $2,112,259 | $2,042,568 | | Total assets | $4,735,426 | $5,162,851 | | **Liabilities & Equity** | | | | Total current liabilities | $767,182 | $771,538 | | Long-term debt | $1,327,159 | $1,373,028 | | Total liabilities | $2,525,808 | $2,599,196 | | Total equity | $2,209,618 | $2,563,655 | Consolidated Statement of Operations Highlights (in thousands) | Account | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Net sales | $5,329,803 | $5,194,694 | $5,008,744 | | Gross profit | $1,624,918 | $1,603,820 | $1,486,719 | | Operating profit | $886,343 | $878,825 | $797,164 | | Net income | $622,602 | $614,254 | $555,989 | | Diluted EPS | $20.29 | $19.33 | $17.14 | Consolidated Statement of Cash Flows Highlights (in thousands) | Account | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $776,026 | $849,409 | $495,801 | | Net cash used in investing activities | ($203,523) | ($198,170) | ($93,907) | | Net cash used in financing activities | ($1,016,272) | ($43,836) | ($300,073) | | Net (decrease) increase in cash | ($448,247) | $608,496 | $100,290 | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=105&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on any matter of accounting principles, practices, or financial statement disclosure - None[355](index=355&type=chunk) [Controls and Procedures](index=105&type=section&id=Item%209A.%20Controls%20and%20Procedures) As of December 31, 2024, management concluded that the company's disclosure controls and procedures, as well as internal control over financial reporting, were effective, with no material changes during the fourth quarter - Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2024[356](index=356&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of December 31, 2024, based on the COSO framework (2013)[359](index=359&type=chunk) [Other Information](index=105&type=section&id=Item%209B.%20Other%20Information) No director or officer adopted, modified, or terminated a Rule 10b5-1 trading arrangement during the fourth quarter of 2024 - No director or officer adopted, modified, or terminated a Rule 10b5-1 trading arrangement during the quarter ended December 31, 2024[362](index=362&type=chunk) Part III [Directors, Executive Officers, and Corporate Governance](index=107&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%2C%20and%20Corporate%20Governance) Information regarding directors, executive officers, and corporate governance is incorporated by reference from the company's definitive proxy statement for the 2025 Annual Meeting of Shareholders - Information required by this item will be provided in the 2025 Proxy Statement and is incorporated by reference[364](index=364&type=chunk) [Executive Compensation](index=107&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the company's definitive proxy statement for the 2025 Annual Meeting of Shareholders - Information required by this item will be provided in the 2025 Proxy Statement and is incorporated by reference[369](index=369&type=chunk) [Security Ownership of Certain Beneficial Owners and Management, and Related Shareholder Matters](index=107&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%2C%20and%20Related%20Shareholder%20Matters) Information regarding security ownership is incorporated by reference from the company's definitive proxy statement for the 2025 Annual Meeting of Shareholders - Information required by this item will be provided in the 2025 Proxy Statement and is incorporated by reference[370](index=370&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=107&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information regarding related party transactions and director independence is incorporated by reference from the company's definitive proxy statement for the 2025 Annual Meeting of Shareholders - Information required by this item will be provided in the 2025 Proxy Statement and is incorporated by reference[371](index=371&type=chunk) [Principal Accountant Fees and Services](index=109&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding principal accountant fees and services is incorporated by reference from the company's definitive proxy statement for the 2025 Annual Meeting of Shareholders - Information required by this item will be provided in the 2025 Proxy Statement and is incorporated by reference[373](index=373&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=109&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists the financial statements and provides an index to all exhibits filed as part of the Form 10-K, including governance documents, material contracts, and certifications - This section lists the financial statements and provides an index to all exhibits filed with the Form 10-K[376](index=376&type=chunk)[377](index=377&type=chunk) [Form 10-K Summary](index=109&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company has not provided a Form 10-K summary - None[375](index=375&type=chunk)

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 ...

Financial Data and Key Metrics Changes - Fourth quarter sales increased by 2% to $1.3 billion, driven by specialty distribution growth [9][19] - Adjusted EBITDA grew by 2.5% to $258 million, with an adjusted EBITDA margin of 19.7%, improving by 10 basis points year over year [9][22] - Adjusted earnings per diluted share improved by 9.4% to $5.13 compared to the previous year [22] Business Line Data and Key Metrics Changes - Residential business performance was mixed, with single-family growth slightly and multifamily declining by double digits [8] - Installation sales were relatively flat year over year at $788.6 million, with volume declining by 4.1% offset by M&A and pricing [19] - Specialty Distribution sales grew by 6.6% to $601.8 million, with volume rising by 4.4% [20] Market Data and Key Metrics Changes - The new residential construction landscape remains challenging due to elevated interest rates, with forecasts for 2025 housing starts being trimmed [5][16] - Commercial industrial business saw growth, with delayed projects moving forward in the fourth quarter [9][17] Company Strategy and Development Direction - Acquisitions remain a top priority, with eight completed in 2024, contributing approximately $153 million in annual revenue [11][24] - The company is focused on its core insulation business while exploring opportunities to expand its total addressable market [12][40] - The management emphasizes a disciplined approach to capital allocation and maintaining a healthy balance sheet [15][24] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the long-term fundamentals of the housing market despite current uncertainties [16][29] - The company anticipates an inflection point in residential demand but acknowledges the timing is unclear [16][25] - There is confidence in the ability to outperform the market and capitalize on growth opportunities, both organic and inorganic [17][29] Other Important Information - The company generated $706.7 million in free cash flow in 2024 [23] - Total liquidity at the end of the quarter was $836.5 million, with net debt of $987.2 million [23] 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 [34][35] Question: M&A pipeline and adjacent market opportunities - The M&A pipeline is robust, with opportunities across residential, distribution, and commercial industrial segments [39][40] Question: Strategic pricing and volume decisions - Management is making strategic decisions to balance pricing and volume, particularly in the spray foam and installation markets [46][47] Question: Bidding activity in commercial industrial - Bidding activity remains healthy across various verticals, with optimism for growth in 2025 [60][61] Question: Guidance range assumptions - The guidance range reflects uncertainty, with expectations for low single-digit declines in residential volume [76][77] Question: Labor market dynamics - Management is cautious about labor costs and is monitoring market conditions closely to retain key talent [102][103]

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]