TopBuild(BLD)2025-02-25 11:50Sales 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]