TopBuild(BLD) - 2025 Q1 - Quarterly Results

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]