TopBuild(US:BLD)2025-11-04 11:50Financial Performance - Third quarter sales reached $1.4 billion, reflecting a 1.4% increase, driven by a 0.2% growth in Installation Services and a 1.4% improvement in Specialty Distribution[2] - For the third quarter, net income was $142.2 million, a decrease from $169.0 million in the same period last year, with diluted earnings per share of $5.04[6] - Net sales for Q3 2025 reached $1,393,158, a slight increase of 1.5% compared to $1,373,268 in Q3 2024[21] - Net income for Q3 2025 was $142,226, representing a decrease of 15.9% compared to $168,960 in Q3 2024[22] - Total net sales for Q3 2025 reached $1,393,158, a 1.4% increase from $1,373,268 in Q3 2024[26] - Total net sales for the nine months ended September 30, 2025, were $3,923,839, a 2.3% decrease from $4,017,597 in the same period of 2024[26] - For the three months ended September 30, 2025, TopBuild Corp. reported a net income of $142.226 million, a decrease from $168.960 million in the same period of 2024, representing a decline of approximately 15.9%[30] Profitability Metrics - The adjusted EBITDA margin for the third quarter was 19.8%, down from 20.8% in the previous year[6] - Gross margin for the third quarter was 30.1%, slightly down from 30.7% in the previous year[6] - Adjusted EBITDA for Q3 2025 was $275,609, a decrease of 3.3% compared to $285,057 in Q3 2024[26] - Operating profit for Q3 2025 decreased to $215,010, a decline of 11.8% from $243,993 in Q3 2024[21] - Operating profit, as adjusted, was $228,954 for Q3 2025, down from $245,925 in Q3 2024, reflecting a decline in operating margin from 17.9% to 16.4%[29] - The EBITDA margin, as adjusted, decreased to 19.8% in Q3 2025 from 20.8% in Q3 2024[26] Acquisitions and Growth Strategy - Year-to-date acquisitions totaled approximately $1.2 billion in annual revenue, including Progressive Roofing and SPI, enhancing the insulation and commercial roofing segments[3] - The company spent approximately $851.2 million on acquisitions year-to-date, with an expected total of $1.08 billion for the fourth quarter[9][10] - Total acquisitions contributed $108,506 in sales for Q3 2025, with Installation Services accounting for $94,535[27] - TopBuild Corp. has made pro forma adjustments for acquisitions, with adjustments totaling $361.708 million for the trailing twelve months, emphasizing its growth strategy through acquisitions[31] Financial Outlook - The company raised its 2025 sales outlook to between $5.35 billion and $5.45 billion, with adjusted EBITDA guidance of $1.01 billion to $1.06 billion[1][14] - TopBuild Corp. provided estimated guidance for 2025, projecting net income between $497.0 million and $542.0 million, with an estimated adjusted EBITDA ranging from $1.010 billion to $1.060 billion[32] - Interest expense for the twelve months ending December 31, 2025, is estimated to be between $88.0 million and $91.0 million, indicating a focus on managing financing costs[32] - The company anticipates rationalization charges of $15.0 million and acquisition-related costs between $40.0 million and $42.0 million for the same period, reflecting ongoing strategic adjustments[32] - Depreciation and amortization expenses are projected to be between $166.0 million and $171.0 million for 2025, highlighting the company's investment in long-term assets[32] Cash Flow and Assets - Cash and cash equivalents increased significantly to $1,142,403 as of September 30, 2025, up from $400,318 at the end of 2024[23] - Total assets rose to $6,410,300 as of September 30, 2025, compared to $4,735,426 at the end of 2024[23] - The company reported a net cash provided by operating activities of $579,588 for the nine months ended September 30, 2025, compared to $509,798 in the same period of 2024[24] - The company’s total liabilities increased to $4,187,052 as of September 30, 2025, from $2,525,808 at the end of 2024[23] Segment Performance - Installation Services segment operating profit was $166.8 million, down 3.2% year-over-year, while Specialty Distribution operating profit decreased by 8.2% to $87.1 million[8] - Installation Services segment sales for Q3 2025 were $858,264, a marginal increase of 0.2% from $856,350 in Q3 2024[25] - Specialty Distribution segment sales increased by 1.4% to $608,892 in Q3 2025, compared to $600,387 in Q3 2024[25] - Same branch sales in the Residential segment decreased by 10.0% to $800,987 in Q3 2025 compared to $890,356 in Q3 2024[28] Shareholder Actions - The company repurchased 177,983 shares for $65.5 million in the third quarter, totaling 1,326,666 shares repurchased for $417.1 million year-to-date[13] - Share-based compensation for the nine months ended September 30, 2025, was $14.121 million, slightly up from $13.405 million in 2024, reflecting ongoing employee incentive programs[30]