TopBuild(BLD) - 2025 Q4 - Annual Report

Financial Performance - The company reported strong cash flow and favorable working capital, enabling organic growth and economies of scale[29]. - The top customer accounted for approximately 3.1% of total revenues, while the top ten customers represented about 10.6% of total sales in 2025[30]. Workforce and Employee Engagement - The company employed 14,707 individuals as of December 31, 2025, with a voluntary turnover rate of 22%, down from 24.7% in 2024[33][36]. - In 2025, the company assigned an average of 14.5 hours of safety training to each employee, achieving a company-wide injury rate of 1.91, significantly below the industry average of 2.9[45][47]. - The employee engagement index score was 85.4%, surpassing the benchmark of 80%, with 70% of employees participating in the engagement survey[53]. - The company was certified as a Great Place to Work® for the third consecutive year, with 82% of surveyed employees affirming it as a great workplace[54]. - The Leadership Academy graduated nearly 100 participants since its inception, focusing on managerial and leadership skills[38]. - The company has a diverse workforce, with 43.9% identifying as Hispanic and 12.7% as female, exceeding industry averages[39][40]. - The company has implemented a human capital management program to attract, develop, and retain employees, fostering a culture of belonging and innovation[32]. Debt and Financial Obligations - The company has a Term Loan with a principal balance of $1.2 billion and a revolving facility with a borrowing capacity of $1.0 billion[201]. - The company has outstanding Senior Notes with a total principal balance of $1.65 billion, including 3.625% Senior Notes ($400.0 million), 4.125% Senior Notes ($500.0 million), and 5.625% Senior Notes ($750.0 million)[201]. - The interest rate on the Term Loan and revolving facility is variable, with an applicable interest rate of 4.97% as of December 31, 2025[202]. - A 100-basis point increase in the interest rate would lead to an approximate $12.0 million increase in annualized interest expense[202]. - There was no outstanding balance under the revolving facility as of December 31, 2025[202]. Community Engagement - The company raised $1.0 million through its 2025 Habitat for Humanity Golf Tournament, contributing nearly $6.0 million since 2016 to support affordable housing initiatives[49].