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TopBuild Reports Fourth Quarter and Year-End 2024 Results, Provides 2025 Outlook and Announces New $1 Billion Share Repurchase Authorization
BLDTopBuild(BLD) GlobeNewswire News Room·2025-02-25 11:45

Core Insights - TopBuild Corp. reported a 2.0% increase in fourth quarter sales to 1.31billion,primarilydrivenbya6.61.31 billion, primarily driven by a 6.6% growth in Specialty Distribution [2][6] - The company achieved record results for 2024, with total sales of 5.3 billion and adjusted EBITDA of 1.07billion[3][9]−For2025,TopBuildanticipatessalesbetween1.07 billion [3][9] - For 2025, TopBuild anticipates sales between 5.05 billion and 5.35billion,withadjustedEBITDAprojectedbetween5.35 billion, with adjusted EBITDA projected between 925 million and 1.075billion[4][18]FourthQuarterHighlights−Fourthquartersalesreached1.075 billion [4][18] Fourth Quarter Highlights - Fourth quarter sales reached 1,312.2 million, up from 1,286.1millioninthesameperiodlastyear[8]−Grossmarginforthequarterwas29.91,286.1 million in the same period last year [8] - Gross margin for the quarter was 29.9%, a slight decrease from 30.4% year-over-year [8] - Adjusted EBITDA margin improved to 19.7%, up from 19.6% in the previous year [8] Full Year Highlights - Total sales for 2024 were 5,329.8 million, compared to 5,194.7millionin2023,markinga2.65,194.7 million in 2023, marking a 2.6% increase [9] - The company completed eight acquisitions totaling 153.1 million in annual sales [3][7] - TopBuild returned 966.4milliontoshareholdersthroughsharerepurchases,demonstratingstrongcapitalallocation[3][15]2025Outlook−Thecompanyexpectsresidentialsalestodeclineinthemid−singledigitswhilecommercialandindustrialsalesareprojectedtogrowinthelowsingledigits[19]−Interestexpensesareanticipatedtobebetween966.4 million to shareholders through share repurchases, demonstrating strong capital allocation [3][15] 2025 Outlook - The company expects residential sales to decline in the mid-single digits while commercial and industrial sales are projected to grow in the low single digits [19] - Interest expenses are anticipated to be between 49 million and 55million,withcapitalexpendituresestimatedat1.555 million, with capital expenditures estimated at 1.5% to 2.0% of sales [19][20] - The guidance does not include potential acquisitions or divestitures expected during the year [17][20] Capital Allocation - TopBuild's acquisitions remain a top priority for capital deployment, with a robust pipeline of opportunities [7][16] - The company has authorized up to 1.0 billion for share repurchases, in addition to the remaining 188.1millionfromthepreviousauthorization[16]SegmentPerformance−Inthefourthquarter,Installationsaleswere188.1 million from the previous authorization [16] Segment Performance - In the fourth quarter, Installation sales were 789 million, while Specialty Distribution sales were 602million,reflectinga6.6602 million, reflecting a 6.6% increase in the latter [11] - For the full year, Installation sales totaled 3.3 billion, a 3.3% increase, while Specialty Distribution sales reached 2.34billion,up3.22.34 billion, up 3.2% [11][12] Financial Metrics - Net income for the fourth quarter was 150.5 million, compared to 146.4millionintheprioryear[8]−Thecompanyreportedanoperatingprofitof146.4 million in the prior year [8] - The company reported an operating profit of 217.5 million for the fourth quarter, up from 204.8millionyear−over−year[8]−AdjustedEBITDAfortheyearwas204.8 million year-over-year [8] - Adjusted EBITDA for the year was 1,074.6 million, a 2.4% increase from $1,049.2 million in 2023 [10][34]