TopBuild Reports Fourth Quarter and Year-End 2024 Results, Provides 2025 Outlook and Announces New $1 Billion Share Repurchase Authorization

Core Insights - TopBuild Corp. reported a 2.0% increase in fourth quarter sales to $1.31 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 $1.07 billion [3][9] - For 2025, TopBuild anticipates sales between $5.05 billion and $5.35 billion, with adjusted EBITDA projected between $925 million and $1.075 billion [4][18] Fourth Quarter Highlights - Fourth quarter sales reached $1,312.2 million, up from $1,286.1 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 $5,194.7 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 $966.4 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 $55 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 $188.1 million from the previous authorization [16] Segment Performance - In the fourth quarter, Installation sales were $789 million, while Specialty Distribution sales were $602 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 $2.34 billion, up 3.2% [11][12] Financial Metrics - Net income for the fourth quarter was $150.5 million, compared to $146.4 million in the prior year [8] - The company reported an operating profit of $217.5 million for the fourth quarter, up from $204.8 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]