Core Insights - TopBuild Corp. reported a 3.6% decline in first quarter sales, totaling $1.23 billion, with installation sales down 6.7% but partially offset by a 2.6% growth in Specialty Distribution [1][2][5] - The company achieved an adjusted gross margin of 29.6% and an adjusted EBITDA margin of 19.0% for the quarter [1][5][29] - The CEO expressed confidence in the company's ability to adapt to economic uncertainties and highlighted strong underlying demand for housing in the U.S. [3][4] Financial Performance - Total sales for the first quarter of 2025 were $1,233,278, compared to $1,278,717 in the same quarter of 2024, reflecting a decrease of 3.6% [5][19] - Gross profit decreased to $351,473 from $387,150 year-over-year, with a gross margin of 28.5% compared to 30.3% in the previous year [5][32] - Net income for the quarter was $123,385, down from $152,381 in the prior year, resulting in a diluted net income per share of $4.23 [5][19][34] Segment Analysis - The Installation segment reported sales of $746 million, down 6.7%, while the Specialty Distribution segment saw sales of $560 million, up 2.6% [6][26] - Operating profit for the Installation segment was $129,616 with an operating margin of 17.4%, while the Specialty Distribution segment had an operating profit of $69,059 and an operating margin of 12.3% [8][26] Capital Allocation and Shareholder Returns - TopBuild prioritized acquisitions for its free cash flow, completing the acquisition of Seal-Rite Insulation, which generates approximately $15 million in annual revenue [4][9] - The company returned $215.6 million to shareholders through share repurchases during the first quarter, with a total availability for repurchases of $972.4 million at the end of the quarter [10][4] 2025 Outlook - The company confirmed its full-year sales outlook, projecting sales between $5.05 billion and $5.35 billion and adjusted EBITDA between $925 million and $1.075 billion [11][12] - The outlook is based on current market conditions and does not include potential impacts from future acquisitions or divestitures [12]