Core Viewpoint - TopBuild Corp. is set to release its second quarter 2025 financial results on August 5, 2025, before 7:00 a.m. Eastern time, followed by a conference call at 9:00 a.m. the same day [1]. Company Overview - TopBuild Corp. is a leading installer and specialty distributor of insulation and related building material products in the construction industry across the United States and Canada [3]. - The company operates more than 200 branches nationwide for insulation installation services and has over 150 branches for its Specialty Distribution business [3].

Financial Data and Key Metrics Changes - For the full year, net sales were $5.5 billion, a marginal increase compared to the prior year, driven by contributions from recent acquisitions [6] - Organic sales for the year were $5.2 billion, down 5.4% on a same-day basis compared to the prior year [7] - Net income for the full year was $115.5 million, including a $42.5 million non-cash goodwill impairment charge [7] - Adjusted EBITDA was $500.9 million, and free cash flow for the year was $336.1 million, representing 67% of adjusted EBITDA [7] - In the fourth quarter, net sales were $1.3 billion, with organic sales declining 8.3% per day [8][15] - Net income for the fourth quarter was $26.1 million, and adjusted EBITDA was $109.8 million, at the high end of the outlook [8][29] - Free cash flow generated during the quarter was $183.4 million, or 167% of adjusted EBITDA, marking the highest level of quarterly free cash flow conversion in the company's history [8][29] Business Line Data and Key Metrics Changes - Ceilings saw volume improvement during the quarter, with sales up 6.4% compared to the prior year [8][22] - Wallboard sales for the quarter were $526.6 million, down 10.1% year-over-year, with a 12.1% decrease in volume partially offset by a 1% increase in price and mix [20][21] - Steel framing sales were $189.2 million, down 14.2% for the quarter, with volumes down 2.6% and price and mix down 10.2% [23] - Complementary product sales were nearly flat year-over-year, up 1.4% on a per-day basis, representing the twentieth consecutive quarter of per-day growth [24] Market Data and Key Metrics Changes - Wallboard industry volumes were down 10% in the first calendar quarter, with high interest rates and policy uncertainty as primary impediments to growth [10] - U.S. residential revenues declined 6% per day compared to the prior year, with single-family volumes down 1.9% per day [18][19] - Multifamily revenues fell 32.4% and commercial revenues fell 10.1% on a per-day basis [18] Company Strategy and Development Direction - The company is focused on four strategic pillars: expanding share in core products, growing complementary products, expanding the platform, and driving improved productivity and profitability [13] - A significant cost savings program has been executed, achieving $25 million in annualized cost savings in the fourth quarter, totaling $55 million for the fiscal year [14] - The company aims to maintain a disciplined approach to capital allocation, balancing stock buybacks with debt reduction while pursuing attractive M&A opportunities [32] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about nearing the bottom of the cycle, with expectations for demand recovery as economic conditions improve [10][12] - The company anticipates that the near term will remain challenging, but expects to capitalize on long-term growth opportunities [13][39] - Management highlighted the importance of servicing customers and executing strategic priorities despite macroeconomic difficulties [33] Other Important Information - The company reduced net debt by more than 10% during the quarter, maintaining a target debt leverage range of 1.5 to 2.5 times [14] - Cash on hand was $55.6 million, with $631.3 million of available liquidity under the revolving credit facility [30] Q&A Session Summary Question: Sequential organic trends and expectations - Management noted improvements in the single-family market and share gains with larger customers, contributing to expectations of better performance [41][42] Question: Technology and efficiency optimization efforts - Management confirmed ongoing investments in digital initiatives and automation, which have contributed to cost reductions and improved service delivery [44][45][47] Question: Single-family dynamics and share gains - Management discussed leveraging scale to support builder partners and highlighted regional strengths contributing to share gains [52][56] Question: Margin dynamics and market dependency - Management indicated that half of the expected margin improvement is volume-related, while the other half is due to operational efficiencies [58][60] Question: Visibility into the single-family market - Management provided insights on lead times for orders and expressed confidence in a potential uptick in starts moving into the next selling season [66][68] Question: Impact of large homebuilders on distribution - Management emphasized gaining share with large builders due to service quality and efficiency, which positions the company well for future growth [77][80] Question: Return to office trends - Management expressed cautious optimism about future opportunities in tenant improvement work and office-to-residential conversions [82][84] Question: Wallboard pricing and industry dynamics - Management discussed the ability to pass through limited price increases and the resilience of pricing in the current environment [87][89]

Company Overview - Doman Building Materials Group Ltd. is a fully integrated national distributor in the building materials sector in Canada, founded in 1989 and headquartered in Vancouver, British Columbia [2] - The company trades on the Toronto Stock Exchange under the symbol DBM and operates multiple treating plants, planing and specialty facilities, and distribution centers across Canada and the United States [2][3] Recent Developments - The board of directors has declared a dividend of $0.14 per share, marking the 61st consecutive quarter of dividend payments, scheduled to be paid on July 15, 2025, to shareholders of record on June 30, 2025 [1] Operational Footprint - Doman operates distribution centers coast-to-coast in Canada and has multiple treating plants in the U.S., including 21 treating plants and five specialty sawmills across nine states [3] - The company also manages private timberlands and forest licenses, along with agricultural post-peeling and pressure treating through its Doman Timber operations [3]

Financial Data and Key Metrics Changes - Net sales reached $7.6 billion, an increase of 4.3% year-over-year, driven by organic growth of 5% and acquisition growth of 1%, despite a 1.7% negative impact from one fewer sales day and foreign exchange [7][19] - Gross margin improved to 31%, up 50 basis points year-over-year, attributed to actions taken to capture value and moderating deflation [20] - Operating profit increased by 6.1% to $715 million, with an operating margin of 9.4%, expanding by 20 basis points [21] - Diluted earnings per share rose by 7.8% to $2.5, supported by operating profit growth and share repurchases [9][21] Performance by Business Lines - HVAC customer group saw a 10% revenue increase, primarily due to focused growth initiatives [12][15] - Residential trade plumbing revenues declined by 1%, consistent with recent trends, while repair and maintenance performed better [12] - Waterworks revenue grew by 12%, driven by public works and municipal activities [13][16] - Commercial Mechanical revenue increased by 10%, with strong activity in large capital projects [14] Performance by Markets - U.S. net sales grew by 4.5%, with organic growth of 5% and a 1% contribution from acquisitions [23] - Canadian net sales were down 0.3%, with organic growth of 3% offset by foreign exchange impacts [23] - Non-residential end markets showed stronger growth, particularly in large capital projects, with a 7% increase in revenue [11][23] Company Strategy and Industry Competition - The company continues to invest in key growth areas, including HVAC, Waterworks diversification, and large capital projects, while streamlining operations to enhance efficiency [31][32] - The launch of Ferguson Home aims to provide a seamless omnichannel experience for customers, integrating showroom and digital channels [17] - The competitive landscape remains challenging, but the company has managed to balance market share gains with gross margin improvements through strategic pricing and sales management [105] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in medium-term market conditions despite a dynamic and uncertain environment [9][28] - The company updated its full-year guidance to low to mid-single-digit revenue growth, reflecting strong performance in the third quarter [28] - Management noted that deflation moderated ahead of expectations, contributing to improved gross margins [31] Other Important Information - The company completed three acquisitions during the quarter, enhancing its market position [27] - A nonrecurring business restructuring charge of $68 million was incurred, expected to yield $100 million in annualized cost savings [21][78] - The company returned $759 million to shareholders through share repurchases year-to-date, reducing share count by approximately 4.1 million [27] Q&A Session Summary Question: How much of the organic volume strength is attributed to internal initiatives versus market improvement? - Management attributed the 5% organic growth to internal initiatives, particularly in non-residential markets, and noted that the market is expected to improve in the coming years [36] Question: What factors contributed to the strong gross margin of 31%? - Management indicated that the strong gross margin was due to actions taken in pricing strategy and moderating deflation, with expectations for margins to remain above 30% in the fourth quarter [38][39] Question: How is bidding activity progressing in the commercial industrial sector? - Management reported strong bidding activity, particularly in data centers, and noted that open order volumes in commercial mechanical continue to grow [45][46] Question: How is the company managing price increases in the current tariff environment? - Management emphasized a focus on value rather than price competition, with a strategy to work closely with customers to ensure project completion on time and budget [48][51] Question: Can you provide insights on the Waterworks business growth and bidding activity? - Management highlighted strong growth in Waterworks, particularly in public works and wastewater treatment, and noted supportive bidding activity in residential new construction [60][62] Question: What is the timeline for realizing benefits from the restructuring program? - Management indicated that the restructuring is largely complete, with expectations for operational improvements and cost savings to materialize in the near term [78]

Company Overview - Doman Building Materials Group Ltd. is headquartered in Vancouver, British Columbia, and trades on the Toronto Stock Exchange under the symbol DBM [5] - Founded in 1989, Doman is Canada's only fully integrated national distributor in the building materials and related products sector [5] - The company operates several distinct divisions with multiple treating plants, planing and specialty facilities, and distribution centers across Canada and the United States [5][6] Director Election Results - The annual and special meeting of shareholders was held on May 8, 2025, where all nominees proposed as directors were elected [2][4] - A total of 30,991,740 shares were represented at the meeting, accounting for approximately 35.46% of the outstanding shares as of the record date of March 17, 2025 [2] - The voting results for the nominees were as follows: - Amar S. Doman: 28,782,478 votes for (99.62%) - Ian M. Baskerville: 27,505,141 votes for (95.20%) - Kelvin Dushnisky: 27,450,006 votes for (95.01%) - Sam Fleiser: 28,762,217 votes for (99.55%) - Marie M. Graul: 28,776,277 votes for (99.60%) - Michelle Harrison: 28,785,712 votes for (99.63%) - Harry Rosenfeld: 28,758,362 votes for (99.54%) - Ann M. Simms: 28,773,339 votes for (99.59%) - Siegfried J. Thoma: 28,507,124 votes for (98.67%) [3] Additional Information - All other matters voted upon at the meeting were approved, and a formal report on voting results will be filed with regulatory authorities shortly [4] - Doman operates strategically located distribution centers across Canada and the U.S., with various facilities including treating plants and specialty sawmills [6]

Financial Data and Key Metrics Changes - Consolidated first quarter sales were $1.5 billion, down 7% from Q1 2024 [7] - Net income was $40.3 million or $1.06 per share, compared to $104.1 million or $2.61 per share in the prior year quarter [7] - Wood Products sales were $415.8 million, down 11% year-over-year [9] - Wood Products segment EBITDA decreased to $40.2 million from $95.6 million in the previous year [9] - BMD sales were $1.4 billion, down 7% from Q1 2024, with segment EBITDA of $62.8 million compared to $83.6 million [10] Business Line Data and Key Metrics Changes - Wood Products segment saw lower EWP and plywood sales prices and volumes, with a significant impact from the Oakdale outage [9] - BMD's gross margin was 14.7%, a decline of 40 basis points year-over-year [10] - LVL and I joists volumes were down 3%, better than the 6% decline in single-family housing starts [10] - Plywood sales volume was 363 million feet, down from 372 million feet in Q1 2024 [11] Market Data and Key Metrics Changes - U.S. housing starts decreased 26% year-over-year, impacting demand [7] - Daily sales pace in BMD improved in April, approximately 13% higher than Q1 2025 [15] - Weather significantly influenced sales activity, with January and February below $21.5 million daily, rebounding in March [12] Company Strategy and Development Direction - The company is focused on strategic investments and capital returns to shareholders, supported by a strong balance sheet [8] - Continued emphasis on two-step distribution model to support customer inventory management [26] - Ongoing modernization projects at Oakdale are expected to enhance EWP production capabilities [17] Management's Comments on Operating Environment and Future Outlook - The management expressed uncertainty regarding 2025 end market demand, with forecasts ranging from flat to mid-single digit declines [21] - Long-term demand drivers remain strong, characterized by housing undersupply and aging housing stock [22] - The company remains agile and prepared to respond to economic changes while focusing on customer service [22] Other Important Information - Capital expenditures in Q1 were $53 million, with a range of $220 million to $240 million expected for 2025 [17] - The company repurchased $71 million of common stock in the first four months of 2025 [19] - The Oakdale facility is expected to be fully operational by the end of Q2 2025 [17] Q&A Session Summary Question: Thoughts on general line side of the business and inventory positions - Management noted that customers are relying on two-step distribution for inventory management and new product introductions [26] Question: Update on Oakdale project and ramp-up - The Oakdale facility is expected to shift veneer back into EWP production as it comes back online [29] Question: Capital allocation priorities and M&A pipeline - Management indicated a quiet M&A pipeline but remains open to opportunities while focusing on organic growth and share repurchases [30] Question: EWP pricing expectations for Q2 - Management expects low single-digit sequential pricing declines, with competitive pressures remaining [40] Question: Competitive pressures in EWP - Competitive challenges are primarily from existing EWP producers rather than dimensional lumber or open web trusses [52] Question: Impact of recent transactions in the industry - Management emphasized the importance of executing at a high level amidst ongoing industry consolidation [82]

Financial Data and Key Metrics Changes - Consolidated first quarter sales were $1.5 billion, down 7% from Q1 2024 [6] - Net income was $40.3 million or $1.06 per share, compared to $104.1 million or $2.61 per share in the prior year quarter [6] - Wood Products sales were $415.8 million, down 11% year-over-year [8] - BMD sales were $1.4 billion, down 7% from Q1 2024 [9] - Overall EBITDA for Wood Products was $40.2 million, significantly lower than $95.6 million in the previous year [8] Business Line Data and Key Metrics Changes - Wood Products segment EBITDA decreased primarily due to lower EWP and plywood sales prices and volumes [8] - BMD's gross margin was 14.7%, a decline of 40 basis points year-over-year [10] - EWP volumes were down 3%, which was better than the 6% decline in single-family housing starts [10] - Plywood sales volume was 363 million feet, down from 372 million feet in Q1 2024 [11] Market Data and Key Metrics Changes - U.S. housing starts decreased by 26% year-over-year, impacting demand [6] - Daily sales pace in BMD improved in March, exceeding $24 million per day [12] - April's daily sales pace was approximately 13% higher than Q1 2025, indicating a rebound in demand [15] Company Strategy and Development Direction - The company is focused on strategic investments and returning capital to shareholders, supported by a strong balance sheet [7] - Capital expenditures for 2025 are projected between $220 million and $240 million, with significant investments in EWP production capabilities [16] - The company is prepared to respond to economic changes while maintaining a focus on long-term demand drivers in residential construction [20] Management's Comments on Operating Environment and Future Outlook - Management noted that 2025 end market demand expectations are difficult to predict, with forecasts ranging from flat to mid-single-digit declines [20] - The company remains confident in its ability to execute across all market conditions, emphasizing the strength of its team [21] - Long-term demand drivers remain strong, characterized by an undersupply of housing units and aging housing stock [22] Other Important Information - The Oakdale facility's modernization is expected to be completed by the end of Q2, which will enhance EWP production [7] - The company repurchased $71 million of common stock in the first four months of 2025 [18] - A quarterly dividend of $10 million was paid during the quarter, with plans for future dividends [17] Q&A Session Summary Question: Thoughts on general line side of the business and inventory positions - Management noted that customers are relying heavily on two-step distribution for inventory management and just-in-time services [25] Question: Update on the Oakdale project and macro environment - The Oakdale facility is expected to resume operations, with veneer supply shifting back to EWP production [29] Question: Capital allocation priorities and M&A pipeline - Management indicated a quiet M&A pipeline but remains open to opportunities that align with growth strategy [30] Question: EWP pricing expectations for Q2 - Management expects low single-digit sequential pricing declines, similar to Q1 [38] Question: Competitive pressures in EWP - Competitive challenges are primarily from existing EWP producers rather than dimensional lumber or open web trusses [49] Question: Update on LVL volumes and share gains - LVL volumes are starting to outpace production, indicating a positive trend [62] Question: Inventory levels and market conditions - Management feels confident about inventory levels, which are aligned with market demands [76] Question: Impact of recent transactions in the industry - Management believes they are well-positioned amidst ongoing industry consolidation and will focus on high-level execution [78]

Financial Performance - Net sales decreased by 23% year-over-year to $709 million[16, 22, 24] - Gross profit decreased by 13% year-over-year to $111 million[12, 22] - Gross margin decreased by 190 bps year-over-year to 157%[16, 22, 24] - Adjusted EBITDA decreased by 496% year-over-year to $196 million, representing 28% of net sales[16, 22, 24] - Adjusted net income decreased by 88% year-over-year to $23 million[16, 22] - Free cash flow was negative $40 million[16, 22, 24] Product Category Performance - Specialty product net sales decreased by 5% to $479 million, representing approximately 70% of total net sales[24, 26] - Structural product net sales increased by 3% to $230 million[24, 29] - Specialty product gross profit was $90 million, representing approximately 81% of total gross profit[26] - Structural product gross profit was $21 million, representing approximately 19% of total gross profit[29] Balance Sheet and Liquidity - Cash and cash equivalents totaled $449 million at the end of Q1 2025[38] - Total available liquidity was $795 million at the end of Q1 2025[38] - Net debt was negative $75 million[38] - Net leverage ratio was negative 07x[16, 38]