Summary of TopBuild 2025 Investor Day Company Overview - **Company**: TopBuild (NYSE: BLD) - **Market Cap**: Increased from $3.8 billion in 2017 to $12.5 billion in 2025, more than doubling in value [15] - **Employees**: Over 15,000 employees and more than 450 branches across the U.S. and Canada [15] Key Themes and Strategies 1. **Best-in-Class Industrial Compounder**: TopBuild positions itself as a leading industrial compounder with a clear strategy for profitable growth, driven by strong free cash flow [8] 2. **Market Expansion**: The company has expanded its total addressable market from approximately $16 billion in 2022 to over $90 billion in 2025, focusing on non-discretionary, non-cyclical revenue streams [19][24] 3. **M&A Competency**: TopBuild has completed 24 acquisitions since 2022, totaling 49 acquisitions in the last eight years, contributing to $1.5 billion in revenue [22][19] 4. **Operational Excellence**: Emphasis on leveraging technology and operational excellence to improve customer experience and drive growth [11][12] Financial Performance - **Sales Growth**: Achieved a compounded annual growth rate of over 16% since 2022, maintaining margins in line with long-term targets [19] - **Revenue Diversification**: Increased non-discretionary revenue from 11% in 2022 to 22% in 2025, enhancing revenue resilience [19] Culture and Talent Management 1. **People-First Culture**: TopBuild emphasizes a people-first approach, focusing on employee engagement, safety, and local empowerment [30][31] 2. **Talent Development**: Programs like Manager in Training and leadership academies are in place to develop future leaders, with an 80% success rate of graduates moving into management roles [38][39] 3. **Employee Engagement**: Recent surveys show 85% of employees are engaged, and 93% understand how their roles contribute to the company's success [44] Community Engagement - **Habitat for Humanity Partnership**: TopBuild has a long-standing partnership with Habitat for Humanity, contributing both material and financial resources to support community housing initiatives [2] Future Outlook - **Commercial Roofing Expansion**: TopBuild is entering the commercial roofing market, which is seen as a natural adjacency to its existing insulation business, with a focus on local relationships and operational excellence [24][26] - **Commitment to Safety**: The company has reduced its safety incident rate from 3.58 in 2017 to 1.95 in 2024, reflecting its commitment to employee safety [50] Conclusion TopBuild is positioned for continued growth through strategic market expansion, operational excellence, and a strong focus on its people and community engagement. The company aims to leverage its proven competencies and culture to drive long-term shareholder value.

Financial Data and Key Metrics Changes - Total sales in Q2 2025 declined by 5% to $1,300,000,000, with volume down 7.8%, partially offset by M&A contributing 1.9% and pricing contributing 0.9% [13][14] - Adjusted EBITDA for Q2 was $261,300,000, representing a margin of 20.1%, which improved by 110 basis points from Q1 and was down only 20 basis points year-over-year [15][16] - Adjusted earnings per diluted share were $5.31, compared to $5.42 in the previous year [17] Business Line Data and Key Metrics Changes - Installation segment sales totaled $780,700,000, down 8.3%, driven by a 10.5% volume decline, partially offset by acquisitions and pricing [14] - Specialty distribution sales improved by 1.1% to $599,200,000, with acquisitions growing sales by 2.3% and pricing adding 0.8% [14][15] - Adjusted EBITDA margin for the installation segment was 22.3%, up 120 basis points sequentially and flat year-over-year [16] Market Data and Key Metrics Changes - The residential new construction market remained weak, with single-family demand sliding further year-over-year [6][7] - Heavy commercial and industrial sectors showed growth, particularly in technology, education, and healthcare [6][14] - The company noted a mixed economic environment affecting consumer confidence, particularly in the housing market [6][7] Company Strategy and Development Direction - The acquisition of Progressive Roofing aims to establish a new growth platform in the $75 billion commercial roofing services market, enhancing service offerings and exposure to non-cyclical revenue [4][5] - The company has diversified its business, with commercial and industrial sales now accounting for approximately 40% of total sales, up from 15% in 2015 [10] - The total addressable market for insulation and commercial roofing is nearly $95 billion, indicating significant growth opportunities [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying fundamentals of the business, emphasizing the ability to adjust operations as demand changes [24] - The company anticipates continued challenges in the residential market, projecting low double-digit declines in residential sales for the year [21][33] - Management highlighted a robust pipeline of acquisition candidates and remains disciplined around valuation to drive shareholder returns [7][20] Other Important Information - The company repurchased approximately 455,000 shares, returning $136,000,000 to shareholders in Q2 [8][20] - Total liquidity at the end of Q2 was $1,800,000,000, with total debt at $2,400,000,000 [17][18] Q&A Session Summary Question: Impact of Progressive on margins and future contributions - Management indicated that Progressive is expected to contribute approximately $215,000,000 in incremental sales, with EBITDA around 20%, not significantly dilutive to current margins [27][28] Question: Details on residential market softness - Management noted that the residential market is primarily affected by single-family construction, with light commercial also facing challenges, while heavy commercial remains strong [31][33] Question: Pricing and cost dynamics - Management acknowledged a $30,000,000 headwind in the second half due to pricing pressures, particularly in the residential distribution side, while maintaining solid pricing in commercial products [55][56] Question: Outlook for M&A in commercial roofing - Management expressed optimism about the M&A pipeline in commercial roofing, with several larger deals anticipated and a disciplined approach to acquisitions [99][100] Question: Staffing adjustments in response to market conditions - Management confirmed that they have calibrated staffing levels appropriately and will continue to monitor the situation as market conditions evolve [91][93]