TopBuild (NYSE:BLD) 2025 Investor Day Transcript

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.