TopBuild (BLD) investor relations material

Executive summary

• Q3 2025 sales increased 1.4% to $1.4 billion, driven by acquisitions and pricing, but offset by volume declines and residential softness.

• Major acquisitions, including SPI and Progressive Roofing, expanded commercial and industrial capabilities and non-cyclical revenue streams.

• Integration of new businesses is progressing, with expected annual synergies of $35–$40 million from SPI.

• Profit margins remained resilient due to operational excellence, though net income and operating profit declined on higher SG&A and lower volumes.

• Focus remained on cost savings, disciplined capital allocation, and share repurchases totaling $65.5 million in Q3.

Financial highlights

• Q3 2025 sales were $1.4 billion, up 1.4% year-over-year; M&A contributed 7.9%, pricing 0.3%, volume down 6.7%.

• Adjusted EBITDA was $275.6 million (19.8% margin), down 100 bps year-over-year; net income was $142.2 million, down from $169.0 million.

• Gross margin for Q3 was 30.1%, down from 30.7% last year.

• Free cash flow TTM as of Q3 was $791.2 million, up 13.4% year-over-year.

• Working capital as a percentage of sales was 14.2%.

Outlook and guidance

• 2025 sales guidance raised to $5.35–$5.45 billion; adjusted EBITDA expected between $1.01–$1.06 billion (19.2% margin at midpoint).

• Residential sales expected to decline low double digits; commercial and industrial sales projected to remain flat.

• M&A expected to add $450 million to full-year sales.

• Adjusted net income for 2025 projected between $539 million and $583 million.

• Depreciation and amortization forecasted at $166–$171 million; interest expense $88–$91 million; tax rate ~26%.