TopBuild (BLD) Q2 2025 earnings summary

Executive summary

• Q2 2025 sales declined 5% to $1.3B, driven by a 7.8% volume decrease, partially offset by acquisitions and price increases.

• Completed the $810M acquisition of Progressive Roofing in July, expanding into the $75B commercial roofing market and adding $438M in annual revenue.

• Adjusted EBITDA margin improved sequentially to 20.1%, reflecting effective cost management and supply chain improvements.

• Commercial and industrial sales now represent 40% of total sales, up from 15% a decade ago, increasing business resiliency.

• $136M returned to shareholders in Q2 via share repurchases, with $351.6M returned year-to-date.

Financial highlights

• Q2 2025 total sales: $1,297.4M, down 5% year-over-year; volume down 7.8%, M&A added 1.9%, pricing up 0.9%.

• Adjusted EBITDA: $261.3M (20.1% margin), up 110 bps sequentially, down 20 bps year-over-year.

• Net income for Q2 2025 was $151.6M, with net margin improving to 11.7%.

• Adjusted EPS: $5.32–$5.34 for Q2; six-month EPS: $9.53–$9.58.

• Free cash flow for the trailing twelve months ended June 30, 2025, was $794.9M, up from $663.4M a year earlier.

Outlook and guidance

• 2025 sales guidance is $5.15B–$5.35B, including Progressive Roofing.

• Adjusted EBITDA guidance for 2025 is $970M–$1.07B; midpoint margin 19.4%.

• Residential sales expected to decline low double digits; commercial/industrial sales projected to be flat to up low single digits.

• M&A expected to add ~$300M to sales for the year.

• Expect to recognize $314.9M in remaining performance obligations over the next 18 months.