TopBuild (BLD) Q4 2024 earnings summary

Executive summary

• Achieved record 2024 results with $5.33 billion in sales and adjusted EBITDA of $1.08 billion, marking the ninth consecutive year of growth and profit expansion.

• Completed eight acquisitions totaling $153.1 million in annual sales and repurchased $966.4 million in shares (~2.5 million shares) in 2024.

• Board authorized a new $1 billion share repurchase program, increasing total authorization to $1.2 billion.

• Commercial and industrial segments showed growth and a strong backlog, while residential demand remained soft.

• Disciplined capital allocation and technology investments supported operational efficiency and shareholder returns.

Financial highlights

• Q4 2024 sales were $1.31 billion, up 2% year-over-year, driven by Specialty Distribution; adjusted EBITDA margin improved to 19.7%.

• Full-year net sales reached $5.33 billion, with adjusted EBITDA of $1.08 billion and free cash flow of $707 million.

• Adjusted EPS for Q4 was $5.13, up 9.4% year-over-year; full-year net income was $622.6 million ($20.29 per share).

• Year-end cash and cash equivalents were $400.3 million; total liquidity was $836.5 million.

• Net debt leverage ratio at 0.91x trailing 12-month adjusted EBITDA; working capital at 13% of sales.

Outlook and guidance

• 2025 sales guidance: $5.05–$5.35 billion; adjusted EBITDA: $925 million–$1.08 billion.

• Residential sales expected to decline mid-single digits; commercial/industrial to grow low single digits.

• Multifamily sales expected down ~30%, single-family flat, commercial/industrial up low single digits.

• EBITDA margin guidance midpoint: 19.2%, down 100 bps year-over-year; capex expected at 1.5–2% of sales.

• Guidance excludes impact of future M&A; pipeline remains robust.