TopBuild (BLD) Q4 2025 earnings summary

Executive summary

• Achieved ninth consecutive year of sales and profit growth, with Q4 2025 sales up 13.2% to $1.49B, driven by seven acquisitions including SPI and Progressive Roofing.

• Full-year 2025 revenue reached $5.41B, with adjusted EBITDA of $1.04B (19.2% margin), and $434M returned to shareholders via buybacks.

• Maintained disciplined capital allocation, deploying $1.93B for acquisitions and prioritizing M&A and share repurchases.

• Operational excellence and cost control initiatives offset volume and price headwinds, especially in residential and light commercial markets.

• Strong free cash flow and robust M&A pipeline position the company for future growth.

Financial highlights

• Q4 2025 sales rose 13.2% year-over-year to $1.49B; acquisitions contributed 23%, pricing added 0.7%, and volume declined 10.5%.

• Q4 adjusted EBITDA was $265M (17.9% margin); Q4 adjusted EPS was $4.50, down from $5.13 in 2024.

• Full-year 2025 adjusted EBITDA was $1.04B (19.2% margin), down 3.5% year-over-year.

• Year-end liquidity was $1.1B, with $185M in cash and $934M available under the revolver; net debt leverage was 2.35x trailing EBITDA.

• Free cash flow for 2025 was $697M.

Outlook and guidance

• 2026 sales guidance: $5.925B–$6.225B; adjusted EBITDA: $1.005B–$1.155B.

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

• M&A closed in the last 12 months to contribute $800M–$850M in revenue; guidance excludes potential 2026 acquisitions.

• Quarterly sales expected between $1.4B–$1.6B; EBITDA margins 16.5%–18.5%, with Q1 weakest and Q3 strongest.

• Interest and other expenses: $143M–$149M; tax rate ~26%; CapEx 1%–2% of sales; working capital 15%–17% of sales.