In This Article:
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Total Sales: Declined 3.6% to $1.2 billion.
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Adjusted EBITDA: $234.8 million with a margin of 19%.
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Installation Segment Sales: Decreased 6.7% to $745.5 million.
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Specialty Distribution Sales: Increased 2.6% to $559.8 million.
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Adjusted Gross Profit Margin: 29.6%, down 70 basis points from last year.
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Adjusted SG&A as a Percentage of Sales: 13.9%, up from 13.5% last year.
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Adjusted Earnings Per Diluted Share: $4.63, $0.18 lower than last year.
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Total Liquidity: $746.4 million at the end of the quarter.
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Net Debt: $1.07 billion with a leverage ratio of 1x trailing 12 months adjusted EBITDA.
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Share Buyback: $215.6 million returned to shareholders.
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Guidance for Full Year Sales: $5.05 billion to $5.35 billion.
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Guidance for Adjusted EBITDA: $925 million to $1.075 billion.
Release Date: May 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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TopBuild Corp (NYSE:BLD) reported a solid adjusted EBITDA margin of 19% for the first quarter, demonstrating strong operational efficiency.
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The company's Specialty Distribution segment saw low single-digit sales growth, driven by robust performance in the DI mechanical insulation business in both the US and Canada.
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TopBuild Corp (NYSE:BLD) successfully executed a footprint optimization project, consolidating 33 facilities to drive ongoing efficiencies across operations.
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The company closed the acquisition of Seal-Rite, enhancing its capital allocation strategy and expanding its market presence.
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TopBuild Corp (NYSE:BLD) maintained a healthy M&A pipeline, indicating potential for future growth and expansion opportunities.
Negative Points
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Total sales for TopBuild Corp (NYSE:BLD) declined by 3.6% to $1.2 billion, primarily due to weakness in new residential construction.
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The Installation segment experienced a mid-single-digit sales decline, impacted by the residential end market.
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The company incurred onetime costs of $13.9 million related to noncash lease impairment charges from facility consolidations.
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Adjusted gross profit margin decreased by 70 basis points to 29.6%, driven by lower sales volume and pressure on distribution pricing for residential products.
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TopBuild Corp (NYSE:BLD) adjusted its residential sales outlook to a high single-digit decline for the full year, reflecting ongoing challenges in the housing market.
Q & A Highlights
Q: Can you provide insights into the commercial and industrial projects that were previously delayed due to financing issues? A: Robert Buck, President and CEO, explained that many projects have moved forward as stakeholders have adjusted to the current financing environment. The company has seen an increase in projects coming online, and their teams are executing well across various verticals, contributing to share gains.