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Topbuild 2025 Q2 Earnings Strong Performance as Net Income Rises 0.6%
Generated by AI AgentAinvest Earnings Report Digest
Wednesday, Aug 6, 2025 3:24 pm ET2min read
Aime SummaryTopBuild (BLD) reported fiscal 2025 Q2 earnings on August 6, 2025. Despite a 5.0% decline in total revenue to $1.30 billion, the company delivered strong earnings growth. The stock price rose sharply in the aftermath, while management highlighted strategic moves like Roofing acquisition and robust M&A activity. The company also raised its full-year sales and EBITDA guidance.
Revenue
TopBuild’s total revenue for 2025 Q2 decreased by 5.0% to $1.30 billion compared to $1.37 billion in the prior-year period. This decline was primarily driven by a 8.3% drop in the Installation segment, which contributed $780.68 million. However, the Specialty Distribution segment showed resilience, posting a 1.1% growth to $599.18 million, partially offsetting the decline in installation. Intercompany eliminations accounted for a reduction of $82.46 million, bringing the net sales to $1.30 billion.
Earnings/Net Income
Despite the revenue decline, TopBuild’s earnings performance was robust. The company’s EPS increased by 11.0% year-over-year to $5.34, reflecting strong operational efficiency. Net income also improved slightly, rising to $151.60 million, a 0.6% increase from $150.72 million in 2024 Q2. This performance underscores the company’s ability to maintain profitability even amid declining top-line figures.
Price Action
TopBuild’s stock experienced notable price gains following the earnings report. Shares climbed 3.57% on the latest trading day, 6.66% during the most recent full trading week, and surged 17.39% month-to-date. These movements reflect strong investor confidence in the company's strategic direction and financial resilience.
Post-Earnings Price Action Review
The stock's performance post-earnings has historically been favorable. A strategy of buying shares after a revenue increase quarter-over-quarter, as reported on August 6, 2025, and holding for 30 days has yielded strong returns over the past three years. This approach achieved an overall return of 76.52%, outperforming the benchmark return of 48.58% by 27.93%. The strategy also delivered a CAGR of 21.67% with a maximum drawdown of 0.00%, indicating strong risk-adjusted performance. A Sharpe ratio of 0.54 and a volatility of 40.10% further support the strategy's effectiveness.
CEO Commentary
Robert Buck, President and CEO of TopBuild, emphasized the company's strategic accomplishments in 2025, including the acquisition of Progressive Roofing. This acquisition has established a new platform for growth in the commercial roofing sector. Buck highlighted the team's efforts to align costs with market demands, resulting in a 20.1% adjusted EBITDA margin. He acknowledged the 5.0% sales decline, noting that the 8.3% decrease in the Installation segment was a key factor. Looking forward, Buck expressed optimism about heavy commercial and industrial growth and reaffirmed the company's commitment to M&A and shareholder returns. During Q2, TopBuild repurchased nearly 455,000 shares, returning $136.0 million in capital to shareholders.
Guidance
TopBuild issued full-year 2025 guidance, projecting sales between $5.15 billion and $5.35 billion and adjusted EBITDA between $970 million and $1.07 billion. This guidance incorporates the contribution from the Progressive Roofing acquisition. Management expects residential sales to decline in the low double digits, while commercial and industrial sales are expected to remain stable or grow slightly. Pricing comparisons and M&A benefits are anticipated to support Q4 growth. The guidance assumes stable heavy commercial demand and ongoing cost efficiency, with a midpoint adjusted EBITDA margin of 19.4%.
Additional News
TopBuild made a significant acquisition in 2025 with the purchase of Progressive Roofing for $810 million in July, bringing the year-to-date capital deployed for acquisitions to approximately $833 million. The company also repurchased 454,802 shares for $136.0 million during the second quarter, and as of the end of the quarter, $836.4 million remained available for share repurchases. Additionally, the company announced a conference call to discuss the second quarter results on August 5 at 9:00 a.m. Eastern Time.
Revenue
TopBuild’s total revenue for 2025 Q2 decreased by 5.0% to $1.30 billion compared to $1.37 billion in the prior-year period. This decline was primarily driven by a 8.3% drop in the Installation segment, which contributed $780.68 million. However, the Specialty Distribution segment showed resilience, posting a 1.1% growth to $599.18 million, partially offsetting the decline in installation. Intercompany eliminations accounted for a reduction of $82.46 million, bringing the net sales to $1.30 billion.
Earnings/Net Income
Despite the revenue decline, TopBuild’s earnings performance was robust. The company’s EPS increased by 11.0% year-over-year to $5.34, reflecting strong operational efficiency. Net income also improved slightly, rising to $151.60 million, a 0.6% increase from $150.72 million in 2024 Q2. This performance underscores the company’s ability to maintain profitability even amid declining top-line figures.
Price Action
TopBuild’s stock experienced notable price gains following the earnings report. Shares climbed 3.57% on the latest trading day, 6.66% during the most recent full trading week, and surged 17.39% month-to-date. These movements reflect strong investor confidence in the company's strategic direction and financial resilience.
Post-Earnings Price Action Review
The stock's performance post-earnings has historically been favorable. A strategy of buying shares after a revenue increase quarter-over-quarter, as reported on August 6, 2025, and holding for 30 days has yielded strong returns over the past three years. This approach achieved an overall return of 76.52%, outperforming the benchmark return of 48.58% by 27.93%. The strategy also delivered a CAGR of 21.67% with a maximum drawdown of 0.00%, indicating strong risk-adjusted performance. A Sharpe ratio of 0.54 and a volatility of 40.10% further support the strategy's effectiveness.
CEO Commentary
Robert Buck, President and CEO of TopBuild, emphasized the company's strategic accomplishments in 2025, including the acquisition of Progressive Roofing. This acquisition has established a new platform for growth in the commercial roofing sector. Buck highlighted the team's efforts to align costs with market demands, resulting in a 20.1% adjusted EBITDA margin. He acknowledged the 5.0% sales decline, noting that the 8.3% decrease in the Installation segment was a key factor. Looking forward, Buck expressed optimism about heavy commercial and industrial growth and reaffirmed the company's commitment to M&A and shareholder returns. During Q2, TopBuild repurchased nearly 455,000 shares, returning $136.0 million in capital to shareholders.
Guidance
TopBuild issued full-year 2025 guidance, projecting sales between $5.15 billion and $5.35 billion and adjusted EBITDA between $970 million and $1.07 billion. This guidance incorporates the contribution from the Progressive Roofing acquisition. Management expects residential sales to decline in the low double digits, while commercial and industrial sales are expected to remain stable or grow slightly. Pricing comparisons and M&A benefits are anticipated to support Q4 growth. The guidance assumes stable heavy commercial demand and ongoing cost efficiency, with a midpoint adjusted EBITDA margin of 19.4%.
Additional News
TopBuild made a significant acquisition in 2025 with the purchase of Progressive Roofing for $810 million in July, bringing the year-to-date capital deployed for acquisitions to approximately $833 million. The company also repurchased 454,802 shares for $136.0 million during the second quarter, and as of the end of the quarter, $836.4 million remained available for share repurchases. Additionally, the company announced a conference call to discuss the second quarter results on August 5 at 9:00 a.m. Eastern Time.
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