TopBuild Corp. Q2 Earnings Highlight Acquisition Growth and Operational Efficiency Amidst Economic Uncertainty.

TopBuild Corp reported Q2 sales of $1.3 billion with an adjusted EBITDA margin of 20.1%. Sales declined 5% YoY, but operating profit increased to $219.8 million from $210.4 million. The company repurchased nearly 455,000 shares, returning $136 million to shareholders. TopBuild's management remains optimistic about its long-term fundamentals, with a 2025 sales outlook ranging from $5.15 billion to $5.35 billion and adjusted EBITDA between $970 million and $1.07 billion. The company plans to continue focusing on mergers and acquisitions for growth.

TopBuild Corp. (NYSE: BLD) reported its second quarter 2025 financial results, showcasing a robust performance despite a challenging market environment. The company reported sales of $1.3 billion, a 5% year-over-year (YoY) decline, but maintained an adjusted EBITDA margin of 20.1% [1].

The company's operating profit increased to $219.8 million, up from $210.4 million in the same period last year. This improvement was driven by a 13.3% increase in gross profit, which offset a 13.4% increase in selling, general, and administrative expenses (SG&A). The adjusted EBITDA margin remained stable at 20.1%, indicating strong operational efficiency [1].

TopBuild's management attributed the sales decline to a 8.3% decrease in installation services, which was partially offset by a 1.1% growth in specialty distribution. The company's acquisition of Progressive Roofing in July is expected to contribute significantly to its 2025 sales and adjusted EBITDA outlook [1].

Looking ahead, TopBuild's management remains optimistic about the company's long-term fundamentals. The company expects 2025 sales to range between $5.15 billion and $5.35 billion, with adjusted EBITDA expected to be between $970 million and $1.07 billion [1]. The company plans to continue focusing on mergers and acquisitions for growth, with approximately $833 million in capital deployed for acquisitions year-to-date [1].

TopBuild's share repurchases also reflect its commitment to returning capital to shareholders. During the second quarter, the company repurchased nearly 455,000 shares, totaling $136 million. On a year-to-date basis, the company bought back 1,148,683 shares for $351.6 million [1].

TopBuild's performance in the second quarter highlights its ability to navigate market challenges and maintain strong operational efficiency. The company's optimistic outlook for 2025, driven by its strategic focus on mergers and acquisitions, positions it well for future growth.

References:

[1] TopBuild Corp. Press Release, August 5, 2025. Available at: https://www.topbuild.com/news-events/press-releases/detail/189/topbuild-reports-second-quarter-2025-results-issues