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TopBuild Q4 Earnings & Sales Top Estimates, Both Rise Y/Y, Stock Up
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TopBuild Corp. (BLD - Free Report) reported impressive results for the fourth quarter of 2024, wherein its adjusted earnings and net sales topped the Zacks Consensus Estimate and grew year over year.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
The company’s exceptional quarterly results reflect robust contributions from the Specialty Distribution segment, driven by solid performance from commercial & industrial. The sales volume growth of spray foam supported the uptrend. Although soft contributions from the Installation segment were a restriction during the quarter, the favorable macro fundamentals, ongoing strategic initiatives and low housing inventory aided the quarter’s performance to a great extent.
Shares of this installer and distributor of insulation and other building products climbed 2.8% during the trading session and 1% in the after-hours trading session on Tuesday, post the earnings announcement.
Inside BLD’s Q4 Results
The company reported adjusted earnings per share (EPS) of $5.13 per share, which surpassed the Zacks Consensus Estimate of $5.08 by 1%. In the year-ago quarter, it reported an adjusted EPS of $4.69.
Net sales of $1.312 billion marginally topped the consensus mark of $1.311 billion by 0.1% and increased 2% year over year. Mergers and acquisitions (M&A), net of eliminations, led to a 2.4% increase, with prices rising 0.9%. The volume pulled back 1.3% during the quarter.
TopBuild’s Segmental Performance
Installation (which accounted for 56.7% of total net sales): The segment’s net revenues were $788.6 million, down 0.2% year over year. M&A contributed 2.3% to the sales increase and pricing added 1.5%, while volume declined 4.1%.
The segment’s adjusted operating margin remained flat year over year at 19%.
Specialty Distribution (43.3%): The segment’s net sales rose 5.1% year over year to $600.4 million. Volume improved 4.4%, while M&A contributed 2.2% to sales.
The segment’s adjusted operating margin improved 30 basis points (bps) year over year to 15.1%.
Operating Highlights of BLD
Adjusted gross margin contracted 50 bps year over year to 29.9%. Adjusted SG&A expenses, as a percentage of sales, decreased 70 bps to 13.2% from a year ago. Adjusted operating margin expanded 20 bps to 16.7% from a year ago.
Adjusted EBITDA improved 2.5% year over year to $258 million. The adjusted EBITDA margin inched up 10 bps to 19.7% from the year-ago figure.
TopBuild’s 2024 Highlights
For the full year, the company reported net sales of $5.33 billion, up from $5.19 billion reported in 2023. Residential sales during the year improved to $3.45 billion from $3.35 billion reported a year ago. Also, Commercial/Industrial sales increased year over year to $1.88 billion from $1.84 billion.
Adjusted gross margin of 30.5% was down 40 bps year over year. Adjusted operating margin also contracted 10 bps to 17.2% compared with last year.
Adjusted EPS of $21.03 was up year over year from $19.73.
BLD’s Financials
As of Dec. 31, 2024, TopBuild had cash and cash equivalents of $400.3 million compared with $848.6 million at 2023-end. Long-term debt at 2024-end was $1.33 billion, down from $1.37 billion at 2023-end.
Net cash provided by operations was $776 million in 2024, down from $849.4 million a year ago.
In 2024, the company repurchased 2.5 million shares for a total of $966.4 million.
TopBuild's Acquisitions in 2024
In 2024, TopBuild acquired eight companies, which are projected to generate approximately $153.1 million in annual revenues. The acquisitions include Brabble Insulation, with annual revenues of $5.2 million, closed in February and included in the Installation segment; Morris Black & Sons, generating $3.8 million in annual revenues, closed in March and part of the Installation segment and Pest Control Insulation, with $25.4 million in annual revenues, closed in March and included in the Specialty Distribution segment.
The other buyouts were that of Green Space Insulation, with $6 million in annual revenues, closed in April and part of the Installation segment; Insulation Works, generating $28 million in annual revenues, closed in May and included in the Installation segment; Texas Insulation, with annual revenues of $38.9 million, closed in May and part of the Installation segment; Shannon Global Energy Services, with $10.8 million in annual revenues, closed in December and part of the Specialty Distribution segment; and Metro Supply Company, with $35 million in annual revenues, closed in December and part of the Specialty Distribution segment.
BLD Unveils 2025 Guidance
TopBuild expects net sales to be between $5.05 billion and $5.35 billion for the full year.
Adjusted EBITDA is projected to be between $925 million and $1.075 billion. This compares with the reported value of $725.8 million in 2024.
Residential sales are expected to decline in the mid-single digits while Commercial/Industrial sales are expected to grow in the low-single digits. Capital expenditures are projected to be 1.5-2% of total sales.
The company expects the tax rate to be between 25% and 27% for the year.
Quanta Services Inc. (PWR - Free Report) reported mixed results for the fourth quarter of 2024, wherein adjusted earnings beat the Zacks Consensus Estimate but revenues missed the same. Yet both the top and bottom lines grew year over year.
PWR is leading the industry's transformation amid rising demand for power and infrastructure solutions. The company’s strong portfolio, disciplined execution and customer focus drive consistent growth while expanding market reach. In 2025, it anticipates double-digit revenue, adjusted EBITDA and EPS growth, along with a record backlog.
Gibraltar Industries, Inc.’s (ROCK - Free Report) fourth-quarter 2024 adjusted earnings topped the Zacks Consensus Estimate and grew year over year. On the other hand, net sales missed the consensus mark and tumbled year over year.
The quarter’s bottom-line performance was backed by a favorable mix shift and continued strong operating execution. Although the timing on a large project last year hampered the net sales growth during the quarter, the company is optimistic about the prospects given the robust public spending trends at the federal and state levels.
Louisiana-Pacific Corporation’s (LPX - Free Report) , or LP, reported better-than-expected fourth-quarter 2024 results, with earnings and net sales beating the respective Zacks Consensus Estimate. This was driven by robust demand in its Siding segment and disciplined capital management.
The metrics also increased on a year-over-year basis. Despite a challenging macroeconomic backdrop, the company’s strategic execution and operational efficiency helped offset pressures from a declining Oriented Strand Board (OSB) market. While OSB pricing remains a wildcard, its strategic focus on higher-margin products and share repurchases positions it well for sustained earnings growth in 2025.
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TopBuild Q4 Earnings & Sales Top Estimates, Both Rise Y/Y, Stock Up
TopBuild Corp. (BLD - Free Report) reported impressive results for the fourth quarter of 2024, wherein its adjusted earnings and net sales topped the Zacks Consensus Estimate and grew year over year.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
The company’s exceptional quarterly results reflect robust contributions from the Specialty Distribution segment, driven by solid performance from commercial & industrial. The sales volume growth of spray foam supported the uptrend. Although soft contributions from the Installation segment were a restriction during the quarter, the favorable macro fundamentals, ongoing strategic initiatives and low housing inventory aided the quarter’s performance to a great extent.
Shares of this installer and distributor of insulation and other building products climbed 2.8% during the trading session and 1% in the after-hours trading session on Tuesday, post the earnings announcement.
Inside BLD’s Q4 Results
The company reported adjusted earnings per share (EPS) of $5.13 per share, which surpassed the Zacks Consensus Estimate of $5.08 by 1%. In the year-ago quarter, it reported an adjusted EPS of $4.69.
TopBuild Corp. Price, Consensus and EPS Surprise
TopBuild Corp. price-consensus-eps-surprise-chart | TopBuild Corp. Quote
Net sales of $1.312 billion marginally topped the consensus mark of $1.311 billion by 0.1% and increased 2% year over year. Mergers and acquisitions (M&A), net of eliminations, led to a 2.4% increase, with prices rising 0.9%. The volume pulled back 1.3% during the quarter.
TopBuild’s Segmental Performance
Installation (which accounted for 56.7% of total net sales): The segment’s net revenues were $788.6 million, down 0.2% year over year. M&A contributed 2.3% to the sales increase and pricing added 1.5%, while volume declined 4.1%.
The segment’s adjusted operating margin remained flat year over year at 19%.
Specialty Distribution (43.3%): The segment’s net sales rose 5.1% year over year to $600.4 million. Volume improved 4.4%, while M&A contributed 2.2% to sales.
The segment’s adjusted operating margin improved 30 basis points (bps) year over year to 15.1%.
Operating Highlights of BLD
Adjusted gross margin contracted 50 bps year over year to 29.9%. Adjusted SG&A expenses, as a percentage of sales, decreased 70 bps to 13.2% from a year ago. Adjusted operating margin expanded 20 bps to 16.7% from a year ago.
Adjusted EBITDA improved 2.5% year over year to $258 million. The adjusted EBITDA margin inched up 10 bps to 19.7% from the year-ago figure.
TopBuild’s 2024 Highlights
For the full year, the company reported net sales of $5.33 billion, up from $5.19 billion reported in 2023. Residential sales during the year improved to $3.45 billion from $3.35 billion reported a year ago. Also, Commercial/Industrial sales increased year over year to $1.88 billion from $1.84 billion.
Adjusted gross margin of 30.5% was down 40 bps year over year. Adjusted operating margin also contracted 10 bps to 17.2% compared with last year.
Adjusted EPS of $21.03 was up year over year from $19.73.
BLD’s Financials
As of Dec. 31, 2024, TopBuild had cash and cash equivalents of $400.3 million compared with $848.6 million at 2023-end. Long-term debt at 2024-end was $1.33 billion, down from $1.37 billion at 2023-end.
Net cash provided by operations was $776 million in 2024, down from $849.4 million a year ago.
In 2024, the company repurchased 2.5 million shares for a total of $966.4 million.
TopBuild's Acquisitions in 2024
In 2024, TopBuild acquired eight companies, which are projected to generate approximately $153.1 million in annual revenues. The acquisitions include Brabble Insulation, with annual revenues of $5.2 million, closed in February and included in the Installation segment; Morris Black & Sons, generating $3.8 million in annual revenues, closed in March and part of the Installation segment and Pest Control Insulation, with $25.4 million in annual revenues, closed in March and included in the Specialty Distribution segment.
The other buyouts were that of Green Space Insulation, with $6 million in annual revenues, closed in April and part of the Installation segment; Insulation Works, generating $28 million in annual revenues, closed in May and included in the Installation segment; Texas Insulation, with annual revenues of $38.9 million, closed in May and part of the Installation segment; Shannon Global Energy Services, with $10.8 million in annual revenues, closed in December and part of the Specialty Distribution segment; and Metro Supply Company, with $35 million in annual revenues, closed in December and part of the Specialty Distribution segment.
BLD Unveils 2025 Guidance
TopBuild expects net sales to be between $5.05 billion and $5.35 billion for the full year.
Adjusted EBITDA is projected to be between $925 million and $1.075 billion. This compares with the reported value of $725.8 million in 2024.
Residential sales are expected to decline in the mid-single digits while Commercial/Industrial sales are expected to grow in the low-single digits. Capital expenditures are projected to be 1.5-2% of total sales.
The company expects the tax rate to be between 25% and 27% for the year.
BLD’s Zacks Rank & Recent Construction Releases
TopBuild currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Quanta Services Inc. (PWR - Free Report) reported mixed results for the fourth quarter of 2024, wherein adjusted earnings beat the Zacks Consensus Estimate but revenues missed the same. Yet both the top and bottom lines grew year over year.
PWR is leading the industry's transformation amid rising demand for power and infrastructure solutions. The company’s strong portfolio, disciplined execution and customer focus drive consistent growth while expanding market reach. In 2025, it anticipates double-digit revenue, adjusted EBITDA and EPS growth, along with a record backlog.
Gibraltar Industries, Inc.’s (ROCK - Free Report) fourth-quarter 2024 adjusted earnings topped the Zacks Consensus Estimate and grew year over year. On the other hand, net sales missed the consensus mark and tumbled year over year.
The quarter’s bottom-line performance was backed by a favorable mix shift and continued strong operating execution. Although the timing on a large project last year hampered the net sales growth during the quarter, the company is optimistic about the prospects given the robust public spending trends at the federal and state levels.
Louisiana-Pacific Corporation’s (LPX - Free Report) , or LP, reported better-than-expected fourth-quarter 2024 results, with earnings and net sales beating the respective Zacks Consensus Estimate. This was driven by robust demand in its Siding segment and disciplined capital management.
The metrics also increased on a year-over-year basis. Despite a challenging macroeconomic backdrop, the company’s strategic execution and operational efficiency helped offset pressures from a declining Oriented Strand Board (OSB) market. While OSB pricing remains a wildcard, its strategic focus on higher-margin products and share repurchases positions it well for sustained earnings growth in 2025.