TopBuild Reports Third Quarter Results

Third quarter sales of $1.37 billion driven by 4.2% Installation growth and 5.1% Specialty Distribution growth

Delivered gross margin of 30.7% and adjusted EBITDA margin of 20.8%

Narrows 2024 guidance to $5.3 to $5.35 billion in revenue and $1.055 to $1.085 billion in adjusted EBITDA

DAYTONA BEACH, Fla., Nov. 05, 2024 (GLOBE NEWSWIRE) -- TopBuild Corp. (NYSE:BLD) a leading installer and specialty distributor of insulation and building material products to the construction industry in the United States and Canada today reported results for the third quarter ended September 30, 2024.

“We delivered a strong performance with third quarter sales of $1.37 billion and adjusted EBITDA of $285 million, achieving the highest level of quarterly sales and profit in our history,” said Robert Buck, President and Chief Executive Officer. “Our ongoing focus on growth and profitability enabled us to drive Installation sales growth of 4.2% and Specialty Distribution sales growth of 5.1% in a macro environment that was largely unchanged from the second quarter. Adjusted EBITDA margin of 20.8% improved by 50 basis points excluding the benefit from higher-than-normal multi-family and commercial margins in the third quarter of 2023.¹

“We are narrowing our 2024 outlook based on our assumptions for a continued uneven housing environment and the ongoing delay of certain commercial/industrial projects. We remain optimistic about our business with strengthening requirements for energy efficiency, the U.S. housing supply deficit, increasing household formations, and the prospect of lower interest rates driving growth.

“Our priority for our strong free cash flow continues to be acquisitions and our M&A pipeline is very healthy. In the quarter we also returned capital to shareholders, with share repurchases totaling $413.9 million or approximately 1.07 million shares, reinforcing our confidence in our outlook and ability to deploy capital successfully and generate strong returns,” concluded Mr. Buck.

¹ The Company noted that its results for the third quarter of 2023 included an estimated $15 million margin benefit related to certain multi-family/commercial business.

Financial Highlights
(comparisons are to the periods ended September 30, 2023)

Three Months Ended September 30, 2024
	Reported							Adjusted
($ in thousands)		2024			2023				2024			2023
Sales	$	1,373,268		$	1,326,120			$	1,373,268		$	1,326,120
Gross Profit		421,813			420,690				421,813			420,690
Gross Margin		30.7	%		31.7	%			30.7	%		31.7	%
SG&A		177,820			183,198				175,888			174,758
SG&A as % of Revenue		12.9	%		13.8	%			12.8	%		13.2	%
Operating Profit		243,993			237,492				245,925			245,932
Operating Margin		17.8	%		17.9	%			17.9	%		18.5	%
Net Income		168,960			167,601				170,075			172,507
Net Income per diluted share	$	5.65		$	5.27			$	5.68		$	5.43
EBITDA								$	285,057		$	283,690
EBITDA Margin									20.8	%		21.4	%
Nine Months Ended September 30, 2024
	Reported							Adjusted
($ in thousands)		2024			2023				2024			2023
Sales	$	4,017,597		$	3,908,620			$	4,017,597		$	3,908,620
Gross Profit		1,232,885			1,212,704				1,232,885			1,212,704
Gross Margin		30.7	%		31.0	%			30.7	%		31.0	%
SG&A		563,992			538,679				534,497			524,480
SG&A as % of Revenue		14.0	%		13.8	%			13.3	%		13.4	%
Operating Profit		668,893			674,025				698,388			688,224
Operating Margin		16.6	%		17.2	%			17.4	%		17.6	%
Net Income		472,064			467,870				493,997			477,551
Net Income per diluted share	$	15.19		$	14.74			$	15.89		$	15.04
EBITDA								$	816,570		$	797,520
EBITDA Margin									20.3	%		20.4	%

Sales Drivers
(comparisons are to the periods ended September 30, 2023)
		Three Months Ended September 30, 2024
		Installation				Specialty Distribution				TopBuild, net of elims
Sales (in millions)		$	856			$	600			$	1,373
Sales Drivers
Volume			0.5	%			3.0	%			0.4	%
Price			1.1	%			0.8	%			1.0	%
M&A			2.9	%			1.4	%			2.4	%
Dispositions			(0.2	%)							(0.1	%)
Total Sales Change			4.2	%			5.1	%			3.6	%
		Nine Months Ended September 30, 2024
		Installation				Specialty Distribution				TopBuild, net of elims
Sales (in millions)		$	2,506			$	1,739			$	4,018
Sales Drivers
Volume			0.6	%			(0.2	%)			(0.5	%)
Price			1.2	%			1.2	%			1.2	%
M&A			3.4	%			1.0	%			2.5	%
Dispositions			(0.6	%)							(0.4	%)
Total Sales Change			4.5	%			2.1	%			2.8	%

Segment Profitability
(comparisons are to the periods ended September 30, 2023)
	Three Months Ended September 30, 2024							Nine Months Ended September 30, 2024
($ in thousands)	Installation			Specialty Distribution				Installation			Specialty Distribution
Operating Profit	$	172,243		$	94,911			$	499,717		$	261,862
Change		(1.7	%)		7.5	%			1.1	%		5.8	%
Operating Margin		20.1	%		15.8	%			19.9	%		15.1	%
Adj. Operating Profit	$	172,274		$	95,109			$	500,081		$	261,320
Change		(2.7	%)		7.7	%			0.7	%		5.4	%
Adj. Operating Margin		20.1	%		15.8	%			20.0	%		15.0	%
Adj. EBITDA	$	191,382		$	110,600			$	556,816		$	307,507
Change		(1.8	%)		6.5	%			1.5	%		4.8	%
Adj. EBITDA Margin		22.3	%		18.4	%			22.2	%		17.7	%

Capital Allocation

2024 Acquisitions
Year to date, TopBuild has completed or announced a total of 7 acquisitions which are expected to generate approximately $118 million in annual revenue.

On October 30, the Company announced the acquisition of Shannon Global Energy Services, a leading thermal acoustic blanket insulation fabricator serving the commercial and industrial end markets. The acquisition is expected to close in the fourth quarter.

Company	Annual Revenue ($ in millions)		Month Closed
Brabble Insulation, Inc. (I)	$	5.2	February
Morris Black & Sons, Inc. (I)		3.8	March
Pest Control Insulation LLC (D)		25.4	March
Green Space Insulation LLC (I)		6.0	April
Insulation Works, Inc. (I)		28.0	May
Texas Insulation (I)		38.9	May
Shannon Global Energy Services (D)		10.8	TBD
Total	$	118.1
I = Installation, D = Specialty Distribution

Share Repurchases
During the third quarter, TopBuild repurchased approximately 1.07 million shares totaling $413.9 million. On a year-to-date basis, the Company repurchased 2.3 million shares totaling $919.2 million, leaving $235.2 million remaining under the current authorization as of September 30, 2024.

2024 Outlook²
TopBuild narrowed its full year 2024 outlook based on the Company’s assumptions for a continued uneven housing environment and the ongoing delay of certain commercial/industrial projects. The Company noted that it has not experienced an uptick in project cancellations. 

$ in millions
2024 Outlook	Low		High
Sales	$	5,300.0	$	5,350.0
Adjusted EBITDA*	$	1,055.0	$	1,085.0
* See table for Adjusted EBITDA reconciliation

² This outlook reflects management’s current view of present and future market conditions and is based on assumptions such as housing starts, general and administrative expenses, and interest rates. These targets do not include any effects related to potential acquisitions or divestitures that may occur after the date of this press release. A reconciliation of non-GAAP targets to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, the costs and expenses that may be incurred in the future and therefore, cannot be reasonably predicted. The effect of these excluded items may be significant. Factors that could cause actual long-term results to differ materially from TopBuild’s current expectations are discussed below and are also detailed in the Company’s most recent Annual Report on Form 10-K and subsequent SEC reports.

Conference Call
A conference call to discuss the third quarter 2024 financial results is scheduled for today, Tuesday, November 5, at 9:00 a.m. Eastern Time. The call may be accessed by dialing (877) 407-9037. A simultaneous webcast of the call, along with management’s formal remarks and a presentation, will be available on the Company’s website at www.topbuild.com shortly before the call begins.

About TopBuild
TopBuild Corp., headquartered in Daytona Beach, Florida, is a leading installer and specialty distributor of insulation and related building material products to the construction industry in the United States and Canada. We provide insulation installation services nationwide through our Installation segment which has approximately 250 branches located across the United States. We distribute building and mechanical insulation, insulation accessories and other building product materials for the residential, commercial, and industrial end markets through our Specialty Distribution business. Our Specialty Distribution network encompasses approximately 170 branches. To learn more about TopBuild please visit our website at www.topbuild.com.

Use of Non-GAAP Financial Measures
Adjusted EBITDA, incremental EBITDA margin, adjusted EBITDA margin, the “adjusted” financial measures presented above, and figures presented on a “same branch basis” are not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). The Company believes that these non-GAAP financial measures, which are used in managing the business, may provide users of this financial information with additional meaningful comparisons between current results and results in prior periods. We define same branch sales as sales from branches in operation for at least 12 full calendar months. Such non-GAAP financial measures are reconciled to their closest GAAP financial measures in tables contained in this press release. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company’s reported results under GAAP. Additional information may be found in the Company’s filings with the Securities and Exchange Commission which are available on TopBuild’s website under “SEC Filings” at www.topbuild.com.

Safe Harbor Statement
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements may address, among other things, our expected financial and operational results, the related assumptions underlying our expected results, and our plan to repurchase our common stock under stock repurchase transactions. These forward-looking statements can be identified by words such as “will,” “would,” “anticipate,” “expect,” “believe,” “designed,” “plan,” “may,” “project,” “estimate” or “intend,” the negative of these terms, and similar references to future periods. These views involve risks and uncertainties that are difficult to predict and, accordingly, our actual results may differ materially from the results discussed in our forward-looking statements. Our forward-looking statements contained herein speak only as of the date of this press release. Factors or events that we cannot predict, including those described in the risk factors contained in our filings with the Securities and Exchange Commission, may cause our actual results to differ from those expressed in forward-looking statements. Although TopBuild believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, the Company can give no assurance that its expectations will be achieved and it undertakes no obligation to update any forward-looking statements as a result of new information, future events, or otherwise, except as required by applicable law.

(tables follow)

TopBuild Corp.
Condensed Consolidated Statements of Operations (Unaudited)
(in thousands, except share and per common share amounts)
		Three Months Ended September 30,								Nine Months Ended September 30,
		2024				2023				2024				2023
Net sales		$	1,373,268			$	1,326,120			$	4,017,597			$	3,908,620
Cost of sales			951,455				905,430				2,784,712				2,695,916
Gross profit			421,813				420,690				1,232,885				1,212,704
Selling, general, and administrative expense			177,820				183,198				563,992				538,679
Operating profit			243,993				237,492				668,893				674,025
Other income (expense), net:
Interest expense			(18,449	)			(18,830	)			(55,811	)			(55,427	)
Other, net			2,355				6,015				24,987				12,542
Other expense, net			(16,094	)			(12,815	)			(30,824	)			(42,885	)
Income before income taxes			227,899				224,677				638,069				631,140
Income tax expense			(58,939	)			(57,075	)			(166,005	)			(163,270	)
Net income		$	168,960			$	167,602			$	472,064			$	467,870
Net income per common share:
Basic		$	5.68			$	5.30			$	15.28			$	14.81
Diluted		$	5.65			$	5.27			$	15.19			$	14.74
Weighted average shares outstanding:
Basic			29,751,713				31,615,110				30,901,788				31,588,740
Diluted			29,925,400				31,788,812				31,083,857				31,744,856

 

TopBuild Corp.
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
(in thousands)
		Three Months Ended September 30,							Nine Months Ended September 30,
		2024			2023				2024				2023
Net income		$	168,960		$	167,602			$	472,064			$	467,870
Other comprehensive income (loss):
Foreign currency translation adjustment			2,463			(3,008	)			(3,464	)			3,029
Comprehensive income		$	171,423		$	164,594			$	468,600			$	470,899

TopBuild Corp.
Condensed Consolidated Balance Sheets and Other Financial Data (Unaudited)
(dollars in thousands)
		As of
		September 30, 2024			December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents		$	257,342		$	848,565
Receivables, net of an allowance for credit losses of $21,829 at September 30, 2024, and $23,948 at December 31, 2023			827,776			799,009
Inventories			392,208			364,731
Prepaid expenses and other current assets			43,813			36,939
Total current assets			1,521,139			2,049,244
Right of use assets			189,141			204,629
Property and equipment, net			270,022			264,487
Goodwill			2,092,315			2,042,568
Other intangible assets, net			565,440			591,058
Other assets			12,460			10,865
Total assets		$	4,650,517		$	5,162,851
LIABILITIES
Current liabilities:
Accounts payable		$	461,478		$	469,585
Current portion of long-term debt			45,137			47,039
Accrued liabilities			180,382			187,217
Short-term operating lease liabilities			67,509			65,780
Short-term finance lease liabilities			1,634			1,917
Total current liabilities			756,140			771,538
Long-term debt			1,341,439			1,373,028
Deferred tax liabilities, net			243,176			243,930
Long-term portion of insurance reserves			60,799			58,783
Long-term operating lease liabilities			130,299			146,213
Long-term finance lease liabilities			2,961			4,150
Other liabilities			1,434			1,554
Total liabilities			2,536,248			2,599,196
EQUITY			2,114,269			2,563,655
Total liabilities and equity		$	4,650,517		$	5,162,851
		As of September 30,
		2024			2023
Other Financial Data
Receivable days			49			51
Inventory days			38			36
Accounts payable days			58			60
Receivables, net plus inventories less accounts payable		$	758,506		$	772,229
Receivables, net plus inventories less accounts payable as a percent of sales (TTM) †			14.1	%		14.6	%
† Trailing 12 months sales have been adjusted for the pro forma effect of acquired branches

TopBuild Corp.
Condensed Consolidated Statement of Cash Flows (Unaudited)
(in thousands)
		Nine Months Ended September 30,
		2024				2023
Cash Flows Provided by (Used in) Operating Activities:
Net income		$	472,064			$	467,870
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			104,777				98,216
Share-based compensation			13,405				11,080
Loss on sale of assets			672				2,733
Amortization of debt issuance costs			2,161				2,161
Provision for bad debt expense			13,730				7,380
Provision for inventory obsolescence			6,713				3,617
Change in certain assets and liabilities, net of effects of businesses acquired:
Receivables, net			(30,294	)			(52,482	)
Inventories			(30,916	)			82,960
Prepaid expenses and other current assets			(6,849	)			(3,267	)
Accounts payable			(17,441	)			(21,361	)
Accrued liabilities			(15,695	)			(9,027	)
Other, net			(2,529	)			(1,402	)
Net cash provided by operating activities			509,798				588,478
Cash Flows Provided by (Used in) Investing Activities:
Purchases of property and equipment			(56,794	)			(48,076	)
Acquisition of businesses, net of cash acquired			(88,460	)			(147,614	)
Proceeds from sale of assets			2,336				14,674
Net cash used in investing activities			(142,918	)			(181,016	)
Cash Flows Provided by (Used in) Financing Activities:
Repayment of long-term debt			(35,651	)			(27,711	)
Taxes withheld and paid on employees' equity awards			(6,088	)			(6,350	)
Exercise of stock options			3,224				2,489
Repurchase of shares of common stock			(919,186	)			—
Payment of contingent consideration			—				(300	)
Net cash used in financing activities			(957,701	)			(31,872	)
Impact of exchange rate changes on cash			(402	)			(47	)
Net (decrease) increase in cash and cash equivalents			(591,223	)			375,543
Cash and cash equivalents - Beginning of period			848,565				240,069
Cash and cash equivalents - End of period		$	257,342			$	615,612
Supplemental disclosure of noncash activities:
Leased assets obtained in exchange for new operating lease liabilities		$	35,718			$	45,525
Accruals for property and equipment			227				305
Excise taxes capitalized to treasury stock			9,342				—

TopBuild Corp.
Segment Data (Unaudited)
(dollars in thousands)
		Three Months Ended September 30,											Nine Months Ended September 30,
		2024				2023				Change			2024				2023				Change
Installation
Sales		$	856,350			$	821,673			4.2	%		$	2,506,076			$	2,397,818			4.5	%
Operating profit, as reported		$	172,243			$	175,218						$	499,717			$	494,394
Operating margin, as reported			20.1	%			21.3	%						19.9	%			20.6	%
Rationalization charges			—				1,882							—				1,882
Acquisition related costs			31				26							364				516
Operating profit, as adjusted		$	172,274			$	177,126						$	500,081			$	496,792
Operating margin, as adjusted			20.1	%			21.6	%						20.0	%			20.7	%
Share-based compensation			71				436							719				1,124
Depreciation and amortization			19,037				17,417							56,016				50,700
EBITDA, as adjusted		$	191,382			$	194,979			(1.8	)%		$	556,816			$	548,616			1.5	%
EBITDA margin, as adjusted			22.3	%			23.7	%						22.2	%			22.9	%
Specialty Distribution
Sales		$	600,387			$	571,009			5.1	%		$	1,739,007			$	1,703,871			2.1	%
Operating profit, as reported		$	94,911			$	88,269						$	261,862			$	247,583
Operating margin, as reported			15.8	%			15.5	%						15.1	%			14.5	%
Rationalization charges			194				—							(556	)			—
Acquisition related costs			4				10							14				350
Operating profit, as adjusted		$	95,109			$	88,279						$	261,320			$	247,933
Operating margin, as adjusted			15.8	%			15.5	%						15.0	%			14.6	%
Share-based compensation			374				434							1,187				987
Depreciation and amortization			15,117				15,102							45,000				44,414
EBITDA, as adjusted		$	110,600			$	103,815			6.5	%		$	307,507			$	293,334			4.8	%
EBITDA margin, as adjusted			18.4	%			18.2	%						17.7	%			17.2	%

TopBuild Corp.
Adjusted EBITDA (Unaudited)
(dollars in thousands)
		Three Months Ended September 30,											Nine Months Ended September 30,
		2024				2023				Change			2024				2023				Change
Total net sales
Sales before eliminations		$	1,456,737			$	1,392,682						$	4,245,083			$	4,101,689
Intercompany eliminations			(83,469	)			(66,562	)						(227,486	)			(193,069	)
Net sales after eliminations		$	1,373,268			$	1,326,120			3.6	%		$	4,017,597			$	3,908,620			2.8	%
Operating profit, as reported - segments		$	267,154			$	263,487						$	761,579			$	741,977
General corporate expense, net			(9,685	)			(14,494	)						(55,610	)			(35,280	)
Intercompany eliminations			(13,476	)			(11,501	)						(37,076	)			(32,672	)
Operating profit, as reported		$	243,993			$	237,492						$	668,893			$	674,025
Operating margin, as reported			17.8	%			17.9	%						16.6	%			17.2	%
Rationalization charges			485				1,882							(7	)			1,882
Acquisition related costs †			1,447				6,558							6,502				12,317
Acquisition termination fee			—				—							23,000				—
Operating profit, as adjusted		$	245,925			$	245,932						$	698,388			$	688,224
Operating margin, as adjusted			17.9	%			18.5	%						17.4	%			17.6	%
Share-based compensation			3,646				4,194							13,405				11,080
Depreciation and amortization			35,486				33,564							104,777				98,216
EBITDA, as adjusted		$	285,057			$	283,690			0.5	%		$	816,570			$	797,520			2.4	%
EBITDA margin, as adjusted			20.8	%			21.4	%						20.3	%			20.4	%
Sales change period over period			47,148											108,977
EBITDA, as adjusted, change period over period			1,367											19,050
Incremental EBITDA, as adjusted, as a percentage of change in sales			2.9	%										17.5	%
† Acquisition related costs include corporate level adjustments as well as segment operating adjustments

TopBuild Corp.
Same Branch and Acquisition Metrics (Unaudited)
(dollars in thousands)
		Three Months Ended September 30,								Nine Months Ended September 30,
		2024				2023				2024				2023
Net sales
Same branch:
Installation		$	832,780			$	819,702			$	2,424,965			$	2,382,440
Specialty Distribution			592,641				571,009				1,721,267				1,703,871
Eliminations			(83,469	)			(66,562	)			(227,486	)			(193,069	)
Total same branch		$	1,341,952			$	1,324,149			$	3,918,746			$	3,893,242
Acquisitions (a):
Installation		$	23,570			$	—			$	81,111			$	—
Specialty Distribution			7,746				—				17,740				—
Total acquisitions			31,316				—				98,851				—
Dispositions (b):
Installation		$	—			$	1,971			$	—			$	15,378
Total dispositions			—				1,971				—				15,378
Total net sales		$	1,373,268			$	1,326,120			$	4,017,597			$	3,908,620
EBITDA, as adjusted
Same branch		$	280,333			$	283,175			$	801,535			$	794,480
Acquisitions (a)			4,724				—				15,035				—
Dispositions (b)			—				515				—				3,040
Total		$	285,057			$	283,690			$	816,570			$	797,520
EBITDA, as adjusted, as a percentage of sales
Same branch (c)			20.9	%							20.5	%
Acquisitions (d)			15.1	%							15.2	%
Total (e)			20.8	%			21.4	%			20.3	%			20.4	%
As Adjusted Incremental EBITDA, as a percentage of change in sales
Same branch (f)			NM								27.7	%
Acquisitions (d)			15.1	%							15.2	%
Total (g)			2.9	%							17.5	%
(a) Represents current year impact of acquisitions in their first twelve months
(b) Represents operating results in prior period previously classified as same branch
(c) Same branch metric, as adjusted, as a percentage of same branch sales
(d) Acquired metric, as adjusted, as a percentage of acquired sales
(e) Total EBITDA, as adjusted, as a percentage of total sales
(f) Change in same branch EBITDA, as adjusted, as a percentage of change in same branch sales
(g) Change in total EBITDA, as adjusted, as a percentage of change in total sales
NM Not Meaningful

TopBuild Corp.
Non-GAAP Reconciliations (Unaudited)
(in thousands, except share and per common share amounts)
		Three Months Ended September 30,								Nine Months Ended September 30,
		2024				2023				2024				2023
Gross Profit Reconciliation
Net sales		$	1,373,268			$	1,326,120			$	4,017,597			$	3,908,620
Gross profit, as reported		$	421,813			$	420,690			$	1,232,885			$	1,212,704
Acquisition related costs			—				—				—				—
Gross profit, as adjusted		$	421,813			$	420,690			$	1,232,885			$	1,212,704
Gross margin, as reported			30.7	%			31.7	%			30.7	%			31.0	%
Gross margin, as adjusted			30.7	%			31.7	%			30.7	%			31.0	%
Selling, General and Administrative Expense Reconciliation
Selling, general, and administrative expense, as reported		$	177,820			$	183,198			$	563,992			$	538,679
Rationalization charges			485				1,882				(7	)			1,882
Acquisition related costs			1,447				6,558				6,502				12,317
Acquisition termination fee			—				—				23,000				—
Selling, general, and administrative expense, as adjusted		$	175,888			$	174,758			$	534,497			$	524,480
Operating Profit Reconciliation
Operating profit, as reported		$	243,993			$	237,492			$	668,893			$	674,025
Rationalization charges			485				1,882				(7	)			1,882
Acquisition related costs			1,447				6,558				6,502				12,317
Acquisition termination fee			—				—				23,000				—
Operating profit, as adjusted		$	245,925			$	245,932			$	698,388			$	688,224
Operating margin, as reported			17.8	%			17.9	%			16.6	%			17.2	%
Operating margin, as adjusted			17.9	%			18.5	%			17.4	%			17.6	%
Income Per Common Share Reconciliation
Income before income taxes, as reported		$	227,899			$	224,677			$	638,069			$	631,140
Rationalization charges			485				1,882				(7	)			1,882
Acquisition related costs			1,447				6,558				6,502				12,317
Acquisition termination fee			—				—				23,000				—
Income before income taxes, as adjusted			229,831				233,117				667,564				645,339
Tax rate at 26.0%			(59,756	)			(60,610	)			(173,567	)			(167,788	)
Income, as adjusted		$	170,075			$	172,507			$	493,997			$	477,551
Income per common share, as adjusted		$	5.68			$	5.43			$	15.89			$	15.04
Weighted average diluted common shares outstanding			29,925,400				31,788,812				31,083,857				31,744,856

TopBuild Corp.
Reconciliation of Adjusted EBITDA to Net Income (Unaudited)
(in thousands)
		Three Months Ended September 30,						Nine Months Ended September 30,
		2024			2023			2024				2023
Net income, as reported		$	168,960		$	167,602		$	472,064			$	467,870
Adjustments to arrive at EBITDA, as adjusted:
Interest expense and other, net			16,094			12,815			30,824				42,885
Income tax expense			58,939			57,075			166,005				163,270
Depreciation and amortization			35,486			33,564			104,777				98,216
Share-based compensation			3,646			4,194			13,405				11,080
Rationalization charges			485			1,882			(7	)			1,882
Acquisition related costs			1,447			6,558			6,502				12,317
Acquisition termination fee			—			—			23,000				—
EBITDA, as adjusted		$	285,057		$	283,690		$	816,570			$	797,520

TopBuild Corp.
Acquisition Adjusted Net Sales (Unaudited)
(in thousands)
	2023			2024									Trailing Twelve Months Ended
	Q4			Q1			Q2			Q3			September 30, 2024
Net sales	$	1,286,074		$	1,278,717		$	1,365,612		$	1,373,268		$	5,303,671
Acquisitions proforma adjustment †		28,367			24,075			10,603			—			63,045
Net sales, acquisition adjusted	$	1,314,441		$	1,302,792		$	1,376,215		$	1,373,268		$	5,366,716
† Trailing 12 months sales have been adjusted for the pro forma effect of acquired branches

TopBuild Corp.
2024 Estimated Adjusted EBITDA Range (Unaudited)
(in millions)
	Twelve Months Ending December 31, 2024
	Low			High
Estimated net income, as reported	$	606.0		$	634.0
Adjustments to arrive at estimated EBITDA, as adjusted:
Interest expense and other, net		48.0			45.0
Income tax expense		213.0			222.0
Depreciation and amortization		142.0			140.0
Share-based compensation		17.0			16.0
Acquisition related costs & rationalization charges		29.0			28.0
Estimated EBITDA, as adjusted	$	1,055.0		$	1,085.0

This press release was published by a CLEAR® Verified individual.

Investor Relations and Media Contact

PI Aquino
pi.aquino@topbuild.com
386-763-8801