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Mar 31, 2021
TopBuild Q1 2021 Earnings Report
TopBuild's first quarter results for 2021 showed strong growth driven by residential and commercial businesses, with adjusted operating margins expanding in both TruTeam and Service Partners.
Key Takeaways
TopBuild reported a solid first quarter in 2021, with net sales increasing by 13.7% to $742.8 million. The company's operating margin was 12.9%, and adjusted net income reached $67.1 million, or $2.02 per diluted share. The results reflect strong growth in both residential and commercial businesses.
Net sales increased 13.7% to $742.8 million.
Gross margin expanded 30 basis points.
Operating margin was 12.9%, with an adjusted operating margin of 13.1%, up 230 basis points.
Adjusted net income was $67.1 million, or $2.02 per diluted share.
Forward Guidance
TopBuild provided its 2021 outlook for sales and adjusted EBITDA, with sales expected to be in the range of $3.22 billion to $3.32 billion and adjusted EBITDA in the range of $532 million to $562 million.
Positive Outlook
- Sales are expected to be between $3,220 million and $3,320 million.
- Adjusted EBITDA is projected to be between $532 million and $562 million.
- Assumes housing starts between 1,450 and 1,500.
- Estimated net income between $315.3 million and $344.6 million.
- Share-based compensation between $11.2 million and $8.7 million.
Challenges Ahead
- Interest Expense and other, net between $23.8 million and $20.8 million
- Income tax expense between $110.8 million and $121.0 million
- Depreciation and Amortization between $70.9 million and $66.9 million
- Guidance does not include potential acquisitions or divestitures.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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