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Mar 31, 2022

TopBuild Q1 2022 Earnings Report

TopBuild reported strong first quarter results, demonstrating the strength of its operating model.

Key Takeaways

TopBuild's first quarter 2022 results showed significant growth, with sales increasing by 57.4% to $1.2 billion. The company's focus on managing price, improving operational efficiency, and leveraging fixed costs drove solid conversion of top-line growth to the bottom line. Adjusted EBITDA margin expanded by 310 basis points to 18.7%.

Sales increased 57.4% to $1168918000.

Same branch revenue increased 18.7%.

Gross margin expanded 170 basis points to 28.3%, same branch gross margin expanded 290 basis points to 29.6%.

Same branch adjusted EBITDA margin expanded 310 basis points to 18.7%.

Total Revenue
$1.17B
Previous year: $743M
+57.4%
EPS
$3.5
Previous year: $2.02
+73.3%
Operating Margin
14%
Previous year: 12.9%
+8.5%
Adjusted EBITDA Margin
17.3%
Previous year: 15.6%
+10.9%
Gross Profit
$331M
Previous year: $198M
+67.5%
Cash and Equivalents
$127M
Previous year: $320M
-60.4%
Free Cash Flow
$71.1M
Previous year: $77.1M
-7.9%
Total Assets
$4.36B
Previous year: $2.89B
+50.8%

TopBuild

TopBuild

Forward Guidance

TopBuild is optimistic 2022 will be another strong year. Sales are expected to be between $4.65 billion and $4.8 billion, while adjusted EBITDA is projected to be between $810 million and $860 million.

Positive Outlook

  • Unique operating model
  • Scale
  • Competitive advantages
  • Outperforming in any environment
  • Optimistic about a strong year

Challenges Ahead

  • Housing starts
  • Housing completions
  • General and administrative expenses
  • Weighted average diluted shares outstanding
  • Interest rates