TopBuild Q2 2020 Earnings Report

Reported second quarter results with a decline in net sales but improved margins and profitability.

Key Takeaways

TopBuild reported a 2.1% decrease in net sales to $646.1 million due to COVID-19 impacts, but achieved a 110 bps gross margin expansion and a 12.5% operating margin. Adjusted EBITDA margin increased by 250 bps to 16.7%. Net income was $55.5 million, or $1.67 per diluted share, while adjusted income was $55.7 million, or $1.68 per diluted share.

Net sales declined 2.1% to $646.1 million, primarily driven by volume declines related to the impact of the COVID-19 pandemic.

Gross margin increased 110 basis points to 27.6%. On an adjusted basis, gross margin increased 130 basis points to 27.8%.

Operating margin was 12.5%, up 100 basis points. Adjusted operating margin improved 130 basis points to 12.9%.

Adjusted EBITDA margin improved 250 basis points to 16.7%.