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Jun 30, 2021
TopBuild Q2 2021 Earnings Report
TopBuild's second quarter results were driven by strong top-line growth and operating margin expansion.
Key Takeaways
TopBuild reported a strong second quarter with a 29.1% increase in net sales and expanded operating margins. The company successfully managed pricing amidst material cost increases and maintained productivity in a constrained market.
Net sales increased by 29.1%.
Gross margin expanded by 150 bps.
Operating margin reached 15.4%, a 270 bps increase.
Net income per diluted share was $2.72.
TopBuild
TopBuild
Forward Guidance
TopBuild expects the residential housing market to remain solid and the commercial market to continue to strengthen. The company will focus on profitable growth and creating long-term value.
Positive Outlook
- Residential housing market is expected to remain solid.
- Commercial market is expected to continue to strengthen.
- Focus will remain on driving profitable growth.
- Focus on creating long-term value for stakeholders.
- M&A remains the number one capital allocation priority.
Challenges Ahead
- Uncertainty regarding costs and expenses that may be incurred in the future
- Potential variability of costs and expenses that may be incurred in the future
- The effect of these excluded items may be significant
- Housing Starts 1,475 Low
- Housing Starts 1,525 High