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Jun 30, 2024

TopBuild Q2 2024 Earnings Report

Both segments drove growth, resulting in second quarter sales of $1.37 billion. The company delivered a gross margin of 31% and an adjusted EBITDA margin of 20.3%.

Key Takeaways

TopBuild reported solid second-quarter results with sales growth of 3.7% to $1.37 billion. Adjusted EBITDA reached $277.7 million, with an adjusted EBITDA margin of 20.3%. Both segments contributed to sales growth, although volume was impacted by higher interest rates and project delays.

Sales grew 3.7% to $1.37 billion.

Adjusted EBITDA was $277.7 million.

Adjusted EBITDA margin was 20.3%.

Completed 6 acquisitions year to date.

Total Revenue
$1.37B
Previous year: $1.32B
+3.7%
EPS
$5.42
Previous year: $5.25
+3.2%
Operating Margin
15.4%
Previous year: 0.18%
+8455.6%
Adjusted EBITDA Margin
20.3%
Previous year: 0.21%
+9612.9%
Gross Profit
$424M
Previous year: $422M
+0.5%
Cash and Equivalents
$463M
Previous year: $526M
-12.0%
Free Cash Flow
$74.3M
Previous year: $201M
-63.0%
Total Assets
$4.9B
Previous year: $4.86B
+0.9%

TopBuild

TopBuild

Forward Guidance

The company revised its full-year 2024 guidance to $5.3 to $5.5 billion in revenue and $1.055 to $1.125 billion in adjusted EBITDA. This assumes mid-single digit residential growth.

Positive Outlook

  • Mid-single digit residential growth expected
  • Low single digit commercial/industrial growth expected
  • Strong long-term fundamentals
  • Undersupply of housing in the U.S.
  • Potential for moderating interest rates

Challenges Ahead

  • Revision largely reflects timing of demand
  • Uncertainty regarding costs and expenses
  • Potential variability of costs and expenses
  • Uncertainty regarding housing starts
  • Uncertainty regarding interest rates