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Sep 30, 2022
TopBuild Q3 2022 Earnings Report
TopBuild's Q3 2022 results reflected significant sales growth and margin expansion.
Key Takeaways
TopBuild reported a strong third quarter in 2022, with a 53.8% increase in net sales and a 130 basis point expansion in operating margin. The company's growth was driven by strong performance in residential, commercial, and industrial end-markets, as well as operational efficiencies.
Net sales increased by 53.8%, with same branch sales up 22.6%.
Operating margin expanded by 130 basis points to 17.1%.
Same branch adjusted EBITDA margin increased by 190 basis points to 20.6%.
Net Debt Leverage improved to 1.49x.
Forward Guidance
TopBuild provided its 2022 outlook for sales and adjusted EBITDA.
Positive Outlook
- Sales are expected to be between $4.95 billion and $5.0 billion.
- Adjusted EBITDA is projected to be between $915 million and $935 million.
- Guidance reflects management's view of present and future market conditions.
- Outlook is based on assumptions such as housing starts and completions.
- Targets include general and administrative expenses and interest rates.
Challenges Ahead
- Outlook does not include effects related to potential acquisitions.
- Outlook does not include effects related to potential divestitures.
- Guidance is based on assumptions that may not materialize.
- Market conditions could change, impacting the company's performance.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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