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Sep 30, 2023
TopBuild Q3 2023 Earnings Report
TopBuild's Q3 2023 results were reported, showcasing solid operating performance driven by the team's focus on profitable growth and operational efficiencies.
Key Takeaways
TopBuild reported a 1.9% increase in net sales and a 17.9% operating margin. The company is particularly pleased with the performance of its non-residential business, with both Installation and Specialty Distribution segments reporting mid-single digit volume growth related to the commercial and industrial end markets.
Net sales increased by 1.9%.
Gross margin was 31.7%.
Operating margin reached 17.9%, or 18.5% on an adjusted basis.
Adjusted EBITDA margin was 21.4%.
Forward Guidance
TopBuild provided its 2023 outlook, reflecting management's current view of present and future market conditions. These targets do not include any effects related to potential acquisitions or divestitures that may occur after the date of the press release.
Positive Outlook
- Sales are expected to be between $5.13 billion and $5.21 billion.
- Adjusted EBITDA is projected to be between $1.025 billion and $1.055 billion.
- Significant free cash flow generation.
- Acquisitions remain the number one capital allocation priority.
- Expectation to remain active in residential, commercial, and industrial insulation end markets.
Challenges Ahead
- Outlook reflects management’s current view of present and future market conditions.
- Based on assumptions such as housing starts and completions.
- Based on general and administrative expenses.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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