TopBuild Q3 2024 Earnings Report
Key Takeaways
TopBuild Corp. reported a strong performance for the third quarter of 2024, with sales reaching $1.37 billion and adjusted EBITDA of $285 million, representing the highest quarterly sales and profit in the company's history. The company is narrowing its 2024 outlook based on assumptions for a continued uneven housing environment and the ongoing delay of certain commercial/industrial projects.
Third quarter sales reached $1.37 billion, driven by Installation and Specialty Distribution growth.
Adjusted EBITDA for the third quarter was $285 million.
Gross margin was 30.7% and adjusted EBITDA margin was 20.8%.
2024 guidance narrowed to $5.3 to $5.35 billion in revenue and $1.055 to $1.085 billion in adjusted EBITDA.
TopBuild
TopBuild
Forward Guidance
TopBuild narrowed its full year 2024 outlook, based on the Company’s assumptions for a continued uneven housing environment and the ongoing delay of certain commercial/industrial projects.
Positive Outlook
- Strengthening requirements for energy efficiency
- U.S. housing supply deficit
- Increasing household formations
- Prospect of lower interest rates driving growth
- Healthy M&A pipeline
Challenges Ahead
- Continued uneven housing environment
- Ongoing delay of certain commercial/industrial projects
- Uncertainty regarding future costs and expenses
- Potential variability of costs and expenses
- Targets do not include effects related to potential acquisitions or divestitures