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1. Company Snapshot

1.a. Company Description

TopBuild Corp., together with its subsidiaries, engages in the installation and distribution of insulation and other building products to the construction industry.The company operates in two segments, Installation and Specialty Distribution.It provides insulation products and accessories, glass and windows, rain gutters, afterpaint products, fireproofing products, garage doors, fireplaces, closet shelving, roofing materials, and other products; and insulation installation services.


The company also offers various services and tools to assist builders in applying the principles of building science to new home construction, which include pre-construction plan reviews, diagnostic testing, and various inspection services; and home energy rating services.In addition, it distributes building and mechanical insulation, insulation accessories, and other building product materials for the residential, commercial, and industrial end markets.The company serves single-family homebuilders, single-family custom builders, multi-family builders, commercial general contractors, remodelers, and individual homeowners, as well as insulation contractors, gutter contractors, weatherization contractors, other contractors, dealers, metal building erectors, and modular home builders.


It operates approximately 235 installation branches and 175 distribution centers in the United States and Canada.The company was formerly known as Masco SpinCo Corp.and changed its name to TopBuild Corp.


in March 2015.TopBuild Corp.was incorporated in 2015 and is headquartered in Daytona Beach, Florida.

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1.b. Last Insights on BLD

TopBuild Corp.'s recent performance has been driven by strategic acquisitions, including the $1 billion purchase of Specialty Products and Insulation (SPI), which expands its industrial reach, boosts non-cyclical revenues, and delivers immediate earnings accretion. The company's Q2 2025 earnings beat estimates, with non-GAAP EPS of $5.31, and revenue of $1.3 billion. Additionally, TopBuild's issuance of $750 million in senior notes due 2034 at 5.625% and upcoming Investor Day on December 9, 2025, are expected to support growth.

1.c. Company Highlights

2. TopBuild's Q3 2025 Earnings: A Closer Look at Financial Performance

TopBuild reported total sales growth of 1.4% to $1.4 billion in the third quarter, driven by M&A of 7.9% and pricing of 0.3%, while volume declined by 6.7%. Adjusted EBITDA margin was 19.8%, down 100 basis points from the prior year. The company's EPS came in at $5.36, beating estimates of $5.22. Net debt was $1.7 billion, and the net debt leverage ratio was 1.6 times trailing 12 months pro forma adjusted EBITDA.

Publication Date: Nov -15

📋 Highlights
  • Acquisition-Driven Revenue Expansion: Added $50M in annual revenue via acquisitions, expanding into commercial roofing and insulation.
  • Q3 Sales Growth and Margin Pressure: Total sales rose 1.4% to $1.4B, but adjusted EBITDA margin fell 100 bps to 19.8% due to volume decline (-6.7%) and cost pressures.
  • Full-Year Guidance Update: Revised full-year sales to $5.35–$5.45B, with M&A contributing ~$450M, offsetting weak residential and flattish commercial sales.
  • Cost Savings and Margin Resilience: $35M annualized savings from facility consolidation and labor adjustments, supporting margin stability despite pricing pressures.

Segment Performance

The Installation Services segment saw sales of $858.3 million, up 0.2%. Adjusted gross profit was 30.1%, down from 30.7% last year. The company's CFO, Robert Kuhns, attributed the margin resiliency to cost savings actions, including facility consolidation, headcount reductions, and direct labor adjustments.

Guidance Update

TopBuild updated its guidance to reflect the impact of recent acquisitions, expecting full-year sales to be between $5.35 to $5.45 billion. The company assumes residential sales will be down low double-digits, commercial and industrial same branch sales will be flattish, and the full-year impact of M&A on sales will be approximately $450 million.

Valuation and Growth Prospects

With a P/E Ratio of 20.68 and an EV/EBITDA of 13.77, the market is pricing in a certain level of growth. Analysts estimate next year's revenue growth at 13.9%. The company's ROIC is 10.83%, and ROE is 26.12%, indicating a strong return on equity. The Net Debt / EBITDA ratio is 1.96, slightly higher than the net debt leverage ratio reported.

Outlook and M&A Pipeline

Robert Buck mentioned that TopBuild has a uniquely positioned, diversified business model and is focused on driving profitable growth and increased shareholder value. The company is actively looking to make acquisitions to expand its presence in the market, with a focus on quality companies and talent.

3. NewsRoom

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TopBuild Corp. $BLD Stake Raised by Boston Partners

Nov -27

Source: defenseworld.net

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Bank Julius Baer & Co. Ltd Zurich Sells 191 Shares of TopBuild Corp. $BLD

Nov -25

Source: defenseworld.net

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TopBuild Corp. $BLD Stock Position Reduced by AXQ Capital LP

Nov -25

Source: defenseworld.net

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Ballard Power Systems, Inc. (NASDAQ:BLDP) Receives Average Recommendation of “Reduce” from Brokerages

Nov -15

Source: defenseworld.net

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Allworth Financial LP Has $1.79 Million Stake in TopBuild Corp. $BLD

Nov -14

Source: defenseworld.net

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ABN Amro Investment Solutions Makes New $3.02 Million Investment in TopBuild Corp. $BLD

Nov -14

Source: defenseworld.net

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Amid Destruction in Home Construction, 3 Stocks Stay Hot

Nov -11

Source: fool.com

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Ballard Power Systems (BLDP) Projected to Post Quarterly Earnings on Thursday

Nov -06

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.44%)

6. Segments

Installation

Expected Growth: 4.5%

TopBuild Corp.'s 4.5% growth driven by increasing demand for energy-efficient insulation, rising new construction and retrofitting activities, and strategic acquisitions expanding product offerings and geographic presence.

Specialty Distribution

Expected Growth: 4.8%

TopBuild Corp's Specialty Distribution segment growth of 4.8% is driven by increasing demand for insulation and specialty building products, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on digital transformation, operational efficiency, and customer relationships has contributed to its growth momentum.

Intercompany Eliminations and Other Adjustments

Expected Growth: 0.5%

TopBuild Corp's 0.5% growth in Intercompany Eliminations and Other Adjustments is driven by efficient management of internal transactions, reduced cross-charges, and effective consolidation of financial statements, resulting in minimal eliminations and adjustments. This growth also reflects the company's focus on streamlining operations and improving internal processes.

7. Detailed Products

Installation Services

TopBuild Corp. provides installation services for insulation, waterproofing, and fire-stopping solutions for residential and commercial buildings.

Insulation Products

TopBuild Corp. offers a range of insulation products, including fiberglass batts, spray foam, and rigid foam board, for thermal and acoustic insulation.

Waterproofing Solutions

TopBuild Corp. provides waterproofing solutions, including membranes, coatings, and sealants, to protect buildings from water damage and structural issues.

Fire-Stopping Solutions

TopBuild Corp. offers fire-stopping solutions, including sealants, sprays, and wraps, to prevent the spread of fire and smoke in buildings.

Specialty Building Materials

TopBuild Corp. provides specialty building materials, including roofing, siding, and drywall, for residential and commercial construction projects.

8. TopBuild Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

TopBuild Corp. faces moderate threat from substitutes, as customers have limited alternatives for its insulation and building materials.

Bargaining Power Of Customers

TopBuild Corp. has a diverse customer base, which reduces the bargaining power of individual customers, giving the company an upper hand in negotiations.

Bargaining Power Of Suppliers

TopBuild Corp. relies on a few large suppliers for its raw materials, giving them some bargaining power, but the company's scale and diversification mitigate this risk.

Threat Of New Entrants

The building materials industry has high barriers to entry, including significant capital requirements and regulatory hurdles, making it difficult for new entrants to compete with TopBuild Corp.

Intensity Of Rivalry

The building materials industry is highly competitive, with several established players competing for market share, which increases the intensity of rivalry for TopBuild Corp.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 0.00%
Debt Cost 4.29%
Equity Weight 100.00%
Equity Cost 12.78%
WACC 12.78%
Leverage 0.00%

11. Quality Control: TopBuild Corp. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Granite Construction

A-Score: 5.8/10

Value: 4.5

Growth: 7.9

Quality: 4.8

Yield: 1.0

Momentum: 8.0

Volatility: 8.7

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AECOM

A-Score: 5.5/10

Value: 3.5

Growth: 5.7

Quality: 5.2

Yield: 1.0

Momentum: 8.0

Volatility: 9.7

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Dycom Industries

A-Score: 5.0/10

Value: 2.4

Growth: 8.0

Quality: 4.9

Yield: 0.0

Momentum: 9.0

Volatility: 5.7

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TopBuild

A-Score: 4.8/10

Value: 3.5

Growth: 9.0

Quality: 6.4

Yield: 0.0

Momentum: 5.0

Volatility: 5.0

1-Year Total Return ->

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MYR Group

A-Score: 4.7/10

Value: 3.2

Growth: 4.9

Quality: 5.8

Yield: 0.0

Momentum: 9.5

Volatility: 4.7

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Construction Partners

A-Score: 4.5/10

Value: 1.5

Growth: 8.6

Quality: 3.4

Yield: 0.0

Momentum: 9.0

Volatility: 4.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

437.04$

Current Price

437.04$

Potential

-0.00%

Expected Cash-Flows