TopBuild Corp Reports Second Quarter 2024 Financial Results

Intellectia.AI2024-08-06

Illustration by Intellectia.AI

TopBuild Corp. Reports Second Quarter 2024 Financial Results

TopBuild Corp. (NYSE: BLD), a leading installer and specialty distributor of insulation and building material products in the United States and Canada, reported financial results for the second quarter ended June 30, 2024.

Key Financial Metrics

Metrics	Actual (Q2 2024)	YoY Comparison	Consensus Estimate
Total Revenue	$1.37 billion	+3.7%	$1.4 billion
Adjusted EBITDA	$277.7 million	Not Provided	Not Provided
Adjusted EBITDA Margin	20.3%	Not Provided	Not Provided
Earnings Per Share (EPS)	Not Provided	Not Provided	$5.68

Interpretation: TopBuild reported a total revenue of $1.37 billion for Q2 2024, reflecting a 3.7% year-over-year growth but slightly missed the consensus estimate of $1.4 billion. The company delivered an impressive adjusted EBITDA margin of 20.3%, indicating strong profitability.

Segment Revenue Performance

Segment	Actual Revenue (Q2 2024)	Previous Guidance	YoY Comparison
Installation Services	Not Provided	Not Provided	Not Provided
Specialty Distribution	Not Provided	Not Provided	Not Provided

Interpretation: While the specific segment revenue numbers were not detailed, the company noted that both segments saw sales growth. However, volume was less than anticipated due to factors such as higher interest rates, project delays, and supply constraints.

Additional Key Operational Data

Data	Value
Gross Margin	31%
Number of Acquisitions	6
Backlog	Robust in both residential and commercial segments

Executive Comments

Robert Buck, President and CEO of TopBuild, expressed satisfaction with the company's solid results for the quarter. He highlighted the highest level of sales and profitability in the company's history, excluding the unusually high margins from multi-family and commercial projects in 2023. Buck cited ongoing challenges but remained optimistic about the long-term fundamentals, including housing undersupply and energy efficiency demands.

Share Repurchases

TopBuild repurchased approximately 1.25 million shares during the quarter, totaling $505.2 million, which underscores management and the Board's continuous confidence in future growth. There is still $649.2 million remaining under the current authorization.

Forward Guidance

The company revised its full-year 2024 guidance, now projecting revenue between $5.3 billion and $5.5 billion and adjusted EBITDA between $1.055 billion and $1.125 billion. The guidance revision reflects the timing of demand rather than any underlying business changes.

Stock Price Movement

Following the earnings release, TopBuild's stock price experienced a decline of approximately 2.42%.

Overall, TopBuild demonstrated robust operational performance despite some market challenges, underscored by a strong outlook and ongoing capital return initiatives.