TopBuild Corp. (NYSE:BLD) reported fourth‑quarter and full‑year 2025 results on February 26, 2026. Total revenue for the quarter was $1.49 billion, up 13.2% year‑over‑year, driven by the addition of seven acquisitions that added roughly $1.2 billion in annual revenue. Non‑GAAP earnings per share were $4.50, missing the consensus estimate of $4.54 by $0.04, while full‑year 2025 revenue of $5.409 billion matched expectations.
Installation Services generated $798.38 million in sales and delivered a 21.0% adjusted EBITDA margin, the strongest segment performance. Specialty Distribution contributed $755.44 million in revenue but its adjusted EBITDA margin fell to 15.5% from 18.0% in the prior year, reflecting the impact of the SPI acquisition and price‑cost pressures. Overall adjusted EBITDA margin for the quarter was 17.9%, down from 19.2% in Q4 2024.
The seven acquisitions completed in 2025 added about $1.205 billion in annual revenue and are expected to generate $35–$40 million in run‑rate synergies over the next two years. The $1 billion purchase of Specialty Products and Insulation (SPI) and the $820.5 million acquisition of Progressive Roofing were the largest deals, expanding TopBuild’s footprint in commercial and industrial markets.
Management guided 2026 sales to $5.925 billion–$6.225 billion and adjusted EBITDA to $1.005 billion–$1.155 billion, slightly below analyst consensus. The guidance signals caution amid an uncertain residential market, while the company remains confident in its commercial growth strategy. The company also returned $434.2 million to shareholders through share repurchases in 2025 and maintained $753.9 million in buyback availability.
The earnings miss and modestly lower guidance contributed to a muted market reaction, with analysts noting the EPS shortfall and the conservative outlook. Management emphasized that the company’s acquisition‑driven growth is offset by organic volume declines—same‑branch sales fell 9.8% in Q4 2025, with residential sales down 14.4%—and that price‑cost pressures are compressing Specialty Distribution margins.
TopBuild’s results underscore the trade‑off between rapid top‑line expansion through M&A and the short‑term impact on profitability and organic growth. The company’s focus on integrating acquisitions, improving Specialty Distribution margins, and maintaining a strong free‑cash‑flow position positions it to navigate the current market headwinds while pursuing long‑term growth in commercial and industrial segments.
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