BofA warns Fed risks policy mistake with early rate cuts
DAYTONA BEACH - TopBuild Corp. (NYSE:BLD), a $10.6 billion market cap construction services company with "GREAT" financial health according to InvestingPro, has completed its acquisition of Progressive Roofing for $810 million in an all-cash transaction, the company announced Tuesday.
The acquisition establishes TopBuild’s presence in the commercial roofing services sector, which the company describes as a $75 billion highly fragmented market. Progressive Roofing, founded in 1978 and previously owned by Bow River Capital, provides commercial roofing installation services including re-roofing, maintenance, and new construction. InvestingPro data shows TopBuild operates with moderate debt levels and maintains strong liquidity, with current assets more than twice its short-term obligations.
According to the company statement, Progressive Roofing generated $438 million in revenue and $89 million in EBITDA for the trailing 12 months ended March 31, 2025. Approximately 70% of Progressive’s revenue comes from non-discretionary re-roofing and maintenance services, with the remaining 30% from new construction. This acquisition will complement TopBuild’s existing operations, which generated $5.28 billion in revenue and over $1 billion in EBITDA over the past twelve months.
"We are excited to establish a new platform for organic and M&A growth in the large and highly complementary commercial roofing services sector," said Robert Buck, President and Chief Executive Officer of TopBuild, in the press release.
The Phoenix-based Progressive Roofing employs more than 1,700 people across 12 branches and serves commercial sectors including education, technology, industrial, healthcare, and government. Discover more detailed insights about TopBuild’s growth strategy and financial outlook in the comprehensive Pro Research Report, available exclusively on InvestingPro.
TopBuild, headquartered in Daytona Beach, Florida, operates over 200 installation branches throughout the United States and more than 150 specialty distribution branches across the United States and Canada.
The acquisition was previously announced before being finalized today, according to the company’s press release statement.
In other recent news, TopBuild Corp announced an all-cash agreement to acquire Progressive Roofing for $810 million. The acquisition, which is expected to close early in the third quarter of 2025, will expand TopBuild’s commercial building envelope solutions. Progressive Roofing, a leader in commercial roofing installation, generated $438 million in revenue and $89 million in EBITDA for the trailing 12 months ended March 31, 2025. The acquisition is anticipated to be immediately accretive to TopBuild’s adjusted earnings per share. Analysts from Benchmark, DA Davidson, Loop Capital, and BofA Securities have maintained or raised their Buy ratings on TopBuild following the acquisition announcement. Benchmark and DA Davidson highlighted the acquisition’s potential to increase TopBuild’s growth multiple and provide a new platform for expansion. Loop Capital and BofA Securities both raised their price targets for TopBuild to $400, citing the strategic fit and growth opportunities in the highly fragmented $75 billion commercial roofing industry. The transaction will be funded through TopBuild’s expanded credit facility and cash on hand.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.