TopBuild to acquire Progressive Roofing for $810 million in cash

DAYTONA BEACH - TopBuild Corp. (NYSE:BLD), a leading installer and distributor of insulation products with a market capitalization of $9.8 billion and an "GREAT" financial health rating according to InvestingPro, announced Tuesday it has agreed to acquire Progressive Roofing for $810 million in cash, expanding its commercial building envelope solutions.

The acquisition represents approximately 9.1 times Progressive’s trailing twelve-month EBITDA ended March 31, 2025, or 8.6 times when accounting for expected synergies of $5 million. The transaction is expected to be immediately accretive to TopBuild’s adjusted earnings per share.

Phoenix-based Progressive Roofing, a portfolio company of Bow River Capital, provides commercial roofing installation services including re-roofing, maintenance, and new construction. The company generated $438 million in revenue and $89 million in EBITDA for the trailing 12 months ended March 31, 2025, with approximately 70% of revenue coming from non-discretionary re-roofing and maintenance services.

"The acquisition of Progressive, one of the largest commercial roofing installers in the United States, will enable us to offer commercial customers more comprehensive building envelope installation solutions," said Robert Buck, President and CEO of TopBuild, in a press release statement.

Progressive employs more than 1,700 people across 12 branches and serves commercial sectors including education, technology, industrial, healthcare, and government.

The deal gives TopBuild entry into the approximately $75 billion commercial roofing services industry, which the company described as highly fragmented and largely driven by non-discretionary factors such as roof age and weather-related damage.

The transaction will be funded through TopBuild’s recently expanded credit facility and cash on hand. The company’s strong financial position, with current assets exceeding short-term obligations by 2.02x and a moderate debt level, supports this strategic move. Following the acquisition, TopBuild’s pro forma net debt to adjusted EBITDA ratio is expected to be approximately 1.6 times. According to InvestingPro, the company maintains healthy profitability with trailing twelve-month EBITDA of $1.03 billion.

Subject to regulatory approvals and customary closing conditions, the acquisition is expected to close early in the third quarter of 2025. TopBuild’s stock, currently trading near its InvestingPro Fair Value, has shown strong momentum with a 10.4% return year-to-date. For deeper insights into TopBuild’s financials and growth prospects, including 13 additional ProTips and comprehensive valuation metrics, explore InvestingPro’s detailed research report.

In other recent news, TopBuild Corp. reported its first-quarter earnings for 2025, surpassing expectations with an earnings per share (EPS) of $4.63, compared to a forecast of $4.43. The company’s revenue met expectations at $1.23 billion. Additionally, TopBuild’s capital structure saw significant changes as it refinanced its $500 million revolver and $476 million outstanding term loan A with a new five-year facility. This new facility includes a $1 billion revolver, a $1 billion term loan A, and a $250 million delayed-draw term loan, aimed at funding future acquisitions and general corporate purposes. S&P Global Ratings revised the recovery rating on TopBuild’s senior notes to ’4’ from ’3’, indicating lower recovery prospects for unsecured lenders due to increased priority debt. Despite these changes, the issuer credit rating remains at ’BB+’ with a stable outlook. The firm’s projected pro forma 2025 leverage is expected to be about 2x, providing a cushion against industry cyclicality. Analyst firm Evercore ISI noted the company’s strategic focus on growth and operational resilience, with ongoing consolidation efforts and cost management expected to yield significant savings.

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