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DAYTONA BEACH, Fla. - TopBuild Corp. (NYSE:BLD), a prominent installer and distributor of insulation products with annual revenue of $5.3 billion, has announced an agreement to acquire Omaha-based Seal-Rite Insulation. Seal-Rite, a specialist in fiberglass and spray foam insulation, boasts $15 million in annual revenue and over 25 years of service in Nebraska’s residential and commercial sectors. The acquisition is set to be finalized in the second quarter of 2025. According to InvestingPro data, TopBuild maintains a strong financial position with a current ratio of 2.08, indicating robust liquidity to support its expansion strategy.
TopBuild’s President and CEO, Robert Buck, expressed enthusiasm for the expansion in Nebraska, highlighting Seal-Rite’s established track record and strong local reputation. Buck anticipates that the acquisition will contribute to TopBuild’s growth and profitability in the region. The company has demonstrated strong financial performance, with InvestingPro analysis showing a healthy gross profit margin of 30.5% and return on equity of 26%.
Seal-Rite’s Owner and President, Gil Bittner, also commented on the merger, looking forward to joining the TopBuild family and maintaining the company’s commitment to customer value and service excellence.
Headquartered in Daytona Beach, Florida, TopBuild operates approximately 250 branches across the United States, offering insulation installation services nationwide. Additionally, through its Specialty Distribution network, TopBuild distributes building and mechanical insulation, accessories, and other materials across roughly 190 branches in the United States and Canada.
Seal-Rite has established itself as a trusted insulation contractor in Omaha and Lincoln, emphasizing high-quality products and customer satisfaction to address rising energy costs.
The acquisition aligns with TopBuild’s strategic growth objectives and is expected to enhance its service offerings in the Midwest. While the stock has experienced a 26.8% decline over the past year and currently trades near its 52-week low, InvestingPro analysis indicates the company maintains a "GREAT" overall financial health score of 3.1 out of 5. This press release contains forward-looking statements and is based on current expectations and projections about future events. The actual outcomes may differ due to various risks and uncertainties. For comprehensive insights into TopBuild’s valuation, growth prospects, and 13 additional exclusive ProTips, explore the detailed Pro Research Report available on InvestingPro.
This news article is based on a press release statement from TopBuild Corp.
In other recent news, TopBuild Corp. announced fourth-quarter earnings that exceeded analyst estimates, reporting adjusted earnings per share of $5.13 compared to the expected $5.03. The company’s revenue increased by 2% year-over-year, reaching $1.31 billion, which was in line with forecasts. Despite these positive results, TopBuild’s 2025 revenue guidance fell short of Wall Street expectations, with projections between $5.05 billion and $5.35 billion, below the anticipated $5.465 billion. The company also forecasted adjusted EBITDA for 2025 ranging from $925 million to $1.075 billion.
Benchmark analysts responded by lowering their price target for TopBuild to $375 from $445, maintaining a Buy rating. This adjustment reflects the company’s mixed performance and uncertain market conditions, with a noted decline in the multi-family segment. Truist Securities also revised their price target down to $310 from $395, retaining a Hold rating due to concerns about potential EBITDA contraction in 2025. Despite these challenges, TopBuild completed eight acquisitions in 2024, contributing $153.1 million in annual sales, and initiated a new $1 billion share repurchase program. The company’s Specialty Distribution segment showed growth, while the Installation segment remained flat, affecting overall revenue prospects.
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