TopBuild shares fall as 2025 outlook disappoints

Published 25/02/2025, 13:00
TopBuild shares fall as 2025 outlook disappoints

NEW YORK -On Tuesday, TopBuild Corp. (NYSE:BLD) reported fourth-quarter earnings that beat analyst estimates, but its shares tumbled -3.69% as the company’s 2025 revenue guidance came in below expectations.

The insulation and building materials installer and distributor posted adjusted earnings per share of $5.13 for the quarter, surpassing the analyst consensus of $5.03. Revenue rose 2% YoY to $1.31 billion, in line with estimates.

However, TopBuild’s outlook for 2025 fell short of Wall Street projections. The company anticipates full-year revenue between $5.05 billion and $5.35 billion, below the $5.465 billion consensus. It also forecast adjusted EBITDA of $925 million to $1.075 billion for the year.

"Our performance in 2024 was driven by consistent execution within our unique operating model and the entire TopBuild team’s relentless pursuit of operational excellence," said CEO Robert Buck.

Fourth-quarter sales in the company’s Installation segment were relatively flat at $788.6 million, while Specialty Distribution sales grew 6.6% to $601.8 million. Overall gross margin contracted to 29.9% from 30.4% a year earlier.

For the full year 2024, TopBuild reported record sales of $5.33 billion, up 2.6% from 2023. The company completed eight acquisitions totaling $153.1 million in annual sales and repurchased about 2.5 million shares for $966.4 million.

Looking ahead, TopBuild said it expects "ongoing choppiness in the residential new construction market throughout 2025." The company’s board authorized a new $1 billion share repurchase program, bringing its total buyback availability to $1.2 billion.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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