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TopBuild Reports Second Quarter 2025 Results; Issues Guidance to Include Progressive Roofing Acquisition

1. TopBuild reported Q2 sales of $1.3 billion, down 5.0%. 2. Adjusted EBITDA margin remained strong at 20.1% despite sales decline. 3. 2025 revenue outlook projects $5.150-$5.350 billion, bolstered by acquisitions. 4. Weak consumer confidence is impacting residential demand, but commercial markets are solid. 5. Share buybacks totaled $136 million in Q2, signaling strong capital return strategy.

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FAQ

Why Bullish?

Despite declining sales, strong EBITDA margins and acquisitions indicate growth potential. Historical parallels include similar trends where strategic acquisitions led to positive long-term performance.

How important is it?

The article outlines significant developments, including acquisitions and share repurchases that could positively impact stock valuation. The consistent focus on M&A suggests strategic growth strategies are in place.

Why Long Term?

The acquisition of Progressive Roofing strengthens market position, promising future revenue increases. This mirrors past acquisitions where TopBuild faced initial sales challenges but later thrived.

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Delivers second quarter sales of $1.3 billion and adjusted EBITDA margin of 20.1% 2025 outlook for $5.150 to $5.350 billion in sales and $970 to $1,070 million in adjusted EBITDA includes contribution from Progressive Roofing acquisition DAYTONA BEACH, Fla., Aug. 05, 2025 (GLOBE NEWSWIRE) -- TopBuild Corp. (NYSE:BLD), a leading installer of insulation and commercial roofing and a specialty distributor of insulation and related building material products to the construction industry in the United States and Canada, today reported results for the second quarter ended June 30, 2025. Robert Buck, President and CEO of TopBuild, commented, “We have accomplished a great deal in 2025 to date, most recently closing the acquisition of Progressive Roofing and establishing a new platform for growth in the large and highly complementary roofing services sector. Additionally, our teams’ efforts early in the year to align our cost structure with the current demand landscape and drive operational improvements are reflected in our healthy second quarter adjusted EBITDA margin of 20.1%. Second quarter sales of $1.3 billion declined 5.0%, driven by an 8.3% decrease in Installation, which was partly offset by 1.1% growth in Specialty Distribution. Mr. Buck stated, “Our 2025 outlook assumes that the contribution from the Progressive Roofing acquisition for the rest of the year will more than offset further weakness in the residential new construction and light commercial end markets. In the near term, although weak consumer confidence and economic uncertainty are pressuring new residential housing demand, we are encouraged by the ongoing positive trends in our heavy commercial and industrial end markets and excited about our long runway of new opportunities in commercial roofing. “We remain optimistic that the long-term fundamentals for our business are strong and confident in our ability to drive increased shareholder returns. M&A continues to be our priority for deploying capital and we are returning capital to shareholders. In the second quarter, we repurchased nearly 455,000 shares, returning $136.0 million in capital to shareholders,” Mr. Buck concluded.  Financial Highlights(comparisons are to the periods ended June 30, 2024)             Three Months Ended June 30, 2025       Reported Adjusted  ($ in thousands) 2025  2024   2025  2024   Sales$1,297,403 $1,365,612  $1,297,403 $1,365,612   Gross Profit$394,043 $423,922  $392,943 $423,922   Gross Margin 30.4% 31.0%  30.3% 31.0%  SG&A$174,254 $213,530  $172,292 $185,893   SG&A as % of Sales 13.4% 15.6%  13.3% 13.6%  Operating Profit$219,789 $210,392  $220,651 $238,029   Operating Margin 16.9% 15.4%  17.0% 17.4%  Net Income$151,602 $150,723  $151,296 $170,800   Net Income per diluted share$5.32 $4.78  $5.31 $5.42   EBITDA   $261,302 $277,694   EBITDA Margin    20.1% 20.3%                  Six Months Ended June 30, 2025        Reported Adjusted  ($ in thousands) 2025  2024   2025  2024   Sales$2,530,681 $2,644,329  $2,530,681 $2,644,329   Gross Profit$745,516 $811,072  $757,919 $811,072   Gross Margin 29.5% 30.7%  29.9% 30.7%  SG&A$348,239 $386,172  $343,122 $358,609   SG&A as % of Sales 13.8% 14.6%  13.6% 13.6%  Operating Profit$397,277 $424,900  $414,797 $452,463   Operating Margin 15.7% 16.1%  16.4% 17.1%  Net Income$274,986 $303,104  $286,442 $323,922   Net Income per diluted share$9.53 $9.56  $9.93 $10.22   EBITDA   $496,060 $531,513   EBITDA Margin    19.6% 20.1%                    Sales Drivers        (comparisons are to the periods ended June 30, 2024)               Three Months Ended June 30, 2025    Installation Specialty Distribution TopBuild, net of eliminations  Sales ($ in millions) $781  $599  $1,297   Sales Drivers        Volume  (10.5%)  (2.1%)  (7.8%)  Price  0.9%  0.8%  0.9%  M&A  1.4%  2.3%  1.9%  Total Sales Change  (8.3%)  1.1%  (5.0%)                      Six Months Ended June 30, 2025    Installation Specialty Distribution TopBuild, net of eliminations  Sales ($ in millions) $1,526  $1,159  $2,531   Sales Drivers        Volume  (10.1%)  (2.1%)  (7.6%)  Price  1.0%  1.1%  1.1%  M&A  1.6%  2.8%  2.2%  Total Sales Change  (7.5%)  1.8%  (4.3%)                    Segment Profitability       (comparisons are to the periods ended June 30, 2024)              Three Months Ended June 30, 2025 Six Months Ended June 30, 2025  ($ in thousands)InstallationSpecialty Distribution InstallationSpecialty Distribution  Operating Profit$155,441 $87,482  $285,057 $156,541   Change (8.9%) (2.1%)  (13.0%) (6.2%)  Operating Margin 19.9% 14.6%  18.7% 13.5%  Adj. Operating Profit$154,541 $87,429  $292,581 $163,393   Change (9.6%) (2.2%)  (10.7%) (1.7%)  Adj. Operating Margin 19.8% 14.6%  19.2% 14.1%  Adj. EBITDA$174,062 $102,946  $331,618 $194,313   Change (8.4%) (1.8%)  (9.3%) (1.3%)  Adj. EBITDA Margin 22.3% 17.2%  21.7% 16.8%          Capital Allocation 2025 Acquisitions TopBuild continues to prioritize acquisitions for capital allocation and as of June 30, 2025, spent approximately $23 million on acquisitions. In addition, in July, the Company completed the acquisition of Progressive Roofing for $810 million, bringing the year-to-date capital deployed for acquisitions to approximately $833 million.      CompanyAnnual RevenueMonth Closed ($ in millions) Progressive Roofing (I)1$438.0July Seal-Rite Insulation (I) 15.2April Total$ 453.2  I = Installation   1 Trailing 12 months ended 3/31/25       Share RepurchasesDuring the second quarter, TopBuild repurchased 454,802 shares totaling $136.0 million. On a year-to-date basis, the Company bought back 1,148,683 shares for $351.6 million. The remaining availability for share repurchases at the end of the second quarter totaled $836.4 million. 2025 Outlook1TopBuild issued its full year outlook which includes the contribution of the Progressive Roofing acquisition which closed in July. The guidance does not contemplate additional transactions that it expects to complete during the year.    $ in millions  2025 OutlookLowHighSales$5,150.0$5,350.0Adjusted EBITDA$970.0$1,070.0      1 This outlook reflects management’s current view of present and future market conditions and is based on assumptions such as housing starts, general and administrative expenses, and interest rates. These targets do not include any effects related to potential acquisitions or divestitures that may occur after the date of this press release. A reconciliation of non-GAAP targets to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, the costs and expenses that may be incurred in the future and therefore cannot be reasonably predicted. The effect of these excluded items may be significant. Factors that could cause actual long-term results to differ materially from TopBuild’s current expectations are discussed below and detailed in the Company’s most recent Annual Report on Form 10-K and subsequent SEC reports. Conference Call A conference call to discuss the second quarter 2025 financial results is scheduled for today, Tuesday, August 5th, at 9:00 a.m. Eastern Time. The call can be accessed by dialing (877) 407-9037. A simultaneous webcast of the call, along with management’s formal remarks and a presentation, will be available on the Company’s website at www.topbuild.com shortly before the call begins. About TopBuild TopBuild Corp., headquartered in Daytona Beach, Florida, is a leading installer of insulation and commercial roofing and is also a specialty distributor of insulation and related building material products to the construction industry in the United States and Canada. We provide insulation and commercial roofing installation services nationwide through our Installation segment which has over 200 branches located across the United States. We distribute building and mechanical insulation, insulation accessories and other building product materials for the residential, commercial, and industrial end markets through our Specialty Distribution business. Our Specialty Distribution network encompasses more than 150 branches across the United States and Canada. To learn more about TopBuild please visit our website at www.topbuild.com. Use of Non-GAAP Financial Measures Adjusted EBITDA, incremental EBITDA margin, adjusted EBITDA margin, the “adjusted” financial measures presented above, and figures presented on a “same branch basis” are not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). The Company believes that these non-GAAP financial measures, which are used in managing the business, may provide users of this financial information with additional meaningful comparisons between current results and results in prior periods. We define same branch sales as sales from branches in operation for at least 12 full calendar months. Such non-GAAP financial measures are reconciled to their closest GAAP financial measures in tables contained in this press release. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company’s reported results under GAAP. Additional information may be found in the Company’s filings with the Securities and Exchange Commission which are available on TopBuild’s website under “SEC Filings” at www.topbuild.com. Safe Harbor Statement This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements may address, among other things, our expected financial and operational results, the related assumptions underlying our expected results, and our plan to repurchase our common stock under stock repurchase transactions. These forward-looking statements can be identified by words such as “will,” “would,” “anticipate,” “expect,” “believe,” “designed,” “plan,” “may,” “project,” “estimate” or “intend,” the negative of these terms, and similar references to future periods.  These views involve risks and uncertainties that are difficult to predict and, accordingly, our actual results may differ materially from the results discussed in our forward-looking statements. Our forward-looking statements contained herein speak only as of the date of this press release. Factors or events that we cannot predict, including those described in the risk factors contained in our filings with the Securities and Exchange Commission, may cause our actual results to differ from those expressed in forward-looking statements. Although TopBuild believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, the Company can give no assurance that its expectations will be achieved and it undertakes no obligation to update any forward-looking statements as a result of new information, future events, or otherwise, except as required by applicable law. Investor Relations and Media Contact PI Aquino          pi.aquino@topbuild.com386-763-8801 (tables follow) TopBuild Corp.             Condensed Consolidated Statements of Operations (Unaudited)          (in thousands, except share and per common share amounts)                          Three Months Ended June 30,  Six Months Ended June 30,    2025  2024  2025  2024  Net sales    $1,297,403     $1,365,612     $2,530,681     $2,644,329  Cost of sales  903,360   941,690   1,785,165   1,833,257  Gross profit  394,043   423,922   745,516   811,072                Selling, general, and administrative expense  174,254   213,530   348,239   386,172  Operating profit  219,789   210,392   397,277   424,900                Other income (expense), net:             Interest expense  (20,545)  (18,568)  (37,147)  (37,363) Other, net  4,348   11,350   9,434   22,632  Other expense, net  (16,197)  (7,218)  (27,713)  (14,731) Income before income taxes  203,592   203,174   369,564   410,169                Income tax expense  (51,990)  (52,451)  (94,578)  (107,065) Net income $151,602  $150,723  $274,986  $303,104                Net income per common share:             Basic $5.34  $4.81  $9.58  $9.63  Diluted $5.32  $4.78  $9.53  $9.56                Weighted average shares outstanding:             Basic  28,371,644   31,324,833   28,698,125   31,483,144  Diluted  28,515,554   31,524,063   28,858,719   31,693,524                 TopBuild Corp.            Condensed Consolidated Statements of Comprehensive Income (Unaudited)       (in thousands)                           Three Months Ended June 30,  Six Months Ended June 30,   2025 2024  2025 2024 Net income $151,602 $150,723  $274,986 $303,104 Other comprehensive income (loss):            Foreign currency translation adjustment  9,868  (1,836)  10,096  (5,928)Comprehensive income $161,470 $148,887  $285,082 $297,176               TopBuild Corp.        Condensed Consolidated Balance Sheets and Other Financial Data (Unaudited)        (dollars in thousands)          As of    June 30, 2025 December 31, 2024  ASSETS        Current assets:        Cash and cash equivalents $842,493 $400,318  Receivables, net of an allowance for credit losses of $24,268 at June 30, 2025, and $18,541 at December 31, 2024  752,559  751,612  Inventories  385,466  406,662  Prepaid expenses and other current assets  37,566  40,382  Total current assets  2,018,084  1,598,974           Right of use assets  180,626  189,146  Property and equipment, net  254,127  266,992  Goodwill  2,125,827  2,112,259  Other intangible assets, net  531,411  557,689  Other assets  9,743  10,366  Total assets $5,119,818 $4,735,426           LIABILITIES        Current liabilities:        Accounts payable $417,500 $456,446  Current portion of long-term debt  50,000  48,750  Accrued liabilities  178,709  191,786  Short-term operating lease liabilities  66,884  68,713  Short-term finance lease liabilities  1,192  1,487  Total current liabilities  714,285  767,182           Long-term debt  1,833,213  1,327,159  Deferred tax liabilities, net  237,503  240,343  Long-term portion of insurance reserves  58,339  57,700  Long-term operating lease liabilities  129,166  129,360  Long-term finance lease liabilities  1,948  2,618  Other liabilities  1,366  1,446  Total liabilities  2,975,820  2,525,808           EQUITY  2,143,998  2,209,618  Total liabilities and equity $5,119,818 $4,735,426             As of June 30,     2025 2024  Other Financial Data        Receivables, net plus inventories less accounts payable $720,525 $792,396  Net sales, acquisition adjusted † $5,248,415 $5,353,117  Receivables, net plus inventories less accounts payable as a percent of sales (TTM) †  13.7%14.8%          † Trailing 12 months sales have been adjusted for the pro forma effect of acquired branches         TopBuild Corp.       Condensed Consolidated Statement of Cash Flows (Unaudited)       (in thousands)                 Six Months Ended June 30,    2025  2024  Cash Flows Provided by (Used in) Operating Activities:               Net income $274,986  $303,104  Adjustments to reconcile net income to net cash provided by operating activities:       Depreciation and amortization  71,677   69,291  Share-based compensation  9,806   9,759  Loss (gain) on sale of assets  711   (131) Amortization of debt issuance costs  1,549   1,440  Provision for bad debt expense  8,121   9,874  Provision for inventory obsolescence  4,570   4,892  Impairment losses  8,636   —  Deferred income taxes, net  (2,668)  (72) Change in certain assets and liabilities, net of effects of businesses acquired:       Receivables, net  (4,988)  (58,411) Inventories  20,146   (30,758) Prepaid expenses and other current assets  2,884   (6,595) Accounts payable  (39,053)  (17,480) Accrued liabilities  (7,677)  (13,348) Other, net  (2,421)  (2,437) Net cash provided by operating activities  346,279   269,128          Cash Flows Provided by (Used in) Investing Activities:       Purchases of property and equipment  (24,915)  (35,974) Acquisition of businesses, net of cash acquired  (21,185)  (88,123) Proceeds from sale of assets  610   2,150  Net cash used in investing activities  (45,490)  (121,947)         Cash Flows Provided by (Used in) Financing Activities:       Proceeds from issuance of long-term debt  1,000,000   —  Repayment of long-term debt  (487,500)  (23,873) Excise taxes paid on share repurchases  (9,444)  —  Payment of debt issuance costs  (6,970)  —  Taxes withheld and paid on employees' equity awards  (5,374)  (6,059) Exercise of stock options  —   3,224  Repurchase of shares of common stock  (351,621)  (505,241) Net cash provided by (used in) financing activities  139,091   (531,949) Impact of exchange rate changes on cash  2,295   (576) Net increase (decrease) in cash and cash equivalents  442,175   (385,344) Cash and cash equivalents - Beginning of period  400,318   848,565  Cash and cash equivalents - End of period $842,493  $463,221          Supplemental disclosure of noncash activities:       Leased assets obtained in exchange for new operating lease liabilities $33,978  $20,180  Accruals for property and equipment  353   277  Excise taxes capitalized to treasury stock  3,516   5,202           TopBuild Corp.                   Segment Data (Unaudited)                   (dollars in thousands)                                         Three Months Ended June 30,     Six Months Ended June 30,        2025   2024 Change   2025  2024  Change  Installation                   Sales $780,678  $850,983  (8.3)%$1,526,211 $1,649,726   (7.5)%                    Operating profit, as reported $155,441  $170,718    $285,057 $327,475     Operating margin, as reported  19.9 % 20.1%    18.7% 19.9 %                       Rationalization charges  (933)  —     7,348  —    Acquisition related costs  33   288     176  333     Operating profit, as adjusted $154,541  $171,006    $292,581 $327,808     Operating margin, as adjusted  19.8 % 20.1%    19.2% 19.9 %                       Share-based compensation  274   318     623  648     Depreciation and amortization  19,247   18,712     38,414  36,979     EBITDA, as adjusted $174,062  $190,036  (8.4)%$331,618 $365,435   (9.3)%EBITDA margin, as adjusted  22.3 % 22.3%    21.7% 22.2 %                       Specialty Distribution                   Sales $599,184  $592,826  1.1 %$1,158,987 $1,138,620   1.8 %                    Operating profit, as reported $87,482  $89,373    $156,541 $166,951     Operating margin, as reported  14.6 % 15.1%    13.5% 14.7 %                       Rationalization charges  (67)  —     6,801  (750)    Acquisition related costs  14   10     51  10     Operating profit, as adjusted $87,429  $89,383    $163,393 $166,211     Operating margin, as adjusted  14.6 % 15.1%    14.1% 14.6 %                       Share-based compensation  421   380     884  813     Depreciation and amortization  15,096   15,047     30,036  29,883     EBITDA, as adjusted $102,946  $104,810  (1.8)%$194,313 $196,907   (1.3)%EBITDA margin, as adjusted  17.2 % 17.7%    16.8% 17.3 %                        TopBuild Corp.                    Adjusted EBITDA (Unaudited)                    (dollars in thousands)                                           Three Months Ended June 30,      Six Months Ended June 30,       2025  2024   Change  2025  2024   Change Total net sales                    Sales before eliminations $1,379,862  $1,443,809      $2,685,198  $2,788,346     Intercompany eliminations  (82,459)  (78,197)      (154,517)  (144,017)    Net sales after eliminations $1,297,403  $1,365,612   (5.0)% $2,530,681  $2,644,329   (4.3)%                     Operating profit, as reported - segments $242,923  $260,091      $441,598  $494,426     General corporate expense, net  (9,502)  (36,859)      (18,762)  (45,926)    Intercompany eliminations  (13,632)  (12,840)      (25,559)  (23,600)    Operating profit, as reported $219,789  $210,392      $397,277  $424,900     Operating margin, as reported  16.9 % 15.4 %     15.7 % 16.1 %                        Rationalization charges  (1,021)  258       14,337   (492)    Refinancing costs  226   —       226   —     Acquisition related costs †  1,657   4,379       2,957   5,055     Acquisition termination fee  —   23,000       —   23,000     Operating profit, as adjusted $220,651  $238,029      $414,797  $452,463     Operating margin, as adjusted  17.0 % 17.4 %     16.4 % 17.1 %                        Share-based compensation  4,765   4,632       9,806   9,759     Depreciation and amortization  35,886   35,033       71,457   69,291     EBITDA, as adjusted $261,302  $277,694   (5.9)% $496,060  $531,513   (6.7)%EBITDA margin, as adjusted  20.1 % 20.3 %     19.6 % 20.1 %                        Sales change period over period  (68,209)         (113,648)       EBITDA, as adjusted, change period over period  (16,392)         (35,453)       Decremental EBITDA, as adjusted, as a percentage of change in sales  (24.0)%        (31.2)%                           † Acquisition related costs include corporate level adjustments as well as segment operating adjustments                                TopBuild Corp.             Same Branch and Acquisition Metrics (Unaudited)             (dollars in thousands)                             Three Months Ended June 30,  Six Months Ended June 30,    2025  2024  2025  2024  Net sales             Same branch:             Installation $768,717  $850,983  $1,499,542  $1,649,726  Specialty Distribution  585,611   592,826   1,126,868   1,138,620  Eliminations  (82,459)  (78,197)  (154,517)  (144,017) Total same branch $1,271,869  $1,365,612  $2,471,893  $2,644,329                Acquisitions (a):             Installation $11,961  $—  $26,669  $—  Specialty Distribution  13,573   —   32,119   —  Total acquisitions  25,534   —   58,788   —                Total net sales $1,297,403  $1,365,612  $2,530,681  $2,644,329                EBITDA, as adjusted             Same branch $255,946  $277,694  $485,860  $531,513  Acquisitions (a)  5,356   —   10,200   —  Total $261,302  $277,694  $496,060  $531,513                EBITDA, as adjusted, as a percentage of sales             Same branch (b)  20.1 %    19.7 %   Acquisitions (c)  21.0 %    17.4 %   Total (d)  20.1 % 20.3 %19.6 % 20.1 %              As Adjusted (Decremental)/Incremental EBITDA, as a percentage of change in sales             Same branch (e)  (23.2)%    (26.5)%   Acquisitions (c)  21.0 %    17.4 %   Total (f)  (24.0)%    (31.2)%                 (a) Represents current year impact of acquisitions in their first twelve months             (b) Same branch metric, as adjusted, as a percentage of same branch sales             (c) Acquired metric, as adjusted, as a percentage of acquired sales             (d) Total EBITDA, as adjusted, as a percentage of total sales             (e) Change in same branch EBITDA, as adjusted, as a percentage of change in same branch sales          (f) Change in total EBITDA, as adjusted, as a percentage of change in total sales                            TopBuild Corp.                    Same Branch Revenue by Line of Business (Unaudited)                 (dollars in thousands)                                           Three Months Ended June 30,      Six Months Ended June 30,       2025 2024 Change  2025 2024 Change Residential:                    Same branch (a) $801,031 $884,100  (9.4)%$1,555,856 $1,718,943  (9.5)%Acquisitions  8,469  —      23,396  —    Total Residential sales  809,500  884,100  (8.4)% 1,579,252  1,718,943  (8.1)%                     Commercial/Industrial:                    Same branch (a) $470,838 $481,512  (2.2)%$916,037 $925,386  (1.0)%Acquisitions  17,065  —      35,392  —    Total Commercial/Industrial sales  487,903  481,512  1.3 % 951,429  925,386  2.8 %Total net sales $1,297,403 $1,365,612  (5.0)%$2,530,681 $2,644,329  (4.3)%                     (a) Represents current year impact of acquisitions in their first twelve months                                    TopBuild Corp.             Non-GAAP Reconciliations (Unaudited)             (in thousands, except share and per common share amounts)                             Three Months Ended June 30,  Six Months Ended June 30,    2025  2024  2025  2024  Gross Profit Reconciliation                           Net sales $1,297,403  $1,365,612  $2,530,681  $2,644,329                Gross profit, as reported $394,043  $423,922  $745,516  $811,072                Rationalization charges  (1,100)  —   12,403   —  Gross profit, as adjusted $392,943  $423,922  $757,919  $811,072                Gross margin, as reported  30.4 %31.0 %29.5 %30.7 %Gross margin, as adjusted  30.3 %31.0 %29.9 %30.7 %              Selling, General and Administrative Expense Reconciliation                           Selling, general, and administrative expense, as reported $174,254  $213,530  $348,239  $386,172                Rationalization charges  79   258   1,934   (492) Refinancing costs  226   —   226   —  Acquisition related costs  1,657   4,379   2,957   5,055  Acquisition termination fee  —   23,000   —   23,000  Selling, general, and administrative expense, as adjusted $172,292  $185,893  $343,122  $358,609                Operating Profit Reconciliation                           Operating profit, as reported $219,789  $210,392  $397,277  $424,900                Rationalization charges  (1,021)  258   14,337   (492) Refinancing costs  226   —   226   —  Acquisition related costs  1,657   4,379   2,957   5,055  Acquisition termination fee  —   23,000   —   23,000  Operating profit, as adjusted $220,651  $238,029  $414,797  $452,463                Operating margin, as reported  16.9 %15.4 %15.7 %16.1 %Operating margin, as adjusted  17.0 %17.4 %16.4 %17.1 %              Income Per Common Share Reconciliation                           Income before income taxes, as reported $203,592  $203,174  $369,564  $410,169                Rationalization charges  (1,021)  258   14,337   (492) Refinancing costs  226   —   226   —  Acquisition related costs  1,657   4,379   2,957   5,055  Acquisition termination fee  —   23,000   —   23,000  Income before income taxes, as adjusted  204,454   230,811   387,084   437,732                Tax rate at 26.0%  (53,158)  (60,011)  (100,642)  (113,810) Income, as adjusted $151,296  $170,800  $286,442  $323,922                Income per common share, as adjusted $5.31  $5.42  $9.93  $10.22                Weighted average diluted common shares outstanding  28,515,554   31,524,063   28,858,719   31,693,524                 TopBuild Corp.            Reconciliation of Adjusted EBITDA to Net Income (Unaudited)            (in thousands)                           Three Months Ended June 30,  Six Months Ended June 30,   2025  2024 2025 2024 Net income, as reported $151,602  $150,723 $274,986 $303,104 Adjustments to arrive at EBITDA, as adjusted:            Interest expense and other, net  16,197   7,218  27,713  14,731 Income tax expense  51,990   52,451  94,578  107,065 Depreciation and amortization  35,886   35,033  71,457  69,291 Share-based compensation  4,765   4,632  9,806  9,759 Rationalization charges  (1,021)  258  14,337  (492)Refinancing costs  226   —  226  — Acquisition related costs  1,657   4,379  2,957  5,055 Acquisition termination fee  —   23,000  —  23,000 EBITDA, as adjusted $261,302  $277,694 $496,060 $531,513               TopBuild Corp.               Acquisition Adjusted Net Sales (Unaudited)              (in thousands)               2024 2025 Trailing Twelve Months Ended Q3 Q4 Q1 Q2 June 30, 2025Net sales$1,373,268 $1,312,206 $1,233,278 $1,297,403 $5,216,155Acquisitions proforma adjustment † 16,695  12,058  3,297  210  32,260Net sales, acquisition adjusted$1,389,963 $1,324,264 $1,236,575 $1,297,613 $5,248,415                              † Trailing 12 months sales have been adjusted for the pro forma effect of acquired branches                           TopBuild Corp.      2025 Estimated Adjusted EBITDA Range (Unaudited)     (in millions)              Twelve Months Ending December 31, 2025   Low  High Estimated net income, as reported$499.0 $584.0 Adjustments to arrive at estimated EBITDA, as adjusted:     Interest expense and other, net 82.0  78.0 Income tax expense 175.0  205.0 Depreciation and amortization 163.0  155.0 Share-based compensation 19.0  18.0 Rationalization charges 15.0  15.0 Acquisition related costs 17.0  15.0 Estimated EBITDA, as adjusted$970.0 $1,070.0         This press release was published by a CLEAR® Verified individual.

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