TopBuild Q1 Sales Dip, EPS Tops Estimates, Seal-Rite Deal Boosts Long-Term Outlook, Guidance Reaffirmed

TopBuild Corp. BLD shares were trading higher premarket on Tuesday after the company reported first-quarter 2025 sales of $1.23 billion, which was in line with the consensus.

Sales declined 3.6% YoY, mainly due to a 6.7% drop in the Installation segment, driven by a slow start in new residential construction.

Adjusted gross margin contracted to 29.6% from 30.3% a year ago, while adjusted EBITDA Margin declined to 19% from 19.8% in the prior-year quarter.

Adjusted EPS of $4.63, down from $4.81 a year ago, exceeded the consensus of $4.42.

BLD's net cash provided by operating activities for the quarter stood at $152.58 million, down from $178.78 million a year ago. As of March 31, cash and cash equivalents stood at $308.811 million.

TopBuild bought back 693,881 shares for $215.6 million, leaving $972.4 million available for future repurchases at the quarter's end.

During the quarter, TopBuild announced its acquisition of Seal-Rite Insulation, an Omaha-based fiberglass and spray foam installer that has served residential and commercial markets for over 25 years. Seal-Rite generates around $15 million in annual revenue, and the deal was finalized in April.

The company acknowledged near-term economic uncertainty but expressed confidence in its ability to adapt and outperform. It is adjusting its cost structure to match current demand, continuing targeted investments, and pursuing operational improvements. The company remains optimistic about mid- and long-term prospects, citing strong U.S. housing demand and positive trends in commercial and industrial markets.          

2025 Outlook, reaffirmed: TopBuild projects FY25 sales of $5.05 billion-$5.35 billion, vs. previous estimate of $5.17 billion, with adjusted EBITDA expected between $925 million and $1.075 billion

Price Action: At the last check on Tuesday, BLD shares were trading higher, 1.67%, at $296.87.

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