Zinger Key Points
- TopBuild reports Q4 sales of $1.31 billion, adjusted EPS of $5.13 beats consensus.
- FY25 sales projected at $5.05 billion-$5.35 billion, with adjusted EBITDA guidance of $925 million-$1.075 billion.
- Get real-time earnings alerts before the market moves and access expert analysis that uncovers hidden opportunities in the post-earnings chaos.
TopBuild Corp. BLD shares are trading lower premarket on Tuesday after the company reported fourth-quarter sales of $1.31 billion in line with the consensus.
- Sales increased 2.0% Y/Y, led by a 6.6% Y/Y rise in the Specialty Distribution segment.
- The Installation segment was relatively flat Y/Y in the quarter.
- Adjusted gross margin contracted to 29.9% from 30.4% a year ago quarter, while adjusted EBITDA Margin improved to 19.7% from 19.6% in the prior-year quarter.
- Adjusted EPS of $5.13 exceeded the consensus of $5.05.
- As of Dec. 31, cash and cash equivalent stood at $400.3 million.
Buyback: TopBuild repurchased 134,872 shares totaling $47.2 million.
The board authorized the repurchase of up to $1.0 billion of the company’s shares, bringing the total repurchase availability to $1.2 billion.
This includes the $188.1 million remaining from the prior authorization as of December 31, 2024.
Outlook: TopBuild projects FY25 sales of $5.05 billion-$5.35 billion, vs. previous estimate of $5.465 billion, with adjusted EBITDA expected between $925 million and $1.075 billion.
TopBuild CEO Robert Buck listed tailwinds for the business:
- Low housing inventory
- Population growth
- Demographic shifts
- Ongoing initiatives to reduce energy consumption and decrease utility costs, and manage emissions.
Investors can gain exposure to the stock via iShares U.S. Home Construction ETF ITB.
Price Action: BLD shares are down 2.96% at $293.11 premarket at the last check Tuesday.
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