TopBuild Stock Dips After Reporting Mixed Q4 Results, Guides FY25 Sales Below Consensus

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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