TopBuild Reports Q2 2025 Financial Results with $151.6M Net Income and Revenue Decline

TopBuild Corp. reported its financial results for the second quarter of 2025, revealing a net income of $151.6 million, or $5.34 per diluted share, compared to $150.7 million, or $4.78 per diluted share, in the same period last year. Total revenue for the quarter was $1.297 billion, a decrease of 5% from $1.366 billion in the second quarter of 2024. The decline in revenue was primarily attributed to a 7.8% drop in sales volume due to softened housing demand, although this was partially offset by a 1.9% increase from acquisitions and a 0.9% rise in selling prices.

In terms of profitability, the company's gross profit margin decreased to 30.4% from 31.0% year-over-year, reflecting lower sales volume and price pressures on residential products. Operating profit for the quarter was $219.8 million, up 4.5% from $210.4 million in the prior year, with an operating margin of 16.9%, compared to 15.4% in the same quarter of 2024. The increase in operating profit was supported by a reduction in selling, general, and administrative expenses as a percentage of sales, which fell to 13.4% from 15.6%.

TopBuild's strategic developments included the acquisition of Seal-Rite, completed on April 7, 2025, for approximately $23 million, which is expected to enhance the company's presence in the Omaha and Lincoln markets. Additionally, the company announced the acquisition of Progressive, a leader in commercial roofing installation services, on July 14, 2025, for about $810 million. This acquisition is anticipated to broaden TopBuild's service offerings and revenue exposure to non-discretionary demand drivers.

Operationally, TopBuild had over 200 installation branches and more than 150 distribution centers across North America as of June 30, 2025. The company reported a total employee headcount of approximately 7,000. The company’s liquidity position improved significantly, with cash and cash equivalents increasing to $842.5 million from $400.3 million at the end of 2024. The company also refinanced its term loan, increasing its borrowing capacity to $1 billion, which provides additional financial flexibility.

Looking ahead, TopBuild remains cautiously optimistic about the residential construction market despite current uncertainties related to tariffs, inflation, and interest rates. The company expects its commercial backlog to support growth in its Installation and Specialty Distribution segments, bolstered by the recent acquisition of Progressive. The management anticipates that declining interest rates may unlock further projects across various industries, contributing positively to future performance.