TopBuild Q4 Sales Climb 13.2% to $1.485B, Returns $434M
TopBuild's Q4 sales rose 13.2% to $1.485 billion driven by SPI acquisition, with installation services delivering a 21.0% adjusted EBITDA margin despite lower specialty distribution margins. For 2025, TopBuild closed seven acquisitions adding $1.2 billion of annual sales and returned $434.2 million via buybacks.
1. Fourth Quarter Results
TopBuild reported Q4 sales of $1.485 billion, a 13.2% year-over-year increase driven by the completed SPI acquisition. Adjusted EBITDA margin held at 17.9%, with Installation Services delivering a 21.0% margin while Specialty Distribution margins declined due to integration and synergy costs.
2. Full Year Performance and Acquisitions
In 2025, TopBuild closed seven acquisitions that collectively added $1.2 billion in annual sales, lifting full-year revenue to $5.409 billion. Gross margin narrowed to 29.0% and adjusted EBITDA reached $1.037 billion, reflecting growth despite a softer residential construction environment.
3. Shareholder Returns
TopBuild repurchased approximately 1.4 million shares, returning $434.2 million of capital through its share buyback program. The repurchases underscore the company’s strong free cash flow and confidence in future earnings power.
4. 2026 Outlook
Management projects 2026 sales between $5.925 billion and $6.225 billion, with adjusted EBITDA expected in the range of $1.005 billion to $1.155 billion. Acquisitions remain the highest priority for deploying capital to drive long-term growth and diversify end-market exposure.