TopBuild Sees 13.2% Sales Growth to $1.49B as Volumes Drop 10.5%
TopBuild reported Q4 sales of $1.49 billion, up 13.2% driven by acquisitions contributing 23% while volumes fell 10.5%. Adjusted gross profit was $416 million with a 28% margin down 190 bps, and 2026 guidance targets $5.925–$6.225 billion sales with $1.005–$1.155 billion adjusted EBITDA.
1. Q4 Financial Results
TopBuild posted fourth-quarter sales of $1.49 billion, up 13.2% year over year, with acquisitions accounting for 23% of growth offsetting a 10.5% volume decline. Adjusted gross profit reached $416 million, reflecting a 28% margin, down 190 basis points from the prior year.
2. Segment Performance and Profitability
Installation Services sales of $798 million rose 1.2% as M&A added 16.3% but volumes slid 14.5%; Specialty Distribution revenue grew 25.5% to $755 million driven by 28.9% acquisition gains and 2.2% pricing lift, partly negated by a 5.5% volume drop. Adjusted EBITDA was $265 million with a 17.9% margin, down 180 basis points.
3. 2026 Guidance and Outlook
The company forecasts 2026 sales of $5.925–$6.225 billion and adjusted EBITDA of $1.005–$1.155 billion, anticipating low-single-digit headwinds on volume and pricing including a $55 million price-cost impact and a ~27% EBITDA decremental at the midpoint.
4. M&A, Cash Flow and Leverage
Full-year 2025 generated over $5.4 billion in revenue, $1.04 billion adjusted EBITDA and $697 million free cash flow; capital deployed totaled $1.9 billion to add $1.2 billion in revenue. Net debt stood at $2.7 billion with 2.35x leverage, supported by $1.1 billion liquidity.