NYSE$BLD

TopBuild Corp. · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

TopBuild's Q2 2023 earnings were released, revealing sales growth and margin expansion.

TopBuild reported strong Q2 2023 results with sales increasing by 3.4% to $1.3 billion and adjusted EBITDA margin expanding by 190 basis points to 20.9%. The company continues to benefit from a favorable operating environment and focus on driving improvements at both business segments, Installation and Specialty Distribution.

  • Sales increased 3.4% to $1.3 billion.
  • Gross margin expanded 190 basis points to 32.0%.
  • Adjusted EBITDA margin expanded 190 basis points to 20.9%.
  • Net income per diluted share was $5.18, a 17.5% increase.

Headline financials

Total Revenue

$1.32B

Previous: $1.27B+3.4%
EPS (adj)

$5.25

Previous: $4.43+18.5%
Operating margin

0.2%

Previous: 16.3%-98.9%
Adjusted EBITDA margin

0.2%

Previous: 19.0%-98.9%
Capital Expenditures

-$30.7M

Previous: -$36M+14.9%
Free Cash Flow

$134M

Previous: $108M+24.2%
Net Income

$164M

Previous: $144M+14.4%
Operating Income

$237M

Previous: $207M+14.4%
Gross Profit

$422M

Previous: $384M+9.8%
Cash & Equivalents

$526M

Previous: $124M+324.9%
Total Assets

$4.86B

Previous: $4.42B+9.9%
Stock-Based Comp

$3.75M

Previous: $3.33M+12.5%

Revenue & EPS history

TopBuild · Revenue · Quarterly

$1.32B

Q2 2023+3.4%vs Q2 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

TopBuild provided its sales and adjusted EBITDA outlook for 2023, reflecting management's current view of present and future market conditions.

Tailwinds

  • Sales are expected to be between $5.025 billion and $5.175 billion.
  • Adjusted EBITDA is projected to be between $950 million and $1.0 billion.
  • The outlook reflects management's current view of present and future market conditions.
  • The company has made progress on the acquisition front, welcoming three profitable companies.
  • Acquisition of SPI will enhance growth platform in the three end-markets served.

Headwinds

  • The outlook is based on assumptions such as housing starts and completions, general and administrative expenses, weighted average diluted shares outstanding, and interest rates.
  • The targets do not include any effects related to potential acquisitions or divestitures that may occur after the date of the press release.
  • A reconciliation of non-GAAP targets to corresponding GAAP measures is not available on a forward-looking basis.
  • The effect of excluded items may be significant.
  • Factors could cause actual long-term results to differ materially from TopBuild’s current expectations.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+1.4%

Avg return

Earnings day

+1.1%

Avg return

5 days after

+2.2%

Avg return

30 days after

63%

31 / 49 earnings

Positive

+14.2%

Q3 2019

Best reaction

-14.1%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.6%-0.8%-5.8%
Q4 2025-3.7%-10.8%-28.2%
Q3 2025-1.1%+0.0%+4.8%
Q1 2025-3.1%+1.1%+3.1%
Q4 2024+2.7%+1.4%+3.0%
Q3 2024+2.5%+1.9%+3.3%
Q2 2024-14.1%-12.4%-14.4%
Q1 2024-5.0%-0.8%-1.8%
Q4 2023-2.6%-2.1%+6.7%
Q3 2023+11.1%+20.5%+34.8%
Q2 2023+7.5%+9.2%+8.3%
Q1 2023-3.1%-5.3%-1.8%
Q4 2022+4.1%+4.8%-2.5%
Q3 2022-13.1%-13.9%-7.1%
Q2 2022-6.0%-9.4%-16.5%
Q1 2022+1.0%-0.5%+4.2%
Q4 2021-12.7%-6.1%-12.4%
Q3 2021-1.4%+0.4%+5.0%
Q2 2021+6.0%+8.5%+9.1%
Q1 2021-2.7%-8.5%-15.0%
Q4 2020+1.2%-5.3%+0.9%
Q3 2020+6.9%+6.4%+7.4%
Q2 2020+3.6%+4.4%+12.6%
Q1 2020+8.6%+11.2%+36.6%
Q4 2019-10.0%-16.4%-31.1%
Q3 2019+14.2%+10.5%+14.3%
Q2 2019+10.3%+8.9%+14.2%
Q1 2019+7.8%+13.2%+8.5%
Q4 2018+1.7%+2.3%+11.0%
Q3 2018+7.8%+3.8%-2.6%
Q2 2018-0.4%+0.8%-18.1%
Q1 2018+4.2%+6.2%+8.5%
Q4 2017-5.0%-1.2%+4.3%
Q3 2017-2.2%-0.4%+1.0%
Q2 2017+4.6%+3.7%+5.5%
Q1 2017+2.2%+1.5%+3.5%
Q4 2016+8.2%+7.7%+14.6%
Q3 2016+9.9%+15.4%+25.5%
Q2 2016-7.8%-7.8%-8.5%
Q1 2016+2.6%
Q1 2015+2.6%
Q1 2014+0.7%
Q4 2013+0.7%
Q4 2015+0.7%
Q3 2015+11.5%
Q3 2014+11.5%
Q4 2014+2.2%
Q2 2014+2.2%
Q2 2015+2.2%

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