NYSE$BLD

TopBuild Corp. · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

TopBuild's Q3 2023 results were reported, showcasing solid operating performance driven by the team's focus on profitable growth and operational efficiencies.

TopBuild reported a 1.9% increase in net sales and a 17.9% operating margin. The company is particularly pleased with the performance of its non-residential business, with both Installation and Specialty Distribution segments reporting mid-single digit volume growth related to the commercial and industrial end markets.

  • Net sales increased by 1.9%.
  • Gross margin was 31.7%.
  • Operating margin reached 17.9%, or 18.5% on an adjusted basis.
  • Adjusted EBITDA margin was 21.4%.

Headline financials

Total Revenue

$1.33B

Previous: $1.3B+1.9%
EPS (adj)

$5.43

Previous: $4.80+13.1%
Operating margin

17.9%

Previous: 17.1%+4.7%
Adjusted EBITDA margin

21.4%

Previous: 20.6%+3.9%
Capital Expenditures

-$48.1M

Previous: -$56M+14.2%
Free Cash Flow

$120M

Previous: $97.7M+22.3%
Net Income

$168M

Previous: $154M+9.0%
Operating Income

$237M

Previous: $223M+6.6%
Gross Profit

$421M

Previous: $396M+6.3%
Cash & Equivalents

$616M

Previous: $159M+286.2%
Total Assets

$5.01B

Previous: $4.51B+11.3%
Stock-Based Comp

$4.19M

Previous: $2.61M+60.6%

Revenue & EPS history

TopBuild · Revenue · Quarterly

$1.33B

Q3 2023+1.9%vs Q3 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

TopBuild provided its 2023 outlook, reflecting management's current view of present and future market conditions. These targets do not include any effects related to potential acquisitions or divestitures that may occur after the date of the press release.

Tailwinds

  • Sales are expected to be between $5.13 billion and $5.21 billion.
  • Adjusted EBITDA is projected to be between $1.025 billion and $1.055 billion.
  • Significant free cash flow generation.
  • Acquisitions remain the number one capital allocation priority.
  • Expectation to remain active in residential, commercial, and industrial insulation end markets.

Headwinds

  • Outlook reflects management’s current view of present and future market conditions.
  • Based on assumptions such as housing starts and completions.
  • Based on general and administrative expenses.
  • Based on weighted average diluted shares outstanding.
  • Based on interest rates.

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 Q3 2023

Historical avgQ3 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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