TopBuild (NYSE:BLD) Announces Quarterly Earnings Results, Beats Estimates By $0.11 EPS

TopBuild (NYSE:BLD) posted its quarterly earnings results on Thursday. The construction company reported $4.50 earnings per share for the quarter, beating analysts’ consensus estimates of $4.39 by $0.11, FiscalAI reports. TopBuild had a return on equity of 27.10% and a net margin of 10.84%.The company had revenue of $1.50 billion for the quarter, compared to analysts’ expectations of $1.49 billion. During the same period last year, the firm earned $5.13 earnings per share. TopBuild’s quarterly revenue was up 13.2% on a year-over-year basis.

Here are the key takeaways from TopBuild’s conference call:

• TopBuild closed 2025 with strong cash generation—about $5.4 billion in revenue, $1.04 billion adjusted EBITDA (19.2% margin), $697 million free cash flow and returned roughly $434 million to shareholders via buybacks.
• Management guided 2026 to $5.925B–$6.225B in sales and $1.005B–$1.155B adjusted EBITDA, embedding low-single-digit volume and price declines, a $55 million price-cost headwind and an estimated ~27% EBITDA decremental on lower volumes.
• M&A remains the top capital priority—TopBuild deployed $1.9 billion in acquisitions in 2025 (adding ~ $1.2 billion of revenue) and recently closed Applied Coatings, Upstate Spray Foam and Johnson Roofing, with a healthy pipeline.
• Integration work is progressing—management expects the SPI IT conversion to be completed by the end of Q2 and anticipates achieving or exceeding announced synergies, moving M&A EBITDA toward the mid-teens.
• Near-term headwinds persist as residential demand and affordability remain weak and fiberglass pricing has been pressured (some mechanical products on allocation), while commercial/industrial backlogs look healthy and management highlights a long-term $95 billion total addressable market.

TopBuild Stock Performance

BLD traded down $17.62 during trading on Thursday, hitting $467.70. The stock had a trading volume of 720,859 shares, compared to its average volume of 319,786. The firm has a market capitalization of $13.13 billion, a P/E ratio of 23.74, a PEG ratio of 8.26 and a beta of 1.70. The company has a debt-to-equity ratio of 1.26, a quick ratio of 2.45 and a current ratio of 2.90. TopBuild has a twelve month low of $266.26 and a twelve month high of $559.47. The company’s 50-day moving average price is $478.82 and its 200 day moving average price is $443.92.

Key Stories Impacting TopBuild

Here are the key news stories impacting TopBuild this week:

• Positive Sentiment: Q4 results beat on the headline numbers: reported EPS $4.50 vs. consensus $4.39, and revenue of ~$1.49–1.50B (+13.2% y/y), driven largely by acquisitions. This shows top‑line growth and an EPS beat. MarketBeat: Earnings Summary
• Positive Sentiment: Management closed multiple strategic acquisitions (including SPI, Progressive Roofing, Johnson Roofing signed) that added ~ $1.2B in annualized revenue in 2025 and expand commercial/industrial exposure — management continues to prioritize M&A. GlobeNewsWire: Press Release
• Neutral Sentiment: 2026 revenue and adjusted‑EBITDA guidance: sales $5.925B–$6.225B and adj. EBITDA $1.005B–$1.155B — a range that factors in continued M&A and a mid‑single digit residential decline; guidance is roughly in line with stated assumptions but leaves room for variability. GlobeNewsWire: 2026 Outlook
• Neutral Sentiment: Management reiterated M&A and capital allocation priorities (completed share repurchases of $434M in 2025 and remaining repurchase capacity), which supports long‑term shareholder returns but also affects near‑term leverage and cash metrics. QuiverQuant: Summary
• Negative Sentiment: Profitability and cash‑flow headwinds: net income and operating margins declined y/y (Q4 net income fell and operating margin compressed), adjusted EBITDA was down modestly on a full‑year basis — investors worried margins will take time to recover as acquisitions are integrated. QuiverQuant: Profitability Notes
• Negative Sentiment: Leverage and interest expense rose materially after 2025 acquisitions (long‑term debt increased substantially and interest expense is higher), raising near‑term earnings sensitivity to rates and financial costs. GlobeNewsWire: Balance Sheet Details
• Negative Sentiment: Market reaction factors: investors appear focused on the margin declines, lower EPS vs. prior year (Q4 2024 EPS was higher) and the guidance assumptions for weaker residential activity — these items likely explain the stock moving lower today. Yahoo Finance: Why Shares Are Falling

Wall Street Analyst Weigh In

A number of analysts have weighed in on the stock. Evercore cut their price objective on shares of TopBuild from $449.00 to $448.00 and set an “in-line” rating on the stock in a report on Wednesday, November 5th. Wells Fargo & Company lifted their price target on shares of TopBuild from $540.00 to $600.00 and gave the stock an “overweight” rating in a research note on Wednesday, February 11th. DA Davidson restated a “buy” rating and issued a $485.00 price objective on shares of TopBuild in a research note on Wednesday, December 10th. Jefferies Financial Group lifted their target price on TopBuild from $518.00 to $536.00 and gave the stock a “buy” rating in a research report on Monday, December 15th. Finally, Royal Bank Of Canada began coverage on TopBuild in a report on Thursday, November 20th. They issued a “sector perform” rating and a $410.00 target price for the company. One research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $443.73.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Compound Planning Inc. lifted its position in TopBuild by 15.8% in the fourth quarter. Compound Planning Inc. now owns 981 shares of the construction company’s stock valued at $409,000 after purchasing an additional 134 shares during the period. Corient Private Wealth LLC increased its position in TopBuild by 1,120.0% during the 4th quarter. Corient Private Wealth LLC now owns 92,757 shares of the construction company’s stock worth $38,697,000 after purchasing an additional 85,154 shares during the period. EP Wealth Advisors LLC purchased a new position in shares of TopBuild during the 4th quarter worth approximately $234,000. Empowered Funds LLC raised its stake in shares of TopBuild by 42.3% during the 4th quarter. Empowered Funds LLC now owns 10,255 shares of the construction company’s stock worth $4,278,000 after buying an additional 3,047 shares in the last quarter. Finally, XTX Topco Ltd acquired a new stake in shares of TopBuild in the 4th quarter valued at approximately $5,693,000. 95.67% of the stock is currently owned by institutional investors and hedge funds.

About TopBuild

TopBuild Corp. (NYSE: BLD) is a leading installer and distributor of insulation and building material products serving primarily the U.S. construction market. Headquartered in Daytona Beach, Florida, the company was formed in 2011 as a spin-off from ABF Freight System and has since grown through a combination of organic expansion and targeted acquisitions. TopBuild’s core mission is to enhance energy efficiency and comfort in new residential and light commercial construction projects by providing comprehensive insulation solutions and related services.

The company operates through two main segments.