Both segments drive growth, resulting in second quarter sales of $1.37 billion

Delivered gross margin of 31% and adjusted EBITDA margin of 20.3%

Revises 2024 guidance to $5.3 to $5.5 billion in revenue and $1.055 to $1.125 billion in adjusted EBITDA

DAYTONA BEACH, Fla., Aug. 06, 2024 (GLOBE NEWSWIRE) -- TopBuild Corp. (NYSE:BLD) a leading installer and specialty distributor of insulation and building material products to the construction industry in the United States and Canada today reported results for the second quarter ended June 30, 2024.

"We're pleased with our solid results in the second quarter, as our teams continued to focus on growth and profitability across the business. We grew sales 3.7% to $1.37 billion and delivered adjusted EBITDA of $277.7 million and adjusted EBITDA margin of 20.3%. Excluding the benefit from higher-than-normal multi-family and commercial margins in the second and third quarter of 2023,¹ we delivered our highest level of sales and profitability in our history," said Robert Buck, President and Chief Executive Officer.

"Both segments delivered sales growth in the second quarter, however volume was less than anticipated due to higher interest rates, project delays and supply constraints that continue to impact results across some residential and commercial end markets. Our residential single-family sales continued to improve, and our backlog continues to support our multi-family sales. Commercial and industrial backlogs and bidding activity remain robust.

"The long-term fundamentals for our business are strong, supported by the undersupply of housing in the United States, increasing household formations, the potential for moderating interest rates, and strengthening demand for greater energy efficiency. We expect to continue driving profitable growth and strong free cash flows for TopBuild to reinvest or return to shareholders.

"Year to date, we have completed 6 acquisitions, and our M&A pipeline is very healthy. We are also returning capital to shareholders, and as of June 30, we repurchased approximately 1.25 million shares totaling $505.2 million, underscoring management and our Board's continued confidence in our future growth and capital allocation approach," concluded Mr. Buck.

¹The Company noted that its results for the second quarter of 2023 included an estimated $10 million margin benefit related to certain multi-family/commercial business. In the third quarter of 2023, a similar benefit is estimated to be $15 million.

Financial Highlights

(comparisons are to the periods ended June 30, 2023)

Three Months Ended June 30
$ in thousands	Reported						Adjusted
		2024			2023			2024			2023
Sales	$	1,365,612		$	1,317,262		$	1,365,612		$	1,317,262
Gross Profit		423,922			421,800			423,922			421,800
Gross Margin		31.0	%		32.0	%		31.0	%		32.0	%
SG&A		213,530			184,697			185,893			182,597
SG&A as % of revenue		15.6	%		14.0	%		13.6	%		13.9	%
Operating Profit		210,392			237,103			238,029			239,203
Operating Margin		15.4	%		18.0	%		17.4	%		18.2	%
Net Income		150,723			164,400			170,800			166,685
Net Income per diluted share	$	4.78		$	5.18		$	5.42		$	5.25
EBITDA							$	277,694		$	275,505
EBITDA Margin								20.3	%		20.9	%



Six Months Ended June 30
$ in thousands	Reported						Adjusted
		2024			2023			2024			2023
Sales	$	2,644,329		$	2,582,500		$	2,644,329		$	2,582,500
Gross Profit		811,072			792,015			811,072			792,015
Gross Margin		30.7	%		30.7	%		30.7	%		30.7	%
SG&A		386,172			355,481			358,609			349,723
SG&A as % of revenue		14.6	%		13.8	%		13.6	%		13.5	%
Operating Profit		424,900			436,534			452,463			442,292
Operating Margin		16.1	%		16.9	%		17.1	%		17.1	%
Net Income		303,104			300,270			323,922			305,045
Net Income per diluted share	$	9.56		$	9.47		$	10.22		$	9.62
EBITDA							$	531,513		$	513,830
EBITDA Margin								20.1	%		19.9	%

Sales Drivers

(comparisons are to the periods ended June 30, 2023)

	Three Months Ended June 30, 2024
	Installation			Specialty Distribution			TopBuild, net of elims
Sales (in millions)	$	851		$	593		$	1,366
Sales Drivers
Volume		1.0	%		0.6	%		0.0	%
Price		1.3	%		1.3	%		1.3	%
M&A		3.8	%		1.3	%		2.9	%
Dispositions		-0.9	%					-0.6	%
Total Sales Change		5.2	%		3.2	%		3.7	%


	Six Months Ended June 30, 2024
	Installation			Specialty Distribution			TopBuild, net of elims
Sales (in millions)	$	1,650		$	1,139		$	2,644
Sales Drivers
Volume		0.7	%		-1.8	%		-1.0	%
Price		1.2	%		1.4	%		1.3	%
M&A		3.7	%		0.9	%		2.6	%
Dispositions		-0.9	%					-0.5	%
Total Sales Change		4.7	%		0.5	%		2.4	%

Segment Profitability

(comparisons are to the periods ended June 30, 2023)

	Three Months Ended June 30, 2024						Six Months Ended June 30, 2024
$ in thousands	Installation			Specialty Distribution			Installation			Specialty Distribution
Operating Profit	$	170,718		$	89,373		$	327,475		$	166,951
Change		-0.9	%		3.9	%		2.6	%		4.8	%
Operating Margin		20.1	%		15.1	%		19.9	%		14.7	%
Adj. Operating Profit	$	171,006		$	89,383		$	327,808		$	166,211
Change		-0.9	%		4.0	%		2.5	%		4.1	%
Adj. Operating Margin		20.1	%		15.1	%		19.9	%		14.6	%
Adj. EBITDA	$	190,036		$	104,810		$	365,435		$	196,907
Change		0.2	%		3.7	%		3.3	%		3.9	%
Adj. EBITDA Margin		22.3	%		17.7	%		22.2	%		17.3	%

Capital Allocation

2024 Acquisitions

Year to date, the Company has completed the acquisition of 6 insulation companies which are expected to generate approximately $107 million in annual revenue. They are listed in the chart below.

	Annual Revenue
Company	($ millions)		Month Closed
Brabble Insulation (I)	$	5.2	February
Morris Black & Sons (I)		3.8	March
Pest Control Insulation (D)		25.4	March
Green Space Insulation (I)		6.0	April
Insulation Works (I)		28.0	May
Texas Insulation (I)		38.9	May
Total	$	107.3
I = Installation, D = Specialty Distribution

Share Repurchases

During the quarter, TopBuild repurchased approximately 1.25 million shares totaling $505.2 million (average price of $405.43 per share). $649.2 million remained under the current authorization.

2024 Outlook²

The Company revised its full year 2024 guidance as indicated below. The sales guidance assumes mid-single digit residential growth and low single digit commercial/industrial growth for the year. The Company noted that the revision largely reflects timing of demand, rather than any underlying changes in the business.

$ in millions
2024 Outlook	Low		High
Sales	$	5,300	$	5,500
Adjusted EBITDA*	$	1,055	$	1,125

* See table for Adjusted EBITDA reconciliation.

² This outlook reflects management's current view of present and future market conditions and is based on assumptions such as housing starts, general and administrative expenses, and interest rates. These targets do not include any effects related to potential acquisitions or divestitures that may occur after the date of this press release. A reconciliation of non-GAAP targets to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, the costs and expenses that may be incurred in the future and therefore, cannot be reasonably predicted. The effect of these excluded items may be significant. Factors that could cause actual long-term results to differ materially from TopBuild's current expectations are discussed below and are also detailed in the Company's most recent Annual Report on Form 10-K and subsequent SEC reports.

Conference Call

A conference call to discuss second quarter 2024 financial results is scheduled for today, Tuesday, August 6, at 9:00 a.m. Eastern Time. The call may be accessed by dialing (877) 407-9037. A simultaneous webcast of the call, along with management's formal remarks and a presentation, will be available on the Company's website at www.topbuild.com shortly before the call begins.

About TopBuild

TopBuild Corp., headquartered in Daytona Beach, Florida, is a leading installer and specialty distributor of insulation and related building material products to the construction industry in the United States and Canada. We provide insulation installation services nationwide through our Installation segment which has approximately 250 branches located across the United States. We distribute building and mechanical insulation, insulation accessories and other building product materials for the residential, commercial, and industrial end markets through our Specialty Distribution business. Our Specialty Distribution network encompasses approximately 170 branches. To learn more about TopBuild please visit our website at www.topbuild.com.

Use of Non-GAAP Financial Measures

Adjusted EBITDA, incremental EBITDA margin, adjusted EBITDA margin, the "adjusted" financial measures presented above, and figures presented on a "same branch basis" are not calculated in accordance with U.S. generally accepted accounting principles ("GAAP"). The Company believes that these non-GAAP financial measures, which are used in managing the business, may provide users of this financial information with additional meaningful comparisons between current results and results in prior periods. We define same branch sales as sales from branches in operation for at least 12 full calendar months. Such non-GAAP financial measures are reconciled to their closest GAAP financial measures in tables contained in this press release. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's reported results under GAAP. Additional information may be found in the Company's filings with the Securities and Exchange Commission which are available on TopBuild's website under "SEC Filings" at www.topbuild.com.

Safe Harbor Statement

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements may address, among other things, our expected financial and operational results, the related assumptions underlying our expected results, and our plan to repurchase our common stock under stock repurchase transactions. These forward-looking statements can be identified by words such as "will," "would," "anticipate," "expect," "believe," "designed," "plan," "may," "project," "estimate" or "intend," the negative of these terms, and similar references to future periods. These views involve risks and uncertainties that are difficult to predict and, accordingly, our actual results may differ materially from the results discussed in our forward-looking statements. Our forward-looking statements contained herein speak only as of the date of this press release. Factors or events that we cannot predict, including those described in the risk factors contained in our filings with the Securities and Exchange Commission, may cause our actual results to differ from those expressed in forward-looking statements. Although TopBuild believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, the Company can give no assurance that its expectations will be achieved and it undertakes no obligation to update any forward-looking statements as a result of new information, future events, or otherwise, except as required by applicable law.

(tables follow)

TopBuild Corp.
Condensed Consolidated Statements of Operations (Unaudited)
(in thousands, except share and per common share amounts)

	Three Months Ended June 30,						Six Months Ended June 30,
		2024			2023			2024			2023
Net sales	$	1,365,612		$	1,317,262		$	2,644,329		$	2,582,500
Cost of sales		941,690			895,462			1,833,257			1,790,485
Gross profit		423,922			421,800			811,072			792,015

Selling, general, and administrative expense		213,530			184,697			386,172			355,481
Operating profit		210,392			237,103			424,900			436,534

Other income (expense), net:
Interest expense		(18,568	)		(18,558	)		(37,363	)		(36,597	)
Other, net		11,350			4,605			22,632			6,528
Other expense, net		(7,218	)		(13,953	)		(14,731	)		(30,069	)
Income before income taxes		203,174			223,150			410,169			406,465

Income tax expense		(52,451	)		(58,750	)		(107,065	)		(106,195	)
Net income	$	150,723		$	164,400		$	303,104		$	300,270

Net income per common share:
Basic	$	4.81		$	5.20		$	9.63		$	9.51
Diluted	$	4.78		$	5.18		$	9.56		$	9.47

Weighted average shares outstanding:
Basic		31,324,833			31,599,744			31,483,144			31,575,337
Diluted		31,524,063			31,731,807			31,693,524			31,722,660

TopBuild Corp.
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
(in thousands)

	Three Months Ended June 30,					Six Months Ended June 30,
		2024			2023		2024			2023
Net income	$	150,723		$	164,400	$	303,104		$	300,270
Other comprehensive (loss) income:
Foreign currency translation adjustment		(1,836	)		4,283		(5,928	)		6,037
Comprehensive income	$	148,887		$	168,683	$	297,176		$	306,307

TopBuild Corp.
Condensed Consolidated Balance Sheets and Other Financial Data (Unaudited)
(dollars in thousands)
	As of
	June 30, 2024			December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents	$	463,221		$	848,565
Receivables, net of an allowance for credit losses of $22,718 at June 30, 2024, and $23,948 at December 31, 2023		859,725			799,009
Inventories		393,810			364,731
Prepaid expenses and other current assets		43,550			36,939
Total current assets		1,760,306			2,049,244

Right of use assets		191,048			204,629
Property and equipment, net		267,523			264,487
Goodwill		2,090,788			2,042,568
Other intangible assets, net		583,141			591,058
Other assets		10,187			10,865
Total assets	$	4,902,993		$	5,162,851

LIABILITIES
Current liabilities:
Accounts payable	$	461,139		$	469,585
Current portion of long-term debt		45,665			47,039
Accrued liabilities		176,753			187,217
Short-term operating lease liabilities		66,953			65,780
Short-term finance lease liabilities		1,739			1,917
Total current liabilities		752,249			771,538

Long-term debt		1,351,969			1,373,028
Deferred tax liabilities, net		243,790			243,930
Long-term portion of insurance reserves		60,402			58,783
Long-term operating lease liabilities		132,529			146,213
Long-term finance lease liabilities		3,318			4,150
Other liabilities		1,422			1,554
Total liabilities		2,545,679			2,599,196

EQUITY		2,357,314			2,563,655
Total liabilities and equity	$	4,902,993		$	5,162,851

	As of June 30,
	2024			2023
Other Financial Data
Receivable days		51			50
Inventory days		39			39
Accounts payable days		57			64
Receivables, net plus inventories less accounts payable	$	792,396		$	774,111
Receivables, net plus inventories less accounts payable as a percent of sales (TTM) †		14.8	%		14.9	%

† Trailing 12 months sales have been adjusted for the pro forma effect of acquired branches

TopBuild Corp.
Condensed Consolidated Statement of Cash Flows (Unaudited)
(in thousands)

	Six Months Ended June 30,
		2024			2023
Cash Flows Provided by (Used in) Operating Activities:
Net income	$	303,104		$	300,270
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		69,291			64,652
Share-based compensation		9,759			6,886
(Gain)/loss on sale of assets		(131	)		621
Amortization of debt issuance costs		1,440			1,440
Provision for bad debt expense		9,874			4,031
Provision for inventory obsolescence		4,892			3,290
Change in certain assets and liabilities:
Receivables, net		(58,411	)		(37,247	)
Inventories		(30,758	)		54,623
Prepaid expenses and other current assets		(6,595	)		8,897
Accounts payable		(17,480	)		(8,806	)
Accrued liabilities		(13,348	)		(13,872	)
Other, net		(2,509	)		1,012
Net cash provided by operating activities		269,128			385,797

Cash Flows Provided by (Used in) Investing Activities:
Purchases of property and equipment		(35,974	)		(30,672	)
Acquisition of businesses, net of cash acquired		(88,123	)		(45,948	)
Proceeds from sale of assets		2,150			782
Net cash used in investing activities		(121,947	)		(75,838	)

Cash Flows Provided by (Used in) Financing Activities:
Repayment of long-term debt		(23,873	)		(18,829	)
Taxes withheld and paid on employees' equity awards		(6,059	)		(6,350	)
Exercise of stock options		3,224			1,497
Repurchase of shares of common stock		(505,241	)		—
Payment of contingent consideration		—			(300	)
Net cash used in financing activities		(531,949	)		(23,982	)
Impact of exchange rate changes on cash		(576	)		281
Net (decrease) increase in cash and cash equivalents		(385,344	)		286,258
Cash and cash equivalents - Beginning of period		848,565			240,069
Cash and cash equivalents - End of period	$	463,221		$	526,327

Supplemental disclosure of noncash activities:
Leased assets obtained in exchange for new operating lease liabilities	$	20,180		$	26,310
Accruals for property and equipment		277			1,449
Excise taxes capitalized to treasury stock		5,202			—

TopBuild Corp.
Segment Data (Unaudited)
(dollars in thousands)

	Three Months Ended June 30,									Six Months Ended June 30,
		2024			2023		Change				2024			2023		Change
Installation
Sales	$	850,983		$	809,055			5.2	%	$	1,649,726		$	1,576,145			4.7	%

Operating profit, as reported	$	170,718		$	172,278					$	327,475		$	319,176
Operating margin, as reported		20.1	%		21.3	%					19.9	%		20.3	%

Acquisition related costs		288			227						333			490
Operating profit, as adjusted	$	171,006		$	172,505					$	327,808		$	319,666
Operating margin, as adjusted		20.1	%		21.3	%					19.9	%		20.3	%

Share-based compensation		318			310						648			689
Depreciation and amortization		18,712			16,791						36,979			33,284
EBITDA, as adjusted	$	190,036		$	189,606			0.2	%	$	365,435		$	353,639			3.3	%
EBITDA margin, as adjusted		22.3	%		23.4	%					22.2	%		22.4	%

Specialty Distribution
Sales	$	592,826		$	574,488			3.2	%	$	1,138,620		$	1,132,862			0.5	%

Operating profit, as reported	$	89,373		$	85,980					$	166,951		$	159,313
Operating margin, as reported		15.1	%		15.0	%					14.7	%		14.1	%

Rationalization charges		—			—						(750	)		—
Acquisition related costs		10			—						10			340
Operating profit, as adjusted	$	89,383		$	85,980					$	166,211		$	159,653
Operating margin, as adjusted		15.1	%		15.0	%					14.6	%		14.1	%

Share-based compensation		380			316						813			554
Depreciation and amortization		15,047			14,740						29,883			29,312
EBITDA, as adjusted	$	104,810		$	101,036			3.7	%	$	196,907		$	189,519			3.9	%
EBITDA margin, as adjusted		17.7	%		17.6	%					17.3	%		16.7	%

TopBuild Corp.
Adjusted EBITDA (Unaudited)
(dollars in thousands)

	Three Months Ended June 30,								Six Months Ended June 30,
		2024			2023		Change			2024			2023		Change
Total net sales
Sales before eliminations	$	1,443,809		$	1,383,543				$	2,788,346		$	2,709,007
Intercompany eliminations		(78,197	)		(66,281	)				(144,017	)		(126,507	)
Net sales after eliminations	$	1,365,612		$	1,317,262		3.7	%	$	2,644,329		$	2,582,500		2.4	%

Operating profit, as reported - segments	$	260,091		$	258,258				$	494,426		$	478,489
General corporate expense, net		(36,859	)		(9,957	)				(45,926	)		(20,786	)
Intercompany eliminations		(12,840	)		(11,198	)				(23,600	)		(21,169	)
Operating profit, as reported	$	210,392		$	237,103				$	424,900		$	436,534
Operating margin, as reported		15.4	%		18.0	%				16.1	%		16.9	%

Rationalization charges		258			—					(492	)		—
Acquisition related costs †		4,379			2,100					5,055			5,758
Acquisition termination fee		23,000			—					23,000			—
Operating profit, as adjusted	$	238,029		$	239,203				$	452,463		$	442,292
Operating margin, as adjusted		17.4	%		18.2	%				17.1	%		17.1	%

Share-based compensation		4,632			3,751					9,759			6,886
Depreciation and amortization		35,033			32,551					69,291			64,652
EBITDA, as adjusted	$	277,694		$	275,505		0.8	%	$	531,513		$	513,830		3.4	%
EBITDA margin, as adjusted		20.3	%		20.9	%				20.1	%		19.9	%

Sales change period over period		48,350								61,829
EBITDA, as adjusted, change period over period		2,189								17,683
Incremental EBITDA, as adjusted, as a percentage of change in sales		4.5	%							28.6	%

† Acquisition related costs include corporate level adjustments as well as segment operating adjustments

TopBuild Corp.
Same Branch and Acquisition Metrics (Unaudited)
(dollars in thousands)

	Three Months Ended June 30,						Six Months Ended June 30,
		2024			2023			2024			2023
Net sales
Same branch:
Installation	$	820,243		$	802,086		$	1,592,184		$	1,562,737
Specialty Distribution		585,181			574,488			1,128,626			1,132,862
Eliminations		(78,197	)		(66,281	)		(144,017	)		(126,507	)
Total same branch	$	1,327,227		$	1,310,293		$	2,576,793		$	2,569,092

Acquisitions (a):
Installation	$	30,740		$	—		$	57,542		$	—
Specialty Distribution		7,645			—			9,994			—
Total acquisitions		38,385			—			67,536			—

Dispositions (b):
Installation	$	—		$	6,969		$	—		$	13,408
Total dispositions		—			6,969			—			13,408
Total net sales	$	1,365,612		$	1,317,262		$	2,644,329		$	2,582,500

EBITDA, as adjusted
Same branch	$	271,096		$	274,113		$	521,202		$	511,305
Acquisitions (a)		6,598			—			10,311			—
Dispositions (b)		—			1,392			—			2,525
Total	$	277,694		$	275,505		$	531,513		$	513,830

EBITDA, as adjusted, as a percentage of sales
Same branch (c)		20.4	%					20.2	%
Acquisitions (d)		17.2	%					15.3	%
Total (e)		20.3	%		20.9	%		20.1	%		19.9	%

As Adjusted Incremental EBITDA, as a percentage of change in sales
Same branch (f)		NM						128.5
Acquisitions (d)		17.2	%					15.3	%
Total (g)		4.5	%					28.6	%

(a) Represents current year impact of acquisitions in their first twelve months
(b) Represents operating results in prior period previously classified as same branch
(c) Same branch metric, as adjusted, as a percentage of same branch sales
(d) Acquired metric, as adjusted, as a percentage of acquired sales
(e) Total EBITDA, as adjusted, as a percentage of total sales
(f) Change in same branch EBITDA, as adjusted, as a percentage of change in same branch sales
(g) Change in total EBITDA, as adjusted, as a percentage of change in total sales
NM Not Meaningful

TopBuild Corp.
Non-GAAP Reconciliations (Unaudited)
(in thousands, except share and per common share amounts)

	Three Months Ended June 30,								Six Months Ended June 30,
		2024				2023				2024				2023
Gross Profit Reconciliation

Net sales	$	1,365,612			$	1,317,262			$	2,644,329			$	2,582,500

Gross profit, as reported	$	423,922			$	421,800			$	811,072			$	792,015

Acquisition related costs		—				—				—				—
Gross profit, as adjusted	$	423,922			$	421,800			$	811,072			$	792,015

Gross margin, as reported		31.0		%		32.0		%		30.7		%		30.7	%
Gross margin, as adjusted		31.0		%		32.0		%		30.7		%		30.7	%

Selling, General and Administrative Expense Reconciliation

Selling, general, and administrative expense, as reported	$	213,530			$	184,697			$	386,172			$	355,481

Rationalization charges		258				—				(492	)			—
Acquisition related costs		4,379				2,100				5,055				5,758
Acquisition termination fee		23,000				—				23,000				—
Selling, general, and administrative expense, as adjusted	$	185,893			$	182,597			$	358,609			$	349,723

Operating Profit Reconciliation

Operating profit, as reported	$	210,392			$	237,103			$	424,900			$	436,534

Rationalization charges		258				—				(492	)			—
Acquisition related costs		4,379				2,100				5,055				5,758
Acquisition termination fee		23,000				—				23,000				—
Operating profit, as adjusted	$	238,029			$	239,203			$	452,463			$	442,292

Operating margin, as reported		15.4		%		18.0		%		16.1	%			16.9	%
Operating margin, as adjusted		17.4		%		18.2		%		17.1	%			17.1	%

Income Per Common Share Reconciliation

Income before income taxes, as reported	$	203,174			$	223,150			$	410,169			$	406,465

Rationalization charges		258				—				(492	)			—
Acquisition related costs		4,379				2,100				5,055				5,758
Acquisition termination fee		23,000				—				23,000				—
Income before income taxes, as adjusted		230,811				225,250				437,732				412,223

Tax rate at 26.0%		(60,011	)			(58,565	)			(113,810	)			(107,178	)
Income, as adjusted	$	170,800			$	166,685			$	323,922			$	305,045

Income per common share, as adjusted	$	5.42			$	5.25			$	10.22			$	9.62

Weighted average diluted common shares outstanding		31,524,063				31,731,807				31,693,524				31,722,660

TopBuild Corp.
Reconciliation of Adjusted EBITDA to Net Income (Unaudited)
(in thousands)

	Three Months Ended June 30,				Six Months Ended June 30,
		2024		2023		2024			2023
Net income, as reported	$	150,723	$	164,400	$	303,104		$	300,270
Adjustments to arrive at EBITDA, as adjusted:
Interest expense and other, net		7,218		13,953		14,731			30,069
Income tax expense		52,451		58,750		107,065			106,195
Depreciation and amortization		35,033		32,551		69,291			64,652
Share-based compensation		4,632		3,751		9,759			6,886
Rationalization charges		258		—		(492	)		—
Acquisition related costs		4,379		2,100		5,055			5,758
Acquisition termination fee		23,000		—		23,000			—
EBITDA, as adjusted	$	277,694	$	275,505	$	531,513		$	513,830

TopBuild Corp.
Acquisition Adjusted Net Sales (Unaudited)
(in thousands)
	2023				2024				Trailing Twelve Months Ended
	Q3		Q4		Q1		Q2		June 30, 2024
Net sales	$	1,326,120	$	1,286,074	$	1,278,717	$	1,365,612	$	5,256,523
Acquisitions proforma adjustment †		33,549		28,367		24,075		10,603		96,594
Net sales, acquisition adjusted	$	1,359,669	$	1,314,441	$	1,302,792	$	1,376,215	$	5,353,117

† Trailing 12 months sales have been adjusted for the pro forma effect of acquired branches

TopBuild Corp.
2024 Estimated Adjusted EBITDA Range (Unaudited)
(in millions)

	Twelve Months Ending December 31, 2024
		Low		High
Estimated net income, as reported	$	603.0	$	663.0
Adjustments to arrive at estimated EBITDA, as adjusted:
Interest expense and other, net		48.0		45.0
Income tax expense		212.0		230.0
Depreciation and amortization		144.0		141.0
Share-based compensation		19.0		18.0
Acquisition related costs & rationalization charges		29.0		28.0
Estimated EBITDA, as adjusted	$	1,055.0	$	1,125.0

Investor Relations and Media Contact
PI Aquino
pi.aquino@topbuild.com
386-763-8801

TopBuild Reports Second Quarter Results