TopBuild’s second quarter drew a positive market reaction, as management pointed to sustained profitability and improved margins despite ongoing softness in residential new construction. CEO Robert Buck highlighted the successful completion of the Progressive Roofing acquisition as a pivotal step, expanding TopBuild's reach in the fragmented commercial roofing sector. Growth in heavy commercial and industrial end markets partially offset weaker volumes in residential and light commercial. Management attributed solid EBITDA margins to ongoing supply chain improvements and proactive cost controls, with CFO Rob Kuhns noting that “cost actions we took in the first quarter and supply chain improvements… almost entirely offset the EBITDA margin pressures from lower sales volume.”
Is now the time to buy BLD? Find out in our full research report (it’s free).
TopBuild (BLD) Q2 CY2025 Highlights:
- Revenue: $1.30 billion vs analyst estimates of $1.30 billion (5% year-on-year decline, in line)
- Adjusted EPS: $5.31 vs analyst estimates of $5.09 (4.2% beat)
- Adjusted EBITDA: $261.3 million vs analyst estimates of $251.6 million (20.1% margin, 3.9% beat)
- The company slightly lifted its revenue guidance for the full year to $5.25 billion at the midpoint from $5.2 billion
- EBITDA guidance for the full year is $1.02 billion at the midpoint, above analyst estimates of $1.00 billion
- Operating Margin: 16.9%, up from 15.4% in the same quarter last year
- Organic Revenue fell 6.5% year on year vs analyst estimates of 6.7% declines (12.5 basis point beat)
- Market Capitalization: $12.02 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From TopBuild’s Q2 Earnings Call
- Michael Jason Rehaut (JPMorgan) asked about the margin impact and sales synergy potential from the Progressive Roofing acquisition; CFO Rob Kuhns responded that margins are expected to be in line with the core business, and CEO Robert Buck highlighted early cross-selling opportunities.
- Susan Marie Maklari (Goldman Sachs) inquired about supply chain improvements and their ongoing benefits; CEO Buck explained that footprint optimization and supplier negotiations are expected to yield further efficiency gains in the second half.
- Philip H. Ng (Jefferies) focused on pricing sustainability and cost headwinds; Kuhns noted a $30 million price/cost headwind anticipated in the back half, with builder affordability and material costs as key factors.
- Keith Brian Hughes (Truist Securities) asked about the mix of commercial projects in Progressive Roofing and market outlook; Buck clarified most business is heavy commercial, with 70% related to reroof and services, while Kuhns reiterated backlog strength in heavy commercial and ongoing headwinds in light commercial.
- Stephen Kim (Evercore) pressed on Progressive’s business system and M&A integration; Buck detailed proprietary job costing and talent development practices that drive superior margins, and Kuhns emphasized a disciplined approach to future M&A.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will monitor (1) the pace and margin contribution from Progressive Roofing’s integration and cross-selling activities, (2) trends in heavy commercial and industrial project backlogs—particularly data center and power sector demand, and (3) stabilization or improvement in residential new construction volumes. Additional acquisition activity and successful execution of supply chain initiatives will also be key markers of TopBuild’s ability to sustain profitability through market cycles.
TopBuild currently trades at $430.85, up from $387.17 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free).
Our Favorite Stocks Right Now
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
