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

TopBuild (NYSE:BLD) issued its earnings results on Thursday. The construction company reported $4.50 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.39 by $0.11, FiscalAI reports. TopBuild had a net margin of 9.65% and a return on equity of 26.12%. The business had revenue of $1.50 billion during the quarter, compared to analysts’ expectations of $1.49 billion. During the same period in the previous year, the company earned $5.13 earnings per share. The business’s revenue for the quarter was up 13.2% compared to the same quarter last year.

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

NYSE BLD opened at $447.69 on Friday. The company has a debt-to-equity ratio of 1.26, a current ratio of 2.90 and a quick ratio of 2.45. TopBuild has a 1-year low of $266.26 and a 1-year high of $559.47. The business has a 50 day simple moving average of $479.99 and a two-hundred day simple moving average of $444.31. The stock has a market capitalization of $12.57 billion, a PE ratio of 24.46, a P/E/G ratio of 7.56 and a beta of 1.70.

Analysts Set New Price Targets

Several research analysts have recently weighed in on the stock. Royal Bank Of Canada boosted their price objective on shares of TopBuild from $410.00 to $433.00 and gave the company a “sector perform” rating in a report on Friday. Jefferies Financial Group raised their price objective on TopBuild from $518.00 to $536.00 and gave the stock a “buy” rating in a research note on Monday, December 15th. Weiss Ratings upgraded shares of TopBuild from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Thursday, February 5th. DA Davidson reissued a “buy” rating and issued a $485.00 price objective on shares of TopBuild in a research note on Wednesday, December 10th. Finally, Wells Fargo & Company decreased their price objective on shares of TopBuild from $600.00 to $525.00 and set an “overweight” rating on the stock in a research report on Friday. One analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $439.26.

Institutional Investors Weigh In On TopBuild

Several large investors have recently bought and sold shares of the business. AQR Capital Management LLC grew its stake in shares of TopBuild by 48.2% in the 1st quarter. AQR Capital Management LLC now owns 2,573 shares of the construction company’s stock worth $774,000 after buying an additional 837 shares in the last quarter. Northwestern Mutual Wealth Management Co. raised its position in shares of TopBuild by 106.0% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 239 shares of the construction company’s stock valued at $77,000 after buying an additional 123 shares in the last quarter. First Trust Advisors LP lifted its holdings in shares of TopBuild by 8.1% in the 2nd quarter. First Trust Advisors LP now owns 67,835 shares of the construction company’s stock valued at $21,961,000 after acquiring an additional 5,093 shares during the last quarter. Marshall Wace LLP bought a new position in shares of TopBuild in the 2nd quarter valued at about $489,000. Finally, Federated Hermes Inc. grew its position in TopBuild by 10.7% in the second quarter. Federated Hermes Inc. now owns 6,759 shares of the construction company’s stock worth $2,188,000 after acquiring an additional 654 shares in the last quarter. Institutional investors own 95.67% of the company’s stock.

Key TopBuild News

Here are the key news stories impacting TopBuild this week:

• Positive Sentiment: Wells Fargo cut its price target from $600 to $525 but kept an Overweight rating, leaving material upside vs. the current price — shows continued analyst conviction despite the reset. Benzinga
• Positive Sentiment: Benchmark trimmed its target from $515 to $500 but maintained a Buy — another buy-side vote that implies double-digit upside from current levels. Benzinga
• Positive Sentiment: TopBuild returned $434.2M to shareholders via share repurchases in 2025 and has substantial remaining buyback capacity (~$753.9M), supporting EPS and signaling management confidence. TopBuild Q4 press release
• Positive Sentiment: Institutional buying: Aster Capital disclosed a new ~ $598k position in BLD, indicating some funds are adding exposure after the results. Aster Capital buys BLD
• Neutral Sentiment: RBC bumped its target modestly from $410 to $433 and left a Sector Perform rating — a mixed signal (slightly higher target but no upgrade). Benzinga
• Neutral Sentiment: Q4 results: revenue (~$1.49B) roughly in line with expectations and EPS of $4.50 beat consensus by $0.11, but EPS and net income were down versus a year ago — topline growth was acquisition-driven. Yahoo Finance: Q4 results
• Negative Sentiment: Profitability compression: reported operating and net margins declined (YoY net income and EPS down), driven by SG&A increases, acquisition-related costs and inventory step-ups that weighed on Specialty Distribution margins. Those margin hits are a key reason sentiment turned negative despite revenue growth. TopBuild Q4 press release
• Negative Sentiment: Higher leverage and interest costs: long-term debt rose materially after 2025 acquisitions and interest expense increased, raising financial risk and weighing on adjusted earnings expectations. This is amplifying investor caution. TopBuild Q4 press release
• Negative Sentiment: Insider selling: recent insider share sales (including by the CEO) have been reported, which can add to near-term downward pressure on the stock. Quiver / summary

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.