Q2 2024 TopBuild Corp Earnings Call Transcript
Key Points
- TopBuild Corp (BLD) delivered a solid second quarter with both segments growing top line sales and bottom line profits.
- Sales grew 3.7% to $1.37 billion, with both segments realizing pricing, increased volumes, and benefiting from acquisitions.
- Reported adjusted EBITDA of $277.7 million and an adjusted EBITDA margin of 20.3%, the highest in the company's history.
- Residential business grew 5.4% in the quarter, with single-family environment continuing to improve.
- Strong M&A activity with acquisitions totaling approximately $280 million in annual revenue over the last 18 months.
- Volumes across both segments were softer than anticipated in the quarter.
- Material supply constraints, particularly in fiberglass and certain commercial products, impacted growth.
- Commercial and industrial end markets are feeling the impact of higher interest rates, causing project delays.
- Gross profit margin was 100 basis points lower than last year, partly due to a one-time benefit in the previous year.
- Revised full-year sales guidance to $5.3 billion to $5.5 billion, reflecting choppiness in demand, primarily in commercial markets.
Greetings, and welcome to the TopBuild second-quarter 2024 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, P. I. Aquino, Vice President of Investor Relations. Thank you. You may begin.
Good morning, and thanks for joining us. On our call today are Robert Buck, President and Chief Executive Officer; and Rob Kuhns, Chief Financial Officer. We have posted our earnings release, senior management's formal remarks and a presentation that summarizes our comments on our website at topbuild.com. Many of our remarks today will include forward-looking statements, which are subject to known and unknown risks and uncertainties, including those set forth in this morning's press release as well as in the company's filings with the SEC.
The company assumes no obligation to update any forward-looking statements because of new information, future events or otherwise. Please note that some of the financial
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