Page 1

TopBuild NYSE : BLD A leading installer and distributor of insulation and building material products to the U.S. construction industry TopBuild Reports Second Quarter 2021 Results • 29.1 % increase in net sales • • . 150 bps gross margin expansion , 140 bps on an adjusted basis 15.4 % operating margin , 15.6 % on an adjusted basis , up 270 bps $ 2.72 net income per diluted share , $ 2.76 on an adjusted basis • 18.0 % adjusted EBITDA margin , 18.4 % on a same branch basis Announces New $ 200 Million Share Repurchase Program Second Quarter Financial Highlights ( unless otherwise indicated , comparisons are to the quarter ended June 30 , 2020 ) Net sales increased 29.1 % to $ 834.3 . million , 18.3 % on a same branch basis , primarily driven by increases in both price and volume as well as M & A . Gross margin increased 150 basis points to 29.1 % . On an adjusted basis , gross margin increased 140 basis points to 29.2 % . Operating profit was $ 128.3 million , compared to operating profit of $ 80.5 million , a 59.5 % improvement . On an adjusted basis , operating profit was $ 129.9 million , compared to $ 83.5 million , a 55.5 % improvement . Operating margin was 15.4 % , up 290 basis points . Adjusted operating margin improved 270 basis points to 15.6 % . Net income was $ 90.4 million , or $ 2.72 per diluted share , compared to $ 55.5 million , or $ 1.67 per diluted share . Adjusted income was $ 91.6 million , or $ 2.76 per diluted share , compared to $ 55.7 million , or $ 1.68 per diluted share . " We are very pleased with our second quarter results . Top line growth was strong and operating margins expanded at both business segments . Our solid performance demonstrates our team's ability to successfully manage pricing in conjunction with multiple material cost increases as well as productivity in a labor and material constrained market . " Looking ahead , we expect the residential housing market to remain solid and the commercial market to continue to strengthen . Our focus will remain on driving profitable growth and creating long - term value for our stakeholders . " ROBERT BUCK , PRESIDENT & CEO , TOPBUILD Adjusted EBITDA was $ 149.8 million , compared to $ 107.8 million , a 39.1 % increase , and adjusted EBITDA margin improved 130 basis points to 18.0 % . NYSE : BLD August 3 , 2021 topbuild.com