Page 1

TopBuild A leading installer and specialty distributor of insulation and building material products to the North American construction industry . TopBuild Reports Third Quarter 2021 Results • 21.3 % increase in net sales • 120 basis point gross margin expansion to 29.6 % • 120 basis point operating margin expansion to 15.8 % , 170 basis points on an adjusted basis 160 basis point adjusted EBITDA margin expansion to 18.7 % Third Quarter Financial Highlights ( unless otherwise indicated , comparisons are to the quarter ended September 30 , 2020 ) ✓ Net sales increased 21.3 % to $ 845.8 million , 10.6 % on a same branch basis , primarily driven by price and acquisitions . Gross margin increased 120 basis points to 29.6 % . Operating profit was $ 133.8 million , compared to operating profit of $ 101.5 million . On an adjusted basis , operating profit was $ 137.4 million , compared to $ 101.7 million , a 35.2 % improvement . Operating margin increased 120 basis points , and on an adjusted basis expanded 170 basis points to 16.3 % . Net income was $ 95.4 million , or $ 2.88 per diluted share , compared to $ 70.0 million , or $ 2.11 per diluted share . Adjusted income was $ 97.7 million , or $ 2.95 per diluted share , compared to $ 69.6 million , or $ 2.10 per diluted share . Adjusted EBITDA was $ 158.2 million , compared to $ 119.2 million , a 32.8 % increase , and adjusted EBITDA margin improved 160 basis points to 18.7 % . At September 30 , 2021 , the Company had cash and cash equivalents of $ 327.9 million and availability under its revolving credit facility of $ 381.9 million for total liquidity of $ 709.8 million . " We are pleased with our overall results , particularly in this challenging environment characterized by supply chain disruptions and labor shortages across the entire construction industry . These market imbalances have impacted homebuilders ' ability to meet the continuing strong consumer demand , constraining growth for the entire industry . " Our teams continue to do an excellent job managing inputs costs and pricing as evidenced by our strong EBITDA margin expansion this quarter . " Looking ahead , we are confident in the overall fundamentals of our three end - markets ; residential , commercial , and industrial , and our ability to leverage our size , scale , and operational excellence to continue to drive profitable growth . ” ROBERT BUCK , PRESIDENT & CEO NYSE : BLD November 2 , 2021 topbuild.com