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1 TopBuild Acquires Specialty Products and Insulation (SPI) in All-Cash Transaction Valued at $1 Billion Robert Buck, President & CEO Rob Kuhns, CFO October 8, 2025
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2 2 Safe Harbor Statements contained herein reflect our views about future periods, including our future plans and performance, constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “will,” “would,” “anticipate,” “expect,” “believe,” “designed,” “plan,” or “intend,” the negative of these terms, and similar references to future periods. These views involve risks and uncertainties that are difficult to predict and, accordingly, our actual results may differ materially from the results discussed in our forward-looking statements. We caution you against unduly relying on any of these forward-looking statements. Our future performance may be affected by a number of risks including but not limited to the material risks under the caption entitled “Risk Factors” in our most recent Annual Report, as filed with the SEC, as well as under the caption entitled “Risk Factors” in subsequent reports that we file with the SEC. Our forward-looking statements in this presentation speak only as of the date of this presentation. Factors or events that could cause our actual results to differ may emerge from time to time and it is not possible for us to predict al l of them. Unless required by law, we undertake no obligation to update any forward-looking statements as a result of new information, future events, or otherwise. The Company believes that the non-GAAP performance measures and ratios that are contained herein, which management uses to manage our business, provide additional meaningful comparisons between current results and results in our prior periods. Non-GAAP performance measures and ratios should be viewed in addition, and not as an alternative, to the Company’s reported results under United States GAAP. Additional information about the Company is contained in the Company‘s filings with the SEC and is available on TopBuild’s website at www.topbuild.com.
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3 3 Specialty Products and Insulation (SPI) Snapshot A Leading Specialty Distributor of Mechanical Insulation 1 For the trailing twelve months ended June 30, 2025. Excludes metal building insulation. 1982 Charlotte, NC 90 ~1,000 Founded Headquarters Branches Employees • Attractive and complementary businesses and footprint • Specialized engineering and fabrication capabilities • Talented and experienced management team • Track record of profitable growth 85% 15% Products Building Insulation Mechanical Insulation 87% 13% End Market Residential Commercial & Industrial 45% 55% Demand Drivers Maintenance and Repair New Construction SPI SALES MIX1
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4 4 Reinforces Specialty Distribution Leadership Position HIGHLIGHTS Acquired Specialty Products & Insulation for $1B SPI is a leading specialty distributor and fabricator of mechanical insulation solutions Expect $35M to $40M of annual run-rate cost synergies within two years STRATEGIC RATIONALE Brings together two leading specialty distributors with strong Commercial and Industrial (C&I) end market mix and complementary product offerings to drive further innovation and even better meet customer needs 1 Extends geographic footprint and expands mechanical insulation fabrication capabilities in highly fragmented industry2 Improves non-cyclical revenue mix driven by recurring maintenance and repair3 Drives strong return on invested capital and leverages core M&A strength4 Acquisition Advances TopBuild’s Growth Strategy and Drives Strong Returns
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5 5 Acquisition Further Enables Best-in-Class Customer Experiences Serving C&I customers across all verticals Data Centers Industrial Manufacturing Oil & Gas Energy & Alternative Fuels Chemical Processing Pharmaceuticals & Biotech Food & Beverage Marine HVAC Systems Duct liner Duct wrap Duct board HVAC insulation Building Insulation Fiberglass Spray Foam Mineral Wool Fiberglass batt insulation Plumbing and Mechanical Fiberglass pipe cover Foam glass pipe cover Rubber pipe cover Pipe and tank wrap Calcium silicate insulation Insulation jacket systems Complementary Product Offerings Brings Together Two Leading Specialty Distributors with Strong C&I End Market Mix
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6 6 Complementary Footprint Further Supports Customers Mechanical Insulation Branches TopBuild SPI Extends Mechanical Insulation Footprint and Fabrication Capabilities • Expands coverage across key regions, such as Northeast and Southeast U.S., including Florida • Enables opportunities to drive operational efficiencies • Improves cross-selling opportunities
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7 7 Leverages Core M&A Strengths TopBuild Recognized as an Acquirer of Choice M&A Strategy • Disciplined approach, rigorous diligence • Enhance resources and capabilities • Expand geographic presence and customer base • Value accretive growth opportunities • Aligns to culture and leadership Track Record of Success • Completed 45 acquisitions since spin-off in 2015 • Historically exceeded projected synergy targets • Consistently expanded margins post-acquisitions CLEARLY DEFINED M&A STRATEGY AND PROCESS Integration Competency • Dedicated integration team • Timely conversion to our ERP system • Realize synergies quickly • Leverage best practices
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8 8 • A leading specialty distributor and fabricator of value-added mechanical insulation solutions for commercial, industrial and residential end markets • Excludes SPI’s metal building insulation (MBI) business Financial Highlights1 • Revenue of ~$700M as of June 30, 2025 • EBITDA of $75M and EBITDA margin of 10.7% • Immediately accretive to EPS Consideration and Valuation • Cash consideration of $1.0B • $70M of tax benefits • Expect $35-$40M in annual run-rate cost synergies by the end of year 2 • Inclusive of tax asset, represents 12.4x EBITDA or 8.3x EBITDA post-synergies Funding • Cash on hand, including proceeds from $750M senior notes issuance in September • ~2.4x pro forma Net Debt to Adjusted EBITDA as of June 30, 2025 • Transaction closed on October 7, 2025 Specialty Products & Insulation Transaction Overview $35-$40M in Annual Synergies by the End of Year 2 1 For the trailing twelve months ended June 30, 2025.
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9 9 ~22% of TopBuild Total Revenue is Non-Cyclical 1 Trailing twelve months (TTM) ended June 30, 2025 historical TopBuild revenue plus TTM ended June 30, 2025 Progressive and SPI revenue. Pro Forma Revenue Mix TOPBUILD PRO FORMA REVENUE1 = $6.4 B 78% 22% Demand Drivers Grows non-cyclical revenue 53% 47% End Market Commercial & IndustrialResidential Increases C&I exposure Specialty DistributionInstallation 57% 43% Segment Drives more balanced segment mix Non-cyclical – maintenance/repair, re-roofing, repair/remodel New construction
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10 10 SOURCES OF SYNERGIES Significant Cost Synergies Highly Confident in Ability to Capture Meaningful Synergies SUPPLY CHAIN • Leverage TopBuild’s scale and best practices across the supply chain and branch network OPERATIONAL IMPROVEMENTS • Improve efficiencies and productivity • Achieve enhanced asset utilization • Optimize fleet and logistics • Reduce indirect spend ~$17M to $20M ~$35M to $40M Run-rate End Year 1 Run-rate End Year 2 Consistent track record of successfully delivering synergies on time Highly complementary businesses enable substantial synergy realization
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11 11 Proven Ability to Create Long-Term Value Established Track Record of Growth 1 See Appendix for reconciliation. 2 Free cash flow is defined as cash from operating activities less capital expenditures. 3 Operating Profit and Average Invested Capital adjusted for USI and Distribution International Acquisitions. ROIC is defined as ((1 - Tax Rate) * Adjusted Operating Profit) / (LT Debt + Equity). Return on Invested Capital3 6.6% 18.2% 2015 2024 Free Cash Flow ($M)2 $42 $707 2015 2024 37% CAGR Adjusted EBITDA ($M)1 $107 $1,075 2015 2024 29% CAGR Sales ($M) $1,617 $5,330 2015 2024 14% CAGR +1,160 bps
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12 12 Key Takeaways Compelling Strategic Acquisition 1 Brings together two leading specialty distributors with strong commercial and industrial end market mix and complementary product offerings 2 Extends geographic footprint and expands mechanical insulation fabrication capabilities in highly fragmented industry 3 Improves non-cyclical revenue mix, driven by recurring maintenance and repair 4 Drives strong return on invested capital and leverages core M&A strength
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13 13 Q&A
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14 14 Appendix
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15 Pro Forma Net Debt Leverage (Unaudited) ($ in millions) Historical TopBuild (1) Pro Forma Progressive Pro Forma SPI Pro Forma Combined Net sales $ 5,248 $ 438 $ 699 $ 6,385 EBITDA, as adjusted (2) $ 1,044 $ 89 $ 75 $ 1,208 Net debt, total (3) $ 2,900 Net debt leverage 2.4 x Trailing Twelve Months Ended June 30, 2025 (2) Earnings before interest, taxes, depreciation, and amortization as defined in our credit agreement. (3) Includes $750 million senior notes issued in September 2025. Net proceeds from the senior notes along with cash on hand was used to purchase SPI on October 7, 2025 for $1.0 billion. (1) As disclosed and reconciled in previous quarterly filings with the U.S. Securities and Exchange Commission, adjusted for $32.3 million of sales and $4.7 million of pro forma adjusted EBITDA for acquisitions completed prior to June 30, 2025.
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16 Reconciliation of Adjusted EBITDA to Net Income (Unaudited) ($ in millions) Historical TopBuild Pro Forma Progressive Pro Forma SPI Pro Forma Combined Net income, as reported $ 594 $ 50 $ (10) $ 634 Adjustments to arrive at EBITDA, as adjusted: Interest expense and other, net 59 9 40 108 Income tax expense 206 19 4 229 Depreciation and amortization 143 11 40 194 Share-based compensation 17 - - 17 Rationalization charges 15 - - 15 Acquisition related costs 6 - - 6 EBITDA, as adjusted $ 1,039 $ 89 $ 75 $ 1,203 Pro forma acquisition EBITDA (a) 5 - - 5 Pro forma TTM EBITDA, as adjusted $ 1,044 $ 89 $ 75 $ 1,208 (a) Represents the trailing twelve months pro forma impact of acquisitions completed prior to June 30, 2025. Trailing Twelve Months Ended June 30, 2025