Slides
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Published August 5, 2025 SECOND QUARTER 2025 Robert Buck, President & CEO Rob Kuhns, CFO
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Statements contained herein reflect our views about future periods, including our future plans and performance, constitute “f orward- 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 all 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 r esults 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. 2 SAFE HARBOR
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3 KEY TAKEAWAYS Continued Confidence in the Long-Term Opportunity TruTeam fiberglass insulation installation • Significant accomplishments YTD ✓ Completed Progressive Roofing acquisition, adding ~$438M in annual revenue ✓ Establishes a scalable platform in highly fragmented sector with $75B TAM ✓ ~70% non-discretionary and non-cyclical sales ✓ Upsized credit facilities to $2.25B and extended maturities to May 2030 ✓ Supply chain improvements and optimized cost structure driving solid profitability • Soft demand driven by uncertainty continues across residential and light commercial construction landscape - Mixed economic signals - Higher for longer mortgage rates - Weak consumer confidence • Heavy commercial & industrial end markets posting solid growth • Underlying macro fundamentals support long-term growth opportunity Insert roofing photo Progressive Roofing commercial installationDistribution International mechanical insulation fabrication
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4 Q2 2025 FINANCIAL RESULTS Consistent Execution and Profitability *See Appendix for Reconciliation 20.3% Three Months Ended June 30, 2025 Sales $1,297,403 Change (5.0)% Adjusted Operating Profit* $220,651 Change (7.3)% Adjusted Operating Margin* 17.0% Change (40) bps Adjusted EBITDA Margin* 20.1% Change (20) bps Comparisons are to the three months ended June 30, 2024 ($ in 000s) Mechanical insulation inventory TruTeam insulation installation
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5 INSTALLATION Driving Solid Profitability Despite Soft Demand Environment *See Appendix for Reconciliation Three Months Ended June 30, 2025 Sales $780,678 Change (8.3%) Adjusted Operating Profit* $154,541 Change (9.6)% Adjusted Operating Margin* 19.8% Change (30) bps Adjusted EBITDA Margin* 22.3% Change 0 bps TruTeam residential insulation installation TruTeam commercial insulation installation Comparisons are to the three months ended June 30, 2024 ($ in 000s)
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6 SPECIALTY DISTRIBUTION Top Line Growth Continues in Commercial & Industrial *See Appendix for Reconciliation Three Months Ended June 30, 2025 Sales $599,184 Change 1.1% Adjusted Operating Profit* $87,429 Change (2.2)% Adjusted Operating Margin* 14.6% Change (50) bps Adjusted EBITDA Margin* 17.2% Change (50) bps Service Partners gutter elbow customization Distribution International custom fabrication of mechanical insulation Comparisons are to the three months ended June 30, 2024 ($ in 000s)
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7 HEALTHY BALANCE SHEET AND STRONG CASH FLOW Cash, Available Liquidity & Working Capital Cash & Cash Equivalents $ 842.5 Available Credit Under Revolver 938.8 Total Available Liquidity $1,781.3 Net Debt and Leverage Net Debt $1,057.5 LTM Pro Forma Adjusted EBITDA* 1,043.9 Net Leverage 1.01x $663.4 $794.9 LTM 6/30/24 LTM 6/30/25 1 Free cash flow is defined as cash from operating activities less capital expenditures. 2 Working capital is defined as receivables, net plus inventories less accounts payable. Working Capital2 $720.5 As a % of LTM Pro Forma Sales* 13.7% ($ in millions) ($ in millions) *See Appendix for Reconciliation FREE CASH FLOW1
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8 CAPITAL ALLOCATION Acquisition Strategy Built On Core Strengths • Acquisitions completed to date • Continued robust M&A pipeline • Returned $136.0 million in capital to shareholders in Q2 − YTD share repurchases totaled $351.6 million − $836.4 million of availability remains under current authorization 1 Trailing 12 months ended 3/31/25
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9 PROVIDING COMMERCIAL & INDUSTRIAL BUILDING SOLUTIONS Building Envelope Installation and Distribution Food and beverage plant Education Specialty Distribution HVAC Systems HVAC insulation Duct liner, wrap and board Plumbing & Mechanical Fiberglass pipe cover Foam glass pipe cover Rubber pipe cover Pipe & tank wrap Calcium silicate insulation Insulation jacket systems Building Insulation Fiberglass Spray Foam Mineral wool insulation Fiberglass batt insulation Installation Services Building Insulation Mineral wool Spray foam Curtain wall insulation Firestopping Thermoplastic membrane Air and vapor barrier Roofing Roofing membrane Roofing insulation Expansion joints Metal roofing panels
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10 SUCCESSFUL BUSINESS DIVERSIFICATION Greater Resiliency with Recurring, Non-Discretionary and Non-Cyclical Sales 2015 2025 2015 ~$1.6B Sales 6.6% EBITDA margin 2025 Outlook (@ midpoint) ~$5.250B Sales 19.4% EBITDA margin ~85% Residential ~15% Commercial & Industrial 60% Residential 40% Commercial & Industrial Oil & Gas Refinery Data Center Hospital
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LOW DOUBLE-DIGIT DECLINE FLATTISH TO LOW SINGLE DIGIT GROWTH 11 2025 OUTLOOK Guidance Includes Progressive Roofing (as of August 5, 2025) RESIDENTIAL1 COMMERCIAL & INDUSTRIAL1 SALES $5,150M to $5,350M ADJUSTED EBITDA3 $970M to $1,070M M&A2 SALES OF ~$300M 1 Same branch basis, inclusive of pricing 2 2024 carry-over, Seal-Rite & Progressive Roofing 3 See Appendix for reconciliation
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ABOUT US
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13 PROVEN TRACK RECORD OF VALUE CREATION • Capital allocation approach prioritizes strategic M&A • Financially disciplined • Leverage core strengths • Deliver strong shareholder returns • Completed 44 acquisitions since spin-off in 2015 • Dedicated integration team • Focus on driving operational excellence Return on Invested Capital3 6.6% 18.2% 2015 2024 Free Cash Flow ($M)2 $42 $707 2015 2024 36.7% CAGR Adjusted EBITDA ($M)1 $107 $1,075 2015 2024 29.2% CAGR Sales ($M) $1,617 $5,330 2015 2024 14.2% CAGR +1,160 bps 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 defined as ( (1 - Tax Rate) * Adjusted Operating Profit) / (LT Debt + Equity).
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APPENDIX
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15 RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME (Unaudited) (in thousands) Net income, as reported $ 78,971 622,602 $ 151,602 $ 150,723 $ 274,986 $ 303,104 $ 594,484 Adjustments to arrive at EBITDA, as adjusted: Interest expense and other, net 9,416 45,555 16,197 7,218 27,713 14,731 58,537 Income tax (benefit) expense (5,008) 218,186 51,990 52,451 94,578 107,065 205,699 Depreciation and amortization 12,108 140,491 35,886 35,033 71,457 69,291 142,657 Share-based compensation 4,651 16,579 4,765 4,632 9,806 9,759 16,626 Rationalization charges 4,672 73 (1,021) 258 14,337 (492) 14,902 Refinancing costs — — 226 — 226 — 226 Acquisition related costs — 8,109 1,657 4,379 2,957 5,055 6,011 Acquisition termination fee — 23,000 — 23,000 — 23,000 — Legal adjustments, net 2,430 — — — — — — Other, net 212 — — — — — — EBITDA, as adjusted $ 107,452 $ 1,074,595 $ 261,302 $ 277,694 $ 496,060 $ 531,513 $ 1,039,142 Proforma acquisition EBITDA (a) 4,744 Proforma TTM EBITDA, as adjusted $ 1,043,886 (a) Represents the trailing twelve months proforma impact of acquisitions June 30, 2025 Trailing Twelve Months EndedSix Months Ended June 30, 2025 20242015 2024 Year Ended December 31, Three Months Ended June 30, 2025 2024
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16 ACQUISITION ADJUSTED NET SALES (Unaudited) (dollars in thousands) Q4 Net Sales $ 1,373,268 $ 1,312,206 $ 1,233,278 $ 1,297,403 $ 5,216,155 Acquisitions proforma adjustment † 16,695 12,058 3,297 210 32,260 Net sales, acquisition adjusted $ 1,389,963 $ 1,324,264 $ 1,236,575 $ 1,297,613 $ 5,248,415 Receivables, net plus inventories less accounts payable $ 720,525 Receivables, net plus inventories less accounts payable as a percent of sales (TTM) † 13.7 % † Trailing 12 months sales have been adjusted for the pro forma effect of acquired branches Q2 June 30, 2025Q3 Q1 Trailing Twelve Months Ended2024 2025
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17 (Unaudited) SEGMENT DATA (dollars in thousands) Installation Sales $ 780,678 $ 850,983 (8.3) % $ 1,526,211 $ 1,649,726 (7.5) % Operating profit, as reported $ 155,441 $ 170,718 $ 285,057 $ 327,475 Operating margin, as reported 19.9 % 20.1 % 18.7 % 19.9 % Rationalization charges (933) — 7,348 — Acquisition related costs 33 288 176 333 Operating profit, as adjusted $ 154,541 $ 171,006 $ 292,581 $ 327,808 Operating margin, as adjusted 19.8 % 20.1 % 19.2 % 19.9 % Share-based compensation 274 318 623 648 Depreciation and amortization 19,247 18,712 38,414 36,979 EBITDA, as adjusted $ 174,062 $ 190,036 (8.4) % $ 331,618 $ 365,435 (9.3) % EBITDA margin, as adjusted 22.3 % 22.3 % 21.7 % 22.2 % Specialty Distribution Sales $ 599,184 $ 592,826 1.1 % $ 1,158,987 $ 1,138,620 1.8 % Operating profit, as reported $ 87,482 $ 89,373 $ 156,541 $ 166,951 Operating margin, as reported 14.6 % 15.1 % 13.5 % 14.7 % Rationalization charges (67) — 6,801 (750) Acquisition related costs 14 10 51 10 Operating profit, as adjusted $ 87,429 $ 89,383 $ 163,393 $ 166,211 Operating margin, as adjusted 14.6 % 15.1 % 14.1 % 14.6 % Share-based compensation 421 380 884 813 Depreciation and amortization 15,096 15,047 30,036 29,883 EBITDA, as adjusted $ 102,946 $ 104,810 (1.8) % $ 194,313 $ 196,907 (1.3) % EBITDA margin, as adjusted 17.2 % 17.7 % 16.8 % 17.3 % Total net sales Sales before eliminations $ 1,379,862 $ 1,443,809 $ 2,685,198 $ 2,788,346 Intercompany eliminations (82,459) (78,197) (154,517) (144,017) Net sales after eliminations $ 1,297,403 $ 1,365,612 (5.0) % $ 2,530,681 $ 2,644,329 (4.3) % Change Three Months Ended June 30, Six Months Ended June 30, 2025 2024 Change 2025 2024
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18 (Unaudited) MARGIN RECONCILIATION (dollars in thousands) Operating profit, as reported - segments $ 242,923 $ 260,091 $ 441,598 $ 494,426 General corporate expense, net (9,502) (36,859) (18,762) (45,926) Intercompany eliminations (13,632) (12,840) (25,559) (23,600) Operating profit, as reported $ 219,789 $ 210,392 $ 397,277 $ 424,900 Operating margin, as reported 16.9 % 15.4 % 15.7 % 16.1 % Rationalization charges (1,021) 258 14,337 (492) Refinancing costs 226 — 226 — Acquisition related costs 1 1,657 4,379 2,957 5,055 Acquisition termination fee — 23,000 — 23,000 Operating profit, as adjusted $ 220,651 $ 238,029 $ 414,797 $ 452,463 Operating margin, as adjusted 17.0 % 17.4 % 16.4 % 17.1 % Share-based compensation 4,765 4,632 9,806 9,759 Depreciation and amortization 35,886 35,033 71,457 69,291 EBITDA, as adjusted $ 261,302 $ 277,694 $ 496,060 $ 531,513 EBITDA margin, as adjusted 20.1 % 20.3 % 19.6 % 20.1 % 1 Acquisition related costs include corporate level adjustments as well as segment operating adjustments. Three Months Ended June 30, 2025 2024 Six Months Ended June 30, 2025 2024
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19 (Unaudited) 2025 ESTIMATED ADJUSTED EBITDA RANGE (in millions) Low High Estimated net income $ 499.0 $ 584.0 Adjustments to arrive at estimated EBITDA, as adjusted: Interest expense and other, net 82.0 78.0 Income tax expense 175.0 205.0 Depreciation and amortization 163.0 155.0 Share-based compensation 19.0 18.0 Rationalization charges 15.0 15.0 Acquisition related costs 17.0 15.0 Estimated EBITDA, as adjusted $ 970.0 $ 1,070.0 Twelve Months Ending December 31, 2025