Slides
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Published November 4, 2025 THIRD 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 Continuing to Deliver Shareholder Value TruTeam fiberglass insulation installation • YTD 2025 acquisitions add ~$1.2B in annual revenue • Increased exposure to non-cyclical revenue streams in commercial & industrial end markets • Q3 Progressive Roofing acquisition adds ~$440M in annual revenue and expands total addressable market by $75B • Q4 SPI transaction adds ~$700M in annual revenue • Executing on strong pipeline - completed 5 additional acquisitions that build on core strengths and add >$65M in annual revenue • Strong Q3 performance • Profit margins continue to be healthy despite soft demand across residential and light commercial • Driving operational excellence and productivity across the business • Heavy commercial & industrial end markets continue to grow • Reinvesting strong free cash flows in growth Progressive Roofing commercial installation Specialty Products Insulation fabricated mechanical insulation
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4 Q3 2025 FINANCIAL RESULTS Acquisitions Drove Top Line Growth, Offsetting Macro-Driven Residential Softness *See Appendix for Reconciliation 20.3% Three Months Ended September 30, 2025 Sales $1,393,158 Change 1.4% Adjusted Operating Profit* $228,954 Change (6.9)% Adjusted Operating Margin* 16.4% Change (150) bps Adjusted EBITDA Margin* 19.8% Change (100) bps Comparisons are to the three months ended September 30, 2024 ($ in 000s) Mechanical insulation inventory TruTeam insulation installation
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5 INSTALLATION SERVICES Resilient Margins Driven by Operational Excellence *See Appendix for Reconciliation Three Months Ended September 30, 2025 Sales $858,264 Change 0.2% Adjusted Operating Profit* $167,065 Change (3.0)% Adjusted Operating Margin* 19.5% Change (60) bps Adjusted EBITDA Margin* 22.5% Change 20 bps TruTeam commercial insulation installation Comparisons are to the three months ended September 30, 2024 ($ in 000s) Progressive Roofing commercial roofing installation
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6 SPECIALTY DISTRIBUTION Continued Strength in Commercial & Industrial *See Appendix for Reconciliation Three Months Ended September 30, 2025 Sales $608,892 Change 1.4% Adjusted Operating Profit* $87,456 Change (8.0)% Adjusted Operating Margin* 14.4% Change (140) bps Adjusted EBITDA Margin* 16.9% Change (150) bps Service Partners gutter elbow customization Distribution International custom fabrication of mechanical insulation Comparisons are to the three months ended September 30, 2024 ($ in 000s)
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7 HEALTHY BALANCE SHEET AND STRONG CASH FLOW Cash, Available Liquidity & Working Capital Cash & Cash Equivalents $ 1,142.4 Available Credit Under Revolver 933.4 Total Available Liquidity $2,075.8 Net Debt and Leverage Net Debt $1,745.1 LTM Pro Forma Adjusted EBITDA* 1,106.7 Net Leverage 1.58x $698.0 $791.2 LTM 9/30/24 LTM 9/30/25 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 $796.2 As a % of LTM Pro Forma Sales* 14.2% ($ in millions) ($ in millions) *See Appendix for Reconciliation FREE CASH FLOW1
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8 CAPITAL ALLOCATION Acquisitions Built On Core Strengths • Acquisitions YTD total ~$1.2B in annual revenue • Continued robust M&A pipeline • Returned $65.5 million in capital to shareholders in Q3 − YTD share repurchases totaled $417.1 million − $770.9 million of availability remains under current authorization
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Q4 SPI ACQUISITION STRENGTHENS COMMERCIAL & INDUSTRIAL MECHANICAL INSULATION SOLUTIONS Complementary Product Offerings Building Insulation Fiberglass Spray Foam Mineral wool insulation Fiberglass batt insulation Data Centers Industrial Manufacturing Oil & Gas Energy & Alternative Fuels Chemical Processing Pharmaceuticals & Biotech Food & Beverage Marine Serving C&I customers across all verticals 9 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
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10 CONTINUED BUSINESS DIVERSIFICATION Greater Resiliency with 22% Non-Cyclical Revenue TOPBUILD PRO FORMA REVENUE1 = $6.2 B 78% 22% Demand Drivers Greater non-cyclical revenue 52% 48%End Market Commercial & IndustrialResidential Increased C&I exposure Specialty Distribution Installation Services 55% 45% Segment More balanced segment mix Non-cyclical – maintenance/repair, re-roofing, repair/remodel New construction 1 Trailing twelve months (TTM) ended September 30, 2025 historical TopBuild revenue plus TTM ended September 30, 2025 Progressive Roofing and SPI revenue.
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11 PROVEN M&A TRACK RECORD OF VALUE CREATION • Capital allocation approach prioritizes strategic M&A • Financially disciplined • Leverage core strengths • Deliver strong shareholder returns • From 2015-2024, completed 42 acquisitions and in 2025 announced 7 acquisitions • Dedicated integration team • Focus on driving operational excellence Return on Invested Capital3 6.6% 18.2% 2015 2024 Free Cash Flow ($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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12 2025 OUTLOOK Guidance Raised to Include SPI and Four Recently Announced Acquisitions (as of November 4, 2025) *See Appendix for Reconciliation Sales Assumptions at the Midpoint: Residential End Market1 Low double digit decline Commercial & Industrial End Markets1 Flattish M&A sales contribution2 ~$450M 1 Same branch basis, inclusive of pricing 2 2024 carry-over and 2025 acquisitions to date ($ in millions) Low Mid High Sales 5,350$ 5,400$ 5,450$ EBITDA, as adjusted* 1,010 1,035 1,060 Depreciation and amortization 171 169 166 Share-based compensation 19 19 18 EBIT, as adjusted* 820 848 876 Interest expense and other, net 91 90 88 Adjusted profit before tax 729 758 788 Adjusted income tax expense 190 197 205 Income, as adjusted* 539$ 561$ 583$
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APPENDIX
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14 RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME (Unaudited) (in thousands) Net income, as reported $ 78,971 622,602 $ 142,226 $ 168,960 $ 417,213 $ 472,064 $ 567,753 Adjustments to arrive at EBITDA, as adjusted: Interest expense and other, net 9,416 45,555 24,504 16,094 52,216 30,824 66,945 Income tax expense (5,008) 218,186 48,280 58,939 142,857 166,005 195,038 Depreciation and amortization 12,108 140,491 42,341 35,486 113,798 104,777 149,512 Share-based compensation 4,651 16,579 4,314 3,646 14,121 13,405 17,295 Rationalization charges 4,672 73 218 485 14,556 (7) 14,636 Refinancing costs — — — — 226 — 226 Acquisition related costs — 8,109 13,726 1,447 16,682 6,502 18,289 Acquisition termination fee — 23,000 — — — 23,000 — Legal adjustments, net 2,430 — — — — — — Other, net 212 — — — — — — EBITDA, as adjusted $ 107,452 $ 1,074,595 $ 275,609 $ 285,057 $ 771,669 $ 816,570 $ 1,029,694 Proforma acquisition EBITDA (a) 77,021 Proforma TTM EBITDA, as adjusted $ 1,106,715 (a) Represents the trailing twelve months proforma impact of acquisitions September 30, 2025 Trailing Twelve Months EndedNine Months Ended September 30, 2025 2024 Year Ended December 31, 2015 2024 Three Months Ended September 30, 2025 2024
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15 ACQUISITION ADJUSTED NET SALES (Unaudited) (dollars in thousands) Q1 Net Sales $ 1,312,206 $ 1,233,278 $ 1,297,403 $ 1,393,158 $ 5,236,045 Acquisitions proforma adjustment † 115,966 114,778 115,841 15,123 361,708 Net sales, acquisition adjusted $ 1,428,172 $ 1,348,056 $ 1,413,244 $ 1,408,281 $ 5,597,753 Receivables, net plus inventories less accounts payable $ 796,152 Receivables, net plus inventories less accounts payable as a percent of sales (TTM) † 14.2 % † Trailing 12 months sales have been adjusted for the pro forma effect of acquired branches Q3 September 30, 2025Q4 Q2 Trailing Twelve Months Ended2024 2025
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16 (Unaudited) SEGMENT DATA (dollars in thousands) Installation Services Sales $ 858,264 $ 856,350 0.2 % $ 2,384,475 $ 2,506,076 (4.9) % Operating profit, as reported $ 166,762 $ 172,243 $ 451,819 $ 499,717 Operating margin, as reported 19.4 % 20.1 % 18.9 % 19.9 % Rationalization charges (125) — 7,223 — Acquisition related costs 428 31 604 364 Operating profit, as adjusted $ 167,065 $ 172,274 $ 459,646 $ 500,081 Operating margin, as adjusted 19.5 % 20.1 % 19.3 % 20.0 % Share-based compensation 310 71 933 719 Depreciation and amortization 25,685 19,037 64,099 56,016 EBITDA, as adjusted $ 193,060 $ 191,382 0.9 % $ 524,678 $ 556,816 (5.8) % EBITDA margin, as adjusted 22.5 % 22.3 % 22.0 % 22.2 % Specialty Distribution Sales $ 608,892 $ 600,387 1.4 % $ 1,767,879 $ 1,739,007 1.7 % Operating profit, as reported $ 87,114 $ 94,911 $ 243,655 $ 261,862 Operating margin, as reported 14.3 % 15.8 % 13.8 % 15.1 % Rationalization charges 342 194 7,143 (556) Acquisition related costs — 4 51 14 Operating profit, as adjusted $ 87,456 $ 95,109 $ 250,849 $ 261,320 Operating margin, as adjusted 14.4 % 15.8 % 14.2 % 15.0 % Share-based compensation 398 374 1,282 1,187 Depreciation and amortization 15,122 15,117 45,158 45,000 EBITDA, as adjusted $ 102,976 $ 110,600 (6.9) % $ 297,289 $ 307,507 (3.3) % EBITDA margin, as adjusted 16.9 % 18.4 % 16.8 % 17.7 % Total net sales Sales before eliminations $ 1,467,156 $ 1,456,737 $ 4,152,354 $ 4,245,083 Intercompany eliminations (73,998) (83,469) (228,515) (227,486) Net sales after eliminations $ 1,393,158 $ 1,373,268 1.4 % $ 3,923,839 $ 4,017,597 (2.3) % Change Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 Change 2025 2024
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17 (Unaudited) MARGIN RECONCILIATION (dollars in thousands) Operating profit, as reported - segments $ 253,876 $ 267,154 $ 695,474 $ 761,579 General corporate expense, net (24,152) (9,685) (42,914) (55,610) Intercompany eliminations (14,714) (13,476) (40,274) (37,076) Operating profit, as reported $ 215,010 $ 243,993 $ 612,286 $ 668,893 Operating margin, as reported 15.4 % 17.8 % 15.6 % 16.6 % Rationalization charges 218 485 14,556 (7) Refinancing costs — — 226 — Acquisition related costs 1 13,726 1,447 16,682 6,502 Acquisition termination fee — — — 23,000 Operating profit, as adjusted $ 228,954 $ 245,925 $ 643,750 $ 698,388 Operating margin, as adjusted 16.4 % 17.9 % 16.4 % 17.4 % Share-based compensation 4,314 3,646 14,121 13,405 Depreciation and amortization 42,341 35,486 113,798 104,777 EBITDA, as adjusted $ 275,609 $ 285,057 $ 771,669 $ 816,570 EBITDA margin, as adjusted 19.8 % 20.8 % 19.7 % 20.3 % 1 Acquisition related costs include corporate level adjustments as well as segment operating adjustments. Three Months Ended September 30, 2025 2024 Nine Months Ended September 30, 2025 2024
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18 (Unaudited) 2025 ESTIMATED GUIDANCE RANGES (in millions) Low Mid High Estimated net income $ 497.0 $ 519.9 $ 542.0 Adjustments to arrive at estimated adjusted measures: Interest expense and other, net 91.0 89.5 88.0 Income tax expense 175.0 182.6 191.0 Rationalization charges 15.0 15.0 15.0 Acquisition related costs 42.0 41.0 40.0 Estimated EBIT, as adjusted 820.0 848.0 876.0 Share-based compensation 19.0 18.5 18.0 Depreciation and amortization 171.0 168.5 166.0 Estimated EBITDA, as adjusted $ 1,010.0 $ 1,035.0 $ 1,060.0 Low Mid High Estimated net income $ 497.0 $ 519.9 $ 542.0 Adjustments to arrive at estimated income, as adjusted: Rationalization charges 15.0 15.0 15.0 Acquisition related costs 42.0 41.0 40.0 Normalized income tax impact of rationalization charges and acquisition related costs (26%) (14.8) (14.6) (14.3) Estimated income, as adjusted $ 539.2 $ 561.3 $ 582.7 Twelve Months Ending December 31, 2025 Twelve Months Ending December 31, 2025