TopBuild Corp (BLD)
NYSE:BLD
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TopBuild
(NYSE:BLD)
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Rating:62Neutral
Price Target:
$382.00
▲(0.10% Upside)
Action:ReiteratedDate:02/27/26
The score is driven primarily by solid underlying profitability and free-cash-flow generation, tempered by a meaningful recent rise in leverage and slower/softer earnings momentum. Near-term technicals are weak (below key short-term averages), while management’s outlook is balanced but cautious due to organic volume declines, margin pressure, and embedded price/cost headwinds; valuation remains moderate-to-elevated at ~24.6x earnings without dividend support.
Positive Factors
Free Cash Flow Generation
TopBuild's robust free cash flow ($697M in 2025) and history of capital returns demonstrate durable internal funding ability. Strong FCF near net income levels supports ongoing buybacks, bolt-on M&A and low capex intensity (guidance 1–2% of sales), preserving strategic optionality over coming quarters.
Negative Factors
Elevated Leverage
A meaningful step-up in leverage (debt-to-equity ~1.36; net debt ~2.35x EBITDA) reduces financial flexibility and raises interest expense sensitivity. In a weaker construction cycle this higher debt burden constrains capital allocation and increases refinancing and covenant risk over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Generation
TopBuild's robust free cash flow ($697M in 2025) and history of capital returns demonstrate durable internal funding ability. Strong FCF near net income levels supports ongoing buybacks, bolt-on M&A and low capex intensity (guidance 1–2% of sales), preserving strategic optionality over coming quarters.
Read all positive factors
TopBuild (BLD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.74B
Dividend YieldN/A
Average Volume (3M)398.57K
Price to Earnings (P/E)22.3
Beta (1Y)0.98
Revenue Growth-1.28%
EPS Growth-0.66%
CountryUS
Employees13,984
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)4.50
Shares Outstanding28,145,138
10 Day Avg. Volume378,911
30 Day Avg. Volume398,570
Financial Highlights & Ratios
PEG Ratio-2.26
Price to Book (P/B)5.03
Price to Sales (P/S)2.15
P/FCF Ratio16.72
Enterprise Value/Market Cap1.28
Enterprise Value/Revenue2.53
Enterprise Value/Gross Profit8.74
Enterprise Value/Ebitda14.03
Forecast
1Y Price Target
$463.00Price Target Upside21.32% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)18.41
Revenue Forecast (FY)$6.07B
TopBuild Business Overview & Revenue Model
Company Description
TopBuild Corp., together with its subsidiaries, engages in the installation and distribution of insulation and other building products to the construction industry. The company operates in two segments, Installation and Specialty Distribution. It ...
How the Company Makes Money
TopBuild makes money primarily by selling and installing insulation and related building products through two core revenue streams. (1) Installation services: Through its installation segment, TopBuild earns revenue from turnkey job fulfillment—es...
TopBuild Key Performance Indicators (KPIs)
Any
Revenue by Product
Breaks down revenue generated from individual products, providing insight into product performance, market demand, and potential areas for expansion or innovation.
Breaks down revenue generated from individual products, providing insight into product performance, market demand, and potential areas for expansion or innovation.
Data provided by:
The Fly
The FlyTopBuild Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Neutral
The call reflects a mixed but balanced picture: strong financial engineering and M&A-driven revenue growth, robust free cash flow generation, share repurchases and a healthy liquidity position are offset by meaningful organic volume declines, margin pressure and embedded price/cost headwinds. Management emphasizes disciplined cost actions, active M&A pipeline and confidence in synergy delivery, but the near-term outlook remains cautious given residential market headwinds.Positive Updates
Quarterly and Full-Year Revenue Growth
Q4 sales grew 13.2% year-over-year to $1.49 billion; full-year revenue exceeded $5.4 billion.
Negative Updates
Organic Volume Weakness
Overall volume declined 10.5% in the quarter; Installation Services volume fell 14.5% and Specialty Distribution volume declined 5.5%, driven by persistent softness in residential and light commercial end markets.
Read all updates
Q4-2025 Updates
Positive
Negative
Quarterly and Full-Year Revenue Growth
Q4 sales grew 13.2% year-over-year to $1.49 billion; full-year revenue exceeded $5.4 billion.
Read all positive updates
Company Guidance
TopBuild guided 2026 sales of $5.925 billion to $6.225 billion (midpoint $6.075 billion) and adjusted EBITDA of $1.005 billion to $1.155 billion (midpoint $1.08 billion), assuming overall price and volume each down low-single digits, residential (≈52% of sales) down mid-single digits, commercial & industrial (≈48%) up low single digits, and $800 million–$850 million of revenue from recent M&A; the EBITDA outlook assumes a ~27% decremental on lower volumes, $55 million of price/cost headwinds, M&A EBITDA in the mid‑teens inclusive of $15 million of Progressive/SPI synergies (on track to meet or exceed 2‑year targets), quarterly sales of $1.4 billion–$1.6 billion with EBITDA margins of 16.5%–18.5% (Q1 weakest, Q3 strongest), interest & other of $143 million–$149 million, a tax rate of ~26%, capex of 1%–2% of sales, and working capital of 15%–17% of sales.TopBuild Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
56
Neutral
Cash Flow
70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.41B | 5.33B | 5.19B | 5.01B | 3.49B |
| Gross Profit | 1.57B | 1.62B | 1.60B | 1.49B | 974.39M |
| EBITDA | 1.08B | 1.05B | 1.03B | 922.19M | 541.98M |
| Net Income | 521.73M | 622.60M | 614.25M | 555.99M | 324.02M |
Balance Sheet | |||||
| Total Assets | 6.73B | 4.74B | 5.16B | 4.61B | 4.26B |
| Cash, Cash Equivalents and Short-Term Investments | 184.74M | 400.32M | 848.57M | 240.07M | 139.78M |
| Total Debt | 3.15B | 1.58B | 1.64B | 1.68B | 1.68B |
| Total Liabilities | 4.42B | 2.53B | 2.60B | 2.68B | 2.62B |
| Stockholders Equity | 2.32B | 2.21B | 2.56B | 1.93B | 1.64B |
Cash Flow | |||||
| Free Cash Flow | 696.89M | 706.68M | 785.41M | 419.42M | 347.48M |
| Operating Cash Flow | 756.32M | 776.03M | 849.41M | 495.80M | 403.02M |
| Investing Cash Flow | -1.99B | -203.52M | -198.17M | -93.91M | -1.32B |
| Financing Cash Flow | 1.02B | -1.02B | -43.84M | -300.07M | 729.01M |
TopBuild Technical Analysis
Neutral
381.62
Price Trends
432.30
Negative
437.96
Negative
420.36
Negative
Market Momentum
-17.88
Negative
50.29
Neutral
66.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BLD, the sentiment is Neutral. The current price of 381.62 is above the 20-day moving average (MA) of 357.76, below the 50-day MA of 432.30, and below the 200-day MA of 420.36, indicating a neutral trend. The MACD of -17.88 indicates Negative momentum. The RSI at 50.29 is Neutral, neither overbought nor oversold. The STOCH value of 66.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BLD.
TopBuild Risk Analysis
TopBuild disclosed 46 risk factors in its most recent earnings report. TopBuild reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
TopBuild Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $53.65B | 32.26 | 48.52% | 0.20% | 27.71% | 80.54% | |
74 Outperform | $27.46B | 42.42 | 13.08% | ― | 12.99% | 274.10% | |
72 Outperform | $12.97B | 32.23 | 30.17% | ― | 6.20% | 72.81% | |
66 Neutral | $11.42B | 37.65 | 18.81% | ― | 13.19% | 33.58% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $10.74B | 22.33 | 23.72% | ― | -1.28% | -0.66% | |
55 Neutral | $7.06B | -131.50 | -1.14% | ― | -1.81% | 1228.51% |
* Industrials Sector Average
BLD
TopBuild
381.62
84.49
28.44%
FIX
Comfort Systems
1,525.16
1,169.40
328.70%
DY
Dycom
381.00
225.04
144.29%
FLR
Fluor
49.15
14.42
41.52%
MTZ
MasTec
348.11
226.26
185.69%
STRL
Sterling Infrastructure
423.35
288.82
214.69%
TopBuild Corporate Events
Business Operations and StrategyStock BuybackFinancial DisclosuresM&A Transactions
TopBuild Posts Q4 2025 Results, Highlights Acquisition-Driven Growth
Neutral
Feb 26, 2026
On February 26, 2026, TopBuild reported fourth-quarter 2025 sales of $1.49 billion, up 13.2% year over year, driven primarily by the acquisitions of SPI and Progressive Roofing, which offset weakness in residential and light commercial new constru...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.