TopBuild Corp (BLD) Reports 9.0% Increase in Net Income for Q3 2023

GuruFocus Research
2 min read
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In this article:

  • TopBuild Corp (NYSE:BLD) reports a 9.0% increase in net income for Q3 2023.

  • The company's sales rose by 1.9% and operating profit grew by 6.6%.

  • TopBuild Corp (NYSE:BLD) has completed four acquisitions expected to contribute approximately $173 million in annual revenue.

  • The company's 2023 outlook projects sales between $5,130 million and $5,210 million.

TopBuild Corp (NYSE:BLD) released its earnings report on October 31, 2023, revealing a 9.0% increase in net income for the third quarter of 2023. The company's sales rose by 1.9% and operating profit grew by 6.6% compared to the same period in 2022.

Financial Highlights

TopBuild Corp (NYSE:BLD) reported sales of $1,326,120, marking a 1.9% increase. The company's gross margin improved by 130 basis points to 31.7%, while its operating profit rose by 6.6% to reach $237,492. The net income for the quarter was $167,602, a 9.0% increase, and net income per diluted share was $5.27, up by 10.7%.

Performance of Business Segments

Both the Installation and Specialty Distribution segments reported mid-single digit volume growth related to the commercial and industrial end markets they serve. The Installation segment reported sales of $821,673, while the Specialty Distribution segment reported sales of $571,009.

Acquisitions and 2023 Outlook

TopBuild Corp (NYSE:BLD) has completed four acquisitions expected to contribute approximately $173 million in annual revenue. The company's 2023 outlook projects sales between $5,130 million and $5,210 million, and adjusted EBITDA between $1,025 million and $1,055 million.

CEO Commentary

TopBuild continues to perform well and produce solid operating results, a testament to our teams hard work and focus on profitable growth. We are particularly pleased with the performance of our non-residential business. Our strong track record of executing on our plan can be attributed, in part, to our relentless focus on driving improvements in both productivity and operational efficiencies. In addition, our unique and diversified business model provides multiple avenues for growth, and we see continued opportunities in all three end markets we serve." - ROBERT BUCK, PRESIDENT & CEO, TOPBUILD

TopBuild Corp (NYSE:BLD) is a leading installer and specialty distributor of insulation and related building material products to the construction industry in the United States and Canada.

Explore the complete 8-K earnings release (here) from TopBuild Corp for further details.

This article first appeared on GuruFocus.

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