TopBuild Corp. (NYSE:BLD) has reported its fourth quarter and year-end 2025 results and provided an outlook for 2026. The company reported fourth quarter sales of $1.49 billion, representing a 13.2% increase driven by acquisitions. For the full year, TopBuild completed seven acquisitions, adding approximately $1.2 billion in annual sales and returned $434.2 million in capital to stockholders through the repurchase of approximately 1.4 million shares.
In the fourth quarter of 2025, the company's gross profit was $404.6 million with a gross margin of 27.2%. Meanwhile, the operating profit was $179.6 million with an operating margin of 12.1%. The net income for the quarter was $104.5 million, resulting in a net income per diluted share of $3.71. Additionally, the adjusted EBITDA for the quarter was $265.2 million, representing a margin of 17.9%.
For the year ended December 31, 2025, TopBuild reported sales of $5.41 billion, with a gross profit of $1.57 billion and a gross margin of 29.0%. The operating profit for the year was $791.9 million, resulting in a net income of $521.7 million and a net income per diluted share of $18.28. The adjusted EBITDA for the year stood at $1.04 billion, with a margin of 19.2%.
The company also provided its outlook for 2026, expecting sales between $5.925 billion to $6.225 billion and adjusted EBITDA in the range of $1.005 billion to $1.155 billion. TopBuild emphasized that acquisitions will continue to be a top priority for deploying capital.
In terms of segment profitability, the installation services and specialty distribution segments saw changes in operating profit and margins, with adjustments expected to drive operating improvements and generate meaningful synergies over the next two years.
Regarding capital allocation, TopBuild completed acquisitions totaling approximately $20 million in annual revenue in February and announced an agreement to acquire Johnson Roofing with approximately $29 million in annual revenue. The company also repurchased 1.37 million shares for a total of $434.2 million in 2025.
Although the 2026 outlook assumes ongoing uncertainty in the residential new construction market, the company expects continued growth across a variety of verticals in the commercial and industrial end market. TopBuild's 2026 guidance does not include potential acquisitions or divestitures expected to occur during the year.
Today the company's shares have moved -1.38% to a price of $493.77. For more information, read the company's full 8-K submission here.
