TopBuild Corp. reported its financial results for the third quarter and the nine months ended September 30, 2024, reflecting a mixed performance amid strategic developments and market conditions.
For Q3 2024, TopBuild achieved net sales of $1,373,268 (in thousands), marking a 3.6% increase from $1,326,120 (in thousands) in Q3 2023. The nine-month period saw net sales rise to $4,017,597 (in thousands), up 2.8% from $3,908,620 (in thousands) in the same period last year. Gross profit for Q3 2024 was $421,813 (in thousands), slightly higher than $420,690 (in thousands) in Q3 2023, although the gross profit margin decreased to 30.7% from 31.7% due to rising material costs and a less favorable sales mix.
Operating profit for Q3 2024 was $243,993 (in thousands), an increase from $237,492 (in thousands) in Q3 2023. However, the operating margin slightly declined to 17.8% from 17.9%. Net income for the quarter rose to $168,960 (in thousands) compared to $167,602 (in thousands) in the prior year, with net income per share increasing to $5.68 from $5.30.
For the nine months ended September 30, 2024, operating profit was $668,893 (in thousands), down 0.8% from $674,025 (in thousands) in 2023, with operating margins decreasing to 16.6% from 17.2%. Net income for this period was $472,064 (in thousands), a slight increase from $467,870 (in thousands) in 2023.
Strategically, TopBuild has been active in acquisitions, with several completed in 2024, including Brabble, Morris Black, PCI, Green Space, Insulation Works, and Texas Insulation, totaling approximately $88.5 million. The company incurred $27.2 million in acquisition-related costs, including a $23.0 million fee for the termination of the SPI acquisition agreement.
Financially, TopBuild's total current assets decreased to $1,521,139 (in thousands) as of September 30, 2024, from $2,049,244 (in thousands) at the end of 2023. Cash and cash equivalents saw a significant decline to $257,342 (in thousands) from $848,565 (in thousands). Total equity also fell to $2,114,269 (in thousands) from $2,563,655 (in thousands) at the end of 2023, while treasury stock increased significantly, reflecting a rise in shares held.
The company reported a net cash decrease of $591,223 (in thousands) for the nine months ended September 30, 2024, compared to an increase of $375,543 (in thousands) in 2023. Net cash used in financing activities surged to $957,701 (in thousands) from $31,872 (in thousands) in the previous year, primarily due to share repurchases totaling $919,186 (in thousands).
Overall, TopBuild's performance reflects a combination of revenue growth, strategic acquisitions, and significant changes in cash flow and equity, influenced by market conditions and operational decisions.
About TopBuild Corp
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