BLDMEDIUM SIGNALFINANCIAL10-K

TopBuild completed significant acquisitions that drove revenue growth but pressured profitability while substantially increasing debt levels.

The company appears to have executed a major acquisition strategy, evidenced by the shift from Installation (62%) to Installation Services (59%) segment mix and new entity references like Performance Insulation Fabricators. While this expanded the business meaningfully, the acquisition financing created leverage concerns and integration costs appear to have dampened margins.

Comparing 2026-02-26 vs 2025-02-25View on EDGAR →
FINANCIAL ANALYSIS

TopBuild's financial profile reflects an acquisition-heavy year, with revenue growing 25% to $2.4B while total liabilities increased substantially to $4.3B, indicating significant debt-financed deals. Operating income and net income both declined despite the revenue expansion, suggesting acquisition integration costs or margin pressure from the new assets. The company reduced share buybacks meaningfully and saw cash reserves fall by over half to $185M, pointing to capital deployment focused on growth investments rather than shareholder returns.

FINANCIAL STATEMENT CHANGES
Total Liabilities
Balance Sheet
+69.8%
$2.5B→$4.3B

Liabilities grew 69.8% — significant increase in debt or obligations, assess impact on financial flexibility.

Share Buybacks
Cash Flow
-55.1%
$966.4M→$434.2M

Buyback activity reduced 55.1% — capital being redeployed elsewhere or cash conservation underway.

Cash & Equivalents
Balance Sheet
-53.9%
$400.3M→$184.7M

Cash declined 53.9% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.

Total Assets
Balance Sheet
+39.5%
$4.7B→$6.6B

Asset base grew 39.5% — expansion through organic growth, acquisitions, or capital deployment.

Interest Expense
P&L
+31.6%
$56.7M→$74.6M

Interest expense surged 31.6% — significant debt increase or rising rates materially impacting earnings.

Revenue
P&L
+25.1%
$1.9B→$2.4B

Revenue growing 25.1% — solid top-line momentum, watch margins for quality of growth.

Inventory
Balance Sheet
+24.2%
$406.7M→$505.2M

Inventory built 24.2% — monitor whether demand supports this build or if write-downs may follow.

Accounts Receivable
Balance Sheet
+19%
$751.6M→$894.4M

Receivables grew 19% — monitor days sales outstanding for collection efficiency.

Net Income
P&L
-16.2%
$622.6M→$521.7M

Net income declined 16.2% — review whether driven by operations, interest costs, or non-recurring items.

Operating Income
P&L
-10.7%
$886.3M→$791.9M

Operating profitability softening — costs rising faster than revenue, watch for margin recovery plan.

LANGUAGE CHANGES
NEW — 2026-02-26
PRIOR — 2025-02-25
ADDED
The registrant had outstanding 28,139,530 shares of Common Stock, par value $0.01 per share as of February 19, 2026.
Amended and Restated 2015 Long Term Stock Incentive Plan, as amended April 28, 2025 2025 Repurchase Program $1 billion share repurchase program authorized by the Board on February 17, 2025, and effective following shareholder approval on April 28, 2025.
L L Insulation L L Insulation, LLC Lenders Bank of America, N.A., together with the other lenders party to "Credit Agreement" Metro Metro Supply Co., LLC Net Leverage Ratio As defined in the Credit Agreement, the ratio of outstanding indebtedness, less up to $350 million of unrestricted cash, to EBITDA NYSE New York Stock Exchange Performance Insulation Fabricators Performance Insulation Fabricators Company, Inc.
Segment Overview We operate in two segments: our Installation Services segment, which accounts for approximately 59% of our sales, and our Specialty Distribution segment, which accounts for approximately 41% of our sales.
First, the combined buying power of our two business segments, along with our scale, strengthens our ties to the major manufacturers of insulation, commercial roofing and other building products.
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REMOVED
Lenders Bank of America, N.A., together with the other lenders party to "Credit Agreement" Metro Metro Supply Co., LLC Morris Black Morris Black Sons, Inc.
SOFR Secured overnight financing rate SPI SPI LLC d/b/a Specialty Products Insulation SRI SRI Holdings, LLC Term Loan TopBuild's secured borrowings under the "Credit Agreement" due October 7, 2026 Term Facility Two $550 million delayed draw term loan to be used to fund the future acquisition of SPI Texas Insulation EOAKIS, LLC, d/b/a Texas Insulation TopBuild TopBuild Corp.
Segment Overview We operate in two segments: our Installation segment, which accounts for approximately 62% of our sales, and our Specialty Distribution segment, which accounts for approximately 38% of our sales.
First, the combined buying power of our two business segments, along with our scale, strengthens our ties to the major manufacturers of insulation and other building material products.
and Canada, and leverage housing and commercial/industrial construction growth regardless of location.
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