TopBuild Corp. delivered a modest sales gain in the third quarter, leaning on acquisitions to counter weaker construction activity and tighter margins. The Daytona Beach, Fla.–based installer and distributor of insulation and building materials reported quarterly revenue of $1.39 billion, up 1.4% from the same period last year.
Profits dipped as inflation and higher costs weighed on results. Net income fell to $142 million, down 16% from a year ago, while operating profit declined by about 12%. The company’s gross margin slipped slightly to just over 30%, reflecting more competitive pricing and rising expenses.
Through the first nine months of 2025, revenue totaled $3.92 billion, a 2% decline from last year. Profits for the period was $417 million, down about 12%, as slower residential demand continued to offset growth in the company’s commercial and industrial business.
President and CEO Robert Buck said results were “in line with expectations,” crediting strong execution and a disciplined approach to operations. “We have accomplished a lot recently, including acquiring Progressive Roofing in July and SPI in October,” he said. “These acquisitions have strengthened our insulation businesses, established a new platform for growth in commercial roofing, and expanded our non-cyclical revenue profile.”
Acquisitions remain a major growth driver. So far this year, TopBuild has spent more than $850 million on deals and expects to exceed $1 billion by year-end. Its recent purchases — including Progressive Roofing, Specialty Products and Insulation, and several smaller regional firms — represent about $1.2 billion in combined annual revenue. The company also repurchased $65 million of its own stock during the quarter and more than $417 million from the start of the year.
Sales were flat across both operating segments. Installation Services rose just 0.2%, while Specialty Distribution gained 1.4%. Volume was lower across the board, but acquisitions and modest price increases helped offset the decline.
TopBuild raised its full year forecast to reflect the new acquisitions, projecting revenue of about $5.4 billion. Buck said the company remains confident in its long-term outlook despite near-term headwinds in residential construction.
“We’re seeing encouraging strength in commercial and industrial markets,” he said. “That gives us confidence that our diversified model positions us well for the future.
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