BLD TopBuild Corp.
Price Chart
Executive Summary
TopBuild reported Q1 2026 GAAP diluted EPS of $3.73, a 23.5% beat vs the $3.64 consensus, on revenue of $1.446B, slightly above the $1.41B consensus. However, organic same-branch sales declined 7.1% (volume -5.5%, price -1.6%), adjusted operating margin compressed from 15.7% to 12.3%, and the stock faces significant uncertainty from the pending QXO acquisition announced April 19.
Key Financial Metrics
Actionable Insight
The EPS beat is overshadowed by deteriorating organic trends (same-branch sales -7.1%, margins compressing) and the pending QXO acquisition. Traders should focus on QXO deal details (price, financing, regulatory timeline) as the primary catalyst — the standalone earnings story is secondary. Monitor for any QXO-related 8-K filings or merger proxy statements.
Key Facts
- GAAP diluted EPS $3.73 vs consensus $3.64 (beat by 2.5%)
- Revenue $1.446B vs consensus $1.41B (beat by 2.6%)
- Total sales grew 17.2% YoY, entirely from acquisitions (24.3% M&A contribution); organic same-branch sales declined 7.1%
- Same-branch residential sales fell 10.9% YoY; same-branch commercial/industrial sales fell 0.8%
- Adjusted operating margin compressed to 12.3% from 15.7% YoY; adjusted EBITDA margin fell to 16.5% from 19.0%
- Adjusted EBITDA grew only 1.6% YoY despite 17.2% revenue growth, implying near-zero incremental margins (1.8%)
- Net income declined to $104.8M from $123.4M YoY; GAAP operating profit fell to $175.0M from $177.5M
- Company announced definitive agreement to be acquired by QXO on April 19, 2026
- Completed 4 acquisitions YTD adding $83.8M in annual revenue; signed agreement for 5th ($6M)
- Operating cash flow improved to $160.7M from $152.6M YoY; no share repurchases in Q1 2026 vs $215.6M in Q1 2025
Financial Impact
EPS beat of $0.09 (2.5%) and revenue beat of ~$36M (2.6%) are positive, but organic decline and margin compression are negative. The QXO acquisition at an undisclosed price overhangs the stock.
Risk Factors
- Pending QXO acquisition creates uncertainty around standalone valuation and deal terms
- Organic same-branch sales declining 7.1% signals underlying weakness in residential end markets
- Adjusted operating margin compression from 15.7% to 12.3% YoY despite acquisition-driven revenue growth
- Near-zero incremental EBITDA margin (1.8%) suggests acquired businesses are diluting profitability
- Interest expense more than doubled to $36.6M from $16.6M YoY, pressuring net income
Market Snapshot
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3287467 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
|
Jun 5, 2026
4d ago
|
ANALYST-DOWNGRADE
| $438.93 $408.84 | ▲ +6.86% | ▲ +8.03% | $399.03 (+9.09%) |
|
Jun 5, 2026
4d ago
|
ANALYST-DOWNGRADE
| $438.93 $408.84 | ▲ +6.86% | ▲ +8.03% | $399.03 (+9.09%) |
|
Jun 4, 2026
5d ago
|
425
| $405.25 awaiting T+5 | awaiting T+5 | — | $399.03 (−1.53%) |
|
Jun 4, 2026
5d ago
|
8-K
| $405.25 awaiting T+5 | awaiting T+5 | — | $399.03 (−1.53%) |
|
May 29, 2026
11d ago
|
DEFM14A
| $412.19 $401.82 | ▼ −2.52% | ▲ +0.23% | $399.03 (−3.19%) |
|
May 21, 2026
19d ago
|
ANALYST-DOWNGRADE
| $469.92 $435.15 | ▼ −7.40% | ▼ −8.48% | $399.03 (−15.09%) |
|
May 16, 2026
24d ago
|
ANALYST-UPGRADE
| $404.33 $443.31 | ▲ +9.64% | ▲ +7.72% | $399.03 (−1.31%) |
|
May 11, 2026
29d ago
|
425
| $424.63 $406.29 | ▼ −4.32% | ▼ −4.23% | $399.03 (−6.03%) |
|
May 6, 2026
4w ago
|
ANALYST-DOWNGRADE
| $438.93 $416.79 | ▲ +5.04% | ▲ +6.17% | $399.03 (+9.09%) |
|
May 6, 2026
4w ago
|
ANALYST-DOWNGRADE
| $438.93 $416.79 | ▲ +5.04% | ▲ +6.17% | $399.03 (+9.09%) |
US Market Status
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