TopBuild: Insulator Expanding To Roofing

Jul. 08, 2025 6:36 PM ETTopBuild Corp. (BLD) StockMAS, BLD

Summary

  • TopBuild has demonstrated strong long-term growth through M&A, operational execution, and margin expansion, but recent organic sales have stagnated.
  • The $810 million Progressive Roofing acquisition offers a compelling growth platform and attractive deal multiples, expanding TopBuild into a new, sizable market.
  • Leverage remains manageable post-deal, with pro forma earnings per share rising, but organic volume declines highlight ongoing core business challenges.
  • After a sharp rally and positive deal reaction, I’m interested in TopBuild but see no need to chase shares at current levels; I’ll watch for a pullback.
  • Looking for a helping hand in the market? Members of Value In Corporate Events get exclusive ideas and guidance to navigate any climate. Learn More »
Mature man renovating home interior

The Good Brigade

Towards the year-end of 2024, I concluded that I was gradually warming up to shares of insulator supplier TopBuild (NYSE:BLD). This came after the company tripled sales to $5 billion in less than a decade, driven by a combination of sound positioning, strong

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This article was written by

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The Value Investor has a Master of Science with specialization in financial markets and a decade of experience tracking companies via catalytic company events.

As the leader of the investing group Value In Corporate Events they provide members with opportunities to capitalize on IPOs, mergers & acquisitions, earnings reports and changes in corporate capital allocation. Coverage includes 10 major events a month with an eye towards finding the best opportunities. Learn more.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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