TopBuild Corp. ( BLD ) shares are trading lower premarket on Tuesday after the company reported fourth-quarter sales of $1.31 billion in line with the consensus.

Sales increased 2.0% Y/Y, led by a 6.6% Y/Y rise in the Specialty Distribution segment.

The Installation segment was relatively flat Y/Y in the quarter.

Adjusted gross margin contracted to 29.9% from 30.4% a year ago quarter, while adjusted EBITDA Margin improved to 19.7% from 19.6% in the prior-year quarter.

Adjusted EPS of $5.13 exceeded the consensus of $5.05.

As of Dec. 31, cash and cash equivalent stood at $400.3 million.

Buyback: TopBuild ( BLD ) repurchased 134,872 shares totaling $47.2 million.

The board authorized the repurchase of up to $1.0 billion of the company’s shares, bringing the total repurchase availability to $1.2 billion.

This includes the $188.1 million remaining from the prior authorization as of December 31, 2024.

Outlook: TopBuild ( BLD ) projects FY25 sales of $5.05 billion-$5.35 billion, vs. previous estimate of $5.465 billion, with adjusted EBITDA expected between $925 million and $1.075 billion.

TopBuild ( BLD ) CEO Robert Buck listed tailwinds for the business:

Low housing inventory

Population growth

Demographic shifts

Ongoing initiatives to reduce energy consumption and decrease utility costs, and manage emissions.

Investors can gain exposure to the stock via iShares U.S. Home Construction ETF ( ITB ) .

Price Action: BLD shares are down 2.96% at $293.11 premarket at the last check Tuesday.

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