Revenue: As of FY2026 Q1, the actual value is USD 1.446 B, beating the estimate of USD 1.41 B.EPS: As of FY2026 Q1, the actual value is USD 3.73, beating the estimate of USD 3.6359.EBIT: As of FY2026 Q1, the actual value is USD 176.37 M.TopBuild Corp. operates in two segments: Installation Services and Specialty Distribution, with performance measured by net sales and operating profit .<h4>Segment Revenue</h4><ul><li>Installation Services: Net sales for the three months ended March 31, 2026, were $777,329 thousand, a 4.3% increase compared to $745,533 thousand in the same period of 2025. This was driven by a 16.9% rise from acquisitions, partially offset by a 9.8% decline in sales volume and a 2.9% impact from lower selling prices .</li><li>Specialty Distribution: Net sales were $737,080 thousand in 2026, a 31.7% increase from $559,804 thousand in 2025. This growth was primarily due to a 31.1% increase from acquisitions, a 0.3% increase from higher selling prices, and a 0.3% increase in sales volume .</li><li>Consolidated Net Sales: Increased by 17.2% to $1,445,860 thousand in 2026 from $1,233,278 thousand in 2025, primarily driven by a 24.3% increase from acquisitions, partially offset by a 5.5% decline in volume and a 1.6% impact from lower selling prices .</li></ul><h4>Operational Metrics</h4><ul><li>Consolidated Gross Profit &amp; Margin: Consolidated gross profit was $400,253 thousand in 2026, up from $351,473 thousand in 2025. The consolidated gross profit margin decreased to 27.7% in 2026 from 28.5% in 2025 .</li><li>Selling, General, and Administrative (SG&amp;A) Expense: Consolidated SG&amp;A expense rose to $225,210 thousand in 2026 from $173,984 thousand in 2025. As a percentage of sales, SG&amp;A increased to 15.6% in 2026 from 14.1% in 2025. For the Installation Services segment, SG&amp;A was $118,085 thousand in 2026 ($104,479 thousand in 2025). For the Specialty Distribution segment, SG&amp;A was $96,452 thousand in 2026 ($60,246 thousand in 2025) .</li><li>Consolidated Operating Profit &amp; Margin: Consolidated operating profit was $175,043 thousand in 2026, a decrease from $177,489 thousand in 2025. The consolidated operating profit margin declined to 12.1% in 2026 from 14.4% in 2025 .</li><li>Segment Operating Profit &amp; Margin: The Installation Services segment’s operating profit was $119,191 thousand in 2026, down 8.0% from $129,616 thousand in 2025, with its operating profit margin decreasing to 15.3% from 17.4%. The Specialty Distribution segment’s operating profit increased by 15.9% to $80,008 thousand in 2026 from $69,059 thousand in 2025, but its operating profit margin decreased to 10.9% from 12.3% .</li><li>Consolidated Net Income: For the three months ended March 31, 2026, consolidated net income was $104,813 thousand, down from $123,385 thousand in 2025. The net margin was 7.2% in 2026 compared to 10.0% in 2025 .</li><li>Other Expense, Net: Increased to $35,296 thousand in 2026 from $11,516 thousand in 2025, primarily due to higher interest expense and lower interest income .</li><li>Income Tax Expense: Was $34,934 thousand in 2026 with an effective tax rate of 25.0%, compared to $42,588 thousand in 2025 with an effective tax rate of 25.7% .</li></ul><h4>Cash Flow</h4><ul><li>Net cash provided by operating activities: Increased by $8.1 million to $160,736 thousand for the three months ended March 31, 2026, compared to $152,589 thousand in the prior year .</li><li>Net cash used in investing activities: Was $41,493 thousand in 2026, primarily for $27,888 thousand in acquisitions and $13,999 thousand in property and equipment purchases. This compares to $12,853 thousand used in 2025 .</li><li>Net cash used in financing activities: Was $34,385 thousand in 2026, including $15,625 thousand for debt repayments, $1,861 thousand for finance lease obligations, and a -$16,900 thousand net cash outflow related to share-based incentive awards and stock options. This was a significant decrease from $231,344 thousand used in 2025, which included $215,628 thousand for common stock repurchases .</li></ul><h4>Unique Metrics</h4><ul><li>Goodwill: Increased to $3,070,940 thousand as of March 31, 2026, from $3,045,227 thousand as of December 31, 2025, primarily due to $27,455 thousand in additions from acquisitions and measurement period adjustments .</li><li>Other Intangible Assets, Net: Were $1,325,038 thousand as of March 31, 2026, down from $1,351,612 thousand as of December 31, 2025. Amortization expense was $35,880 thousand for the three months ended March 31, 2026, compared to $18,156 thousand in 2025 .</li><li>Long-Term Debt: Total debt, net of unamortized debt issuance costs, was $2,832,388 thousand as of March 31, 2026, compared to $2,846,697 thousand as of December 31, 2025. The Term Loan due 2030 had a balance of $1,206,250 thousand as of March 31, 2026, down from $1,221,875 thousand at December 31, 2025. TopBuild Corp. was in compliance with its Net Leverage Ratio and Minimum Interest Coverage Ratio covenants .</li><li>Liquidity: Total liquidity was $1,202,950 thousand as of March 31, 2026, consisting of $268,847 thousand in cash and cash equivalents and $934,103 thousand availability under the revolving facility, an increase from $1,118,639 thousand as of December 31, 2025 .</li><li>Share-Based Compensation: Share-based compensation expense was $4,629 thousand for the three months ended March 31, 2026, compared to $5,042 thousand in the prior year period. Unrecognized compensation expense on unvested Restricted Stock Awards was $38.5 million as of March 31, 2026 .</li><li>Acquisitions: In 2026, TopBuild Corp. acquired Applied Coatings and Upstate Spray Foam for approximately $27.5 million, recognizing $15.0 million of goodwill. Subsequent to March 31, 2026, TopBuild Corp. acquired Johnson Roofing for approximately $25.0 million and Claremont for approximately $30.0 million .</li></ul><h4>Future Outlook and Strategy</h4>TopBuild Corp. maintains optimism regarding the long-term fundamentals for U.S. residential new construction due to prior underbuilding, despite near-term uncertainties from tariffs, inflation, interest rates, and consumer confidence . The company holds a positive view of commercial/industrial sales for both its Installation Services and Specialty Distribution segments, supported by a strong backlog, active bidding, and recent acquisitions . Recurring maintenance, service, and repair work on industrial sites are anticipated to continue driving demand for the business .<h4>Merger Agreement</h4>On April 18, 2026, TopBuild Corp. entered into a definitive Merger Agreement with QXO, Inc., where TopBuild Corp. stockholders will receive either $505.00 in cash or 20.200 shares of QXO common stock per share, subject to proration. The transaction is subject to customary closing conditions and is expected to close within the expected timeframe .

Topbuild | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 1.446 B