# EDGAR Filing Document

**Accession Number:** 0001633931
**File Stem:** 0001558370-23-001819
**Filing Date:** 2023-2
**Character Count:** 55179
**Document Hash:** 38b124de62735434d6fda68a3e3709a3
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001558370-23-001819.hdr.sgml**: 20230223

**ACCESSION NUMBER**: 0001558370-23-001819

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20230223

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230223

**DATE AS OF CHANGE**: 20230223

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** TopBuild Corp
- **CENTRAL INDEX KEY:** 0001633931
- **STANDARD INDUSTRIAL CLASSIFICATION:** CONSTRUCTION SPECIAL TRADE CONTRACTORS [1700]
- **IRS NUMBER:** 473096382
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-36870
- **FILM NUMBER:** 23655850

**BUSINESS ADDRESS:**
- **STREET 1:** 475 N. WILLIAMSON BLVD.
- **CITY:** DAYTONA BEACH
- **STATE:** FL
- **ZIP:** 32114
- **BUSINESS PHONE:** (386) 304-2200

**MAIL ADDRESS:**
- **STREET 1:** 475 N. WILLIAMSON BLVD.
- **CITY:** DAYTONA BEACH
- **STATE:** FL
- **ZIP:** 32114

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Masco SpinCo Corp.
- **DATE OF NAME CHANGE:** 20150213

?xml version='1.0' encoding='UTF-8'?

### UNITED STATES

### SECURITIES AND EXCHANGE COMMISSION

#### WASHINGTON, DC 20549

### FORM 8-K

#### CURRENT REPORT

#### Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): **February 23, 2023**

### TopBuild Corp.
(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Delaware** | **001-36870** | **47-3096382** |
| (State or other Jurisdiction of | (Commission | (IRS Employer |
| Incorporation) | File Number) | Identification No.) |

---

---

| | |
|:---|:---|
| **475 North Williamson Boulevard** <br>**Daytona Beach, Florida** | **32114** |
| (Address of Principal Executive Offices) | (Zip Code) |

---

Registrant's telephone number, including area code: (386) 304-2200

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

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| | |
|:---|:---|
| &nbsp;&nbsp;Title of each class | &nbsp;&nbsp;Name of each exchange on which registered |
| &nbsp;&nbsp;Common stock, par value $0.01 per share<br> &nbsp;&nbsp;BLD | &nbsp;&nbsp;New York Stock Exchange |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

------

#### Item 2.02. Results of Operations and Financial Condition.
On February 23, 2023, TopBuild Corp., a Delaware corporation (the "Company"), issued a press release announcing its financial results for the quarter and year ended December 31, 2022 (the "Press Release"). The Press Release, which is furnished as Exhibit 99.1, and the information included in Item 7.01 of this Current Report on Form 8-K (this "Report") are incorporated by reference in this Item 2.02.

The information in the Press Release and in this Item 2.02 is "furnished" and not "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section. Such information shall not be incorporated by reference in another filing under the Exchange Act or the Securities Act of 1933, as amended (the "Securities Act"), except to the extent such other filing specifically incorporates such information by reference.

#### Item 7.01. Regulation FD Disclosure.
On February 23, 2023, the Company issued the Press Release. The Press Release, which is furnished as Exhibit 99.1, and the information included in Item 2.02 of this Report are incorporated by reference in this Item 7.01.

The information in the Press Release and in this Item 7.01 is "furnished" and not "filed" for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section. Such information shall not be incorporated by reference in another filing under the Exchange Act or the Securities Act except to the extent such other filing specifically incorporates such information by reference.

#### Item 9.01. Financial Statements and Exhibits.
(d) Exhibits

---

| | | |
|:---|:---|:---|
| **ExhibitNumber** |  | **Description** |
| 99.1  |  | [Press release issued by TopBuild Corp., dated February 23, 2023, announcing its financial results for the quarter and year ended December 31, 2022.](bld-20230223xex99d1.htm) |
| 104 |  | Cover Page Interactive Data File (formatted as Inline XBRL) |

---

#### SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | | |
|:---|:---|:---|:---|
|  | TOPBUILD CORP. | TOPBUILD CORP. | TOPBUILD CORP. |
|  | By: | /s/ Robert Kuhns | /s/ Robert Kuhns |
|  |  | Name: | Robert Kuhns |
|  |  | Title: | Vice President and Chief Financial Officer<br>(Principal Financial Officer) |
| Dated: February 23, 2023 |  |  |  |

---

## Exhibit 99.1

**Exhibit 99.1**

![Graphic](bld-20230223xex99d1001.jpg)

**NYSE:BLD**

A leading installer and specialty distributor of insulation and related building material products to the construction industry in the United States and Canada

**TopBuild Reports Fourth Quarter and** 

**Year-End 2022 Financial Results**

**Fourth Quarter Highlights**

● *Sales increase 18.9% to $1.3 billion, with same branch revenue increasing 14.2%* 

● *Net income increases 83.6% to $143.8 million, or $4.52 per diluted share* 

● *Adjusted EBITDA margin expands 170 basis points to 18.8%* 

**Full Year Highlights**

● *Sales increase 43.7% to $5.0 billion, with same branch revenue increasing 18.8%* 

● *Net income increases 71.6% to $556.0 million, or $17.14 per diluted share* 

● *Adjusted EBITDA margin expands 140 basis points to 18.8%* 

------

**Provides 2023 Sales, Adjusted EBITDA Guidance and Assumptions**

------

**Fourth Quarter Financial Highlights**

(comparisons are to the quarter ended December 31, 2021)

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**3 Months Ended 12/31/22** | **Reported** | **Change** | &nbsp;&nbsp;***"We closed 2022 with a solid fourth quarter, completing another outstanding year for TopBuild. The TopBuild team delivered on our objective of achieving strong top and bottom-line growth as our unique operating model continues to differentiate TopBuild, giving us distinct competitive advantages in the three end-markets we serve."*** <br>**ROBERT BUCK, PRESIDENT & CEO, TOPBUILD** |
| &nbsp;&nbsp;Sales | $1264543  | 18.9% | &nbsp;&nbsp;***"We closed 2022 with a solid fourth quarter, completing another outstanding year for TopBuild. The TopBuild team delivered on our objective of achieving strong top and bottom-line growth as our unique operating model continues to differentiate TopBuild, giving us distinct competitive advantages in the three end-markets we serve."*** <br>**ROBERT BUCK, PRESIDENT & CEO, TOPBUILD** |
| &nbsp;&nbsp;Gross Margin | 29.7% | 310 bps | &nbsp;&nbsp;***"We closed 2022 with a solid fourth quarter, completing another outstanding year for TopBuild. The TopBuild team delivered on our objective of achieving strong top and bottom-line growth as our unique operating model continues to differentiate TopBuild, giving us distinct competitive advantages in the three end-markets we serve."*** <br>**ROBERT BUCK, PRESIDENT & CEO, TOPBUILD** |
| &nbsp;&nbsp;SG&A as % of revenue | 13.6% | (190 bps) | &nbsp;&nbsp;***"We closed 2022 with a solid fourth quarter, completing another outstanding year for TopBuild. The TopBuild team delivered on our objective of achieving strong top and bottom-line growth as our unique operating model continues to differentiate TopBuild, giving us distinct competitive advantages in the three end-markets we serve."*** <br>**ROBERT BUCK, PRESIDENT & CEO, TOPBUILD** |
| &nbsp;&nbsp;Operating Profit | $203114  | 71.5% | &nbsp;&nbsp;***"We closed 2022 with a solid fourth quarter, completing another outstanding year for TopBuild. The TopBuild team delivered on our objective of achieving strong top and bottom-line growth as our unique operating model continues to differentiate TopBuild, giving us distinct competitive advantages in the three end-markets we serve."*** <br>**ROBERT BUCK, PRESIDENT & CEO, TOPBUILD** |
| &nbsp;&nbsp;Operating Margin | 16.1% | 500 bps | &nbsp;&nbsp;***"We closed 2022 with a solid fourth quarter, completing another outstanding year for TopBuild. The TopBuild team delivered on our objective of achieving strong top and bottom-line growth as our unique operating model continues to differentiate TopBuild, giving us distinct competitive advantages in the three end-markets we serve."*** <br>**ROBERT BUCK, PRESIDENT & CEO, TOPBUILD** |
| &nbsp;&nbsp;Net Income | $143834  | 83.6% | &nbsp;&nbsp;***"We closed 2022 with a solid fourth quarter, completing another outstanding year for TopBuild. The TopBuild team delivered on our objective of achieving strong top and bottom-line growth as our unique operating model continues to differentiate TopBuild, giving us distinct competitive advantages in the three end-markets we serve."*** <br>**ROBERT BUCK, PRESIDENT & CEO, TOPBUILD** |
| &nbsp;&nbsp;Net Income per diluted share | $4.52  | 90.7% | &nbsp;&nbsp;***"We closed 2022 with a solid fourth quarter, completing another outstanding year for TopBuild. The TopBuild team delivered on our objective of achieving strong top and bottom-line growth as our unique operating model continues to differentiate TopBuild, giving us distinct competitive advantages in the three end-markets we serve."*** <br>**ROBERT BUCK, PRESIDENT & CEO, TOPBUILD** |
|  |  |  | &nbsp;&nbsp;***"We closed 2022 with a solid fourth quarter, completing another outstanding year for TopBuild. The TopBuild team delivered on our objective of achieving strong top and bottom-line growth as our unique operating model continues to differentiate TopBuild, giving us distinct competitive advantages in the three end-markets we serve."*** <br>**ROBERT BUCK, PRESIDENT & CEO, TOPBUILD** |
| &nbsp;&nbsp;**3 Months Ended 12/31/22** | **Adjusted** | **Change** |  |
| &nbsp;&nbsp;Sales | $1264543  | 18.9% |  |
| &nbsp;&nbsp;Gross Margin | 29.7% | 160 bps |  |
| &nbsp;&nbsp;SG&A as % of revenue | 13.5% | (40 bps) |  |
| &nbsp;&nbsp;Operating Profit | $204492  | 35.7% |  |
| &nbsp;&nbsp;Operating Margin | 16.2% | 200 bps |  |
| &nbsp;&nbsp;Net Income | $140081  | 35.6% |  |
| &nbsp;&nbsp;Net Income per diluted share | $4.40  | 41.0% |  |
| &nbsp;&nbsp;EBITDA | $237413  | 30.4% |  |
| &nbsp;&nbsp;EBITDA Margin | 18.8% | 170 bps |  |

---

------

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**3 Months Ended 12/31/22** | **Adj. Same Branch** | **Change** |
| &nbsp;&nbsp; Sales | $1214183  | 14.2% |
| &nbsp;&nbsp;Gross Margin | 29.8% | 170 bps |
| &nbsp;&nbsp;Operating Margin | 16.3% | 210 bps |
| &nbsp;&nbsp;EBITDA Margin | 18.8% | 170 bps |
| &nbsp;&nbsp;Incremental EBITDA Margin | 30.8% |  |

---

**Full Year 2022 Financial Highlights**

(comparisons are to twelve months ended December 31, 2021)

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**12 Months Ended 12/31/22** | **Reported** | **Change** |
| &nbsp;&nbsp;Sales | $5008744  | 43.7% |
| &nbsp;&nbsp;Gross Margin | 29.7% | 180 bps |
| &nbsp;&nbsp;SG&A as % of revenue | 13.8% | (50 bps) |
| &nbsp;&nbsp;Operating Profit | $797164  | 67.3% |
| &nbsp;&nbsp;Operating Margin | 15.9% | 220 bps |
| &nbsp;&nbsp;Net Income | $555989  | 71.6% |
| &nbsp;&nbsp;Net Income per diluted share | $17.14  | 75.3% |
| &nbsp;&nbsp;**12 Months Ended 12/31/22** | **Adjusted** | **Change** |
| &nbsp;&nbsp;Sales | $5008744  | 43.7% |
| &nbsp;&nbsp;Gross Margin | 29.7% | 130 bps |
| &nbsp;&nbsp;SG&A as % of revenue | 13.6% | 0 bps |
| &nbsp;&nbsp;Operating Profit | $804966  | 56.2% |
| &nbsp;&nbsp;Operating Margin | 16.1% | 130 bps |
| &nbsp;&nbsp;Net Income | $554953  | 54.3% |
| &nbsp;&nbsp;Net Income per diluted share | $17.11  | 57.7% |
| &nbsp;&nbsp;EBITDA | $940611  | 55.2% |
| &nbsp;&nbsp;EBITDA Margin | 18.8% | 140 bps |
| &nbsp;&nbsp;**12 Months Ended 12/31/22** | **Adj. Same Branch** | **Change** |
| &nbsp;&nbsp;Sales | $4140512  | 18.8% |
| &nbsp;&nbsp;Gross Margin | 30.5% | 210 bps |
| &nbsp;&nbsp;Operating Margin | 17.2% | 240 bps |
| &nbsp;&nbsp;EBITDA Margin | 19.5% | 210 bps |
| &nbsp;&nbsp;Incremental EBITDA Margin | 30.8% |  |

---

&nbsp;&nbsp;***"Throughout 2022, the TopBuild team demonstrated profitable growth, benefitting from a relentless focus on improving operational efficiencies and leveraging fixed costs. We also successfully integrated DI and demonstrated improved operating results with this key acquisition.***<br>***"TopBuild's unique operating model continues to enable our ability to outperform in any environment. Since 2018, revenue has doubled, growing at a compounded annual rate of 20% and our adjusted EBITDA margin has expanded 690 basis points.***<br>***"Looking at 2023 and beyond, we see multiple avenues of growth available to us. We have a strong track record of executing on our plan, producing solid results, and creating value for our shareholders."***<br>**ROBERT BUCK, PRESIDENT & CEO, TOPBUILD**<br>

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**NYSE:BLD** | &nbsp;&nbsp;**February 23, 2023** | &nbsp;&nbsp;**topbuild.com** |

---

------

**Operating Segment Highlights ($ in 000s)**

(comparisons are to the period ended December 31, 2021)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Installation** | **3 Months<br>Ended<br>12/31/22** | **12 Months<br>Ended<br>12/31/22** | **Specialty<br>Distribution** | **3 Months<br>Ended<br>12/31/22** | **12 Months<br>Ended<br>12/31/22** |
| **Sales** | $761261  | $2969978  | **Sales** | $563065 | $2278261  |
| **Change** |  |  | **Change** |  |  |
| &nbsp;&nbsp;&nbsp;Volume | 12.4% | 9.2% | &nbsp;&nbsp;&nbsp;Volume | -5.1% | -0.6% |
| &nbsp;&nbsp;&nbsp;Price | 8.2% | 12.2% | &nbsp;&nbsp;&nbsp;Price | 11.5% | 15.8% |
| &nbsp;&nbsp;&nbsp;M&A | 0.8% | 3.4% | &nbsp;&nbsp;&nbsp;M&A | 9.5% | 61.8% |
| **Total Change** | 21.4% | 24.9% | **Total Change** | 15.9% | 77.0% |
| **Operating Margin** | 18.6% | 18.5% | **Operating Margin** | 14.3% | 14.3% |
| **Change** | 170 bps | 240 bps | **Change** | 530 bps | 110 bps |
| **Adj. Operating Margin** | 18.7% | 18.5% | **Adj. Operating Margin** | 14.4% | 14.4% |
| **Change** | 170 bps | 230 bps | **Change** | 200 bps | 0 bps |
| **Adj. EBITDA Margin** | 20.8% | 20.6% | **Adj. EBITDA Margin** | 16.7% | 16.9% |
| **Change** | 140 bps | 190 bps | **Change** | 170 bps | 90 bps |

---

**Capital Allocation**

**Acquisitions**

---

| | | | |
|:---|:---|:---|:---|
| In 2022, the Company acquired five residential insulation installation companies which are expected to generate over $17 million in annual revenue. They are listed in the chart below. | In 2022, the Company acquired five residential insulation installation companies which are expected to generate over $17 million in annual revenue. They are listed in the chart below. | In 2022, the Company acquired five residential insulation installation companies which are expected to generate over $17 million in annual revenue. They are listed in the chart below. | &nbsp;&nbsp;***"We remain focused on acquiring quality installation and specialty distribution companies that fit within our core insulation businesses. Disciplined identification, analysis, and integration of strategic acquisitions are core competencies as evidenced by our successful track record.***<br>***"Over the past five years we have acquired 24 companies that are contributing approximately $1.6 billion of annual revenue.***<br>**ROBERT BUCK, PRESIDENT & CEO, TOPBUILD** |
|  | **TTM Revenue at** | **Month** | &nbsp;&nbsp;***"We remain focused on acquiring quality installation and specialty distribution companies that fit within our core insulation businesses. Disciplined identification, analysis, and integration of strategic acquisitions are core competencies as evidenced by our successful track record.***<br>***"Over the past five years we have acquired 24 companies that are contributing approximately $1.6 billion of annual revenue.***<br>**ROBERT BUCK, PRESIDENT & CEO, TOPBUILD** |
| **Company Acquired** | **Acquisition ($ millions)** | **Acquired** | &nbsp;&nbsp;***"We remain focused on acquiring quality installation and specialty distribution companies that fit within our core insulation businesses. Disciplined identification, analysis, and integration of strategic acquisitions are core competencies as evidenced by our successful track record.***<br>***"Over the past five years we have acquired 24 companies that are contributing approximately $1.6 billion of annual revenue.***<br>**ROBERT BUCK, PRESIDENT & CEO, TOPBUILD** |
| Southwest Insulation | $1.7 | January | &nbsp;&nbsp;***"We remain focused on acquiring quality installation and specialty distribution companies that fit within our core insulation businesses. Disciplined identification, analysis, and integration of strategic acquisitions are core competencies as evidenced by our successful track record.***<br>***"Over the past five years we have acquired 24 companies that are contributing approximately $1.6 billion of annual revenue.***<br>**ROBERT BUCK, PRESIDENT & CEO, TOPBUILD** |
| Billings Insulation | $6.5 | February | &nbsp;&nbsp;***"We remain focused on acquiring quality installation and specialty distribution companies that fit within our core insulation businesses. Disciplined identification, analysis, and integration of strategic acquisitions are core competencies as evidenced by our successful track record.***<br>***"Over the past five years we have acquired 24 companies that are contributing approximately $1.6 billion of annual revenue.***<br>**ROBERT BUCK, PRESIDENT & CEO, TOPBUILD** |
| Green Energy Solutions | $2.0 | March | &nbsp;&nbsp;***"We remain focused on acquiring quality installation and specialty distribution companies that fit within our core insulation businesses. Disciplined identification, analysis, and integration of strategic acquisitions are core competencies as evidenced by our successful track record.***<br>***"Over the past five years we have acquired 24 companies that are contributing approximately $1.6 billion of annual revenue.***<br>**ROBERT BUCK, PRESIDENT & CEO, TOPBUILD** |
| Assured Insulating | $5.5 | April | &nbsp;&nbsp;***"We remain focused on acquiring quality installation and specialty distribution companies that fit within our core insulation businesses. Disciplined identification, analysis, and integration of strategic acquisitions are core competencies as evidenced by our successful track record.***<br>***"Over the past five years we have acquired 24 companies that are contributing approximately $1.6 billion of annual revenue.***<br>**ROBERT BUCK, PRESIDENT & CEO, TOPBUILD** |
| CV Insulation | $1.6 | July | &nbsp;&nbsp;***"We remain focused on acquiring quality installation and specialty distribution companies that fit within our core insulation businesses. Disciplined identification, analysis, and integration of strategic acquisitions are core competencies as evidenced by our successful track record.***<br>***"Over the past five years we have acquired 24 companies that are contributing approximately $1.6 billion of annual revenue.***<br>**ROBERT BUCK, PRESIDENT & CEO, TOPBUILD** |
| **Total** | **$17.3** |  | &nbsp;&nbsp;***"We remain focused on acquiring quality installation and specialty distribution companies that fit within our core insulation businesses. Disciplined identification, analysis, and integration of strategic acquisitions are core competencies as evidenced by our successful track record.***<br>***"Over the past five years we have acquired 24 companies that are contributing approximately $1.6 billion of annual revenue.***<br>**ROBERT BUCK, PRESIDENT & CEO, TOPBUILD** |
| <br>On January 26, 2023, the Company acquired SRI Holdings, a residential insulation installation company founded in 2012, which generated annual revenue of approximately $62 million for the twelve months ended November 30, 2022.  | <br>On January 26, 2023, the Company acquired SRI Holdings, a residential insulation installation company founded in 2012, which generated annual revenue of approximately $62 million for the twelve months ended November 30, 2022.  | <br>On January 26, 2023, the Company acquired SRI Holdings, a residential insulation installation company founded in 2012, which generated annual revenue of approximately $62 million for the twelve months ended November 30, 2022.  | &nbsp;&nbsp;***"We remain focused on acquiring quality installation and specialty distribution companies that fit within our core insulation businesses. Disciplined identification, analysis, and integration of strategic acquisitions are core competencies as evidenced by our successful track record.***<br>***"Over the past five years we have acquired 24 companies that are contributing approximately $1.6 billion of annual revenue.***<br>**ROBERT BUCK, PRESIDENT & CEO, TOPBUILD** |

---

**Share Repurchases**

In 2022, the Company repurchased a total of 1,390,667 shares of its common stock for approximately $250.0 million.

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**NYSE:BLD** | &nbsp;&nbsp;**February 23, 2023** | &nbsp;&nbsp;**topbuild.com** |

---

------

**2023 Outlook**

**Sales and Adjusted EBITDA Guidance** <sup>(1)</sup>

($ in millions)

---

| | | |
|:---|:---|:---|
| **2023** | **Low** | **High** |
| Sales | $4700 | $4900 |
| Adjusted EBITDA\* | $820 | $910 |

---

\*See table for adjusted EBITDA reconciliation.

**Assumptions**<sup>(1)</sup>

---

| | | |
|:---|:---|:---|
| ($ in millions) | **Range** | **Range** |
| **2023** | **Low** | **High** |
| Estimated net income | $445.0 | $523.0 |
| Interest Expense and other, net | 72.0 | 66.0 |
| Income tax expense | 157.0 | 184.0 |
| Depreciation and Amortization | 128.0 | 123.0 |
| Share based compensation | 16.0 | 13.0 |
| Acquisition related costs | 2.0 | 1.0 |
| Estimated EBITDA, as adjusted | $820.0 | $910.0 |

---

<sup>(1)</sup> This guidance and long-term targets reflect management's current view of present and future market conditions and are based on assumptions such as housing starts, general and administrative expenses, weighted average diluted shares outstanding and interest rates. These targets do not include any effects related to potential acquisitions or divestitures that may occur after the date of this press release. A reconciliation of non-GAAP targets to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, the costs and expenses that may be incurred in the future and therefore, cannot be reasonably predicted. The effect of these excluded items may be significant. Factors that could cause actual long-term results to differ materially from TopBuild's current expectations are discussed below and are also detailed in the Company's most recent Annual Report on Form 10-K and subsequent SEC reports.

**Conference Call**

A conference call to discuss fourth quarter 2022 financial results is scheduled for today, Thursday, February 23, at 9:00 a.m. Eastern Time. The call may be accessed by dialing (877) 407-9037. The conference call will be webcast simultaneously on the Company's website at www.topbuild.com. In addition, a copy of management's formal remarks and a presentation that summarizes management's formal remarks will be available immediately prior to the conference call on www.topbuild.com.

**About TopBuild**

TopBuild Corp., headquartered in Daytona Beach, Florida, is a leading installer and specialty distributor of insulation and related building material products to the construction industry in the United States and Canada. We provide insulation installation services nationwide through our Installation segment which has approximately 230 branches located across the United States. We distribute building and mechanical insulation, insulation accessories and other building product materials for the residential, commercial, and industrial end markets through our Specialty Distribution business. Our Specialty Distribution network encompasses approximately 180 branches. To learn more about TopBuild please visit our website at www.topbuild.com.

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**NYSE:BLD** | &nbsp;&nbsp;**February 23, 2023** | &nbsp;&nbsp;**topbuild.com** |

---

------

**Use of Non-GAAP Financial Measures**

Adjusted EBITDA, incremental EBITDA margin, adjusted EBITDA margin, the "adjusted" financial measures presented above, and figures presented on a "same branch basis" are not calculated in accordance with U.S. generally accepted accounting principles ("GAAP"). The Company believes that these non-GAAP financial measures, which are used in managing the business, may provide users of this financial information with additional meaningful comparisons between current results and results in prior periods. We define same branch sales as sales from branches in operation for at least 12 full calendar months. Such non-GAAP financial measures are reconciled to their closest GAAP financial measures in tables contained in this press release. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's reported results under GAAP. Additional information may be found in the Company's filings with the Securities and Exchange Commission which are available on TopBuild's website under "SEC Filings" at www.topbuild.com.

**Safe Harbor Statement**

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements may address, among other things, our expected financial and operational results, the related assumptions underlying our expected results, and our plan to repurchase our common stock under stock repurchase transactions. These forward-looking statements can be identified by words such as "will," "would," "anticipate," "expect," "believe," "designed," "plan," "may," "project," "estimate" or "intend," the negative of these terms, and similar references to future periods. These views involve risks and uncertainties that are difficult to predict and, accordingly, our actual results may differ materially from the results discussed in our forward-looking statements. Our forward-looking statements contained herein speak only as of the date of this press release. Factors or events that we cannot predict, including those described in the risk factors contained in our filings with the Securities and Exchange Commission, may cause our actual results to differ from those expressed in forward-looking statements. Although TopBuild believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, the Company can give no assurance that its expectations will be achieved and it undertakes no obligation to update any forward-looking statements as a result of new information, future events, or otherwise, except as required by applicable law.

**Investor Relations and Media Contact**

Tabitha Zane

tabitha.zane@topbuild.com <br>386-763-8801

(**tables follow**)

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**NYSE:BLD** | &nbsp;&nbsp;**February 23, 2023** | &nbsp;&nbsp;**topbuild.com** |

---

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**TopBuild Corp.**

**Consolidated Statements of Operations**

**(in thousands, except share and per common share amounts)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended December 31,**  | **Three Months Ended December 31,**  | **Year Ended December 31,**  | **Year Ended December 31,**  |
|  | **2022** | **2021** | **2022** | **2021** |
| Net sales | $1264543 | $1063398 | $5008744 | $3486207 |
| Cost of sales | 888871 | 780237 | 3522025 | 2511818 |
| &nbsp;&nbsp;Gross profit | 375672 | 283161 | 1486719 | 974389 |
| Selling, general, and administrative expense | 172558 | 164718 | 689555 | 497970 |
| &nbsp;&nbsp;Operating profit  | 203114 | 118443 | 797164 | 476419 |
| Other income (expense), net: |  |  |  |  |
| &nbsp;&nbsp;Interest expense | (16779) | (10933) | (56716) | (29143) |
| &nbsp;&nbsp;Loss on extinguishment of debt |  | 25 |  | (13837) |
| &nbsp;&nbsp;Other, net  | 1585 | (207) | 1687 | 4 |
| Other expense, net | (15194) | (11115) | (55029) | (42976) |
| &nbsp;&nbsp;Income before income taxes | 187920 | 107328 | 742135 | 433443 |
| Income tax expense | (44086) | (28968) | (186146) | (109427) |
| &nbsp;&nbsp;Net income | $143834 | $78360 | $555989 | $324016 |
| **Net income per common share:** |  |  |  |  |
| &nbsp;&nbsp;Basic | $4.54 | $2.39 | $17.26 | $9.88 |
| &nbsp;&nbsp;Diluted | $4.52 | $2.37 | $17.14 | $9.78 |
| **Weighted average shares outstanding:** |  |  |  |  |
| &nbsp;&nbsp;Basic | 31648741 | 32753719 | 32213839 | 32801906 |
| &nbsp;&nbsp;Diluted | 31838352 | 33117227 | 32440405 | 33146171 |

---

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**NYSE:BLD** | &nbsp;&nbsp;**February 23, 2023** | &nbsp;&nbsp;**topbuild.com** |

---

------

**TopBuild Corp.**

**Consolidated Statements of Comprehensive Income**

**(in thousands)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended December 31,**  | **Three Months Ended December 31,**  | **Year Ended December 31,**  | **Year Ended December 31,**  |
|  | **2022** | **2021** | **2022** | **2021** |
| Net income | $143834 | $78360 | $555989 | $324016 |
| Other comprehensive loss: |  |  |  |  |
| &nbsp;&nbsp;Foreign currency translation adjustment | (6762) | (6634) | (15286) | (6634) |
| Comprehensive income | $137072 | $71726 | $540703 | $317382 |

---

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**NYSE:BLD** | &nbsp;&nbsp;**February 23, 2023** | &nbsp;&nbsp;**topbuild.com** |

---

------

**TopBuild Corp.**

**Consolidated Balance Sheets and Other Financial Data**

**(dollars in thousands)**

---

| | | |
|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** |
|  | **2022** | **2021** |
| **ASSETS** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $240069 | $139779 |
| &nbsp;&nbsp;&nbsp;&nbsp;Receivables, net of an allowance for credit losses of $16,281 at December 31, 2022, and $8,798 at December 31, 2021 | 836071 | 668419 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories, net | 438644 | 352801 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 34257 | 26692 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 1549041 | 1187691 |
| Right of use assets | 205892 | 177177 |
| Property and equipment, net | 253484 | 244574 |
| Goodwill | 1966994 | 1949763 |
| Other intangible assets, net | 614967 | 684209 |
| Other assets | 16453 | 15116 |
| &nbsp;&nbsp;Total assets | $4606831 | $4258530 |
| **LIABILITIES** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $487114 | $461917 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current portion of long-term debt | 40068 | 38640 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities | 199370 | 175891 |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term operating lease liabilities | 60880 | 54591 |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term finance lease liabilities | 2207 | 2387 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 789639 | 733426 |
| Long-term debt | 1417257 | 1454483 |
| Deferred tax liabilities, net | 251481 | 248243 |
| Long-term portion of insurance reserves | 59783 | 51875 |
| Long-term operating lease liabilities | 149943 | 125339 |
| Long-term finance lease liabilities | 6673 | 7770 |
| Other liabilities | 2349 | 960 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 2677125 | 2622096 |
| **EQUITY** | 1929706 | 1636434 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and equity | $4606831 | $4258530 |

---

---

| | | |
|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** |
|  | **2022** | **2021** |
| **Other Financial Data** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Receivable days  | 54 | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventory days  | 45 | 43 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable days  | 66 | 65 |
| &nbsp;&nbsp;&nbsp;&nbsp;Receivables, net plus inventories, net less accounts payable  | $787601 | $559303 |
| &nbsp;&nbsp;&nbsp;&nbsp;Receivables, net plus inventories, net less accounts payable as a percent of sales (TTM) † | 15.7% | 13.3% |

---

† Trailing 12 months sales have been adjusted for the pro forma effect of acquired branches

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**NYSE:BLD** | &nbsp;&nbsp;**February 23, 2023** | &nbsp;&nbsp;**topbuild.com** |

---

------

**TopBuild Corp.<br>Consolidated Statements of Cash Flows<br>(in thousands)**

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,**  | **Year Ended December 31,**  |
|  | **2022** | **2021** |
| **Cash Flows Provided by (Used in) Operating Activities:** |  |  |
| Net income | $555989 | $324016 |
| Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 123335 | 79390 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation | 12310 | 11316 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on extinguishment of debt |  | 13837 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on sale of property and equipment | 1833 | 1356 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of debt issuance costs | 2867 | 2036 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for bad debt expense | 5510 | 7304 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss from inventory obsolescence | 6659 | 2637 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes, net | 6041 | (2818) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in certain assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receivables, net | (169327) | (69042) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories, net | (93874) | (46518) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | (9222) | 558 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 26581 | 54961 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities | 20703 | 24816 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other, net | 6396 | (824) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities | 495801 | 403025 |
| **Cash Flows Provided by (Used in) Investing Activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of property and equipment | (76382) | (55546) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition of businesses, net of cash acquired | (20500) | (1267114) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of property and equipment | 2975 | 415 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (93907) | (1322245) |
| **Cash Flows Provided by (Used in) Financing Activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of long-term debt |  | 1218750 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayment of long-term debt | (38658) | (433070) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment of debt issuance costs |  | (14965) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from revolving credit facility | 70000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayment of revolving credit facility | (70000) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxes withheld and paid on employees' equity awards | (11719) | (8805) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exercise of stock options | 2028 | 3303 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repurchase of shares of common stock | (250050) | (35556) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment of contingent consideration | (1674) | (650) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in) provided by financing activities | (300073) | 729007 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impact of exchange rate changes on cash | (1531) | (15) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net increase (decrease) in cash and cash equivalents | 100290 | (190228) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents- Beginning of period | 139779 | 330007 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents- End of period | $240069 | $139779 |
| **Supplemental disclosure of cash paid for:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest | $49888 | $22144 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes | 186722 | 109179 |
| **Supplemental disclosure of noncash activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Leased assets obtained in exchange for new operating lease liabilities | $103997 | $131909 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Leased assets obtained in exchange for new finance lease liabilities |  | 10469 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accruals for property and equipment | 141 | 1060 |

---

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**NYSE:BLD** | &nbsp;&nbsp;**February 23, 2023** | &nbsp;&nbsp;**topbuild.com** |

---

------

**TopBuild Corp.**

**Segment Data (Unaudited)**

**(dollars in thousands)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended December 31,**  | **Three Months Ended December 31,**  | | **Year Ended December 31,**  | **Year Ended December 31,**  | |
|  | **2022** | **2021** | <br>**Change** | **2022** | **2021** | <br>**Change** |
| **Installation** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales | $761261 | $627123 | *21.4*% | $2969978 | $2378401 | *24.9%* |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating profit, as reported | $141961 | $105975 |  | $548795 | $383722 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Operating margin, as reported* | *18.6*% | *16.9*% |  | *18.5*% | *16.1%* |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rationalization charges | 161 | - |  | (174) | - |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition related costs | 23 | 362 |  | 135 | 1642 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;COVID-19 pay | - | - |  | - | 605 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating profit, as adjusted | $142145 | $106337 |  | $548756 | $385969 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Operating margin, as adjusted* | *18.7%* | *17.0%* |  | *18.5%* | *16.2%* |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation | 339 | 270 |  | 1296 | 1157 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 15869 | 15227 |  | 62483 | 57815 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;EBITDA, as adjusted | $158353 | $121834 | *30.0%* | $612535 | $444941 | *37.7%* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*EBITDA margin, as adjusted* | *20.8*% | *19.4*% |  | *20.6*% | *18.7%* |  |
| **Specialty Distribution** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales | $563065 | $485813 | *15.9%* | $2278261 | $1287176 | *77.0%* |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating profit, as reported | $80692 | $43964 |  | $326226 | $169368 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Operating margin, as reported* | *14.3%* | *9.0%* |  | *14.3%* | *13.2%* |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition related costs | 266 | 530 |  | 1502 | 530 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition purchase accounting (inventory step-up) | - | 15853 |  | - | 15853 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;COVID-19 pay | - | - |  | - | 54 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating profit, as adjusted | $80958 | $60347 |  | $327728 | $185805 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Operating margin, as adjusted* | *14.4*% | *12.4*% |  | *14.4*% | *14.4*% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation | 104 | 304 |  | 1041 | 1032 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 13184 | 12405 |  | 56881 | 18743 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;EBITDA, as adjusted | $94246 | $73056 | *29.0%* | $385650 | $205580 | *87.6%* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*EBITDA margin, as adjusted* | *16.7*% | *15.0*% |  | *16.9*% | *16.0*% |  |

---

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**NYSE:BLD** | &nbsp;&nbsp;**February 23, 2023** | &nbsp;&nbsp;**topbuild.com** |

---

------

**TopBuild Corp.**

**Adjusted EBITDA (Unaudited)**

**(dollars in thousands)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended December 31,**  | **Three Months Ended December 31,**  | | **Year Ended December 31,**  | **Year Ended December 31,**  | |
|  | **2022** | **2021** | <br>**Change** | **2022** | **2021** | <br>**Change** |
| **Total net sales** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales before eliminations | $1324326 | $1112936 |  | $5248239 | $3665577 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intercompany eliminations  | (59783) | (49538) |  | (239495) | (179370) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net sales after eliminations | $1264543 | $1063398 | *18.9%* | $5008744 | $3486207 | *43.7%* |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating profit, as reported - segments | $222653 | $149939 |  | $875021 | $553090 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General corporate expense, net | (9650) | (22893) |  | (38018) | (47018) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intercompany eliminations | (9889) | (8603) |  | (39839) | (29653) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating profit, as reported | $203114 | $118443 |  | $797164 | $476419 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Operating margin, as reported* | *16.1*% | *11.1*% |  | *15.9*% | *13.7%* |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rationalization charges | 162 | - |  | (172) | 16  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition related costs † | 1216  | 16262  |  | 7974  | 22107  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition purchase accounting (inventory step-up) | - | 15853  |  | - | 15853  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Refinancing costs | - | 188  |  | - | 188  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;COVID-19 pay | - | - |  | - | 659  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating profit, as adjusted | $204492  | $150746 |  | $804966  | $515242  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Operating margin, as adjusted* | *16.2*% | *14.2*% |  | *16.1*% | *14.8*% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation | 2637  | 2941  |  | 12310 | 11316  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 30284  | 28385  |  | 123335  | 79390  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;EBITDA, as adjusted | $237413  | $182072  | *30.4%* | $940611  | $605948  | *55.2%* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*EBITDA margin, as adjusted* | *18.8*% | *17.1*% |  | *18.8*% | *17.4*% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales change period over period | *201145*  |  |  | *1522537*  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;EBITDA, as adjusted, change period over period | *55341*  |  |  | *334663*  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Incremental EBITDA, as adjusted, as a percentage of change in sales | *27.5*% |  |  | *22.0*% |  |  |

---

† Acquisition related costs include corporate level adjustments as well as segment operating adjustments.

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**NYSE:BLD** | &nbsp;&nbsp;**February 23, 2023** | &nbsp;&nbsp;**topbuild.com** |

---

------

**TopBuild Corp.**

**Non-GAAP Reconciliations (Unaudited)**

**(in thousands, except share and per common share amounts)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended December 31,**  | **Three Months Ended December 31,**  | **Year Ended December 31,**  | **Year Ended December 31,**  |
|  | **2022** | **2021** | **2022** | **2021** |
| **Gross Profit Reconciliation** |  |  |  |  |
| **Net sales** | $**1264543** | $**1063398** | $**5008744** | $**3486207** |
| **Gross profit, as reported** | $**375672** | $**283161** | $**1486719** | $**974389** |
| Acquisition purchase accounting (inventory step-up) | **-** | 15853 | - | 15853 |
| Acquisition related costs | 15 | **-** | 135 | **-** |
| COVID-19 pay | **-** | - | - | 592 |
| **Gross profit, as adjusted** | $**375687** | $**299014** | $**1486854** | $**990834** |
| Gross margin, as reported | 29.7% | 26.6% | 29.7% | 27.9% |
| Gross margin, as adjusted | 29.7% | 28.1% | 29.7% | 28.4% |
| **Selling, General and Administrative Expense Reconciliation** |  |  |  |  |
| **Selling, general, and administrative expense, as reported** | $**172558** | $**164718** | $**689555** | $**497970** |
| Rationalization charges | 162 | - | (172) | 16 |
| Acquisition related costs | 1201 | 16262 | 7839 | 22107 |
| Refinancing costs | - | 188 | - | 188 |
| COVID-19 pay | - | - | - | 67 |
| **Selling, general, and administrative expense, as adjusted** | $**171195** | $**148268** | $**681888** | $**475592** |
| **Operating Profit Reconciliation** |  |  |  |  |
| **Operating profit, as reported** | $**203114** | $**118443** | $**797164** | $**476419** |
| Rationalization charges | 162 | - | (172) | 16 |
| Acquisition related costs | 1216 | 16262 | 7974 | 22107 |
| Acquisition purchase accounting (inventory step-up) | - | 15853 | - | 15853 |
| Refinancing costs | - | 188 | - | 188 |
| COVID-19 pay | - | - | - | 659 |
| **Operating profit, as adjusted** | $**204492** | $**150746** | $**804966** | $**515242** |
| Operating margin, as reported | 16.1% | 11.1% | 15.9% | 13.7% |
| Operating margin, as adjusted | 16.2% | 14.2% | 16.1% | 14.8% |
| **Income Per Common Share Reconciliation** |  |  |  |  |
| **Income before income taxes, as reported** | $**187920** | $**107328** | $**742135** | $**433443** |
| Rationalization charges | 162 | - | (172) | 16 |
| Acquisition related costs | 1216 | 16262 | 7974 | 22107 |
| Acquisition purchase accounting (inventory step-up) | - | 15853 | - | 15853 |
| Refinancing costs and loss on extinguishment of debt | - | 163 | - | 14025 |
| COVID-19 pay | - | - | - | 659 |
| **Income before income taxes, as adjusted** | **189298** | **139606** | **749937** | **486103** |
| Tax rate at 26.0% | (49217) | (36298) | (194984) | (126387) |
| **Income, as adjusted** | $**140081** | $**103308** | $**554953** | $**359716** |
| **Income per common share, as adjusted** | $**4.40** | $**3.12** | $**17.11** | $**10.85** |
| Weighted average diluted common shares outstanding | 31838352 | 33117227 | 32440405 | 33146171 |

---

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**NYSE:BLD** | &nbsp;&nbsp;**February 23, 2023** | &nbsp;&nbsp;**topbuild.com** |

---

------

**TopBuild Corp.**

**Same Branch and Acquisition Metrics (Unaudited)**

**(dollars in thousands)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended December 31,**  | **Three Months Ended December 31,**  | **Year Ended December 31,**  | **Year Ended December 31,**  |
|  | **2022** | **2021** | **2022** | **2021** |
| **Net sales** |  |  |  |  |
| Same branch: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Installation | $756312 | $627123 | $2889145 | $2378401 |
| &nbsp;&nbsp;&nbsp;&nbsp;Specialty Distribution | 517010 | 485813 | 1483155 | 1287176 |
| &nbsp;&nbsp;&nbsp;&nbsp;Eliminations | (59139) | (49538) | (231788) | (179370) |
| Total same branch | 1214183 | 1063398 | 4140512 | 3486207 |
| Acquisitions (a): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Installation | $4949 | $- | $80833 | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;Specialty Distribution | 46055 | - | 795106 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Eliminations | (644) | - | (7707) | - |
| Total acquisitions | 50360 | - | 868232 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $1264543 | $1063398 | $5008744 | $3486207 |
| **Gross profit, as adjusted** |  |  |  |  |
| Same branch | $361974 | $299014 | $1261934 | $990834 |
| Acquisitions (a) | 13713 | - | 224920 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $375687 | $299014 | $1486854 | $990834 |
| **Gross margin, as adjusted** |  |  |  |  |
| Same branch (b) | 29.8% | 28.1% | 30.5% | 28.4% |
| Acquisitions (c) | 27.2% |  | 25.9% |  |
| **Operating profit, as adjusted** |  |  |  |  |
| Same branch | $197680 | $150746 | $714058 | $515242 |
| Acquisitions (a) | 6812 | - | 90908 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $204492 | $150746 | $804966 | $515242 |
| **Operating margin, as adjusted** |  |  |  |  |
| Same branch (b) | 16.3% | 14.2% | 17.2% | 14.8% |
| Acquisitions (c) | 13.5% |  | 10.5% |  |
| **EBITDA, as adjusted** |  |  |  |  |
| Same branch | $228459 | $182072 | $807309 | $605948 |
| Acquisitions (a) | 8954 | - | 133302 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $237413 | $182072 | $940611 | $605948 |
| **EBITDA, as adjusted, as a percentage of sales** |  |  |  |  |
| Same branch (b) | 18.8% |  | 19.5% |  |
| Acquisitions (c) | 17.8% |  | 15.4% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total (d) | 18.8% | 17.1% | 18.8% | 17.4% |
| **As Adjusted Incremental EBITDA, as a percentage of change in sales** |  |  |  |  |
| Same branch (e) | 30.8% |  | 30.8% |  |
| Acquisitions (c) | 17.8% |  | 15.4% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total (f) | 27.5% |  | 22.0% |  |

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(a) Represents current year impact of acquisitions in their first twelve months

(b) Same branch metric, as adjusted, as a percentage of same branch sales

(c) Acquired metric, as adjusted, as a percentage of acquired sales

(d) Total EBITDA, as adjusted, as a percentage of total sales

(e) Change in same branch EBITDA, as adjusted, as a percentage of change in same branch sales

(f) Change in total EBITDA, as adjusted, as a percentage of change in total sales

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**NYSE:BLD** | &nbsp;&nbsp;**February 23, 2023** | &nbsp;&nbsp;**topbuild.com** |

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**TopBuild Corp.**

**Reconciliation of Adjusted EBITDA to Net Income (Unaudited)**

**(in thousands)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended December 31,**  | **Three Months Ended December 31,**  | **Year Ended December 31,**  | **Year Ended December 31,**  |
|  | **2022** | **2021** | **2022** | **2021** |
| **Net income, as reported** | $**143834** | $**78360** | $**555989** | $**324016** |
| Adjustments to arrive at EBITDA, as adjusted: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense and other, net | 15194 | 11140 | 55029 | 29139 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax expense | 44086 | 28968 | 186146 | 109427 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 30284 | 28385 | 123335 | 79390 |
| &nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation | 2637 | 2941 | 12310 | 11316 |
| &nbsp;&nbsp;&nbsp;&nbsp;Rationalization charges | 162 | - | (172) | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition related costs | 1216 | 16262 | 7974 | 22107 |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition purchase accounting (inventory step-up) | - | 15853 | - | 15853 |
| &nbsp;&nbsp;&nbsp;&nbsp;Refinancing costs and loss on extinguishment of debt | - | 163 | - | 14025 |
| &nbsp;&nbsp;&nbsp;&nbsp;COVID-19 pay | - | - | - | 659 |
| **EBITDA, as adjusted** | $**237413** | $**182072** | $**940611** | $**605948** |
| &nbsp;&nbsp;&nbsp;&nbsp;Proforma acquisition EBITDA (a) |  |  | 548 |  |
| **Proforma TTM EBITDA, as adjusted** |  |  | $**941159** |  |

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(a) Represents the trailing twelve months proforma impact of acquisitions completed in 2022.

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**NYSE:BLD** | &nbsp;&nbsp;**February 23, 2023** | &nbsp;&nbsp;**topbuild.com** |

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**TopBuild Corp.**

**Acquisition Adjusted Net Sales (Unaudited)**

**(in thousands)**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** | **2022** | |
|  | **Q1** | **Q2** | **Q3** | **Q4** | **Year Ended**<br>**December 31, 2022** |
| Net Sales | $1168918 | $1274285 | $1300998 | $1264543 | $5008744 |
| Acquisitions proforma adjustment † | 2934 | 438 | - | - | 3372 |
| Net sales, acquisition adjusted | $1171852 | $1274723 | $1300998 | $1264543 | $5012116 |

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† Trailing 12 months sales have been adjusted for the pro forma effect of acquired branches

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**NYSE:BLD** | &nbsp;&nbsp;**February 23, 2023** | &nbsp;&nbsp;**topbuild.com** |

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**TopBuild Corp.**

**2023 Estimated Adjusted EBITDA Range (Unaudited)<br>(in millions)**

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| | | |
|:---|:---|:---|
|  | **Twelve Months Ending December 31, 2023** | **Twelve Months Ending December 31, 2023** |
|  | **Low** | **High** |
| **Estimated net income** | $**445.0** | **523.0** |
| Adjustments to arrive at estimated EBITDA, as adjusted: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense and other, net | 72.0 | 66.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax expense  | 157.0 | 184.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 128.0 | 123.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation  | 16.0 | 13.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition related costs | 2.0 | 1.0 |
| **Estimated EBITDA, as adjusted** | $**820.0** | $**910.0** |

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**NYSE:BLD** | &nbsp;&nbsp;**February 23, 2023** | &nbsp;&nbsp;**topbuild.com** |

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