TopBuild Corp. faced continued weakness in residential construction markets during the second quarter but maintained strong profit margins through cost cuts and operational improvements.

The installer and specialty distributor of insulation and related building‑material products, based in Daytona Beach, Fla., reported second quarter net income of $151.6 million for the period ending June 30, 2025, compared to $150.7 million in the prior year period. Sales totaled $1.3 billion, down 5.0% year-over-year, while achieving an adjusted EBITDA margin of 20.1%.

TopBuild's Installation segment declined 8.3% while Specialty Distribution grew 1.1%, reflecting the mixed market dynamics facing the construction industry. Despite the revenue decline, the operating margin improved to 16.9% from 15.4% in the prior year quarter through disciplined cost management.

"Our teams' efforts early in the year to align our cost structure with the current demand landscape and drive operational improvements are reflected in our healthy second quarter adjusted EBITDA margin of 20.1%," said TopBuild President and CEO Robert Buck. 

The Installation segment's 8.3% decline was primarily driven by a significant 10.5% volume decrease, partially offset by 0.9% price increases and 1.4% contribution from acquisitions. The segment generated $781 million in sales with an operating margin of 19.9%.

The Specialty Distribution segment showed resilience with 1.1% growth to $599 million, despite a 2.1% volume decline. The segment benefited from 0.8% price increases and 2.3% contribution from acquisitions, maintaining a 14.6% operating margin.

The company attributes these challenges to weak consumer confidence and economic uncertainty, pressuring new housing demand.

Buck noted positive trends in the company's heavy commercial and industrial end markets, which are helping to stabilize performance amid residential market challenges.

TopBuild recently completed its $810 million acquisition of Progressive Roofing in July, adding $438 million in annual revenue and establishing a new platform for growth in the commercial roofing services sector. Combined with the $23 million spent on other acquisitions through June, the company has deployed $833 million in acquisition capital year-to-date.

This strategic move has enabled the company to raise its 2025 outlook to $5.150 to $5.350 billion in sales and $970 to $1.070 million in adjusted EBITDA, incorporating the Progressive contribution for the remainder of the year.

"Our 2025 outlook assumes that the contribution from the Progressive Roofing acquisition for the rest of the year will more than offset further weakness in the residential new construction and light commercial end markets," Buck stated.

The company returned $136.0 million to shareholders in the second quarter through the repurchase of 454,802 shares, bringing year-to-date buybacks to $351.6 million for 1.1 million shares. TopBuild maintains $836.4 million in remaining share repurchase authorization.