TopBuild Corp.

Greetings, and welcome to Top Build's third quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Pia Iacchino, Vice President, Investor Relations. Please go ahead.

Good morning, and thanks for joining us. With me today are Robert Buck, our President and CEO, and Rob Koons, our CFO. Our earnings release, senior management's formal remarks, and a deck summarizing our comments can be found on our website at topbills.com. Many of our remarks today will include forward-looking statements which are subject to known and unknown risks and uncertainties, including those set forth in this morning's press release and in the company's SEC filings. The company assumes no obligation to update any forward-looking statements because of new information, future events, or otherwise. Please note that some of the financial measures to be discussed during this call will be on a non-GAAP basis. These non-GAAP measures are not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. We've provided a reconciliation of these financial measures to the most comparable GAAP measures in today's press release and in our presentation, both of which are available on our website. Let me now turn the call over to our president and CEO, Robert Book.

Good morning. Thank you for joining us today for our third quarter earnings call. With more than three quarters of the year behind us, we are proud of what our teams have accomplished thus far in 2025. Let me start by giving you an update on where we are with our acquisitions. In the third quarter, we acquired Progressive Roofing, With roughly $440 million in annual sales, we've established an exciting new platform for growth in commercial roofing, which has a large and very fragmented $75 billion TAM. In the first 100 days following the acquisition, we continue to learn great things about the business and are refining a strategy to build on the platform. We've established a great connection points across the Progressive Roofing organization and our teams are doing a great job coming together and executing for the future. In October, we closed the SPI transaction. With this strategic deal, we're bringing together two leaders in the mechanical insulation and custom fabrication to better serve our commercial industrial customers across diverse vertical markets. The transaction extended our geographic footprint and expanded our capabilities. Our teams are already hard at work as we leverage our M&A integration expertise to get SPI onto our technology platform and drive synergies. We expect to deliver $35 to $40 million in annual run rate synergies over the next two years, and we're excited to have the SPI team on board. We also announced yesterday several additional acquisitions. We closed insulation fabrics, diamond door products, and performance insulation fabricators over the last few weeks and will soon close on a fourth acquisition, L&L Insulation. Together, these acquisitions add just over $50 million in annual revenue. Diamond Door Products is a very attractive complement to our specialty distribution business. Diamond Door fabricates and assembles insulated steel door systems, which gives us the opportunity to provide metal building insulation customers with a value-added bundle of products that customers have requested. Insulation Fabrics and Performance Insulation Fabricators expand our distribution offerings of insulation accessories and mechanical insulation, while L&L Insulation grows our residential insulation installation business in Colorado. Our M&A team is doing a great job. We continue to have very attractive pipeline of acquisition candidates, and there's no shortage of opportunities to consider. Let me transition to discuss our results in the quarter. Results were in line with expectations and similar to the prior quarter. Our performance was solid even as the macro environment remains uncertain. We posted total sales growth in the quarter of 1.4% to $1.4 billion. Although the residential new construction market continues to be weak, it was partially offset by ongoing growth in heavy commercial and industrial. We're also benefiting from the contribution of our commercial roofing acquisition. Fundamentally, housing in the U.S. is still underbuilt, and our long-term opportunity is intact. Near term, the downward movement of interest rates is encouraging. However, mixed economic signals and affordability concerns linger, impacting consumer confidence and home buying decisions. Profitability in the third quarter was again solid, and we reported adjusted EBITDA margin of 19.8%, As we continue our focus on operational excellence across the business and supply chain. Turning to capital allocation, our priorities have not changed. We continue to believe we can drive the greatest shareholder returns through M&A. We're always evaluating opportunities and we remain disciplined around valuation. In the third quarter, we repurchased nearly 178,000 shares, returning $65.5 million in capital to shareholders. As you know, we plan to host an investor day in New York on December 9th. So before I turn it over to Rob, let me give you a bit of a preview of the day so you have an idea of what to expect. Topfield has a differentiated business model and a clear profitable growth strategy, which drives compounded returns. Our strong track record of value creation would not be possible without our great team of leaders, many of whom you'll meet, including some folks from our recent acquisitions. You've heard us talk a lot about being a people business. One of our core strengths is our culture and our ability to attract and retain great talent, both of which we'll cover in more detail. This year, we've expanded our total addressable market to approximately $90 billion, so we'll spend some time discussing our strategy for continued growth in the space, both organically and through M&A. We have the advantage of having a single technology platform that enables us to drive operational excellence and efficiencies. As we look ahead, we'll share more on our digital roadmap to support continued operational excellence and solutions that improve the customer experience. Finally, we'll share our thoughts on Top Build's long-term financial outlook. We encourage you to join us in person. If you don't already have the details and would like to attend, please reach out to PI. With that, let me close by thanking our teams as we continue our focus on safety, driving profitable growth, and operational excellence. I also want to welcome our most recent acquisitions to our team. We look forward to working together and are delighted to have you join the Top Build family. Rob?