TopBuild 'Well-Positioned' to Navigate Near-Term Housing, Macro Headwinds, RBC Says

MT Newswires Live11-21

TopBuild (BLD) is "well-positioned" to navigate near-term housing, macro headwinds given its conservative guidance and recent cost-cutting efforts, while accelerating declines in Q4 and risks of a muted 2026 recovery appear as a snag, RBC Capital Markets said in a Thursday note.

RBC said it estimates 2025 adjusted earnings before interest, taxes, depreciation and amortization of $1.03 billion, compared with Wall Street's view of $1.04 billion.

Meanwhile, 2026 adjusted EBITDA is anticipated to be $1.10 billion compared with Wall Street's expectation of $1.16 billion, with the modest growth driven by the company's recent M&A efforts, RBC said.

RBC said it forecasts margin headwinds from lower volumes through 2026, but expects TopBuild to maintain high-teens EBITDA percentage with free cash flow conversion of over 60%.

The firm initiated coverage of the company with a sector perform rating and $410 price target.

Price: 414.64, Change: +1.84, Percent Change: +0.45

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment