TopBuild Corp. BLD is further strengthening its insulation business with the acquisition of Seal-Rite Insulation, an Omaha-based company specializing in fiberglass and spray foam installations. Seal-Rite generates approximately $15 million in annual revenue and has been serving residential and commercial clients in Nebraska for over 25 years. The deal, expected to close in the second quarter, expands TopBuild’s regional footprint and enhances its service capabilities.

Shares of this installer and distributor of insulation and other building products lost 0.3% during the trading session but gained 0.3% in the after-hours trading session yesterday.

A Strategic Fit for TopBuild

TopBuild’s president and CEO, Robert Buck, emphasized the benefits of the acquisition, stating, “We are excited to have the Seal-Rite team join us as we strengthen our installation presence in Nebraska.” With an established reputation and customer base, Seal-Rite aligns well with TopBuild’s growth strategy, helping to drive profitability and expand its installation services.
Seal-Rite’s owner and president, Gil Bittner, also expressed enthusiasm, highlighting the opportunity to enhance customer value under the TopBuild umbrella.

BLD Stock’s Growth and Profitability Outlook

This acquisition continues TopBuild’s strategy of targeted expansion through bolt-on acquisitions. By integrating Seal-Rite’s expertise, TopBuild gains a stronger presence in the Midwest, where demand for insulation services remains robust due to steady residential and commercial construction activity.

Investors may see this as a positive move, as TopBuild continues to scale its operations and improve efficiency through strategic acquisitions. With a history of successful integrations, this latest deal reinforces TopBuild’s commitment to long-term growth and shareholder value.

In 2024, TopBuild prioritized M&A, completing eight acquisitions totaling $153.1 million in annual sales. The company also returned $966.4 million to shareholders through share repurchases, reflecting confidence in its outlook and capital deployment strategy (read more: TopBuild Q4 Earnings & Sales Top Estimates, Both Rise Y/Y).

TopBuild’s Share Price Performance

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TopBuild’s shares have lost 9.5% in the past six months, underperforming the Zacks Building Products - Miscellaneous industry’s 4.3% decline. The company has been suffering from ongoing challenges in the housing market. Earnings estimates for 2025 have declined to $22.02 per share from $22.53 over the past seven days. The estimated figure indicates 4.7% growth from 2024.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Yet, the company remains optimistic given the growing demand for energy efficiency, the U.S. housing supply shortage, increasing household formations and the potential for lower interest rates.

TopBuild Stock’s Zacks Rank & Key Picks

TopBuild currently carries a Zacks Rank #3 (Hold).

Here are some better-ranked stocks from the Construction sector.

Sterling Infrastructure, Inc. STRL currently sports a Zacks Rank of 1 (Strong Buy). STRL delivered a trailing four-quarter earnings surprise of 16.2%, on average. The stock has gained 13% in the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for STRL’s 2025 sales indicates a decrease of 4.1% and an increase of 20.5% for earnings per share (EPS), respectively, from a year ago.

Gibraltar Industries, Inc. ROCK currently carries a Zacks Rank #2 (Buy). ROCK delivered a trailing four-quarter earnings surprise of 1.8%, on average. The stock has lost 1.2% in the past six months.

The Zacks Consensus Estimate for ROCK’s 2025 sales and EPS calls for an increase of 9.8% and 15.5%, respectively, from a year ago.

Hillman Solutions Corp. HLMN currently carries a Zacks Rank #2. HLMN delivered a trailing four-quarter earnings surprise of 7.6%, on average. The stock has lost 4.6% in the past six months.

The Zacks Consensus Estimate for HLMN’s 2025 sales and EPS calls for an increase of 4% and 18.4%, respectively, from a year ago.

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TopBuild Corp. (BLD) : Free Stock Analysis Report

Hillman Solutions Corp. (HLMN) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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