Cash flow generation remains inconsistent, evidenced by an OCF/NI ratio that fluctuated from a high of 1.78 in 2023Q4 to a low of 0.60 in 2024Q2, reflecting volatile working capital management.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 |
|---|
| Cash from Operations | 764.47M | 756.32M | 776.03M | 849.41M | 495.8M | 403.02M | 357.88M | 271.78M | 167.17M | 113.19M | 76.78M | 56.01M | 71.86M | 24.67M |
| Operating CF Margin % | - | 13.98% | 14.56% | 16.35% | 9.9% | 11.56% | 13.17% | 10.36% | 7.01% | 5.94% | 4.41% | 3.46% | 4.75% | 1.75% |
| Operating CF Growth % | 83.04% | -2.54% | -8.64% | 71.32% | 23.02% | 12.61% | 31.68% | 62.57% | 47.69% | 47.41% | 37.09% | -22.06% | 191.27% | - |
| Net Income | 503.16M | 521.73M | 622.6M | 614.25M | 555.99M | 324.02M | 247.02M | 191M | 134.75M | 158.13M | 72.61M | 78.97M | 9.4M | -12.74M |
| Depreciation & Amortization | 189.88M | 169.37M | 140.49M | 132.88M | 123.33M | 79.39M | 62.41M | 52.7M | 39.42M | 16.45M | 12.01M | 12.11M | 26.08M | 27.49M |
| Stock-Based Compensation | 13.71M | 0 | 16.58M | 15.84M | 12.31M | 11.32M | 14.75M | 13.66M | 11.32M | 9.89M | 7.67M | 4.65M | 3.76M | 3.9M |
| Deferred Taxes | -10.8M | -14.61M | -3.46M | -7.48M | 6.04M | -2.82M | -4.07M | 8.89M | 12.94M | -59.53M | 13.54M | -16.56M | 16.71M | 21.61M |
| Other Non-Cash Items | 25.61M | 54.2M | 24.9M | 14.48M | 23.27M | 26.35M | 10.07M | 13.7M | 6.9M | 7.82M | 7.71M | -1.17M | 5.14M | 4.65M |
| Working Capital Changes | 42.92M | 25.64M | -25.09M | 79.43M | -225.14M | -35.23M | 27.7M | -8.17M | -38.15M | -19.56M | -36.75M | -21.99M | 10.76M | -20.24M |
| Change in Receivables | 42.35M | 79.77M | 56.02M | 20.81M | -169.33M | -69.04M | 2.61M | -27.15M | -35.52M | -37.94M | -19.95M | -19.59M | -19.23M | -25.62M |
| Change in Inventory | 968K | 17.09M | -41.72M | 74.53M | -93.87M | -46.52M | -11.84M | 17.43M | -23.3M | -14.9M | 1.37M | -13.61M | -10.29M | -13.38M |
| Change in Payables | -1.62M | -65.43M | -30.42M | -8.87M | 26.58M | 54.96M | 16.84M | -5.12M | 29.69M | 17.94M | -11.7M | 24.01M | 44.94M | 27.68M |
| Cash from Investing | -2.02B | -1.99B | -203.52M | -198.17M | -93.91M | -1.32B | -121.88M | -50.14M | -551.82M | -108.6M | -16.8M | -12.21M | -11.26M | -14.27M |
| Capital Expenditures | -60.03M | -59.43M | -69.35M | -64M | -76.38M | -55.55M | -40.94M | -45.54M | -52.5M | -25.31M | -14.16M | -13.64M | -13.14M | -14.01M |
| CapEx % of Revenue | 1.07% | 1.1% | 1.3% | 1.23% | 1.52% | 1.59% | 1.51% | 1.74% | 2.2% | 1.33% | 0.81% | 0.84% | 0.87% | 0.99% |
| Acquisitions | -1.96B | -1.93B | -136.77M | -149.15M | -20.5M | -1.27B | -83.41M | -6.95M | -500.2M | -84.09M | -3.48M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 756K | 0 | 2.59M | 14.98M | 2.98M | 415K | 2.46M | 2.35M | 887K | 802K | 831K | 1.44M | 1.88M | -260K |
| Cash from Financing | 1.21B | 1.02B | -1.02B | -43.84M | -300.07M | 729.01M | -90.8M | -137.76M | 429.06M | -82.45M | -38.46M | 66.08M | -60.66M | -18.12M |
| Debt Issued (Net) | 1.46B | 1.46B | -47.04M | -40.14M | -38.66M | 785.68M | -24.95M | -12.8M | 508.2M | 63.75M | -15M | 195M | - | - |
| Equity Issued (Net) | -214.36M | -431.38M | -966.35M | 3.13M | -250.05M | -35.56M | -49.15M | -110.91M | -65.03M | -139.29M | -22.3M | - | - | - |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -200M | 0 | 0 |
| Share Repurchases | -218.52M | -434.15M | -966.35M | 0 | -250.05M | -35.56M | -49.15M | -110.91M | -65.03M | -139.29M | -22.3M | 0 | 0 | 0 |
| Other Financing | -29.03M | -15.2M | -2.88M | -6.83M | -11.37M | -21.12M | -16.7M | -14.04M | -14.13M | -6.91M | -1.16M | 71.08M | -60.66M | -18.12M |
| Net Change in Cash | -39.96M | -215.58M | -448.25M | 608.5M | 100.29M | -190.23M | 145.2M | 83.88M | 44.41M | -77.85M | 21.53M | 109.88M | -56K | -7.72M |
| Free Cash Flow | 704.43M | 696.89M | 706.68M | 785.41M | 419.42M | 347.48M | 316.95M | 226.24M | 114.67M | 87.88M | 62.63M | 42.37M | 58.72M | 10.66M |
| FCF Margin % | 12.53% | 12.88% | 13.26% | 15.12% | 8.37% | 9.97% | 11.66% | 8.62% | 4.81% | 4.61% | 3.59% | 2.62% | 3.88% | 0.76% |
| FCF Growth % | 2.54% | -1.39% | -10.02% | 87.26% | 20.7% | 9.63% | 40.09% | 97.3% | 30.48% | 40.32% | 47.83% | -27.85% | 450.64% | - |
| FCF per Share | 25.04 | 24.77 | 23.03 | 24.87 | 12.93 | 10.48 | 9.52 | 6.58 | 3.22 | 2.40 | 1.65 | 1.12 | 1.54 | 0.28 |
| FCF Conversion (FCF/Net Income) | 1.40x | 1.45x | 1.25x | 1.38x | 0.89x | 1.24x | 1.45x | 1.42x | 1.24x | 0.72x | 1.06x | 0.71x | 7.64x | -1.94x |
| Interest Paid | 0 | 0 | 69.97M | 71.46M | 49.89M | 22.14M | 30.9M | 36.24M | 23.73M | 6.42M | 4.13M | 2.23M | - | - |
| Taxes Paid | 0 | 0 | 219.48M | 220.77M | 186.72M | 109.18M | 77.69M | 43.31M | 39.01M | 22.58M | 39.51M | 20.99M | 1.13M | 717K |
Cyclical Residential Exposure
As reported in financial statements, TopBuild's OCF/NI ratio has fluctuated significantly, reaching a high of 1.78 in 2023Q4 and a low of 0.60 in 2024Q2, suggesting that reported net income is frequently decoupled from actual cash generation due to volatile working capital movements and non-cash adjustments.
The persistent gap between net income and operating cash flow indicates that earnings quality is heavily influenced by the timing of project-based cash receipts. Investors should monitor whether these fluctuations represent temporary timing differences or a structural difficulty in converting accounting profits into tangible liquidity.
Based on recent SEC filings, TopBuild's free cash flow margins have shown marked instability, ranging from a low of 5.4% in 2024Q2 to a peak of 19.3% in 2024Q4, highlighting the company's sensitivity to construction cycle timing and the resulting impact on discretionary cash availability.
The erratic FCF trajectory suggests that the company's cash generation is not yet decoupled from the inherent volatility of the residential construction market. This inconsistency warrants further investigation into whether management can stabilize cash flows as they continue to integrate larger commercial-focused acquisitions.
According to quarterly data, working capital changes have been highly inconsistent, swinging from a $107.1 million outflow in 2024Q2 to an $82.6 million inflow in 2023Q4, which appears to reflect the company's struggle to manage inventory and receivables effectively during shifting residential construction demand cycles.
These sharp reversals in working capital suggest that the company's cash conversion cycle is highly susceptible to the pace of project completions. Such volatility may indicate that the firm is forced to absorb inventory costs or extend payment terms to maintain its competitive position with builders.
As evidenced by financial disclosures, TopBuild has prioritized significant capital deployment toward acquisitions, including a $1.1 billion outlay in 2025Q4, while simultaneously utilizing share repurchases, such as the $505.2 million spent in 2024Q2, to manage equity dilution and return value to shareholders during periods of cash surplus.
The company's reliance on large-scale acquisitions to drive growth suggests a strategy that requires constant access to capital. Investors should monitor whether the returns on these acquisitions justify the significant cash outflows, especially given the potential for integration risks in a fragmented industry.
Quick answers to the most common questions about buying BLD stock.
TopBuild Corp. (BLD) generated $756.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
TopBuild Corp. (BLD) generated $696.9M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
TopBuild Corp. (BLD) spent $59.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, TopBuild Corp. (BLD) spent $434.2M on share repurchases. This shows the company's commitment to returning capital to its equity investors.