TopBuild sales up 17% on acquisitions, but margins compress 230 bps; QXO merger pending

Filed May 5, 2026 · Period ending March 31, 2026 · Compared to 10-Q May 6, 2025 · ~2 min read

Key Changes

• high

  Q1 2026 sales grew 17% driven by Progressive and SPI acquisitions, but operating margin fell 230 bps to 12.1% as organic volume declined 5.5%, pricing turned negative (-1.6%), and acquisition-related SG&A including intangible amortization increased.

  MD&A: Operating Performance verify on EDGAR →
• high

  Pending QXO merger restricts business strategy execution and carries $600M termination fee if deal breaks for competing proposal; stockholders face QXO stock price volatility risk with no assurance on ultimate value received.

  Risk Factors: QXO Transaction verify on EDGAR →
• high

  Progressive acquisition (July 2025) added commercial roofing capabilities including re-roofing, maintenance, and new construction, expanding building envelope offering and adding recurring revenue streams to reduce cyclicality.

  MD&A: Business Overview verify on EDGAR →