Can TopBuild's Applied Coatings Buyout Boost Northeast Growth?

TopBuild Corp. BLD has expanded its presence in the Northeast through the acquisition of Applied Coatings and Upstate Spray Foam. The two businesses are based in Winfield, New York. The companies together generate nearly $20 million in annual revenues. Operations focus on spray foam insulation and fireproofing services. End markets include both residential and commercial customers across New York, Pennsylvania and Massachusetts.

The deal adds local scale and strengthens the company’s installer network in these states. The added teams bring established customer relationships and a strong service record. This supports deeper penetration in regional construction markets. The move also broadens the company’s specialty offerings within insulation and related solutions.

Management views the acquisition as part of a steady plan to drive growth and improve profitability. A larger footprint in the Northeast can create more opportunities to win projects across both housing and commercial segments. The addition of proven operators may also support smoother execution and service reliability.

Overall, the buyout appears to provide incremental revenues and better regional coverage. The transaction aligns with the company’s strategy of using targeted deals to build density in key markets. Continued integration of these businesses could help strengthen Northeast growth over time.

TopBuild’s Acquisition Strategy Supports Steady Growth

TopBuild continues to rely on acquisitions to support growth, especially during periods of soft residential demand. The company uses buyouts to add new markets, products and customer relationships while supporting organic expansion. Since the 2015 spin-off, the company has completed 49 acquisitions through November 2025, showing a consistent focus on deploying capital toward strategic deals. 

In the third quarter of 2025, consolidated net sales increased 1.5% from the prior year. Sales from acquisitions rose 7.9% and helped offset weakness tied to slower residential activity. The company maintains a healthy pipeline of potential partners and acquisitions remain the main lever for capital allocation and long-term growth.

BLD Stock’s Price Performance, Valuation & Estimates

Shares of TopBuild have gained 14.7% in the past three months compared with the 2.8% rise in the Zacks Building Products - Miscellaneous industry. In the same time frame, shares of other industry players like Frontdoor, Inc. FTDR and Gibraltar Industries, Inc. ROCK have declined 11.6% and 15%, respectively, while Argan, Inc. AGX has gained 25.9%.

From a valuation standpoint, TopBuild trades at a forward price-to-earnings (P/E) multiple of 23.93, above the industry’s average of 18.59. Conversely, industry players, such as Frontdoor, Gibraltar and Argan, have P/E multiples of 14.31, 11.77 and 46.1, respectively.

P/E (F12M)

The Zacks Consensus Estimate for TopBuild’s earnings for 2026 has remained unchanged over the past 60 days at $19.86 per share. The estimated figures for 2026 imply year-over-year growth of 1%. 

TopBuild currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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

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