TopBuild (BLD) stock jumped on Wednesday after the construction company announced its acquisition of Specialty Products and Insulation (SPI), a specialty distributor and fabricator of mechanical insulation solutions for the commercial, industrial, and residential end markets in North America. The deal doesn’t include SPI’s metal building insulation business.
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TopBuild spent $1 billion in cash to purchase SPI. The company said it used cash on hand for this, including money it gained from its September senior notes issuance. BLD investors will note that SPI reported revenue of $700 million for the 12 months ended June 30, 2025. It also reported $75 million in EBITDA during that period. TopBuild said it expects synergies of $35 million to $40 million within two years.
Robert Buck, President and CEO of TopBuild, said, “The SPI acquisition is highly strategic for TopBuild. The addition of SPI’s resources and capabilities further enhances our customer value proposition while its complementary fabrication footprint strengthens and expands our presence across North America.” The CEO also pointed out that the purchase gives it a strong cyclical revenue stream, with 55% of SPI’s revenue coming from recurring maintenance and repair.
TopBuild Stock Movement Today
TopBuild stock was up 2.59% in pre-market trading on Wednesday, following a slight dip yesterday. The shares have rallied 27.27% year-to-date and gained nearly 1% over the past 12 months. Trading volume today is muted at about 160 shares, compared to a three-month daily average of 330,000 units.
Is TopBuild Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for TopBuild is Strong Buy, based on eight Buy and two Hold ratings over the past three months. With that comes an average BLD stock price target of $424.80, representing a potential 7.21% upside for the shares.
