TopBuild Corp. reported a 17% increase in first-quarter sales, driven by acquisitions and continued strength in commercial and industrial markets, helping offset ongoing weakness in residential construction.

Revenue rose to $1.45 billion in the quarter ended March 31, up from $1.23 billion a year earlier, fueled in part by the company’s acquisitions of SPI and Progressive Roofing.

Net income declined to $104.8 million, or $3.73 per diluted share, from $123.4 million, or $4.23 per share a year earlier, as margins tightened and costs increased.

For roofing contractors, the quarter highlights a familiar trend: residential work remains under pressure, while commercial roofing continues to provide more stable opportunities.

Same-branch residential sales — which exclude acquisitions and reflect underlying demand — fell 10.9%, while total residential revenue declined 7.9%.

Commercial and industrial sales, by contrast, surged nearly 59% overall, largely driven by acquisitions such as Progressive Roofing, though same-branch commercial activity was relatively flat.

“In the first quarter, sales grew 17.2%, driven by the 2025 acquisitions of SPI and Progressive Roofing, offsetting the macro challenges in residential and light commercial new construction,” CEO Robert Buck said.

TopBuild’s Installation Services segment — which includes commercial roofing and insulation work — saw sales rise 4.3% to $777 million, but profitability declined as residential volumes softened and pricing pressure persisted.

Meanwhile, the Specialty Distribution segment, which supplies insulation and related materials, posted a 31.7% increase in sales to $737 million, supported by acquisition-driven growth and demand tied to commercial projects.

Operating margin fell to 12.1% from 14.4% a year earlier, reflecting higher costs and a shift in project mix.

TopBuild continues to expand through acquisitions, completing four deals so far in 2026 that add about $83.8 million in annual revenue. The company also signed an agreement to acquire Comfort Pro, an insulation installer expected to close in the second quarter.

“M&A continues to be a priority given our strong free cash flow and robust pipeline,” Buck said.

The company also announced plans to combine with QXO, a move expected to enhance purchasing power and expand cross-selling opportunities across roofing and building products once completed.