Insulation installer and specialty distributor TopBuild shared May 6 that it is set to acquire a like provider in Arkansas, and then reported its 2024 first quarter financial results a day later.

Daytona Beach, FL-based TopBuild said it has reached an agreement to buy Insulation Works — a Wickes, AR-based provider of insulation services for the residential and light commercial markets in Arkansas and surrounding states, as well as agricultural buildings nationwide.

Insulation Works has three locations across Arkansas and has annual revenues of about $28 million, according to TopBuild.

The transaction is expected to close in May.

“The addition of Insulation Works will enhance our residential and commercial business and provide expertise across the agricultural insulation market,” TopBuild President and CEO Robert Buck said in a news release. “It is another example of our disciplined M&A strategy of targeting businesses in our core area of insulation with strong leadership and potential for future growth.”

1Q Financials

On the financials side, TopBuild reported total 1Q sales of $1.28 billion, up 1.1% year-over-year. Gross margin of 30.3% improved 100 basis points; operating profit of $214.5 million improved 7.6% and operating margin of 16.8% likewise increased 100 bps.

The company’s 1Q net profit of $152 million jumped 12.2, adjusted EBITDA of $254 million increased 6.5% and adjusted EBITDA margin of 19.8% increased 100 bps.

The company’s Specialty Distribution segment posted 1Q sales of $546 million, down 2.3% year-over-year as lower volume (-4.2%) more than offset positive impacts from price (+1.5%) and M&A (+0.4%). That segment’s operating margin of 14.2% increased 110 bps year-over-year, while adjusted EBITDA margin of 16.9% likewise increased 110 bps.