Installed Building Products Q4 Earnings Exceed Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 8 hours ago
0mins
Should l Buy IBP?
Source: seekingalpha
- Earnings Beat: Installed Building Products reported a Q4 non-GAAP EPS of $3.24, surpassing expectations by $0.49, which reflects strong profitability and boosts investor confidence in the company's financial health.
- Revenue Stability: The total revenue of $747.5 million, despite a slight year-over-year decline of 0.4%, exceeded forecasts by $85,300, indicating the company's resilience in maintaining revenue amidst market challenges.
- Installation Revenue Decline: Installation revenue decreased by 2.2% to $679.7 million, influenced by recent acquisitions, yet other revenue surged by 22.8% to $67.8 million, showcasing the success of the company's diversified operations.
- Record Net Income: Net income rose by 14.5% to a record $76.6 million, with adjusted EBITDA increasing by 7.7% to $142.2 million, highlighting ongoing improvements in cost control and operational efficiency, thereby reinforcing the company's market position.
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Analyst Views on IBP
Wall Street analysts forecast IBP stock price to fall
9 Analyst Rating
1 Buy
6 Hold
2 Sell
Hold
Current: 300.740
Low
203.00
Averages
245.57
High
275.00
Current: 300.740
Low
203.00
Averages
245.57
High
275.00
About IBP
Installed Building Products, Inc. is a new residential insulation installer and a diversified installer of complementary building products, including waterproofing, fire-stopping, fireproofing, garage doors, rain gutters, window blinds, shower doors, closet shelving and mirrors and other products for residential and commercial builders located in the continental United States. The Company operates through three segments: Installation, Distribution and Manufacturing. The Installation segment is engaged in the installation of various products in the residential new construction, repair and remodel and commercial construction end markets. The Distribution segment sells insulation, gutters and accessories primarily to installers of these products who operate in multiple end markets. The Manufacturing segment consists of its manufacturing operation which produces cellulose insulation and asphalt and industrial fibers to sell to distributors and installers of these products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Installed Building Products Reports Record Profitability in Q4 2025
- Record Sales and Profitability: Despite challenges in the residential market, Installed Building Products achieved record sales and profitability in 2025, with CEO Jeffrey Edwards highlighting strong performance in commercial markets, demonstrating the company's success in product diversification and profitability.
- Ongoing Acquisition Strategy: The company completed 11 acquisitions in 2025, generating over $64 million in annual revenue, and expects to acquire at least $100 million in annual revenue in 2026, indicating a proactive approach to expanding market share and enhancing competitiveness.
- Strong Financial Performance: Adjusted EBITDA for Q4 reached $142 million with a 19% EBITDA margin, while net income was $88 million, translating to $3.24 per diluted share, reflecting successful cost management and optimization of customer mix.
- Enhanced Shareholder Return Plan: The company announced a new $500 million stock buyback program and increased the annual variable dividend to $1.80 per share, a nearly 6% rise from the previous year, underscoring its commitment to shareholder returns supported by robust cash flow.
See More
Installed Building Products Q4 Earnings Exceed Expectations
- Earnings Beat: Installed Building Products reported a Q4 non-GAAP EPS of $3.24, surpassing expectations by $0.49, which reflects strong profitability and boosts investor confidence in the company's financial health.
- Revenue Stability: The total revenue of $747.5 million, despite a slight year-over-year decline of 0.4%, exceeded forecasts by $85,300, indicating the company's resilience in maintaining revenue amidst market challenges.
- Installation Revenue Decline: Installation revenue decreased by 2.2% to $679.7 million, influenced by recent acquisitions, yet other revenue surged by 22.8% to $67.8 million, showcasing the success of the company's diversified operations.
- Record Net Income: Net income rose by 14.5% to a record $76.6 million, with adjusted EBITDA increasing by 7.7% to $142.2 million, highlighting ongoing improvements in cost control and operational efficiency, thereby reinforcing the company's market position.
See More
Installed Building Products Reports Q4 2025 Financial Highlights
- Revenue Performance: For Q4 2025, net revenue was $747.5 million, a 0.4% decline year-over-year, primarily impacted by weakness in the residential market, although commercial sales surged by 22.9%, indicating market divergence.
- Profitability Improvement: Net income reached $76.6 million, up 14.5% year-over-year, with earnings per share at $2.83, reflecting the company's successful strategies in cost control and product diversification despite overall revenue decline.
- Shareholder Returns: The company declared a cash dividend of $0.39 per share, representing over a 5% increase from the previous year, and plans to pay an annual variable dividend of $1.80 per share in 2026, demonstrating a strong commitment to shareholders.
- Acquisition Strategy: IBP completed 11 acquisitions in 2025, contributing over $64 million in annual revenue, with expectations to acquire at least $100 million in annual revenue in 2026, indicating proactive business expansion amid market challenges.
See More
Installed Building Products Set to Release Q4 Earnings on February 26
- Earnings Announcement Schedule: Installed Building Products (IBP) is set to announce its Q4 2023 earnings on February 26 before market open, with consensus EPS estimate at $2.75, reflecting a 5.2% year-over-year decline, and revenue estimate at $738.97 million, down 1.5% year-over-year.
- Historical Performance: Over the past two years, IBP has exceeded EPS and revenue estimates 75% of the time, indicating a strong track record of financial performance and market confidence.
- Expectation Revision Dynamics: In the last three months, EPS estimates saw one upward revision with no downward adjustments, while revenue estimates experienced one upward and one downward revision, highlighting market uncertainty regarding the company's future performance.
- Market Environment Analysis: Despite expanding its U.S. footprint with three acquisitions, analysts express cautious views on the company's recovery visibility, citing elevated valuation levels that may impact investor confidence.
See More
Installed Building Products Acquires Multiple Companies
- Acquisition Overview: Installed Building Products (IBP) acquired Thermo-Tech Mechanical Insulation on February 2, 2026, generating approximately $13 million in annual revenue, enhancing its insulation service capabilities in the Midwest commercial and industrial markets.
- Biomax Acquisition: IBP acquired Biomax Spray Foam Insulation on January 19, 2026, with around $5 million in annual revenue, which will bolster IBP's insulation services in the residential and commercial markets across the South-Central U.S.
- CKV Acquisition: IBP acquired CKV Finished Products on December 11, 2025, generating about $4 million in annual revenue, focusing on providing complementary building products like shower doors and shelving for new residential markets in the Midwest, thereby enriching IBP's product offerings.
- Strategic Implications: These acquisitions not only expand IBP's market share but also enhance its competitive edge in the insulation and building products sectors, which is expected to positively impact future revenue growth.
See More
Installed Building Products Acquires Three Companies to Expand Market Reach
- Market Expansion through Acquisitions: Installed Building Products (IBP) has recently acquired three companies, including Thermo-Tech, Biomax, and CKV, which are expected to add over $22 million in annual revenue, thereby enhancing its market share and revenue diversification across the U.S.
- Thermo-Tech Acquisition: Acquired on February 2, 2026, Thermo-Tech contributes approximately $13 million in annual revenue, significantly bolstering IBP's competitive edge in both residential and commercial markets, thus strengthening its overall market position.
- Biomax and CKV Acquisitions: Biomax was acquired on January 19, 2026, with an annual revenue of about $5 million, while CKV was acquired on December 11, 2025, contributing approximately $4 million in annual revenue, which will further enrich IBP's product portfolio and enhance its overall capabilities in the building products sector.
- Strategic Growth Focus: CEO Jeff Edwards emphasized that acquisitions are a key component of IBP's growth strategy, with ongoing efforts to expand across multiple geographies and product categories to meet evolving market demands.
See More
Installed Building Products Reports Record Profitability in Q4 2025
- Record Sales and Profitability: Despite challenges in the residential market, Installed Building Products achieved record sales and profitability in 2025, with CEO Jeffrey Edwards highlighting strong performance in commercial markets, demonstrating the company's success in product diversification and profitability.
- Ongoing Acquisition Strategy: The company completed 11 acquisitions in 2025, generating over $64 million in annual revenue, and expects to acquire at least $100 million in annual revenue in 2026, indicating a proactive approach to expanding market share and enhancing competitiveness.
- Strong Financial Performance: Adjusted EBITDA for Q4 reached $142 million with a 19% EBITDA margin, while net income was $88 million, translating to $3.24 per diluted share, reflecting successful cost management and optimization of customer mix.
- Enhanced Shareholder Return Plan: The company announced a new $500 million stock buyback program and increased the annual variable dividend to $1.80 per share, a nearly 6% rise from the previous year, underscoring its commitment to shareholder returns supported by robust cash flow.
See More
Installed Building Products Q4 Earnings Exceed Expectations
- Earnings Beat: Installed Building Products reported a Q4 non-GAAP EPS of $3.24, surpassing expectations by $0.49, which reflects strong profitability and boosts investor confidence in the company's financial health.
- Revenue Stability: The total revenue of $747.5 million, despite a slight year-over-year decline of 0.4%, exceeded forecasts by $85,300, indicating the company's resilience in maintaining revenue amidst market challenges.
- Installation Revenue Decline: Installation revenue decreased by 2.2% to $679.7 million, influenced by recent acquisitions, yet other revenue surged by 22.8% to $67.8 million, showcasing the success of the company's diversified operations.
- Record Net Income: Net income rose by 14.5% to a record $76.6 million, with adjusted EBITDA increasing by 7.7% to $142.2 million, highlighting ongoing improvements in cost control and operational efficiency, thereby reinforcing the company's market position.
See More
Installed Building Products Reports Q4 2025 Financial Highlights
- Revenue Performance: For Q4 2025, net revenue was $747.5 million, a 0.4% decline year-over-year, primarily impacted by weakness in the residential market, although commercial sales surged by 22.9%, indicating market divergence.
- Profitability Improvement: Net income reached $76.6 million, up 14.5% year-over-year, with earnings per share at $2.83, reflecting the company's successful strategies in cost control and product diversification despite overall revenue decline.
- Shareholder Returns: The company declared a cash dividend of $0.39 per share, representing over a 5% increase from the previous year, and plans to pay an annual variable dividend of $1.80 per share in 2026, demonstrating a strong commitment to shareholders.
- Acquisition Strategy: IBP completed 11 acquisitions in 2025, contributing over $64 million in annual revenue, with expectations to acquire at least $100 million in annual revenue in 2026, indicating proactive business expansion amid market challenges.
See More
Installed Building Products Set to Release Q4 Earnings on February 26
- Earnings Announcement Schedule: Installed Building Products (IBP) is set to announce its Q4 2023 earnings on February 26 before market open, with consensus EPS estimate at $2.75, reflecting a 5.2% year-over-year decline, and revenue estimate at $738.97 million, down 1.5% year-over-year.
- Historical Performance: Over the past two years, IBP has exceeded EPS and revenue estimates 75% of the time, indicating a strong track record of financial performance and market confidence.
- Expectation Revision Dynamics: In the last three months, EPS estimates saw one upward revision with no downward adjustments, while revenue estimates experienced one upward and one downward revision, highlighting market uncertainty regarding the company's future performance.
- Market Environment Analysis: Despite expanding its U.S. footprint with three acquisitions, analysts express cautious views on the company's recovery visibility, citing elevated valuation levels that may impact investor confidence.
See More
Installed Building Products Acquires Multiple Companies
- Acquisition Overview: Installed Building Products (IBP) acquired Thermo-Tech Mechanical Insulation on February 2, 2026, generating approximately $13 million in annual revenue, enhancing its insulation service capabilities in the Midwest commercial and industrial markets.
- Biomax Acquisition: IBP acquired Biomax Spray Foam Insulation on January 19, 2026, with around $5 million in annual revenue, which will bolster IBP's insulation services in the residential and commercial markets across the South-Central U.S.
- CKV Acquisition: IBP acquired CKV Finished Products on December 11, 2025, generating about $4 million in annual revenue, focusing on providing complementary building products like shower doors and shelving for new residential markets in the Midwest, thereby enriching IBP's product offerings.
- Strategic Implications: These acquisitions not only expand IBP's market share but also enhance its competitive edge in the insulation and building products sectors, which is expected to positively impact future revenue growth.
See More
Installed Building Products Acquires Three Companies to Expand Market Reach
- Market Expansion through Acquisitions: Installed Building Products (IBP) has recently acquired three companies, including Thermo-Tech, Biomax, and CKV, which are expected to add over $22 million in annual revenue, thereby enhancing its market share and revenue diversification across the U.S.
- Thermo-Tech Acquisition: Acquired on February 2, 2026, Thermo-Tech contributes approximately $13 million in annual revenue, significantly bolstering IBP's competitive edge in both residential and commercial markets, thus strengthening its overall market position.
- Biomax and CKV Acquisitions: Biomax was acquired on January 19, 2026, with an annual revenue of about $5 million, while CKV was acquired on December 11, 2025, contributing approximately $4 million in annual revenue, which will further enrich IBP's product portfolio and enhance its overall capabilities in the building products sector.
- Strategic Growth Focus: CEO Jeff Edwards emphasized that acquisitions are a key component of IBP's growth strategy, with ongoing efforts to expand across multiple geographies and product categories to meet evolving market demands.
See More
