Installed Building Products (NYSE:IBP) Issues Quarterly Earnings Results

Installed Building Products (NYSE:IBP) issued its earnings results on Thursday. The construction company reported $3.24 earnings per share for the quarter, beating analysts’ consensus estimates of $2.83 by $0.41, FiscalAI reports. Installed Building Products had a return on equity of 62.74% and a net margin of 8.60%.The firm had revenue of $747.50 million for the quarter, compared to the consensus estimate of $738.97 million. During the same quarter last year, the business posted $2.88 EPS. The company’s revenue was down .4% compared to the same quarter last year.

Here are the key takeaways from Installed Building Products’ conference call:

• Company delivered record profitability and cash generation in FY2025 with adjusted gross margin of 35%, Adjusted EBITDA of $142M, $371M cash from operations and a conservative leverage position (net debt / EBITDA ~1.1x) giving strong financial flexibility.
• Commercial and heavy commercial end markets were a major growth driver (heavy commercial same-branch sales +38% in Q4), with growing commercial backlogs and improved complementary-product penetration supporting margins.
• Core residential installation faced headwinds: full-year same-branch residential sales down ~4% and new single-family starts weak due to affordability, plus an estimated ~$20M Q1 weather-related revenue impact that could pressure near-term results.
• Management is staying acquisitive and shareholder-friendly—11 acquisitions in 2025 (~$64M revenue), guidance to acquire at least $100M of annual revenue in 2026, a new $500M buyback authorization, and a higher variable dividend—supported by ~$900M available liquidity after recent debt transactions.
• Looking ahead, management expects full-year gross margins around the 32–34% range but warned of continued price/cost pressure in the production builder segment, higher 2026 amortization (~$38M) and some incremental interest/first-quarter headwinds from recent financing.

Installed Building Products Trading Up 7.0%

IBP traded up $21.06 during midday trading on Thursday, hitting $321.80. 533,847 shares of the company were exchanged, compared to its average volume of 332,751. The firm’s 50 day moving average price is $299.42 and its 200-day moving average price is $273.76. Installed Building Products has a 1-year low of $150.83 and a 1-year high of $349.00. The firm has a market capitalization of $8.73 billion, a P/E ratio of 34.64, a P/E/G ratio of 7.01 and a beta of 1.92. The company has a quick ratio of 2.28, a current ratio of 2.78 and a debt-to-equity ratio of 1.25.

Hedge Funds Weigh In On Installed Building Products

A number of hedge funds and other institutional investors have recently made changes to their positions in IBP. Price T Rowe Associates Inc. MD boosted its holdings in Installed Building Products by 26.9% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 1,551,161 shares of the construction company’s stock valued at $402,356,000 after acquiring an additional 328,725 shares during the last quarter. First Trust Advisors LP lifted its position in shares of Installed Building Products by 0.3% in the 4th quarter. First Trust Advisors LP now owns 400,748 shares of the construction company’s stock worth $103,950,000 after purchasing an additional 1,238 shares during the period. Charles Schwab Investment Management Inc. boosted its stake in shares of Installed Building Products by 1.6% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 350,996 shares of the construction company’s stock valued at $91,045,000 after purchasing an additional 5,384 shares during the last quarter. Ameriprise Financial Inc. increased its position in shares of Installed Building Products by 84.1% during the second quarter. Ameriprise Financial Inc. now owns 276,690 shares of the construction company’s stock worth $49,893,000 after buying an additional 126,435 shares during the period. Finally, Franklin Resources Inc. increased its position in shares of Installed Building Products by 0.4% during the fourth quarter. Franklin Resources Inc. now owns 271,193 shares of the construction company’s stock worth $70,345,000 after buying an additional 1,074 shares during the period. 99.61% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

IBP has been the topic of a number of recent analyst reports. Weiss Ratings upgraded Installed Building Products from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Monday, February 9th. Wall Street Zen cut shares of Installed Building Products from a “buy” rating to a “hold” rating in a research report on Tuesday, February 3rd. Jefferies Financial Group raised their target price on shares of Installed Building Products from $230.00 to $259.00 and gave the company a “hold” rating in a research report on Monday, December 15th. Zacks Research cut shares of Installed Building Products from a “strong-buy” rating to a “hold” rating in a research note on Friday, January 16th. Finally, Benchmark cut Installed Building Products from a “buy” rating to a “hold” rating in a research note on Wednesday, February 11th. One research analyst has rated the stock with a Buy rating, nine have given a Hold rating and four have issued a Sell rating to the company. According to MarketBeat.com, Installed Building Products currently has an average rating of “Reduce” and a consensus price target of $239.45.

About Installed Building Products

Installed Building Products, Inc (NYSE: IBP) is a leading national installer of specialty building products serving the U.S. residential construction market. The company partners with homebuilders and contractors to deliver a comprehensive range of interior and exterior finishing services, including insulation, drywall finishing, protective coatings and basement waterproofing systems. By offering a single-source solution, Installed Building Products helps streamline project coordination and ensures consistent service quality across multiple trades.

Founded in 1977 and headquartered in Columbus, Ohio, Installed Building Products has expanded from a regional insulation installer into a nationwide platform operating in nearly every state.