Download PDF

1. Company Snapshot

1.a. Company Description

Installed Building Products, Inc., together with its subsidiaries, engages in the installation of insulation, waterproofing, fire-stopping, fireproofing, garage doors, rain gutters, window blinds, shower doors, closet shelving and mirrors, and other products in the continental United States.The company offers a range of insulation materials, such as fiberglass and cellulose, and spray foam insulation materials.It is also involved in the installation of insulation and sealant materials in various areas of a structure, which includes basement and crawl space, building envelope, attic, and acoustical applications.


In addition, the company installs a range of caulk and sealant products that control air infiltration in residential and commercial buildings; and waterproofing options, including sheet and hot applied waterproofing membranes, as well as deck coating, bentonite, and air and vapor systems.It serves homebuilders, multi-family and commercial construction firms, individual homeowners, and repair and remodeling contractors through a network of approximately 210 branch locations.The company was formerly known as CCIB Holdco, Inc.


Installed Building Products, Inc.was founded in 1977 and is based in Columbus, Ohio.

Show Full description

1.b. Last Insights on IBP

Installed Building Products' recent performance was driven by record GAAP revenue of $760.3 million in Q2 2025, beating estimates. The company's quarterly earnings of $2.95 per share also surpassed expectations. Strong commercial segment growth, particularly in heavy commercial projects driven by data center demand, contributed to the positive results. Recent acquisitions, including Echols & Vanderkoy, added $16M in revenues and expanded the company's footprint. However, management's cautious tone and softer housing outlook raised concerns. (Source: Downgrade to hold, citing 25x forward PE valuation)

1.c. Company Highlights

2. Installed Building Products' Q3 2025 Earnings: A Strong Performance

Installed Building Products (IBP) reported a robust financial performance for the third quarter of 2025, with consolidated net revenue increasing 2% to $778 million. The company's adjusted gross margin stood at 34%, while adjusted EBITDA reached a record $140 million, with an adjusted EBITDA margin of 18%. Earnings per share (EPS) came in at $3.18, beating analyst estimates of $2.69. The strong EPS performance was a significant beat, indicating the company's operational efficiency and ability to navigate market dynamics.

Publication Date: Nov -15

📋 Highlights
  • Record Earnings Performance:: Adjusted EBITDA reached $140 million with an 18% margin, driven by 30% growth in heavy commercial same-branch sales.
  • Strong Cash Flow & Share Repurchases:: Generated $307 million in cash flow from operations YoY (+16%), repurchasing $51 million in shares Q3 and $135 million year-to-date.
  • Geographic Diversification Benefits:: Midwest/Northeast regions (30% of new residential sales) saw low single-digit growth, offsetting declines in West (-low single digits).
  • Strategic Acquisitions & Leverage:: Acquired a $20M North Carolina manufacturer; net debt/EBITDA ratio at 1.09x, reflecting robust liquidity.
  • Heavy Commercial Momentum:: Heavy commercial sales grew 12% same-branch, contributing to a $135M revenue run rate with 11% heavy commercial exposure.

Segment Performance

The Installation segment reported flat same-branch sales for the quarter, with heavy commercial same-branch sales growing 30% and residential same-branch sales declining 3%. The company's national network of branches executed well, delivering reliable installation services to homebuilders and commercial developers. IBP's scale, product, and end-market diversity benefited results, despite local market dynamics varying across the country. The commercial insulation business has a $135 million revenue run rate, with a split between 11% heavy commercial and 7.5% light commercial.

Cash Flow and Capital Allocation

IBP generated $307 million in cash flow from operations for the 9 months ended September 30, 2025, up 16% year-over-year. The company repurchased 200,000 shares of its common stock at a total cost of $51 million in the third quarter and $135 million during the 9 months ended September 30, 2025. IBP had approximately $365 million available under its stock repurchase program, indicating a strong commitment to returning value to shareholders.

Outlook and Valuation

Looking ahead, IBP expects residential housing starts to be flat in 2026 compared to 2025. The company's long-term fundamentals in the U.S. housing construction industry remain strong, with growth supported by an undersupply of residential housing. With a current P/E Ratio of 26.52 and EV/EBITDA of 14.35, the market is pricing in a certain level of growth. Analysts estimate next year's revenue growth at 1.8%, which is relatively modest. The company's ROIC of 15.93% and ROE of 37.75% indicate a strong ability to generate returns on capital.

Operational Highlights

The company's multifamily business is making progress in expanding into new markets, with a focus on strategic and methodical market share gains. IBP is also exploring adjacent areas, such as commercial roofing, and has a pipeline of regular way deals. The M&A environment is active, and the company is well-positioned to capitalize on opportunities. With a net debt to trailing 12-month adjusted EBITDA leverage ratio of 1.09x, IBP's liquidity position and balance sheet remain strong.

3. NewsRoom

Card image cap

Eminence Fully Exits Installed Building Products After a Year of Outperformance

Dec -05

Source: fool.com

Card image cap

Is Installed Building Products (IBP) Stock Outpacing Its Construction Peers This Year?

Dec -02

Source: zacks.com

Card image cap

Installed Building Products (IBP) Upgraded to Strong Buy: Here's Why

Dec -01

Source: zacks.com

Card image cap

Best Momentum Stocks to Buy for Dec.1

Dec -01

Source: zacks.com

Card image cap

ACA or IBP: Which Is the Better Value Stock Right Now?

Nov -18

Source: zacks.com

Card image cap

Amid Destruction in Home Construction, 3 Stocks Stay Hot

Nov -11

Source: fool.com

Card image cap

Installed Building Products, Inc. (IBP) Q3 2025 Earnings Call Transcript

Nov -06

Source: seekingalpha.com

Card image cap

Installed Building Products (IBP) Q3 Earnings and Revenues Beat Estimates

Nov -05

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.41%)

6. Segments

Installation

Expected Growth: 7.5%

Installation segment's 7.5% growth is driven by increasing demand for energy-efficient solutions, rising new construction and remodeling activities, and growing adoption of insulation materials. Additionally, IBP's strategic acquisitions, expanded product offerings, and strong relationships with builders and contractors contribute to the segment's growth.

Other

Expected Growth: 6.5%

Installed Building Products, Inc.'s 6.5% growth is driven by increasing demand for energy-efficient and sustainable building solutions, government incentives for green buildings, and rising construction activities in the US. Additionally, the company's strategic acquisitions and expansion into new markets have contributed to its growth.

Eliminations

Expected Growth: 0.0%

Installed Building Products, Inc. exhibits 0.0% growth, driven by stagnant demand in the construction industry, lack of innovation in building materials, and intense competition from established players, resulting in flat sales and revenue.

7. Detailed Products

Insulation

Installed Building Products, Inc. offers a wide range of insulation products, including fiberglass batts, spray foam, and rigid foam board, designed to reduce energy consumption and improve indoor air quality.

Gutters and Downspouts

The company provides a variety of gutter and downspout systems, including seamless gutters, gutter guards, and downspout extensions, designed to manage water flow and protect homes from water damage.

Fire-Resistant Barriers

Installed Building Products, Inc. offers fire-resistant barriers, including spray-applied fire-resistive materials and intumescent coatings, designed to meet fire safety codes and protect people and property.

Rainwater Harvesting Systems

The company provides rainwater harvesting systems, including tanks, pumps, and filtration systems, designed to collect, store, and reuse rainwater for irrigation, toilet flushing, and other non-potable uses.

Garage Doors and Openers

Installed Building Products, Inc. offers a range of garage doors and openers, including residential and commercial doors, designed to provide secure, convenient, and stylish access to garages and buildings.

Shutters and Exterior Accessories

The company provides a variety of shutters and exterior accessories, including vinyl, aluminum, and wood shutters, designed to enhance the appearance and functionality of homes and buildings.

8. Installed Building Products, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Installed Building Products, Inc. faces moderate threat from substitutes due to the availability of alternative building materials and installation services.

Bargaining Power Of Customers

The bargaining power of customers is low due to the fragmented nature of the industry, allowing Installed Building Products, Inc. to maintain pricing power.

Bargaining Power Of Suppliers

Installed Building Products, Inc. faces moderate bargaining power from suppliers due to the presence of a few large suppliers in the industry.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry is high due to the competitive nature of the industry, with many players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 57.27%
Debt Cost 5.30%
Equity Weight 42.73%
Equity Cost 13.52%
WACC 8.81%
Leverage 134.01%

11. Quality Control: Installed Building Products, Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Armstrong World Industries

A-Score: 5.9/10

Value: 2.2

Growth: 5.9

Quality: 8.0

Yield: 2.0

Momentum: 8.5

Volatility: 9.0

1-Year Total Return ->

View Full Report
Stock-Card
Masco

A-Score: 5.4/10

Value: 6.5

Growth: 5.9

Quality: 6.0

Yield: 4.0

Momentum: 2.5

Volatility: 7.7

1-Year Total Return ->

View Full Report
Stock-Card
Simpson Manufacturing Co

A-Score: 4.9/10

Value: 3.1

Growth: 7.9

Quality: 7.5

Yield: 1.0

Momentum: 3.0

Volatility: 6.7

1-Year Total Return ->

View Full Report
Stock-Card
Installed Building Products

A-Score: 4.8/10

Value: 2.9

Growth: 9.0

Quality: 5.6

Yield: 2.0

Momentum: 5.0

Volatility: 4.0

1-Year Total Return ->

View Full Report
Stock-Card
GMS

A-Score: 4.7/10

Value: 4.4

Growth: 7.6

Quality: 4.1

Yield: 0.0

Momentum: 6.5

Volatility: 5.7

1-Year Total Return ->

View Full Report
Stock-Card
Carlisle

A-Score: 4.5/10

Value: 4.0

Growth: 8.0

Quality: 5.2

Yield: 2.0

Momentum: 1.0

Volatility: 6.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

268.19$

Current Price

268.19$

Potential

-0.00%

Expected Cash-Flows