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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.

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1.b. Last Insights on IBP

Installed Building Products, Inc.'s recent performance was positively driven by its Q4 earnings beat, with quarterly earnings of $3.24 per share exceeding the Zacks Consensus Estimate of $2.8 per share. The company's record EBITDA margin of 19% and gross margin of 35% were driven by a price-over-volume strategy and commercial mix. Additionally, Bahl & Gaynor Inc. lifted its stake in the company by 32.7%, and Artisan Partners Limited Partnership increased its position by 54.3%. The company's strong M&A execution and record profitability have transformed it into a diversified, margin-focused building products consolidator.

1.c. Company Highlights

2. Installed Building Products' Strong Q4 Results Driven by Record Sales and Profitability

Installed Building Products (IBP) reported a robust fourth quarter, with consolidated net revenue of $748 million, roughly flat from the previous year. The company's adjusted gross margin reached a record 35%, while adjusted EBITDA increased to a record $142 million. Earnings per share (EPS) came in at $3.24, beating estimates of $2.8. The strong profitability was driven by a combination of factors, including a shift in customer mix towards semi-custom and custom builders, as well as growth in the heavy commercial business.

Publication Date: Mar -01

📋 Highlights
  • Record Adjusted EBITDA:: Reached $142 million, up from prior records, driven by 23% commercial same-branch sales growth in the Installation segment.
  • Strong Cash Flow:: Generated $371 million in cash flow from operations (+9% YoY) and increased liquidity to $900 million via $500 million senior notes and credit facility amendments.
  • Acquisition Momentum:: Closed 11 deals in 2025 adding >$64 million in annual revenue, with ~$100 million target for 2026, focusing on mechanical/industrial markets.
  • Gross Margin Expansion:: Hit 35% (record), with heavy commercial business contributing 40 bps improvement, despite price/cost pressures in entry-level markets.
  • Shareholder Returns:: Launched $500M buyback program, repurchased 150k shares for $38M in Q4, and approved $0.39/share Q1 dividend and $1.80 annual variable dividend.

Segment Performance

The Installation segment saw same-branch sales down 2%, with a 23% increase in commercial same-branch sales offsetting a 9% decline in new residential same-branch sales. The company's heavy commercial business performed well, with growth across various verticals, including educational, healthcare, and recreation. IBP's focus on building out a platform in the mechanical and industrial space is expected to drive future growth, with a fragmented market and favorable margins.

Cash Flow and Balance Sheet

IBP generated $371 million in cash flow from operations, a 9% year-over-year increase, and had a net debt to trailing 12-month adjusted EBITDA leverage ratio of 1.1x. The company closed a private offering of $500 million in senior unsecured notes and amended its existing asset-based lending revolving credit facility, increasing liquidity to nearly $900 million.

Outlook and Valuation

IBP expects to acquire at least $100 million of annual revenue through acquisitions in 2026 and is well-positioned for growth in commercial and industrial markets. With a current P/E Ratio of 33.22 and EV/EBITDA of 13.47, the market is pricing in a certain level of growth. The company's ROIC of 15.96% and ROE of 39.12% indicate a strong ability to generate returns on invested capital. Analysts estimate next year's revenue growth at 4.5%, which is in line with the company's focus on organic growth and strategic acquisitions.

Dividend and Share Repurchase

The Board of Directors authorized a new $500 million stock buyback program, and the company repurchased 150,000 shares of common stock at a total cost of $38 million in the fourth quarter. A first quarter dividend of $0.39 per share and an annual variable dividend of $1.80 per share were also approved, reflecting the company's commitment to returning capital to shareholders.

3. NewsRoom

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Installed Building Products: Nailing Execution, Testing The Ceiling On Valuation

Mar -03

Source: seekingalpha.com

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Bahl & Gaynor Inc. Buys 2,681 Shares of Installed Building Products, Inc. $IBP

Mar -03

Source: defenseworld.net

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Artisan Partners Limited Partnership Buys 85,998 Shares of Installed Building Products, Inc. $IBP

Feb -28

Source: defenseworld.net

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Dana Investment Advisors Inc. Has $941,000 Holdings in Installed Building Products, Inc. $IBP

Feb -27

Source: defenseworld.net

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Installed Building Products, Inc. (IBP) Q4 2025 Earnings Call Transcript

Feb -26

Source: seekingalpha.com

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Installed Building Products (IBP) Q4 Earnings and Revenues Beat Estimates

Feb -26

Source: zacks.com

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HCMLY vs. IBP: Which Stock Is the Better Value Option?

Feb -20

Source: zacks.com

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Installed Building Products (IBP) Projected to Post Earnings on Thursday

Feb -19

Source: defenseworld.net

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

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Growth: 5.8

Quality: 8.0

Yield: 2.0

Momentum: 7.5

Volatility: 9.0

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Value: 3.1

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Quality: 7.5

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Quality: 4.1

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Installed Building Products

A-Score: 5.0/10

Value: 2.1

Growth: 9.0

Quality: 5.7

Yield: 2.0

Momentum: 7.0

Volatility: 4.3

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A-Score: 4.9/10

Value: 3.8

Growth: 8.0

Quality: 6.6

Yield: 2.0

Momentum: 2.0

Volatility: 7.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

299.28$

Current Price

299.28$

Potential

-0.00%

Expected Cash-Flows