Open the filing on EDGARINSTALLED BUILDING PRODUCTS REPORTS
RECORD FOURTH QUARTER AND FISCAL YEAR 2025 PROFITABILITY
Columbus, Ohio, February 26, 2026, Installed Building Products, Inc. (the "Company" or "IBP") (NYSE: IBP), an industry-leading installer of insulation and complementary building products, today announced results for the fourth quarter ended December 31, 2025.
Fourth Quarter 2025 Highlights (Comparisons are to Prior Year Period)
- Net revenue decreased 0.4% to $747.5 million
- Installation revenue decreased 2.2% to $679.7 million, including sales from IBP's recent acquisitions
- Other revenue, net of eliminations, which includes IBP’s manufacturing and distribution operations, increased 22.8% to $67.8 million from $55.2 million
- Net income increased 14.5% to a record of $76.6 million
- Adjusted EBITDA* increased 7.7% to a record of $142.2 million
- Net income per diluted share increased 18.4% to $2.83
- Adjusted net income* was $87.7 million, or $3.24 per diluted share
- Net cash flow from operations was $64.9 million
- At December 31, 2025, IBP had $321.9 million in cash and cash equivalents
- Repurchased 150 thousand shares of common stock at a total cost of $37.6 million
- Declared fourth quarter dividend of $0.37 per share that was paid to shareholders on December 31, 2025
Recent Developments
- IBP’s Board of Directors declared the first quarter regular cash dividend of $0.39 per share, representing more than a 5% increase to the Company's regular dividend in the prior year period
- IBP’s Board of Directors also declared an annual variable dividend of $1.80 per share, an increase of $0.10 per share or nearly 6% over last year’s variable dividend
- Fitch Ratings ("Fitch") assigned IBP a first-time Long-Term Issuer Default Rating (IDR) of ‘BB+’, and assigned a ‘BBB-’ rating with a Recovery Rating of ‘RR1’ to IBP’s ABL credit facility, a ‘BBB-‘/’RR2’ rating to its senior secured term loan, and a ‘BB+’/’RR4’ rating to the Company’s senior unsecured notes with a Stable Rating Outlook
- IBP closed a private offering of $500 million in aggregate principal amount of 5.625% senior unsecured notes due 2034 and amended its existing $250 million asset-based lending revolving credit facility to, among other things, increase the commitments thereunder to $375 million and extend the maturity date to January 21, 2031
- IBP's Board of Directors authorized a new stock repurchase program that allows for the repurchase of up to $500 million of the Company's outstanding common stock, which expires March 1, 2027. The new program replaces the existing program.
- As previously announced on February 2, 2026, IBP completed three acquisitions with combined annual sales of over $22 million
“We closed out 2025 with a strong fourth quarter performance delivering record sales and profitability for the full year. With our core residential end markets experiencing headwinds, we maintained a disciplined approach to profitability and emphasized product diversification and quality of service. We continued to generate strong operating cash flow, which we used to support our growth-oriented capital allocation strategy. While we expect homebuilding activity to remain challenging in the near-term, our long-term outlook for our installed services remains positive, and we believe we are well positioned to continue investing in strategic acquisitions while returning cash to our shareholders,” stated Jeff Edwards, Chairman and Chief Executive Officer.
Acquisition Update
IBP continues to prioritize profitable growth through its proven strategy of acquiring well-run installers of insulation and complementary building products. During 2025, IBP completed 11 acquisitions, including bolt-ons, representing over $64 million of annual revenue. For 2026, IBP expects to acquire at least $100 million of annual revenue.
During the 2025 fourth quarter and January and February 2026, IBP completed the following acquisitions, which added approximately $45 million of annual revenue:
| CloseDate | Acquisition | CoreEnd Market | Primary Product Category | ApproximateAnnual Sales |
| Oct. 2025 | Echols Glass & Mirror, Inc. | Res. | Glass design and fabrication | $12 million |
| Oct. 2025 | Vanderkoy Bros, LLC | Res. + Com. | Drywall and framing | $4 million |
| Nov. 2025 | Big Rock Insulation Corporation | Res. + Com. | Insulation | $3 million |
| Dec. 2025 | CKV Finished Products LLC | Res. | Shower doors, shelving, mirrors, and accessories | $4 million |
| Jan. 2026 | Biomax Spray Foam Insulation, LLC | Res. + Com. | Insulation | $5 million |
| Feb. 2026 | Thermo-Tech Mechanical Insulation, Inc. | Com. + Ind. | Mechanical insulation | $13 million |
| Feb. 2026 | Northstar Comfort Services | Res. | Insulation | $3 million |
Res. - Residential end market, which includes single-family and multi-family. Com. - Commercial end market, which includes heavy and light commercial. Ind. - Industrial end market.
2026 First Quarter Regular Cash Dividend and 2026 Annual Variable Dividend
IBP’s Board of Directors has approved the Company’s quarterly cash dividend of $0.39 per share, payable on March 31, 2026, to stockholders of record on March 13, 2026. In addition, IBP’s Board of Directors has approved the Company’s annual variable cash dividend at $1.80 per share, which will also be payable on March 31, 2026, to stockholders of record on March 13, 2026.
Share Repurchases
During the three months ended December 31, 2025, IBP repurchased 150 thousand shares of its common stock at a total cost of $37.6 million and 850 thousand shares at a total cost of $172.6 million during the twelve months ended December 31, 2025. IBP's Board of Directors authorized a new stock repurchase program that allows for the repurchase of up to $500 million of the Company's outstanding common stock. The new program replaces the previous program and is in effect through March 1, 2027.
Fourth Quarter 2025 Results Overview
For the fourth quarter of 2025, net revenue was $747.5 million, a decrease of 0.4% from $750.2 million for the fourth quarter of 2024. On a consolidated same branch basis, net revenue decreased 2.4% from the prior year quarter. Residential same branch sales within the Company's Installation segment were down 9.3% in the quarter while commercial same branch sales within the Installation segment were up 22.9% from the prior year quarter.
We achieved a 1.7% increase in price/mix during the fourth quarter. This result was offset by a 9.3% decrease in job volumes relative to the fourth quarter last year. It is important to note that the results of our heavy commercial end market and the Other segment results are not included in the price/mix and volume disclosures. Including the heavy commercial installation sales, but still excluding the Other segment results, price mix increased 5.8% while job volume decreased 8.9% during the 2025 fourth quarter.
Gross profit increased 3.9% to a fourth quarter record $261.5 million from $251.8 million in the prior year quarter. Gross profit and adjusted gross profit* as a percent of net revenue were both record margins at 35.0%, compared to 33.6% in the same period last year. Adjusted gross profit primarily adjusts for the Company’s share-based compensation expense.
Selling and administrative expense, as a percent of total revenue, was 19.0% in both the 2025 fourth quarter and the prior year period. Adjusted selling and administrative expense*, as a percent of net revenue, was 18.3% compared to 18.1% in the prior year quarter.
Net income was $76.6 million, or $2.83 per diluted share, compared to $66.9 million, or $2.39 per diluted share in the prior year quarter. Net profit margin for the fourth quarter was 10.2% compared to 8.9% in the prior year quarter. Adjusted net income* was $87.7 million, or $3.24 per diluted share, compared to $80.6 million, or $2.88 per diluted share in the prior year quarter. Adjusted net profit margin* for the fourth quarter was 11.7% compared to 10.7% in the prior year quarter. Adjusted net income accounts for the impact of non-core items in both periods, including an addback for non-cash amortization expense related to acquisitions.
EBITDA* was a fourth quarter record $138.0 million, a 10.2% increase from $125.2 million in the prior year quarter. Adjusted EBITDA* was a fourth quarter record $142.2 million, a 7.7% increase from the prior year quarter and a record adjusted EBITDA margin* of 19.0%. In the prior year quarter, adjusted EBITDA* was $132.0 million, representing an adjusted EBITDA margin* of 17.6%.
Full Year 2025 Results Overview
For the year ended December 31, 2025, net revenue was a record $3.0 billion, an increase of 1.0% from $2.9 billion in 2024. On a consolidated same branch basis, net revenue declined 1.3% from the prior year, as same branch commercial sales growth was more than offset by residential same branch sales growth headwinds. Residential sales growth within the Company's Installation segment was down 4.4% on a same branch basis for 2025, as both single-family and multi-family same branch sales decreased from the prior year. Commercial sales in the Installation segment was up 10.4% from the prior year on a same branch basis.
Gross profit improved 1.5% to a record $1.0 billion from $994.5 million in the prior year. Gross profit and adjusted gross profit* as a percent of total revenue were both 34.0%, up from 33.8% last year. Adjusted gross profit primarily adjusts for the Company’s share-based compensation expense.
Selling and administrative expense, as a percent of net revenue, was 19.6%, compared to 19.2% in the prior year. Adjusted selling and administrative expense*, as a percent of net revenue, was 18.8%, compared to 18.5% in the prior year.
Net income was $265.4 million, or $9.71 per diluted share, compared to $256.6 million, or $9.10 per diluted share in the prior year. Net profit margin was 8.9%, compared to 8.7% in the prior year. Adjusted net income* was $312.5 million, or $11.44 per diluted share, compared to $311.4 million or $11.05 per diluted share in the prior year. Adjusted net income margin* for year ended December 31, 2025 was 10.5% compared to 10.6% in the prior year. Adjusted net income accounts for the impact of one-time and non-core items, including an addback for non-cash amortization expense related to acquisitions.
For the full year of 2025, EBITDA* was a record $496.0 million, a 2.3% increase from $484.9 million in the prior year. Adjusted EBITDA* was a record $518.5 million for the year ended December 31, 2025, a 1.4% increase from $511.4 million in the prior year, representing adjusted EBITDA margins* of 17.5% and 17.4%, respectively.
Net cash provided by operating activities was $371.4 million, compared to $340.0 million in the prior year. The increase was due to higher net income and the benefit from changes in working capital for the full year ended December 31, 2025.
Conference Call and Webcast
The Company will host a conference call and webcast on February 26, 2026 at 10:00 a.m. Eastern Time to discuss these results. To participate in the call, please dial 877-407-0792 (domestic) or 201-689-8263 (international). The live webcast will be available at www.installedbuildingproducts.com in the investor relations section. A replay of the conference call will be available through March 26, 2026 by dialing 844-512-2921 (domestic) or 412-317-6671 (international) and entering the passcode 13758393.
Alternatively, participants can register for the call 15 minutes prior to the event by using the call me option for a faster connection to join the conference call. You can enter your phone number and let the system call you right away. Click here for the call me option.
About Installed Building Products
Installed Building Products, Inc. is one of the nation's largest new residential insulation installers and is 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 manages all aspects of the installation process for its customers, from direct purchase and receipt of materials from national manufacturers to its timely supply of materials to job sites and quality installation. The Company offers its portfolio of services for new and existing single-family and multi-family residential and commercial building projects in all 48 continental states and the District of Columbia from its national network of over 250 branch locations.
Forward-Looking Statements
Forward-looking statements notice
This press release contains forward-looking statements within the meaning of the federal securities laws, including with respect to the housing market and the commercial market, our operations, industry and economic conditions, our financial and business model, payment of dividends, the demand for our services and product offerings, expansion of our national footprint and end markets, diversification of our products, our ability to grow and strengthen our market position, our ability to pursue and integrate value-enhancing acquisitions and the expected amount of acquired revenue, our ability to improve sales and profitability, and expectations for demand for our services and our earnings. Forward-looking statements may generally be identified by the use of words such as "anticipate," "believe," "expect," "intends," "plan," and "will" or, in each case, their negative, or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Any forward-looking statements that we make herein and in any future reports and statements are not guarantees of future performance, and actual results may differ materially from those expressed in or suggested by such forward-looking statements as a result of various factors, including, without limitation, general economic and industry conditions; increases in mortgage interest rates and rising home prices; inflation and interest rates; the material price and supply environment; increased tariffs; federal government shutdowns and uncertainty regarding the federal government's policy changes; the timing of increases in our selling prices; the risk that the Company may reduce, suspend or eliminate dividend payments in the future; and the factors discussed in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, as the same may be updated from time to time in our subsequent filings with the Securities and Exchange Commission. In addition, any future declaration of dividends will be subject to the final determination of our Board of Directors. Any forward-looking statement made by the Company in this press release speaks only as of the date hereof. New risks and uncertainties arise from time to time, and it is impossible for the Company to predict these events or how they may affect it. The Company has no obligation, and does not intend, to update any forward-looking statements after the date hereof, except as required by federal securities laws.
*Use of Non-GAAP Financial Measures
In addition to the financial measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), this press release contains the non-GAAP financial measures of EBITDA, Adjusted EBITDA, Adjusted EBITDA margin (i.e., Adjusted EBITDA divided by net revenue), Adjusted Net Income, Adjusted Net Income per diluted share, Adjusted Gross Profit and Adjusted Selling and Administrative expense. The reasons for the use of these measures, reconciliations of EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income per diluted share, Adjusted Gross Profit, and Adjusted Selling and Administrative expense to the most directly comparable GAAP measures and other information relating to these measures are included below following the unaudited condensed consolidated financial statements. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for IBP’s financial results prepared in accordance with GAAP.
Additional Information - Stock Repurchase Program
Under the repurchase program, the Company may purchase shares of its common stock through open market transactions, accelerated share repurchase transactions, privately negotiated transactions, block purchases or otherwise in accordance with applicable federal securities laws, including Rule 10b-18 of the Securities Exchange Act of 1934, as amended and pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. The timing and amount of any repurchases under this program will be determined by the Company’s management at its discretion based on a variety of factors, including the market price of our common stock, corporate considerations, general market and economic conditions, and legal requirements. The program may be modified, discontinued or suspended at any time or from time to time. The Company anticipates funding for this program to come from available corporate funds, including cash on hand and future cash flow.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
| Three months ended December 31, | Twelve months ended December 31, |
|---|
| 2025 | 2024 | 2025 | 2024 |
|---|
| Net revenue | $747.5 | | $750.2 | | $2,970.8 | | $2,941.3 | |
| Cost of sales | 486.0 | | 498.4 | | 1,961.5 | | 1,946.8 | |
| Gross profit | 261.5 | | 251.8 | | 1,009.3 | | 994.5 | |
| Operating expenses | | | | |
| Selling | 37.3 | | 36.2 | | 144.6 | | 139.8 | |
| Administrative | 104.6 | | 106.3 | | 437.2 | | 424.8 | |
| Asset impairment | - | | - | | - | | 4.9 | |
| Amortization | 10.8 | | 10.8 | | 41.1 | | 42.5 | |
| Operating income | 108.8 | | 98.5 | | 386.4 | | 382.5 | |
| Other expense, net | | | | |
| Interest expense, net | 8.2 | | 9.1 | | 31.7 | | 36.9 | |
| Other income | (1.4) | | - | | (2.3) | | (0.8) | |
| Income before income taxes | 102.0 | | 89.4 | | 357.0 | | 346.4 | |
| Income tax provision | 25.4 | | 22.5 | | 91.6 | | 89.8 | |
| Net income | $76.6 | | $66.9 | | $265.4 | | $256.6 | |
| Other comprehensive (loss) income, net of tax: | | | | |
| Net change on cash flow hedges, net of tax benefit (provision) of $1.0 and $(2.7) for the three months ended December 31, 2025 and 2024, respectively, and $5.0 and $(0.6) for the years ended December 31, 2025 and 2024, respectively | (1.3) | | 7.2 | | (12.9) | | 1.3 | |
| Comprehensive income | $75.3 | | $74.1 | | $252.5 | | $257.9 | |
| Earnings Per Share: | | | | |
| Basic | $2.85 | | $2.41 | | $9.76 | | $9.16 | |
| Diluted | $2.83 | | $2.39 | | $9.71 | | $9.10 | |
| Weighted average shares outstanding: | | | | |
| Basic | 26,901,053 | | 27,790,735 | | 27,201,802 | | 28,030,187 | |
| Diluted | 27,045,308 | | 27,945,360 | | 27,327,972 | | 28,190,404 | |
| Cash dividends declared per share | $0.37 | | $0.35 | | $3.18 | | $3.00 | |
CONSOLIDATED BALANCE SHEETS
| December 31, | December 31, |
|---|
| 2025 | 2024 |
|---|
| ASSETS | | |
| Current assets | | |
| Cash and cash equivalents | $321.9 | | $327.6 | |
| Accounts receivable (less allowance for credit losses of $13.9 and $10.7 at December 31, 2025 and December 31, 2024, respectively) | 444.1 | | 433.9 | |
| Inventories | 203.0 | | 194.6 | |
| Prepaid expenses and other current assets | 73.6 | | 98.8 | |
| Total current assets | 1,042.6 | | 1,054.9 | |
| Property and equipment, net | 183.3 | | 174.8 | |
| Operating lease right-of-use assets | 98.7 | | 95.6 | |
| Goodwill | 450.4 | | 432.6 | |
| Customer relationships, net | 172.2 | | 178.8 | |
| Other intangibles, net | 89.3 | | 91.7 | |
| Other non-current assets | 31.5 | | 31.5 | |
| Total assets | $2,068.0 | | $2,059.9 | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | | |
| Current liabilities | | |
| Current maturities of long-term debt | $36.6 | | $32.4 | |
| Current maturities of operating lease obligations | 37.0 | | 34.3 | |
| Current maturities of finance lease obligations | 2.7 | | 2.8 | |
| Accounts payable | 119.0 | | 146.6 | |
| Accrued compensation | 69.5 | | 66.4 | |
| Other current liabilities | 79.4 | | 76.5 | |
| Total current liabilities | 344.2 | | 359.0 | |
| Long-term debt | 850.0 | | 842.4 | |
| Operating lease obligations | 61.4 | | 61.0 | |
| Finance lease obligations | 4.0 | | 5.4 | |
| Deferred income taxes | 24.7 | | 26.3 | |
| Other long-term liabilities | 73.8 | | 60.5 | |
| Total liabilities | 1,358.1 | | 1,354.6 | |
| Commitments and contingencies | | |
| Stockholders’ equity | | |
| Preferred Stock; $0.01 par value: 5,000,000 authorized and 0 shares issued and outstanding at December 31, 2025 and December 31, 2024, respectively | - | | - | |
| Common stock; $0.01 par value: 100,000,000 authorized, 33,837,379 and 33,713,662 issued and 26,975,227 and 27,758,491 shares outstanding at December 31, 2025 and December 31, 2024, respectively | 0.3 | | 0.3 | |
| Additional paid in capital | 284.1 | | 261.3 | |
| Retained earnings | 1,043.4 | | 865.5 | |
| Treasury stock; at cost: 6,862,152 and 5,955,171 shares at December 31, 2025 and December 31, 2024, respectively | (640.0) | | (456.8) | |
| Accumulated other comprehensive income | 22.1 | | 35.0 | |
| Total stockholders’ equity | 709.9 | | 705.3 | |
| Total liabilities and stockholders’ equity | $2,068.0 | | $2,059.9 | |
CONSOLIDATED STATEMENTS OF CASH FLOWS
| Twelve months ended December 31, |
|---|
| 2025 | 2024 |
|---|
| Cash flows from operating activities | | |
| Net income | $265.4 | | $256.6 | |
| Adjustments to reconcile net income to net cash provided by operating activities | | |
| Depreciation and amortization of property and equipment | 66.2 | | 59.1 | |
| Amortization of operating lease right-of-use assets | 37.6 | | 32.9 | |
| Amortization of intangibles | 41.1 | | 42.5 | |
| Amortization of deferred financing costs and debt discount | 1.5 | | 1.6 | |
| Provision for credit losses | 8.1 | | 6.0 | |
| Write-off of debt issuance costs | - | | 1.5 | |
| Gain on sale of property and equipment | (1.6) | | (1.9) | |
| Non-cash stock compensation | 21.5 | | 19.4 | |
| Asset impairment | - | | 4.9 | |
| Deferred income taxes | 3.7 | | 1.7 | |
| Other, net | (12.1) | | (13.1) | |
| Changes in assets and liabilities, excluding effects of acquisitions | | |
| Accounts receivable | (13.7) | | (10.8) | |
| Inventories | (5.8) | | (26.3) | |
| Other assets | 1.2 | | (7.9) | |
| Accounts payable | (25.2) | | (18.8) | |
| Income taxes receivable/payable | 2.1 | | 3.4 | |
| Other liabilities | (18.6) | | (10.8) | |
| Net cash provided by operating activities | 371.4 | | 340.0 | |
| Cash flows from investing activities | | |
| Purchases of property and equipment | (70.6) | | (88.6) | |
| Acquisitions of businesses, net of cash acquired of $ - in 2025 and 2024, respectively | (51.5) | | (88.6) | |
| Proceeds from sale of property and equipment | 2.7 | | 2.9 | |
| Settlements with interest rate swap counterparties | 13.6 | | 17.5 | |
| Other | (6.2) | | (2.3) | |
| Net cash used in investing activities | $(112.0) | | $(159.1) | |
CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
| Twelve months ended December 31, |
|---|
| 2025 | 2024 |
|---|
| Cash flows from financing activities | | |
| Proceeds from Term Loan | $ - | | $186.0 | |
| Payments on Term Loan | (5.0) | | (179.8) | |
| Proceeds from vehicle and equipment notes payable | 46.3 | | 28.7 | |
| Debt issuance costs | - | | (1.5) | |
| Principal payments on long-term debt | (31.2) | | (30.0) | |
| Principal payments on finance lease obligations | (3.1) | | (3.0) | |
| Dividends paid | (87.6) | | (84.7) | |
| Acquisition-related obligations | (2.8) | | (2.2) | |
| Repurchase of common stock | (172.6) | | (145.3) | |
| Surrender of common stock awards by employees | (9.1) | | (8.0) | |
| Net cash used in financing activities | (265.1) | | (239.8) | |
| Net change in cash and cash equivalents | (5.7) | | (58.9) | |
| Cash and cash equivalents at beginning of period | 327.6 | | 386.5 | |
| Cash and cash equivalents at end of period | $321.9 | | $327.6 | |
| Supplemental disclosures of cash flow information | | |
| Net cash paid during the period for: | | |
| Interest | $41.0 | | $43.7 | |
| Income taxes, net of refunds | 82.1 | | 83.6 | |
| Supplemental disclosures of non-cash activities | | |
| Right-of-use assets obtained in exchange for operating lease obligations | $40.7 | | $49.4 | |
| Property and equipment obtained in exchange for finance lease obligations | 1.9 | | 2.0 | |
| Seller obligations in connection with acquisition of businesses | 5.0 | | 5.6 | |
| Unpaid purchases of property and equipment included in accounts payable | 0.9 | | 5.7 | |
| Accrued excise tax on common stock repurchases | 1.5 | | 1.3 | |
SEGMENT INFORMATION
Information on Segments
Our Company has three operating segments consisting of Installation, Distribution and Manufacturing. The Other category reported below reflects the operations of our Distribution and Manufacturing operating segments. The following tables represent our segment information for the three and twelve months ended December 31, 2025 and 2024 (in millions):
| Three months ended December 31, | Twelve months ended December 31, |
|---|
| Installation Segment | | 2025 | | 2024 | | 2025 | | 2024 |
| Revenue | $679.7 | | $695.0 | | $2,763.6 | | $2,761.9 | |
| Cost of sales | 419.5 | | 441.6 | | 1,742.5 | | 1,759.9 | |
| Segment gross profit | $260.2 | | $253.4 | | $1,021.1 | | $1,002.0 | |
| Segment gross profit percentage | 38.3% | | 36.5% | | 36.9% | | 36.3% | |
Cost of sales included in the Installation segment gross profit is exclusive of depreciation and amortization for the three and twelve months ended December 31, 2025 and 2024.
The reconciliation of Installation revenue and segment gross profit for each period as shown in the table above to consolidated net revenue and income before income taxes is as follows (in millions):
| Three months ended December 31, | Twelve months ended December 31, |
|---|
| 2025 | 2024 | 2025 | 2024 |
|---|
| Reconciliation of revenue: | | | | |
| Installation segment revenue | $679.7 | | $695.0 | | $2,763.6 | | $2,761.9 | |
| Other revenue | 84.7 | | 60.9 | | 258.6 | | 196.9 | |
| Elimination of inter-segment revenue | (16.9) | | (5.7) | | (51.4) | | (17.5) | |
| Total consolidated net revenue | $747.5 | | $750.2 | | $2,970.8 | | $2,941.3 | |
| Reconciliation of segment gross profit: | | | | |
| Installation segment gross profit | $260.2 | | $253.4 | | $1,021.1 | | $1,002.0 | |
| Other gross profit | 22.5 | | 15.1 | | 65.2 | | 53.1 | |
| Elimination of inter-segment gross profit | (5.5) | | (1.8) | | (15.6) | | (5.2) | |
| Less: | | | | |
| Depreciation and amortization | 15.7 | | 14.9 | | 61.4 | | 55.4 | |
| Total consolidated gross profit, as reported | 261.5 | | 251.8 | | 1,009.3 | | 994.5 | |
| Operating expenses | 152.7 | | 153.3 | | 622.9 | | 612.0 | |
| Operating income | 108.8 | | 98.5 | | 386.4 | | 382.5 | |
| Other expense, net | 6.8 | | 9.1 | | 29.4 | | 36.1 | |
| Income before income taxes | $102.0 | | $89.4 | | $357.0 | | $346.4 | |
Other revenue and other gross profit include the remaining two operating segments, Distribution and Manufacturing before inter-segment eliminations. These operating segments are each below the quantitative thresholds for being reported as a reportable segment for the three and twelve months ended December 31, 2025 and 2024.
REVENUE BY END MARKET
| Three months ended December 31, | Twelve months ended December 31, |
|---|
| 2025 | 2024 | 2025 | 2024 |
|---|
| Installation | | | | | | | | |
| Residential new construction | $488.6 | 66% | | $533.3 | 71% | | $2,072.1 | 70% | | $2,127.3 | 72% | |
| Repair and remodel | 47.7 | 6% | | 46.5 | 6% | | 179.4 | 6% | | 174.0 | 6% | |
| Commercial | 143.4 | 19% | | 115.2 | 16% | | 512.1 | 17% | | 460.6 | 16% | |
| Net revenues - Installation | $679.7 | 91% | | $695.0 | 93% | | $2,763.6 | 93% | | $2,761.9 | 94% | |
| Other | 67.8 | 9% | | 55.2 | 7% | | 207.2 | 7% | | 179.4 | 6% | |
| Net revenue, as reported | $747.5 | 100% | | $750.2 | 100% | | $2,970.8 | 100% | | $2,941.3 | 100% | |
Reconciliation of Non-GAAP Financial Measures
EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, Adjusted Gross Profit and Adjusted Selling and Administrative Expense measure performance by adjusting GAAP net income, EBITDA, gross profit and selling and administrative expense, respectively, for certain income or expense items that are not considered part of our core operations. We believe that the presentation of these measures provides useful information to investors regarding our results of operations because it assists both investors and us in analyzing and benchmarking the performance and value of our business.
We believe the Adjusted EBITDA measure is useful to investors and us as a measure of comparative operating performance from period to period as it measures our changes in pricing decisions, cost controls and other factors that impact operating performance, and removes the effect of our capital structure (primarily interest expense), asset base (primarily depreciation and amortization), items outside our control (primarily income taxes) and the volatility related to the timing and extent of other activities such as asset impairments and non-core income and expenses. Accordingly, we believe that this measure is useful for comparing general operating performance from period to period. In addition, we use various EBITDA-based measures in determining the achievement of awards under certain of our incentive compensation programs. Other companies may define Adjusted EBITDA differently and, as a result, our measure may not be directly comparable to measures of other companies. In addition, Adjusted EBITDA may be defined differently for purposes of covenants contained in our revolving credit facility or any future facility.
Although we use the Adjusted EBITDA measure to assess the performance of our business, the use of the measure is limited because it does not include certain material expenses, such as interest and taxes, necessary to operate our business. Adjusted EBITDA should be considered in addition to, and not as a substitute for, GAAP net income as a measure of performance. Our presentation of this measure should not be construed as an indication that our future results will be unaffected by unusual or non-recurring items. This measure has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. Because of these limitations, this measure is not intended as an alternative to net income as an indicator of our operating performance, as an alternative to any other measure of performance in conformity with GAAP or as an alternative to cash flow provided by operating activities as a measure of liquidity. You should therefore not place undue reliance on this measure or ratios calculated using this measure.
We also believe the Adjusted Net Income measure is useful to investors and us as a measure of comparative operating performance from period to period as it measures our changes in pricing decisions, cost controls and other factors that impact operating performance, and removes the effect of certain non-core items such as discontinued operations, acquisition related expenses, amortization expense, the tax impact of these certain non-core items, and the volatility related to the timing and extent of other activities such as asset impairments and non-core income and expenses. To make the financial presentation more consistent with other public building products companies, beginning in the fourth quarter 2016 we included an addback for non-cash amortization expense related to acquisitions. Accordingly, we believe that this measure is useful for comparing general operating performance from period to period. Other companies may define Adjusted Net Income differently and, as a result, our measure may not be directly comparable to measures of other companies. In addition, Adjusted Net Income may be defined differently for purposes of covenants contained in our revolving credit facility or any future facility.
ADJUSTED NET INCOME CALCULATIONS
The tables below reconcile Adjusted Net Income to the most directly comparable GAAP financial measure, net income, for the periods presented therein. We have included Adjusted Net Income in this press release because it is a key measure used by our management team to understand the operating performance and profitability of our business. During the three months ended June 30, 2024, we decided to wind down the operations of a single new commercial end market-oriented branch that focused on the installation of a non-core end product, due to shifting market conditions, an unfavorable contract settlement, and sub-standard operating performance. For the periods ended June 30, September 30, and December 31, 2024 we reported Adjusted Net Income (Loss), Diluted Adjusted Net Income (Loss) per Share, dispositions and net of dispositions in order to provide useful insight and metrics relevant to understanding and evaluating the results of our ongoing operations given plans to close a single new commercial end market-oriented branch. As of the three months ended June 30, 2025, the closing of this branch is essentially complete and its financial results were insignificant. Therefore, we have chosen not to report any financial results for dispositions or net of dispositions in the tables below.
Per share figures may reflect rounding adjustments and consequently totals may not appear to sum.
| Three months ended December 31, | Twelve months ended December 31, |
|---|
| 2025 | 2024 | 2025 | 2024 |
|---|
| Net income, as reported | $76.6 | | $66.9 | | $265.4 | | $256.6 | |
| Adjustments for adjusted net income | | | | |
| Share-based compensation expense | 5.0 | | 6.2 | | 21.5 | | 19.4 | |
| Acquisition related expenses | 0.7 | | 0.6 | | 2.5 | | 2.2 | |
| Gains on acquisition earnouts | (0.3) | | - | | (0.3) | | - | |
| Amortization expense | 10.8 | | 10.8 | | 41.1 | | 42.5 | |
| Accrued liability reversal | (1.2) | | - | | (1.2) | | - | |
| Loan refinancing expenses | - | | 0.9 | | - | | 5.0 | |
| Asset impairment | - | | - | | - | | 4.9 | |
| Tax impact of adjusted items at a normalized tax rate | (3.9) | | (4.8) | | (16.5) | | (19.2) | |
| Adjusted net income | $87.7 | | $80.6 | | $312.5 | | $311.4 | |
| Weighted average shares outstanding (diluted) | 27,045,308 | | 27,945,360 | | 27,327,972 | | 28,190,404 | |
| Diluted net income per share, as reported | $2.83 | | $2.39 | | $9.71 | | $9.10 | |
| Adjustments for diluted adjusted net income, net of tax impact, per share | 0.41 | | 0.49 | | 1.73 | | 1.95 | |
| Diluted adjusted net income per share | $3.24 | | $2.88 | | $11.44 | | $11.05 | |
Addback of all non-cash amortization resulting from business combinations.
Includes $1.1 million of non-cash write-off of capitalized loan expense and $3.0 million of cash paid to third parties in connection with loan refinancing for the three months ended March 31, 2024.
During the three and six months ended June 30, 2024, we recognize intangible and asset impairment charges for a combined amount of $4.9 million related to winding down the operations of a branch that installs one of our non-core building products.
Normalized effective tax rate of 26.0% applied to periods presented.
Includes adjustments related to the items noted above, net of tax.
ADJUSTED GROSS PROFIT CALCULATIONS
The table below reconciles Adjusted Gross Profit to the most directly comparable GAAP financial measure, gross profit, for the periods presented therein.
| Three months ended December 31, | Twelve months ended December 31, | |
|---|
| 2025 | 2024 | 2025 | 2024 |
|---|
| Gross profit | $261.5 | $251.8 | $1,009.3 | $994.5 |
| Share-based compensation expense | 0.3 | 0.3 | 1.1 | 1.1 |
| Adjusted gross profit | $261.8 | $252.1 | $1,010.4 | $995.6 |
| Gross profit margin | 35.0% | 33.6% | 34.0% | 33.8% |
| Adjusted gross profit margin | 35.0% | 33.6% | 34.0% | 33.8% |
ADJUSTED SELLING AND ADMINISTRATIVE EXPENSE CALCULATIONS
The table below reconciles Adjusted Selling and Administrative to the most directly comparable GAAP financial measure, selling and administrative, for the periods presented therein.
| Three months ended December 31, | Twelve months ended December 31, | |
|---|
| 2025 | 2024 | 2025 | 2024 |
|---|
| Selling expense | $37.3 | $36.2 | $144.6 | $139.8 |
| Administrative expense | 104.6 | 106.3 | 437.2 | 424.8 |
| Selling and Administrative expense, as reported | 141.9 | 142.5 | 581.8 | 564.6 |
| Share-based compensation expense | 4.7 | 5.9 | 20.4 | 18.2 |
| Acquisition related expenses | 0.7 | 0.6 | 2.5 | 2.2 |
| Gains on acquisition earnouts | (0.3) | - | (0.3) | - |
| Adjusted Selling and Administrative expense | $136.8 | $136.0 | $559.2 | $544.2 |
| Selling and Administrative expense - % Total revenue | 19.0% | 19.0% | 19.6% | 19.2% |
| Adjusted Selling and Administrative expense - % Total revenue | 18.3% | 18.1% | 18.8% | 18.5% |
EBITDA AND ADJUSTED EBITDA CALCULATIONS
The tables below reconcile EBITDA and Adjusted EBITDA to the most directly comparable GAAP financial measure, net income, for the periods presented therein. For the periods ended June 30, September 30, and December 31, 2024 we reported Adjusted EBITDA, dispositions and net of dispositions in order to provide useful insight and metrics relevant to understanding and evaluating the results of our ongoing operations given plans to close a single new commercial end market-oriented branch. As of the three months ended June 30, 2025, the closing of this branch is essentially complete and its financial results were insignificant. Therefore, we have chosen not to report any financial results for dispositions or net of dispositions in the tables below.
| Three months ended December 31, | Twelve months ended December 31, |
|---|
| 2025 | 2024 | 2025 | 2024 |
|---|
| Net income, as reported | | $76.6 | | $66.9 | | $265.4 | | $256.6 |
| Interest expense | | 8.2 | | 9.1 | | 31.7 | | 36.9 |
| Provision for income tax | | 25.4 | | 22.5 | | 91.6 | | 89.8 |
| Depreciation and amortization | | 27.8 | | 26.7 | | 107.3 | | 101.6 |
| EBITDA | | 138.0 | | 125.2 | | 496.0 | | 484.9 |
| Acquisition related expenses | | 0.7 | | 0.6 | | 2.5 | | 2.2 |
| Gains on acquisition earnouts | | (0.3) | | - | | (0.3) | | - |
| Share-based compensation expense | | 5.0 | | 6.2 | | 21.5 | | 19.4 |
| Accrued liability reversal | | (1.2) | | - | | (1.2) | | - |
| Asset impairment | | - | | - | | - | | 4.9 |
| Adjusted EBITDA | | $142.2 | | $132.0 | | $518.5 | | $511.4 |
| Net profit margin | 10.2% | | 8.9% | | 8.9% | | 8.7% | |
| EBITDA margin | 18.5% | | 16.7% | | 16.7% | | 16.5% | |
| Adjusted EBITDA margin | 19.0% | | 17.6% | | 17.5% | | 17.4% | |
During the three and six months ended June 30, 2024, we recognized intangible and asset impairment charges for a combined amount of $4.9 million related to winding down the operations of a branch that installs one of our non-core building products.
SUPPLEMENTARY TABLE
(unaudited)
| Three months ended December 31, | Twelve months ended December 31, |
|---|
| 2025 | 2024 | 2025 | 2024 |
|---|
| Period-over-period Growth | | | | |
| Consolidated Sales Growth | (0.4)% | 4.1% | 1.0% | 5.9% |
| Consolidated Same Branch Sales Growth | (2.4)% | 1.1% | (1.3)% | 3.5% |
| Installation | | | | |
| Sales Growth | (2.2)% | 3.8% | 0.1% | 6.0% |
| Same Branch Sales Growth | (3.2)% | 1.5% | (1.5)% | 3.8% |
| Single-Family Sales Growth | (8.7)% | 4.8% | (1.9)% | 6.4% |
| Single-Family Same Branch Sales Growth | (9.9)% | 1.6% | (4.1)% | 3.6% |
| Multi-Family Sales Growth | (7.1)% | 3.3% | (5.4)% | 6.5% |
| Multi-Family Same Branch Sales Growth | (7.3)% | 2.5% | (5.7)% | 5.6% |
| Residential Sales Growth | (8.4)% | 4.5% | (2.6)% | 6.4% |
| Residential Same Branch Sales Growth | (9.3)% | 1.8% | (4.4)% | 4.0% |
| Commercial Sales Growth | 24.3% | 0.4% | 11.2% | 3.0% |
| Commercial Same Branch Sales Growth | 22.9% | (0.1)% | 10.4% | 1.2% |
| Other, net of eliminations | | | | |
| Sales Growth (2) (6) | 22.8% | 8.2% | 15.5% | 3.7% |
| Same Branch Sales Growth (2) (6) | 7.6% | (4.5)% | 2.3% | (1.0)% |
| Same Branch Sales Growth - Installation | | | | |
| Volume Growth (4)(6) | (9.3)% | (0.8)% | (5.7)% | 0.2% |
| Price/Mix Growth(5)(6) | 1.7% | 1.2% | 1.6% | 3.7% |
| U.S. Housing Market | | | | |
| Total Completions Growth | (6.4)% | 8.5% | (7.9)% | 12.3% |
| Single-Family Completions Growth | 5.0% | (2.4)% | (0.8)% | 1.8% |
| Multi-Family Completions Growth | (25.9)% | 33.0% | (20.3)% | 35.4% |
Our commercial end market consists of heavy and light commercial projects.
Calculated based on period-over-period net sales change, excluding intercompany transactions, in our Other category which consists of our Manufacturing and Distribution operating segments.
The heavy commercial end market, a subset of our total commercial end market, comprises projects that are much larger than our average installation job. This end market is excluded from the volume growth and price/mix growth calculations for our Installation segment as to not skew the growth rates given its much larger per-job revenue compared to the average jobs in our remaining end markets.
Calculated as period-over-period change in the number of completed same-branch jobs within our Installation segment for all markets we serve except the heavy commercial end market.
Defined as change in the mix of products sold and related pricing changes and calculated as the change in period-over-period average selling price per same-branch jobs within our Installation segment for all markets we serve except the heavy commercial market, multiplied by total current year jobs. The mix of end customer and product would have an impact on the year-over-year price per job.
We revised this calculation to exclude certain intercompany sales. Percentages in all periods presented conform to this revised method.
U.S. Census Bureau data, as revised.
INSTALLED BUILDING PRODUCTS, INC. INCREMENTAL REVENUE AND ADJUSTED EBITDA MARGINS (unaudited, in millions)
| Three months ended December 31, | Twelve months ended December 31, | |
|---|
| 2025 | % Total | 2024 | % Total | 2025 | % Total | 2024 | % Total |
|---|
| Revenue Increase | |
| Same Branch | $(18.0) | | NMF | $7.6 | | 25.8% | $(38.6) | | NMF | $96.1 | | 59.1% |
| Acquired | 15.0 | | NMF | 21.9 | | 74.2% | 68.0 | | NMF | 66.6 | | 40.9% |
| Total | $(3.0) | | 100.0% | $29.5 | | 100.0% | $29.4 | | 100.0% | $162.7 | | 100.0% |
| Three months ended December 31, | Twelve months ended December 31, | |
|---|
| 2025 | % Margin | 2024 | % Margin | 2025 | % Margin | 2024 | % Margin |
|---|
| Adjusted EBITDA Margin Contributions | |
| Same Branch | $7.9 | | NMF | $0.1 | | 1.3% | $(4.5) | | (11.7)% | $13.8 | | 14.4% |
| Acquired | 2.3 | | 15.3% | 3.4 | | 15.5% | 11.7 | | 17.2% | 11.5 | | 17.3% |
| Total | $10.2 | | NMF | $3.5 | | 11.9% | $7.2 | | 24.5% | $25.3 | | 15.6% |
Same branch adjusted EBITDA margin contribution percentage is a percentage of same branch revenue increase.
During the twelve months ended December 31, 2025, same branch revenue decreased and same branch and total adjusted EBITDA increased. The negative same branch % margin result reflects a decremental margin. NMF - Not meaningful figure.
Source: Installed Building Products, Inc.
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