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Installed Building Products
(NYSE:IBP)
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Rating:67Neutral
Price Target:
$262.00
▲(15.20% Upside)
Action:Reiterated
Date:08/06/26
IBP scores as moderately attractive: the biggest offsetting factor is the sharp TTM swing to negative operating/free cash flow despite solid profitability and strong reported growth, alongside rising leverage. Technicals are supportive with positive momentum and price above key short-term averages, while valuation is reasonable but not cheap. The latest earnings call adds modest support via confidence in free cash flow, disciplined leverage targets, active M&A, and continued buybacks/dividend growth, though near-term housing and cost headwinds remain.
Positive Factors
Diversified branch network & customer mix
IBP’s nationwide branch network and multi-segment customer base (single-family, multifamily, commercial) create structural revenue diversification. This reduces reliance on any single market, enables cross-selling of installed products, and supports stable long-term demand through cycles.
Negative Factors
Material negative operating cash flow
TTM negative operating and free cash flow despite positive net income indicates working-capital stress or timing issues. Sustained weak cash conversion undermines funding for acquisitions, dividends and buybacks and raises execution risk until cash generation normalizes.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified branch network & customer mix
IBP’s nationwide branch network and multi-segment customer base (single-family, multifamily, commercial) create structural revenue diversification. This reduces reliance on any single market, enables cross-selling of installed products, and supports stable long-term demand through cycles.
Read all positive factors
Installed Building Products Key Performance Indicators (KPIs)
Any
Installation Same Branch Sales Growth Breakdown
Analyzes sales growth within existing branches, highlighting organic growth and the effectiveness of local strategies and customer retention.
Analyzes sales growth within existing branches, highlighting organic growth and the effectiveness of local strategies and customer retention.
Data provided by:
The Fly
The FlyInstalled Building Products (IBP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.64B
Dividend Yield1.36%
Average Volume (3M)440.19K
Price to Earnings (P/E)26.2
Beta (1Y)0.93
Revenue Growth0.27%
EPS Growth3.29%
CountryUS
Employees10,400
SectorConsumer Cyclical
Sector Strength84
IndustryResidential Construction
Share Statistics
EPS (TTM)9.34
Shares Outstanding26,579,178
10 Day Avg. Volume420,857
30 Day Avg. Volume440,188
Financial Highlights & Ratios
PEG Ratio3.99
Price to Book (P/B)9.83
Price to Sales (P/S)2.35
P/FCF Ratio23.20
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$248.80Price Target Upside9.40% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)10.41
Revenue Forecast (FY)$2.99B
Installed Building Products Business Overview & Revenue Model
Company Description
Installed Building Products, Inc. (IBP) is a leading U.S. firm specializing in the provision and installation of a wide range of construction materials for both residential and commercial developers. The company's operations are divided into three...
How the Company Makes Money
IBP makes money by contracting with builders, developers, contractors, and property owners to furnish and install insulation and other building products, earning revenue primarily on a per-project basis. Its largest revenue stream is typically ins...
Installed Building Products Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call portrayed a resilient and diversified business with modest consolidated revenue growth (+2%), strong commercial and other-segment performance, healthy liquidity, active M&A and continued shareholder returns. However, notable near-term challenges remain: weakness in new single-family volumes, margin pressure from fuel and mix shifts, rising medical costs, and potential short-term lumpiness from spray foam price pass-throughs. Overall, management emphasized execution, a strong acquisition pipeline and confidence in free cash flow to support returns, offsetting the cyclical headwinds.Positive Updates
Consolidated Revenue Growth
Net revenue increased 2% year-over-year to $778 million in Q2 2026 (from $760 million), supported by acquisitions and strength in commercial, manufacturing and distribution businesses.
Negative Updates
New Single-Family Weakness
New residential/single-family activity remained challenged by affordability and low consumer confidence: installation same-branch sales declined ~2% overall and new residential same-branch sales fell ~6%, contributing to a 5% volume decline for the company.
Read all updates
Q2-2026 Updates
Positive
Negative
Consolidated Revenue Growth
Net revenue increased 2% year-over-year to $778 million in Q2 2026 (from $760 million), supported by acquisitions and strength in commercial, manufacturing and distribution businesses.
Read all positive updates
Company Guidance
Management did not provide comprehensive earnings guidance but gave several specific expectations and balance‑sheet metrics: they expect to complete at least $100 million of annualized revenue in acquisitions in 2026; anticipate Q3 amortization of ~ $10M and full‑year amortization of ~ $42M (subject to change with future deals); expect an effective tax rate of 25–27% for FY2026 and Q3 net interest expense of ~ $10M; ended 6/30/26 with net debt / trailing‑12‑month adjusted EBITDA of 1.34x (vs. 1.15x a year earlier) — well below their stated 2.0x target (though they said they could flex toward ~3x for the right acquisition); had $395M cash and $374M working capital (ex‑cash); Q2 capex + finance leases were ~ $18M (~2% of revenue); repurchased ~365k shares for ~$76M in Q2 and had ~$398M remaining capacity under the repurchase program (expires 3/1/2027); the Board approved a Q3 dividend of $0.39/share (payable 9/30/26; record 9/15/26), a >5% increase year‑over‑year; and management expects continued positive free cash flow to support M&A, dividends and opportunistic buybacks.Installed Building Products Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
60
Neutral
Cash Flow
35
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.96B | 2.97B | 2.94B | 2.78B | 2.67B | 1.97B |
| Gross Profit | 996.90M | 1.01B | 994.50M | 930.70M | 827.78M | 589.45M |
| EBITDA | 520.60M | 533.60M | 517.80M | 495.80M | 462.60M | 288.02M |
| Net Income | 250.70M | 265.40M | 256.60M | 243.70M | 223.40M | 118.80M |
Balance Sheet | ||||||
| Total Assets | 2.25B | 2.07B | 2.06B | 1.98B | 1.78B | 1.65B |
| Cash, Cash Equivalents and Short-Term Investments | 394.50M | 321.90M | 327.60M | 386.50M | 229.60M | 333.49M |
| Total Debt | 1.20B | 1.05B | 978.30M | 954.80M | 946.00M | 937.38M |
| Total Liabilities | 1.61B | 1.36B | 1.35B | 1.31B | 1.29B | 1.24B |
| Stockholders Equity | 639.50M | 709.90M | 705.30M | 670.30M | 493.50M | 416.84M |
Cash Flow | ||||||
| Free Cash Flow | 40.20M | 300.80M | 251.40M | 278.60M | 232.26M | 101.30M |
| Operating Cash Flow | 53.50M | 371.40M | 340.00M | 340.20M | 277.90M | 138.30M |
| Investing Cash Flow | -67.50M | -112.00M | -159.10M | -103.40M | -158.70M | -278.44M |
| Financing Cash Flow | -119.10M | -265.10M | -239.80M | -79.90M | -223.10M | 242.09M |
Installed Building Products Technical Analysis
Positive
227.43
Price Trends
227.64
Positive
239.15
Positive
260.56
Negative
Market Momentum
5.02
Negative
55.51
Neutral
62.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IBP, the sentiment is Positive. The current price of 227.43 is below the 20-day moving average (MA) of 237.97, below the 50-day MA of 227.64, and below the 200-day MA of 260.56, indicating a neutral trend. The MACD of 5.02 indicates Negative momentum. The RSI at 55.51 is Neutral, neither overbought nor oversold. The STOCH value of 62.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IBP.
Installed Building Products Risk Analysis
Installed Building Products disclosed 48 risk factors in its most recent earnings report. Installed Building Products reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Installed Building Products Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $4.60B | 24.90 | 16.51% | ― | 9.69% | -0.39% | |
71 Outperform | $5.03B | 26.15 | 12.11% | ― | 4.52% | -9.26% | |
69 Neutral | $20.99B | 13.37 | 7.36% | 2.36% | -7.47% | -47.15% | |
67 Neutral | $6.64B | 26.19 | 37.20% | 1.46% | 0.27% | 3.29% | |
64 Neutral | $4.84B | 14.80 | 6.38% | 2.48% | -13.27% | -45.63% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
IBP
Installed Building Products
244.61
-25.02
-9.28%
CVCO
Cavco Industries
578.86
59.31
11.42%
LEN
Lennar
85.42
-47.65
-35.81%
MTH
Meritage
71.05
-6.98
-8.95%
SKY
Champion Homes
89.95
13.86
18.22%
Installed Building Products Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Installed Building Products Reports Record Q2 Revenue, Dividend Hike
Positive
Aug 6, 2026
Installed Building Products reported that second-quarter 2026 net revenue rose 2.3% year over year to a record $777.8 million, driven by strong growth in its manufacturing and distribution operations, while installation revenue edged lower amid so...
Executive/Board ChangesShareholder Meetings
Installed Building Products Shareholders Approve Directors and Auditor
Positive
May 20, 2026
At its 2026 Annual Meeting, Installed Building Products reported that 26,938,333 common shares were entitled to vote as of the March 23, 2026 record date, and stockholders elected three directors — Michael T. Miller, Marchelle E. Moore and R...
Business Operations and StrategyStock BuybackM&A Transactions
Installed Building Products Expands with Diamond Energy Acquisition
Positive
May 19, 2026
Installed Building Products, Inc., an industry-leading installer of insulation and complementary building products for residential and commercial builders across the continental U.S., has expanded its portfolio with a focus on mechanical insulatio...
Business Operations and StrategyExecutive/Board ChangesStock BuybackDividendsFinancial Disclosures
Installed Building Products Posts Lower Q1 Results, Raises Dividend
Negative
May 7, 2026
Installed Building Products reported that first-quarter 2026 net revenue fell 3.5% year over year to $660.5 million, with installation revenue down 5.8% and other revenue up 34.8%, while net income declined to $34.8 million, or $1.29 per diluted s...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.