Installed Building Products (2IL) Q3 2026 Earnings Report

The call was broadly positive: the company delivered record revenue, sustained double-digit commercial growth, improved multifamily performance, executed acquisitions, maintained strong liquidity, and demonstrated successful spray foam pricing. These strengths outweighed the stated challenges, although management highlighted meaningful pressure from weak single-family and multifamily markets, difficult comparisons, higher aluminum, fuel and freight costs, and expected gross-margin pressure.

Management expects at least $100 million of acquired annual revenue for the full year, fourth quarter and full year 2026 amortization expense of approximately $10 million and $42 million, respectively, and an effective tax rate of 25%-27% for the full year ending December 31st, 2026; fourth quarter net interest expense is expected to be approximately $15 million. For 2027, the current expectation is that both single family and multifamily starts are down mid-single digits in the year, while full-year gross margin can stay within the 32%-34% range but will clearly be at the low end of the range, and “we’re not going to go at 34%.” Other segment revenue growth is expected to be more similar to third-quarter same-branch sales growth, which was mid-single digits; fiberglass and spray foam pricing are expected to have stability for the next couple of quarters, unless the on-the-ground macro condition for new residential construction changes; and multifamily softness is expected to start showing up in the fourth quarter and certainly the first half of 2027.