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Installed Building Products (IBP)
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Installed Building Products (IBP) AI Stock Analysis

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IBP

Installed Building Products

(NYSE:IBP)

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Neutral 68 (OpenAI - 4o)
Rating:68Neutral
Price Target:
$268.00
▲(6.38% Upside)
Installed Building Products' overall score is driven by strong financial performance and positive earnings call highlights, particularly in the commercial segment. However, high leverage, declining cash flow, and technical indicators suggest caution. The valuation is moderate, with limited dividend income potential. The company's strategic focus on commercial and multifamily markets could mitigate residential challenges and drive future growth.
Positive Factors
Revenue Growth
The company's ability to exceed revenue expectations highlights its effective execution and market adaptability, supporting long-term growth.
Market Diversification
Growth in the multifamily market diversifies revenue streams, reducing reliance on single-family housing and enhancing resilience against market fluctuations.
Cash Flow Improvement
Improved cash flow from operations strengthens financial flexibility, enabling strategic investments and debt management for sustained growth.
Negative Factors
High Leverage
High leverage can constrain financial flexibility and increase risk, particularly in volatile market conditions, impacting long-term stability.
Declining Free Cash Flow
A significant decline in free cash flow growth may limit the company's ability to invest in growth opportunities and manage debt effectively.
Residential Market Challenges
Ongoing challenges in the residential market, including affordability issues, could hinder growth in this key segment, affecting overall performance.

Installed Building Products (IBP) vs. SPDR S&P 500 ETF (SPY)

Installed Building Products Business Overview & Revenue Model

Company DescriptionInstalled Building Products (IBP) is a leading provider of insulation and building product installation services in the United States. The company operates in the residential and commercial sectors, offering a wide range of products including insulation, gutters, garage doors, and other building materials. IBP serves homebuilders, contractors, and homeowners, delivering customized solutions that enhance energy efficiency and comfort in buildings.
How the Company Makes MoneyIBP generates revenue primarily through the installation of insulation products, which includes both fiberglass and foam insulation, as well as additional services related to building products. The company's revenue model is based on a mix of direct service contracts with builders and general contractors, as well as retail sales to homeowners. Key revenue streams come from large-scale residential construction projects and commercial contracts, with a growing emphasis on energy-efficient products that meet regulatory standards. IBP benefits from strategic partnerships with major manufacturers of insulation and building materials, allowing it to offer a comprehensive range of products while maintaining competitive pricing. The company's diversified service offerings and geographical reach further contribute to its earnings stability.

Installed Building Products Key Performance Indicators (KPIs)

Any
Any
Installation Same Branch Sales Growth Breakdown
Installation Same Branch Sales Growth Breakdown
Chart Insights
Data provided by:Main Street Data

Installed Building Products Earnings Call Summary

Earnings Call Date:Nov 05, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Feb 25, 2026
Earnings Call Sentiment Neutral
The earnings call reflected a mix of achievements and challenges. While the company reported record sales and strong performance in the heavy commercial segment, headwinds in the single-family and multifamily residential markets, along with price/mix challenges, were notable. The company's focus on sustainability and shareholder returns were positive highlights.
Q3-2025 Updates
Positive Updates
Record Sales and Profitability
Consolidated net revenue for the third quarter increased 2% to a record $778 million compared to the same period last year. Adjusted EBITDA for the quarter also reached a record $140 million.
Strong Cash Flow and Shareholder Returns
Cash flow from operating activities increased 16% to $307 million year-to-date. Nearly $213 million was returned to shareholders through dividends and stock repurchases.
Heavy Commercial Segment Growth
Heavy commercial same-branch sales growth exceeded 30% during the third quarter. This segment continued to drive sales growth, offsetting weakness in the light commercial market.
Complementary Product Sales Growth
Complementary product sales grew by a double-digit percentage relative to the same period last year, contributing to overall sales growth.
ESG Report and Sustainability Efforts
IBP published its 2025 ESG report highlighting efforts in environmental sustainability, employee well-being, and community engagement.
Negative Updates
Decline in Single-Family Installation Sales
Same-branch new single-family installation sales were down 2% due to high homeownership costs and market challenges.
Multifamily Market Challenges
Third-quarter installation sales in the multifamily end market were down 7% on a same-branch basis, with expectations for continued headwinds.
Residential Construction Headwinds
Single-family starts decreased by 5% year-to-date through August 2025, with expectations for flat residential housing starts in 2026.
Price/Mix and Volume Challenges
Price/mix increased by 1.5% but was offset by a 4.8% decrease in job volumes. The heavy commercial end market helped mitigate some of these challenges.
Company Guidance
During the third quarter of 2025, Installed Building Products reported consolidated sales growth of 2% year-over-year, with same-branch sales remaining flat. The company experienced a 12% increase in commercial sales on a same-branch basis, which offset a 3% decline in residential sales. Heavy commercial sales were a significant driver, growing over 30%. Adjusted gross margin increased slightly to 34%, while adjusted EBITDA reached a record $140 million, reflecting an 18% margin. The company returned $213 million to shareholders through dividends and stock repurchases and maintained a strong balance sheet with a net debt to EBITDA ratio of 1.09x. Looking forward, IBP anticipates flat residential housing starts in 2026, leveraging its national scale and strong customer relationships to navigate market challenges and opportunities.

Installed Building Products Financial Statement Overview

Summary
Installed Building Products shows strong revenue growth and profitability, supported by effective equity utilization. However, high leverage and a recent decline in free cash flow growth present potential risks. The company needs to manage its debt levels and improve cash flow generation to sustain its growth trajectory and financial stability.
Income Statement
85
Very Positive
Installed Building Products has demonstrated strong revenue growth, with a TTM growth rate of 59.5%, significantly higher than previous periods. The company maintains healthy profitability margins, with a gross profit margin of 33.6% and a net profit margin of 8.6% in the TTM. EBIT and EBITDA margins are stable, indicating efficient operations. However, the slight decline in EBIT and EBITDA margins compared to the previous year suggests potential cost pressures.
Balance Sheet
70
Positive
The company has a relatively high debt-to-equity ratio of 1.45, indicating significant leverage, which could pose risks if not managed carefully. However, the return on equity remains strong at 36.4%, reflecting effective use of equity to generate profits. The equity ratio of 33.1% suggests a balanced capital structure, but the high leverage warrants caution.
Cash Flow
60
Neutral
There is a notable decline in free cash flow growth by 80.9% in the TTM, which could impact future investments and debt servicing. The operating cash flow to net income ratio is low at 0.20, indicating potential cash flow constraints. However, the free cash flow to net income ratio remains healthy at 70.7%, suggesting that the company is still generating sufficient cash relative to its net income.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.97B2.94B2.78B2.67B1.97B1.65B
Gross Profit999.60M994.50M930.70M827.78M589.45M509.97M
EBITDA519.00M517.80M495.80M462.60M288.02M249.46M
Net Income255.70M256.60M243.70M223.40M118.80M97.24M
Balance Sheet
Total Assets2.05B2.06B1.98B1.78B1.65B1.19B
Cash, Cash Equivalents and Short-Term Investments333.30M327.60M386.50M229.60M333.49M231.52M
Total Debt985.30M978.30M954.80M946.00M937.38M622.99M
Total Liabilities1.37B1.35B1.31B1.29B1.24B868.49M
Stockholders Equity678.60M705.30M670.30M493.50M416.84M319.18M
Cash Flow
Free Cash Flow52.90M251.40M278.60M232.26M101.30M147.20M
Operating Cash Flow74.80M340.00M340.20M277.90M138.30M180.79M
Investing Cash Flow-61.00M-159.10M-103.40M-158.70M-278.44M-77.79M
Financing Cash Flow-309.10M-239.80M-79.90M-223.10M242.09M-49.36M

Installed Building Products Technical Analysis

Technical Analysis Sentiment
Positive
Last Price251.92
Price Trends
50DMA
256.22
Negative
100DMA
235.50
Positive
200DMA
202.89
Positive
Market Momentum
MACD
-1.41
Positive
RSI
48.70
Neutral
STOCH
32.08
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 251.92 is below the 20-day moving average (MA) of 255.57, below the 50-day MA of 256.22, and above the 200-day MA of 202.89, indicating a neutral trend. The MACD of -1.41 indicates Positive momentum. The RSI at 48.70 is Neutral, neither overbought nor oversold. The STOCH value of 32.08 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$3.76B19.0414.37%12.14%48.68%
75
Outperform
$4.14B23.0018.50%15.81%37.89%
70
Neutral
$5.78B7.0914.31%6.98%9.74%
69
Neutral
$4.60B8.7210.50%2.54%-6.06%-32.39%
68
Neutral
$6.72B26.4636.66%1.20%2.12%3.08%
64
Neutral
$30.81B12.0210.63%1.66%-4.69%-32.95%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IBP
Installed Building Products
251.92
38.44
18.01%
CVCO
Cavco Industries
573.88
115.03
25.07%
LEN
Lennar
120.33
-41.62
-25.70%
MTH
Meritage
65.43
-26.27
-28.65%
SKY
Champion Homes
80.97
-12.73
-13.59%
TMHC
Taylor Morrison
58.58
-12.92
-18.07%

Installed Building Products Corporate Events

Installed Building Products Achieves Record Third Quarter Results
Nov 6, 2025

Installed Building Products, Inc. is a leading installer of insulation and complementary building products, serving residential and commercial builders across the continental United States. The company operates from a network of over 250 branches, providing a comprehensive range of installation services.

Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A Transactions
Installed Building Products Reports Record Q3 2025 Results
Positive
Nov 5, 2025

Installed Building Products reported record financial results for the third quarter of 2025, with net revenue reaching $778.2 million, a 2.3% increase from the previous year. The company achieved significant growth in net income and adjusted EBITDA, driven by strategic acquisitions and a focus on service and market diversity. Recent acquisitions include Carolina Precision Fibers and Echols Glass & Mirror, among others, contributing to its expansion in the insulation and building products market. The company also declared a fourth-quarter dividend and continued its share repurchase program, reflecting a strong financial position and commitment to shareholder returns.

The most recent analyst rating on (IBP) stock is a Sell with a $226.09 price target. To see the full list of analyst forecasts on Installed Building Products stock, see the IBP Stock Forecast page.

Dividends
Installed Building Products Increases Quarterly Dividend by 6%
Positive
Oct 29, 2025

On October 29, 2025, Installed Building Products announced a 6% increase in its quarterly cash dividend to $0.37 per share, payable on December 31, 2025, to stockholders of record on December 15, 2025. This decision reflects the company’s strong financial position and commitment to returning value to shareholders, potentially enhancing its attractiveness to investors and reinforcing its market position.

The most recent analyst rating on (IBP) stock is a Sell with a $226.09 price target. To see the full list of analyst forecasts on Installed Building Products stock, see the IBP Stock Forecast page.

Business Operations and StrategyM&A Transactions
Installed Building Products Acquires Echols Glass & Mirror
Positive
Oct 14, 2025

On October 13, 2025, Installed Building Products announced the acquisition of Echols Glass & Mirror, Inc. and Vanderkoy Bros, LLC, adding over $16 million in annual revenue. These acquisitions enhance IBP’s geographic presence and diversify its product offerings in the U.S. building products market, aligning with its growth strategy to expand across multiple geographies and end markets.

The most recent analyst rating on (IBP) stock is a Buy with a $266.00 price target. To see the full list of analyst forecasts on Installed Building Products stock, see the IBP Stock Forecast page.

Business Operations and Strategy
Installed Building Products Releases 2025 ESG Report
Positive
Oct 10, 2025

On October 10, 2025, Installed Building Products released its 2025 Environmental, Social, and Governance (ESG) report, highlighting significant achievements in sustainability and community engagement over the past year. The report underscores the company’s commitment to reducing its carbon footprint, enhancing employee well-being, and contributing to community resilience, with initiatives such as the Jay Elliott Building for Tomorrow Scholarship and substantial philanthropic contributions. The company’s efforts have led to a notable reduction in CO2 emissions and increased use of carbon-free electricity, reinforcing its position as a leader in sustainable building practices.

The most recent analyst rating on (IBP) stock is a Hold with a $240.00 price target. To see the full list of analyst forecasts on Installed Building Products stock, see the IBP Stock Forecast page.

Business Operations and StrategyM&A Transactions
Installed Building Products Acquires Carolina Precision Fibers
Positive
Sep 8, 2025

On September 8, 2025, Installed Building Products announced its acquisition of Carolina Precision Fibers ACP, LLC, a manufacturer of recycled fiber products, which is expected to add over $20 million in annual revenue. This acquisition enhances IBP’s access to environmentally responsible materials and strengthens its market position by expanding its product offerings and operational footprint, contributing to a total of $39 million in acquired annual revenue for 2025.

The most recent analyst rating on (IBP) stock is a Buy with a $295.00 price target. To see the full list of analyst forecasts on Installed Building Products stock, see the IBP Stock Forecast page.

Stock Buyback
Installed Building Products Announces Share Repurchase Agreement
Neutral
Aug 20, 2025

On August 19, 2025, Installed Building Products, Inc. entered into a share repurchase agreement with PJAM IBP Holdings, Inc. to buy back 200,000 shares of its common stock at a discounted price of $257.38 per share, totaling $51,476,000. This transaction, approved by the company’s Board of Directors and Audit Committee, is part of a previously announced stock buyback program and will be funded from the company’s cash reserves, potentially impacting its financial position and shareholder value.

The most recent analyst rating on (IBP) stock is a Buy with a $295.00 price target. To see the full list of analyst forecasts on Installed Building Products stock, see the IBP Stock Forecast page.

Installed Building Products’ Q2 2025 Earnings Call Insights
Aug 13, 2025

Installed Building Products (IBP) recently held its second-quarter 2025 earnings call, presenting a mixed sentiment. The company showcased strong financial performance and strategic growth in certain segments, yet faced significant challenges in the single-family housing market and light commercial segment. While record-breaking revenue, robust cash flow, and effective stock repurchase and dividend strategies were notable achievements, macroeconomic challenges and regional underperformance tempered the overall outlook.

Installed Building Products Reports Record Q2 2025 Results
Aug 8, 2025

Installed Building Products, Inc. is a leading installer of insulation and complementary building products in the United States, serving both residential and commercial builders through a network of over 250 branches. The company recently reported record results for the second quarter of 2025, with net revenue reaching $760.3 million, marking a 3.1% increase compared to the same period last year. This growth was driven by a 2.6% rise in installation revenue, bolstered by recent acquisitions, and a notable increase in other revenue streams.

Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
Installed Building Products Reports Record Q2 2025 Results
Positive
Aug 7, 2025

Installed Building Products reported record second quarter 2025 results with a 3.1% increase in net revenue to $760.3 million and a 5.8% rise in net income to $69.0 million. The company declared a quarterly cash dividend of $0.37 per share for the third quarter, reflecting a 6% increase from the previous year, and continued its strategy of growth through acquisitions, including the purchase of Pro Foamers, Inc.

The most recent analyst rating on (IBP) stock is a Hold with a $241.00 price target. To see the full list of analyst forecasts on Installed Building Products stock, see the IBP Stock Forecast page.

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.Date of analysis: Nov 06, 2025