IBP

Installed Building Products’s stock price has taken a beating over the past six months, shedding 24.8% of its value and falling to $245.57 per share. This might have investors contemplating their next move. Is there a buying opportunity in Installed Building Products, or does it present a risk to your portfolio? Check out our in-depth research report to see what our analysts have to say, it’s free. Even though the stock has become cheaper, we’re cautious about Installed Building Products. Here are three reasons why IBP doesn’t excite us, plus one stock we’d rather own. Long-term growth is the most important, but within industrials, a stretched historical view may miss new industry trends or demand cycles. Installed Building Products’s recent performance shows its demand has slowed significantly as its annualized revenue growth of 1.8% over the last two years was well below its five-year trend. We also note many other Home Builders businesses have faced declining sales because of cyclical headwinds. While Installed Building Products grew slower than we’d like, it did do better than its peers. Forecasted revenues by Wall Street analysts signal a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite. Over the next 12 months, sell-side analysts expect Installed Building Products’s revenue to rise by 3.4%. While this projection implies its newer products and services will spur better top-line performance, it is still below average for the sector. Although long-term earnings trends give us the big picture, we like to analyze EPS over a shorter period to see if we are missing a change in the business. Installed Building Products’s weak 1.4% annual EPS growth over the last two years aligns with its revenue trend. This tells us it maintained its per-share profitability as it expanded. Installed Building Products isn’t a terrible business, but it isn’t one of our picks. Following the recent decline, the stock trades at 22.1× forward P/E (or $245.57 per share). This valuation multiple is fair, but we don’t have much faith in the company. We’re fairly confident there are better stocks to buy right now. We’d suggest looking at one of Charlie Munger’s all-time favorite businesses. ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

Installed Building Products delivered second quarter results that outpaced Wall Street’s expectations, driven by solid execution in commercial installations and contributions from recent acquisitions. Management emphasized that while new single-family residential demand remained soft due to affordability and consumer confidence concerns, commercial and manufacturing segments provided meaningful offsets. CEO Jeffrey Edwards credited the company’s “diversified operating platform” for helping IBP navigate a challenging housing market, highlighting double-digit sales growth in commercial and strong performance in the other segment, which includes distribution and manufacturing. Is now the time to buy IBP? Find out in our full research report (it’s free). Revenue: $777.8 million vs analyst estimates of $745 million (2.3% year-on-year growth, 4.4% beat) Adjusted EPS: $2.91 vs analyst estimates of $2.56 (13.6% beat) Adjusted EBITDA: $130.9 million vs analyst estimates of $122.2 million (16.8% margin, 7.1% beat) Operating Margin: 12.2%, down from 13.3% in the same quarter last year Market Capitalization: $6.42 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Susan Maklari (Goldman Sachs) asked about geographic and customer trends in residential demand; CFO Michael Miller explained that private builders outperformed public ones, but both saw declines, with the trend likely to continue. Richard Reid (Wells Fargo) inquired about the impact of new insulation capacity and pricing; CEO Jeffrey Edwards responded that incremental capacity is not expected to disrupt supply or pricing materially, given subdued single-family demand. Stephen Kim (Evercore ISI) probed the sustainability of growth in the manufacturing and commercial segments; Miller and COO Brad Wheeler conveyed confidence in backlog-driven performance, though acknowledged that high growth rates will moderate due to tougher year-over-year comparisons. Philip Ng (Jefferies) questioned the potential for larger M&A in commercial and the competitive implications of industry consolidation; management indicated interest in platform deals in adjacent trades and sees opportunity from competitor changes but remains cautious about near-term impacts. Kurt Yinger (D.A. Davidson) asked about pricing discipline with production builders; Miller said the company remains selective and adjusts pricing at a local level to maintain margins despite cost pressures. In upcoming quarters, the StockStory team will be monitoring (1) the pace and integration success of new acquisitions, (2) the impact of spray foam price increases on both revenue and gross margin, and (3) the sustainability of commercial and multifamily backlogs amid broader housing market volatility. Further developments in IBP’s strategy to expand in adjacent trades and manage margin mix will also be key markers for execution. Installed Building Products currently trades at $243.08, in line with $241.51 just before the earnings. Is there an opportunity in the stock? Find out in our full research report (it’s free for active Edge members). ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 10 a.m. ET Managing Director, Investor Relations - Ryan Ricketts Chairman and Chief Executive Officer - Jeffrey Edwards Executive Vice President and Chief Financial Officer - Michael Miller Chief Administrative and Sustainability Officer - Jason Niswonger Chief Operating Officer - Brad Wheeler Operator: Greetings. Welcome to the Installed Building Products Second Quarter 2026 Financial Results Conference Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to Ryan Ricketts, Managing Director, Investor Relations. Thank you, Ryan. You may begin. Ryan Ricketts: Good morning, and welcome to Installed Building Products second quarter 2026 earnings conference call. Earlier today, we issued a press release on our financial results for the 2026 second quarter, which can be found in the Investor Relations section of our website. On today's call, management's prepared remarks and answers to your questions may contain forward-looking statements within the meaning of federal securities laws. These forward-looking statements are based on management's current beliefs and expectations and are subject to factors that could cause actual results to differ materially from those described today. Please refer to our SEC filings for cautionary statements and risk factors. We undertake no duty or obligation to update any forward-looking statement as a result of new information or future events, except as required by federal securities laws. In addition, management refers to certain non-GAAP and adjusted financial measures on this call. You can find a reconciliation of such non-GAAP measures to the nearest GAAP equivalent in the company's earnings release and investor presentation, both of which are available in the Investor Relations section of our website. This morning's conference call is hosted by Jeff Edwards, our Chairman and Chief Executive Officer; Michael Miller, our Chief Financial Officer; and we are also joined by Jason Niswonger, our Chief Administrative and Sustainability Officer; and Brad Wheeler, our Chief Operating Officer. Jeff, I will now turn the call over to you. Jeffrey Edwards: Thanks, Ryan, and good morning to everyone joining us today. As usual, I will start the call with some highlights and then turn the call over to Michael, who will discuss our financial results in more detail before we take your questions. Our team continued to execute well during the second quarter, working closely with our customers to navigate a challenging residential housing backdrop while maintaining the high level of service they expect from IBP. We delivered positive consolidated revenue growth, supported by the contribution from recent acquisitions and growth within our commercial installation, manufacturing and distribution businesses. These results demonstrate the value of our diversified operating platform and the multiple avenues available to support growth across varying market conditions. Throughout the quarter, the macroeconomic backdrop was impacted by geopolitical factors, which increased the level of uncertainty for U.S. consumers. The low consumer confidence, along with affordability concerns has made new home sales more challenging. Even with industry-specific headwinds expected to continue to affect our new residential installation segment in the near term, our overall business has been resilient. All the credit goes to the hard-working men and women across our more than 250 branches throughout the United States and those who support them from our office in Columbus, Ohio. To everyone at IBP, thank you for your hard work and dedication. Looking at our 2026 second quarter performance, consolidated sales increased 2% and same-branch sales declined less than 1%. Our commercial end market continued to show strength, delivering double-digit installation sales growth for the fifth consecutive quarter with heavy commercial sales growth exceeding 15% during the quarter. With respect to our new single-family end market, activity remains challenged as a result of affordability concerns and lower consumer confidence with some geographic markets feeling more upbeat than others. In our multifamily end market, our contract backlog continues to grow, which is encouraging. Our other segment revenue grew 50% net of eliminations, partially due to acquisitions. We continue to effectively manage both material and labor to meet the needs of our customers and remain flexible to adjust to varying demand across regions. During the 2026 second quarter and in July, we completed acquisitions representing approximately $30 million of annual sales from a diversified product set in residential, commercial and industrial end markets. Acquisitions during the quarter and in July included an installer of mechanical insulation with the majority of its sales derived from retrofit work between industrial and commercial applications throughout the upper Midwest region with annual sales of approximately $12 million, an installer of car doors, closet shelving, mirrors and other accessories across residential markets serving customers throughout Minnesota and surrounding states with annual sales of approximately $7 million and an installer of door, bath and fencing hardware, primarily in new residential markets throughout South Carolina and Georgia with annual sales of approximately $7 million. Although deal timing is hard to predict, our current outlook for acquisition opportunities in 2026 is strong, and we expect to acquire at least $100 million of annual revenue this year. In terms of broader housing construction activity, U.S. Census Bureau data for the 2026 second quarter showed single-family starts decreased 4% from the prior year, while multifamily starts were up 10% for the same period. I'm proud of our team's continued success and commitment to doing an excellent job for our customers. Once again, to everyone at IBP, thank you. I remain encouraged by the fundamentals of our industry, our competitive positioning and optimistic about the prospects ahead for IBP and the broader insulation and complementary building products installation business. With this overview, I'd like to turn the call over to Michael to provide more detail on our 2026 second quarter financial results. Michael Miller: Thanks, Jeff, and good morning, everyone. Consolidated net revenue for the second quarter was up 2% to $778 million compared to $760 million for the same period last year. Same-branch sales for the Installation segment were down 2% for the second quarter as a 6% decline in new residential same-branch sales was partially offset by a 10% increase in commercial same-branch sales. Although the components behind our price/mix and volume disclosures have several moving parts that are difficult to forecast and quantify, price/mix was up 1% during the second quarter. And when including heavy commercial, price/mix increased 3%. Volume during the 2026 second quarter decreased by 5%, primarily due to lower new single-family volume. With respect to profit margins in the second quarter, our business achieved adjusted gross margin of 33.3% compared to 34.2% in the prior year period. Our consolidated gross margin was influenced by the relative mix of revenue from our installation and other segments. As we have stated before, our installation business generates a higher gross margin than our other segment. During the quarter, the other segment revenue net of eliminations grew 50%, which contributed positively to consolidated gross profit, but also created a mix headwind to our consolidated gross margin percentage of 40 basis points. Second quarter 2026 Installation segment gross margin was 36.5% compared to 37.1% in the prior year. The decline in gross margin for the Installation segment was primarily due to increased fuel expense, which reduced gross margin by 50 basis points. Adjusted selling and administrative expenses increased 3% compared to the 2025 second quarter. As a percent of second quarter sales, adjusted selling and administrative expense was 18.9% compared to 18.8% in the prior year period. Administrative costs were impacted by higher medical insurance costs, which were a 30 basis point impact to EBITDA margin. Adjusted EBITDA for the 2026 second quarter was $131 million, reflecting an adjusted EBITDA margin of 16.9% and adjusted net income was $78 million or $2.91 per diluted share. Although we do not provide comprehensive financial guidance, based on recent acquisitions, we expect third quarter and full year 2026 amortization expense of approximately $10 million and $42 million, respectively. We would expect these estimates to change with any acquisitions we complete in future periods. Also, we continue to expect an effective tax rate of 25% to 27% for the full year ending December 31, 2026. Our second quarter net interest expense was $11 million compared to $8 million for the 2025 second quarter. We would expect third quarter net interest expense of approximately $10 million. At June 30, 2026, we had a net debt to trailing 12-month adjusted EBITDA leverage ratio of 1.34x compared to 1.15x at June 30, 2025, which remains well below our stated target of 2x. At June 30, 2026, we had $374 million in working capital, excluding cash and cash equivalents. Capital expenditures and total incurred finance leases for the three months ended June 30, 2026, were approximately $18 million combined, which was approximately 2% of revenue. We ended the second quarter with $395 million in cash on the balance sheet, and we will continue to prioritize acquisitions with long-term strategic benefits and attractive returns on invested capital. We expect positive free cash flow will continue to support shareholder returns and stock buybacks based on prevailing market conditions. During the 2026 second quarter, we repurchased approximately 365,000 shares of common stock at a total cost of $76 million. At June 30, 2026, the company had approximately $398 million available under its stock repurchase program, which expires March 1, 2027. IBP's Board of Directors approved a third quarter dividend of $0.39 per share, which is payable on September 30, 2026, to stockholders of record on September 15, 2026. The third quarter dividend represents a more than 5% increase over the prior year period. We are committed to continuing to grow the company while returning excess capital to shareholders through our dividend policy and opportunistic share repurchases. With this overview, I will now turn the call back to Jeff for closing remarks. Jeffrey Edwards: Thanks, Michael. I'd like to conclude our prepared remarks by once again thanking IBP employees for their hard work and commitment to our company. Our success over the years is made possible because of you. Operator, let's open up the call for questions. Operator: Thank you. We will now be conducting a question-and-answer session. [Operator Instructions] Our first question is from Susan Maklari with Goldman Sachs. Susan Maklari: My first question is around the activity that you're seeing on the ground. I think as we ended the first quarter, you had talked about the fact that the private builders had not come back the way that you had anticipated going into the spring. Can you talk about what you're seeing on the ground in the quarter and how things moved relative to the different kinds of customers that you have in the geographies? Michael Miller: Sure. This is Michael. Thanks for the question. We're continuing to see relative better performance with the private builders relative to the public builders -- of the public builders that have reported so far, their second quarter results, homebuilding revenue is down kind of mid-single digits on a combined basis. Our revenue with them was similarly down. The revenue profile that we had with the private builders, while down, was not down nearly as much as it was with the public. We continue to believe that will be the trend through the rest of the year. Although if you look at their guidance/consensus, they're seeing the public builders for the back half of the year, it would imply sequential improvement in the third quarter and the fourth quarter, so that the third quarter would be down roughly low single digits and actually the fourth quarter would be up low single digits. Now that's there. Guidance/consensus, as we've said a million times, we don't provide guidance. I will say, though, that historically, our sales to them have tracked very closely to their reported homebuilder revenue. Susan Maklari: Okay. All right. That's helpful. And then moving to the gross margin, well done there. You were in line with our expectations. And I know you talked a little bit about some of the headwinds that you saw, especially on the install side. Can you just give us a bit more color on the moving parts that are coming through the gross margin and your ability to offset some of those headwinds that you're seeing, especially on the fuel side? And just anything that we should be thinking about in the forward quarters? Appreciating that you don't give guide, but just anything in terms of underlying mix or other factors? Michael Miller: Yes. Su, thanks for that question. And the gross margin really was consistent with what certainly with our 32% to 34% full year range that we have talked about. The team is doing a very good job offsetting not just in cost of goods sold, but also in G&A, some of the inflationary pressure that we're seeing sort of across the board. The one thing that has been at least initially up to this point because it was really a second quarter event is dealing with the increase in fuel, which was a 50 basis point headwind to the Installation segment. It's important to note that even though we had headwinds in the Installation segment on the residential side, primarily the single-family side, product margin in the Installation segment was actually up slightly in the quarter, which we felt very good about. I would say that there has been a little bit, but it's insignificant at this point, benefit from the selling price increases associated with the selling price or manufactured price increases from spray foam. We expect to see more positive impact from that in the second half of the year. It might be a little bumpy in the third quarter. But ultimately, the market is accepting that price increase. And as we discussed quite a lot in our last conference call, the customer base that is the natural user of spray foam is a custom, semi-custom foam. And there are our customers that are most willing to accept higher prices versus certainly on the entry-level side. The other thing that was pretty significant from a gross margin perspective, again, consistent with our expectations was the significant growth in our other segment, which just as a reminder, represents our distribution and manufacturing business. That business on a net basis grew about 50% in the quarter, which is fantastic, but it structurally has lower gross margins. So while the gross margins in that business actually improved to 24.7% from 23%, they are substantially lower than the Installation segment gross margins, which were basically flat at 37% year-over-year. So that higher percentage of sales or higher relative sales in the other segment was about -- was a 40 basis point headwind to gross margin. All of that being said, we continue to expect that the other segment this year will continue to grow at a much faster rate than the installation segment. So it will weigh on reported gross margin, but we think it is very relevant for investors to look at the difference in margin between installation and the other segment. And for those of you that read the release very closely, you'll see that we did provide more detail in the segmentation breakout, just to make it a little bit clearer the margin differential in the two segments. Operator: Our next question is from Sam Reid with Wells Fargo. Richard Reid: I'm going to start with more of an industry question here. We heard from one of the big OEMs yesterday on the insulation side that they're bringing a plant back online in the fourth quarter. Just curious your thoughts on implications for capacity utilization. And that same OEM, I believe, is also hoping to push to some pricing in September. Just curious kind of the puts and takes on that pricing in the context of more capacity. Jeffrey Edwards: So were you referring to the [ Nehi ] plant, coming back up? Yes. I mean that's not a particularly large plant or very much volume or some of the things. So I think between -- I guess, speculation would be that between rebuilds and things that aren't online yet or not fully online yet or might come down, I don't think it's going to make much of a big kind of splash in any way, shape or form. But I would say that material is readily available, both [ lose end ], and I'm sure we'll spend some time talking about the market dynamic. I mean, clearly, the -- particularly on the single-family side and emphasize the entry level of the single-family side continues to be weak, and we don't see dramatic improvement in that such that you would see material tightness. And even there's another manufacturer that brought up the largest line in the country, and that's still not running at full capacity yet. So there's more supply coming online with that facility. Richard Reid: Absolutely. Thanks for that helpful context. Let's maybe switch gears and just move down the P&L to SG&A. Just looking at the leverage this quarter, I guess I should say the deleverage, it was significantly better than the first quarter. I know that there were a few things you called out last quarter, some facility and liability insurance headwinds. This quarter, it sounds like the deleverage was mostly just a function of medical expenses. Just curious kind of any sequential dynamics we should be mindful of on the SG&A line, perhaps any points of improvement quarter-over-quarter? Michael Miller: Yes. So if you strip out medical on a same-branch basis, G&A expenses were actually down like 2% in the quarter from last year, which really is a yeoman's job, quite frankly, given the inflationary pressure that we're seeing in other types of insurance within facility costs. The team is doing an excellent job of managing what they can manage, quite frankly. We will continue to pursue that through the course of the year. But there's some stuff like the medical, which was up 33% in the quarter from a 40% up last quarter. It's something that we're working on, but there's not a lot of easy fixes, quite frankly, on that. We've done all the easy fixes when it comes to planning, design and negotiating, aggressively trying to bring costs down. But it's just a factor of -- it's a factor that every company faces these days. Operator: Our next question is from Stephen Kim with Evercore ISI. Stephen Kim: It was a strong quarter from our perspective, particularly in other. And I was curious if you could talk a little bit about the drivers of strength in that segment. Any particular verticals to call out there? And then similarly, in commercial, I think you indicated there was a lot of strength there and even in, I would say, specifically in light commercial. If you could give us a sense for -- was there anything there that wouldn't sort of extend strength-wise into the back half of the year? Michael Miller: A couple of things. Yes, the other division did very well. The 50% is on an as-reported basis and not on a same-branch basis. So on a same-branch basis, the other segment grew like 28%, still a phenomenal result. And really, that's sort of across the board, both in distribution and in the manufacturing side. So our manufacturing there is cellulose insulation, as you know, and they're just doing a phenomenal job. And the demand drivers there are a little bit different than they are for, say, the residential installation business because it's a lot of R&R and it's also a lot of industrial fibers and road fibers. So they're seeing really, really solid demand there. And the team is continuing to execute extremely well. And even though the gross margins are considerably lower than the installation division, they are improving those margins. So we feel really good about what the team is doing there, on the commercial side, particularly the light commercial side, it has turned a little bit sooner than we expected. So we feel good about that. And we believe it will continue to be positive and not significantly positive, but positive throughout the rest of the year. And then, of course, the heavy commercial business is clearly the star within the company right now in terms of their ability to continue to grow at a high rate of growth. Their same-branch sales growth for the heavy commercial business was roughly 16% in the quarter, down from higher percentages in the most recent couple of quarters. But clearly, the comps are getting tougher and tougher. They continue to increase their backlog despite the fact that they're putting up record revenue, every month and at good margins. So we feel really good about the visibility we have into that business and that it should continue to perform well through the rest of the back half of the year, albeit the sales growth -- the rate of sales growth will come down as it hits the very difficult comps from the back half of last year. Stephen Kim: Got you. Yes. So it sounds like there wasn't anything really that should drive lumpiness in either other or commercial. You did indicate, though, that in the spray foam pricing dynamic, while certainly the trend is moving higher there, you indicated that there could be some lumpiness in 3Q. So I was just curious, one, what is driving the lumpiness call out in spray foam? Is it significant? And then secondly, just to sort of clean up, you do not expect to see any kind of lumpiness in other or commercial in either 3Q or 4Q, right? Michael Miller: Lumpiness, I would say no, consistency, yes, but particularly again on the commercial side, I'll reiterate that the rate of growth is coming against those really hard comps in the second half. My comment around the spray foam was really just that the price realization is new, and it's such a significant price increase. And just as a reference, it was approximately 25% increase in material costs. So there's still some market participants are still kind of adjusting to that. We feel ultimately that we're going to come out of this at minimum margin neutral, obviously, much higher from a dollars perspective, given the discipline in the spray foam contractor base. But just given the magnitude of the increase, there might be a little bit of turning lumpiness that goes on. It's still a little early to tell. We haven't really seen any demand destruction, if you will, in terms of conversion from spray foam to fiberglass. But we'll have a much clearer picture as to how much of that happens when we report third quarter results. Operator: Our next question is from Philip Ng with Jefferies. Philip Ng: Congrats on a really strong quarter in a tough environment. Michael, your words, heavy commercial was a star yet again. Is there an opportunity to kind of scale that business up in a much bigger way, whether it's organically M&A? And historically, your M&A on the resi install side has been smaller bolt-on in nature. Are there chunkier assets on the heavy commercial side for installation or maybe even pursuing commercial roofing on the contractor side? Any color there? Michael Miller: I mean the simple answer is yes, yes and yes. But on the heavy, I'll let Brad talk about the organic opportunity on the heavy commercial side. Brad Wheeler: This is Brad. On the heavy side, so yes, we're doing our growth through our customer base as they spread out, we're following those. And then once we obviously build up additional contracts, we'll open up a brick-and-mortar and service that area. So it's a little bit slower growth expansion, I should say, on that, but it's still -- it's in our plan, and we continue to do it every day. Michael Miller: Do you want to talk about M&A? Jeffrey Edwards: Well, you said they are absolutely larger prospects in terms of commercial contractors that would be there potentially on the acquisition side, and we continue to be interested in commercial roofing, you also mentioned and mechanical and industrial. Philip Ng: Okay. Super. And then certainly, your largest competitor on the resi installation side got taken out, right? Like any deal of that size, there will be change. Does that present an opportunity for you guys, whether it's share, talent, M&A? Just kind of help us think through potentially any ripple effects that could be good or bad for you guys? Michael Miller: Yes. I think it's still too early to tell. I mean they're trying to figure out exactly what they have. And our continued belief is that on the installation side, they will continue to be a really good competitor, and we'll continue to work. We'll continue to compete with them the same way we are today and we spend success. Operator: Our next question is from Keith Hughes with Truist Securities. Keith Hughes: My question is on M&A. Jeff, you addressed a little bit a second ago on the opportunities in the various parts of nonresidential. It has been a success for you here. Would you start to pick individual trades where you really ramp up and do a slug of deals around a certain commercial install trade? Or do you think it will be more opportunistic in terms of doing different trades in that area? Jeffrey Edwards: I think clearly, we've kind of signaled and are continuing to try to signal that we'd like to buy a platform business in one of these kind of adjacent market segments and industry segments. And I think clearly, once we do that, the word will be out, and we will identify more deals that are kind of concentrated in one or two of those areas. Keith Hughes: And your current heavy commercial, what kind of trade are you the biggest in right now? Is there one that sort of stands out? Jeffrey Edwards: Yes. So with our heavy waterproofing is probably our largest product right now and followed by fireproofing. Operator: Our next question is from Trey Grooms with Stephens. Ethan Roberts: This is Ethan on for Trey. I wanted to start off with multifamily. There has been some discussion recently around the validity of the census numbers, but you guys mentioned that you guys feel pretty good about multifamily heading into the second half and your backlog continues to grow. And that's maybe despite perhaps some projects slowing down. So any updated thoughts on the multifamily business would be great. Jeffrey Edwards: Yes. We continue to feel good about it. I would agree that I'm not so sure about the census numbers. Our kind of feeling is that at least where we sit today, that multifamily -- excuse me, single-family is probably going to be down, call it, mid-single digits, maybe even a little bit more this year from a starts perspective. Year-to-date, multifamily starts are up like, what, 10% or something like that. I mean, I think it would be more realistic to assume that multifamily starts are up mid-ish single digits this year. I will say, and we feel pretty encouraged by this, our multifamily sales actually inflected positively in June and were positive in July as well. So we're definitely seeing an inflection there based upon the growth in the backlog. Now does that mean that we're going to have growth for the back half of the year? Certainly not going to guarantee that, but we are feeling encouraged by the trends that we're seeing there sort of across the board. And the team there continues to add to the backlog. Something to provide a little bit of color for you on the multifamily side. And we talked a little bit about this, I believe, last quarter. But our sales -- so if you look at our sales as a percentage of our sales, the South Census region represents roughly 60% of our multifamily revenue, whereas it only represents -- this is the South Census region, is only 43% of total U.S. completions. Obviously, the implication there is our market share in the South region in multifamily is very strong, which it is. And it is -- the growth that we're seeing from that South Census region right now in multifamily has been very solid. Ethan Roberts: Okay. Yes, that's great color. And shifting gears maybe you guys bought back a decent amount of stock in the quarter. So really, this is just a high-level question around your thoughts internally around balancing M&A with buybacks, given where we are in the cycle. And then, of course, understanding your signaled ambitions for a larger platform deal, if you could just remind us of any criteria you have around M&A perhaps in terms of like a margin profile returns, maybe where you'd be willing to flex from a leverage standpoint? Just any high-level thoughts there would be great. Jeffrey Edwards: Sure. So from an M&A perspective, especially if it's a platform deal, I think we would target a margin that is certainly not dilutive, potentially be accretive to the overall margin profile of the company. Right now, we are significantly below our stated 2x of leverage. I think we've been very clear with investors that for the right deal or for the right set of deals that we would take leverage up to as high as maybe 3, recognizing that any businesses we buy and the existing business generate a tremendous amount of free cash flow and that we would delever very quickly. I mean one of the things that I think is absolutely worth highlighting, we've been in a very challenging operating environment for the past really four to five years. And if you look at the consistency of performance of the business, and our ability to produce record results year after year gives us a lot of confidence in our ability to maybe put a little more leverage on the balance sheet and use the free cash flow generating capabilities of both the existing -- the current business and any future business that we buy. We feel very good about that. Going back to the first part of your question, M&A is definitely priority #1. But at the same time, stock repurchases are important to us. And the reality is we've done extremely well financially by repurchasing our shares. And we will continue to do that. But I will caveat that with saying that M&A is #1. Operator: Our next question is from Ken Zener with Seaport Research. Kenneth Zener: I'm sure I'll take some of this off-line with you, but Michael, it seems like you're disclosing more information again. The gross margins in installation that you highlighted, 36.5% versus 37.1% and on the product side, 24.7% versus 23%. And you said you disclosed some more information. I'm just -- can you tie off when you say those gross margins, just for my benefit, I guess, others as well, which -- what part sales is -- the installation that you're referring to on gross margin, which in your new disclosure or your expanded disclosure in your presentation, is that the normal installation for just commercial and residential, not the other products, which would be fireproofing, closets, et cetera? Michael Miller: No, it's anything that's installed. So it's the entire installation segment, including the complementary products. What it excludes is the manufacturing operations, which are the cellulose manufacturing facilities and then the distribution business. Kenneth Zener: Okay. Good. I just -- that's what I thought I just wanted to make sure that I wasn't missing something. The private mix, which has more spray foam and has absorbed you're saying favorably the spray foam. Is that really what your market share is better there or the price increase is so big that they just have no choice but to take it from you and for others? Michael Miller: Yes. I think there's -- I mean, it's still very early, right? So the price increase from the manufacturers really took effect later in the quarter. But the early signs are that, yes, the market is taking the price increase. And it happens for two reasons. One, I would say, generally speaking, the spray foam contractor base is very disciplined around price. And two, it is semi-custom product and that homeowner is much more able to accept price increases than, say, an entry-level home. Kenneth Zener: And then related to that last point, if you would, appreciate it. Could you describe the revenue mix as you described the publics in terms of the public share of revenue and units? Michael Miller: Well, the publics are 25% -- roughly 25% of total single-family revenue, which translates into about 15% of total revenue. And then breakdown -- yes, the units, generally speaking, it's like 10 points more. So it would be, say, 35% of single-family jobs, if you will. But we like to look at it in terms of revenue. We think that's kind of the more accurate way to do it. But because their average selling price, their average ASP and our average selling price to them, average stock price is much lower, obviously, that means the volume number of jobs is going to be considerably higher. And just as a reference to for everybody, the difference between spray foam and fiberglass, right, just sort of to level set for people is that fiberglass is roughly 50% of revenue, whereas spray foam is roughly 11% of revenue. Operator: Our next question is from Mike Dahl with RBC Capital Markets. Michael Dahl: A quick follow-up just on the spray foam dynamic. I think you mentioned that ultimately, you expect this to be at least margin neutral, but the comments about the potential bumpy 3Q, is that meant to suggest that in 3Q specifically, it might end up being a drag to margin percentage as there's a lag with that pass-through? Michael Miller: Yes, that was the implication. Michael Dahl: Okay. Just want to clarify that. And then on the single-family side, obviously, a lot of the publics are talking about and trying to execute at least somewhat of a shift back towards build-to-order and more actively reducing spec inventory. When you think about the back half of the year, appreciating that your comments that you historically have tracked what those public builder results would be. Do you think that there's -- given that dynamic, there's a couple of quarters either late this year or early next year where you end up kind of lagging what the builders are reporting on closings as they execute that shift and there's maybe a little bit more of a timing difference between when your products are going in if they're not actively starting as many spec homes? Jeffrey Edwards: Yes. I think -- I mean that's definitely the case. I do think a lot of that has already happened. Certainly, it's going to be subdivision specific and builder specific. But what is benefiting us definitely to offset some of that spec inventory declining in the spec inventory is the fact that community counts continue to be up. And obviously, if you open up a community, you have to have model homes and a couple of homes just to make it look like a real subdivision. So that is supporting the other side of your comment in terms of them trying to reduce spec inventory. But that has really been going on for the past couple of quarters, quite frankly. We saw it pretty heavy in the first quarter. And we definitely saw a little bit of it in the second quarter for sure. But all in all, I would say that it's pretty fair. And again, if we look at historical results, we track very closely their reported homebuilding revenue. Michael Dahl: Okay. Yes, that makes sense. So thinking about kind of going forward, you're effectively reverting back to -- you'll revert back to what's historic norm in terms of kind of timing of how you think about orders starts in your products? Jeffrey Edwards: Correct. Yes. I mean their cycle times right now are phenomenal, right? I mean it's incredible how tight their cycle times are. Yes, for sure. Operator: Our next question is from Adam Baumgarten with Vertical Research Partners. Adam Baumgarten: Maybe this is a question for Jeff. Just on the pushout of the June fiberglass insulation manufacturer price increases to September, do you think there's any chance that, that sticks? Jeffrey Edwards: Jeff is not here. He is not in the room, but this is Jeff Edwards. And it's a healthy -- supply is still tight, although as mentioned earlier, we're not having a problem or anything like that in product. So I guess it's probably anybody's guess at this point as to whether it sticks or not. But as we talked about most of this call, it's not exactly an environment that probably warrants and accept easily a price increase from a builder's perspective or anywhere in the chain to be honest. The dynamics there with more capacity coming online that lends less likelihood of acceptance. But I will say that we are in daily conversations with all of the manufacturers around price right now. Adam Baumgarten: Okay. Got it. Makes sense. And then so you did a relatively small mechanical insulation acquisition or an install acquisition in 2Q. I know that's a focus area for you guys. Can you talk about why that area of the installation universe is attractive to you guys? Brad Wheeler: Yes. This is Brad. Yes, I mean it's pretty much an adjacent product to a degree, right? Like when you compare a heavy and our residential, lots of light commercial and heavy, obviously. It's a semiskilled to skilled trade. And obviously, it's in the insulation world, right? So it's not a stretch for us to have relationships with the manufacturers and understand the product. Over the time, over the years, it's become a more -- not just with data centers, but with all heavy commercial, more insulation requirements, more content, and it's still a somewhat fragmented segment. So there's an opportunity for M&A as well. Michael Miller: Margins are good and the average contractor is probably a little larger, too, right? So it's probably less cyclical in a lot of ways than the residential construction business and even some of the other commercial businesses. So pretty attractive, a big MRO component. Adam Baumgarten: And you guys have the ability to buy direct in that as well, right? Michael Miller: Actually, it really goes through distribution because of the number of SKUs. Unlike residential fiberglass that you really have very few SKUs, you really need the distributor to hold -- actually, both the distributors and the manufacturers hold a lot of inventory in this product line, just given that there's so many SKUs. And really where the margin and differentiation comes in is in the labor force and managing the labor force. There is opportunity to improve, we believe, with scale volume advantage. I mean that business for us, the M&I business for us, mechanical and industrial business for us right now is about $50 million in revenue. So yes, we have a lot of opportunity there. Operator: Our next question is from Kurt Yinger with D.A. Davidson. Kurt Yinger: Just one on price cost. I was kind of curious, looking at it through the lens of volume versus margin trade-offs with production builders. Can you just talk about maybe what you've seen over the last couple of quarters and whether there has been any progression towards maybe needing to walk away from some business or be maybe even more disciplined in terms of how you're pricing jobs? That would be great. Michael Miller: I mean, yes, it's no surprise that at the entry level, I mean, builders are looking for any opportunity to reduce costs and make the house more affordable. The team does an excellent job of being selective when they need to and continue to work very closely with our customers to make sure that we are paid a fair price for the installed solution that we're providing. The key is, and it's always been the case that we're providing an installed solution or we're providing material and the labor and that our pricing is not set at the national level, it's set at a very local level. And we might be having pricing pressure with a customer in one market, but in another market that might be really strong, we're getting price. So it is a constant negotiation, particularly in this kind of environment. But I believe our results clearly reflect our team's ability to manage very effectively in what is on the single-family side, a pretty challenging environment. Operator: We have reached the end of the question-and-answer session. I would like to turn the floor back over to Jeff Edwards for closing comments. Jeffrey Edwards: I'd just like to thank you for your questions, and I look forward to our next quarterly call. Thank you. Operator: This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Installed Building Products. The Motley Fool has a disclosure policy. IBP (IBP) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. Installed Building Products (IBP) reported second quarter 2026 results that combined revenue growth with softer profitability and highlighted several capital return moves, including share repurchases and a higher regular dividend. For the quarter ended June 30, 2026, sales were US$777.8 million compared with US$760.3 million a year earlier. Net income was US$64.9 million compared with US$69 million, while diluted earnings per share from continuing operations were US$2.43 versus US$2.52. Over the first six months of 2026, Installed Building Products reported sales of US$1,438.3 million compared with US$1,445.1 million in the prior year period. Net income for the half year was US$99.7 million compared with US$114.4 million, with diluted earnings per share from continuing operations of US$3.71 versus US$4.15. See our latest analysis for Installed Building Products. The Installed Building Products share price has gained 18.36% over the past 90 days. However, the year to date share price return is down 8.75%, and the 1 year total shareholder return has slipped 4.15%. The 3 year and 5 year total shareholder returns of 66.19% and 115.38% highlight a much stronger longer term picture. If you are weighing up how IBP’s recent buybacks and dividend increases fit into a broader allocation, it can help to compare it with other businesses that also focus on balance sheet strength and consistent fundamentals using our solid balance sheet and fundamentals stocks screener (48 results) Installed Building Products shares have climbed hard over the past three months even as earnings softened, and the stock now sits close to some analyst targets. Does that recent run still leave enough upside for new buyers? Installed Building Products last closed at $244.05, compared with a narrative fair value estimate of about $232.58 that is built on detailed analyst assumptions and a relatively high required return of 8.89%. Read the complete narrative. Read the complete narrative. Want to understand why this valuation sits only slightly below the current share price? The narrative leans on modest growth, pressured margins, and a richer future earnings multiple. Curious which assumptions really carry the weight in that fair value? Result: Fair Value of $232.58 (OVERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Installed Building Products could surprise if commercial and multifamily demand stays firm and operational improvements keep margins steadier than analysts currently factor in. Find out about the key risks to this Installed Building Products narrative. After reviewing Installed Building Products’ mixed earnings, buybacks and dividend moves, it may be helpful to quickly evaluate the data and determine your position using our 2 key rewards and 1 important warning sign If you want to round out your research after assessing Installed Building Products, now is the time to uncover other potential opportunities using the Simply Wall St Screener. Target higher quality at a discount by focusing on companies with strong fundamentals using the 52 high quality undervalued stocks. Prioritise resilience and sleep easier at night by filtering for companies that appear more stable using the 83 resilient stocks with low risk scores. Get ahead of the crowd by searching for underfollowed companies with solid metrics through the screener containing 21 high quality undiscovered gems. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include IBP. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Installed Building Products, Inc. reported past second-quarter 2026 results with sales of US$777.8 million and net income of US$64.9 million, alongside completing a US$76.51 million share repurchase tranche and affirming a US$0.39 per-share quarterly dividend that was raised by over 5% year over year. The combination of modest revenue growth, active acquisitions, increased dividends, and ongoing buybacks highlights how IBP is using its cash flow to support both business expansion and direct returns to shareholders despite softer earnings. We’ll now examine how IBP’s increased dividend and capital return activity reshape its existing investment narrative and risk-reward profile. We've uncovered the 8 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. To own Installed Building Products, you need to believe its mix of residential insulation, commercial work, and acquisitions can keep earnings resilient through construction cycles. Right now, the key near term catalyst is how well IBP offsets softer single family housing with commercial and manufacturing growth, while the biggest risk is margin pressure from higher costs. The latest quarter’s modest revenue increase, lower net income, and higher capital returns do not materially change that near term setup. Among the recent announcements, IBP’s completion of US$101.95 million in buybacks under its current authorization stands out. In the context of modest top line growth and softer earnings, this activity is particularly relevant because it directly affects per share metrics and interacts with the main catalyst around how effectively IBP converts its cash generation into value for ongoing shareholders. Yet against this backdrop of buybacks and dividends, investors should still be aware of rising cost pressures and the risk that... Read the full narrative on Installed Building Products (it's free!) Installed Building Products' narrative projects $3.2 billion revenue and $254.2 million earnings by 2029. Uncover how Installed Building Products' forecasts yield a $232.58 fair value, a 5% downside to its current price. While consensus sees steady progress, the most pessimistic analysts were assuming only about 3.5 percent annual revenue growth to roughly US$3.3 billion and a dip in margins, so this latest quarter could easily shift how you and they weigh acquisition opportunities versus slowing housing demand. Explore 3 other fair value estimates on Installed Building Products - why the stock might be worth as much as $232.58! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your Installed Building Products research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision. Our free Installed Building Products research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Installed Building Products' overall financial health at a glance. Markets shift fast. These stocks won't stay hidden for long. Get the list while it matters: The future of work is here. Discover the 37 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. Invest in the nuclear renaissance through our list of 89 elite nuclear energy infrastructure plays powering the global AI revolution. Find 52 companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include IBP. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Installed Building Products, Inc.? Here are five stocks we like better. Q2 revenue rose 2% to $778 million, as commercial installation, manufacturing and distribution growth offset continued weakness in new single-family housing. Consolidated same-branch sales declined less than 1%, while commercial sales increased 10% and new residential sales fell 6%. Adjusted EBITDA was $131 million, with a 16.9% margin, but profitability faced pressure from higher fuel and medical costs and a greater mix of lower-margin businesses. Adjusted gross margin declined to 33.3% from 34.2% a year earlier. IBP completed acquisitions representing roughly $30 million in annual sales and expects to acquire at least $100 million of revenue during 2026. The company also repurchased $76 million of stock, held a 1.34x net-debt-to-EBITDA ratio and raised its quarterly dividend by more than 5%. 2 Ways to Play the QXO/TopBuild Deal Installed Building Products (NYSE:IBP) reported second-quarter 2026 revenue growth despite continued pressure in new single-family housing, as strength in commercial installation, manufacturing and distribution businesses helped offset softer residential activity. Consolidated net revenue increased 2% to $778 million from $760 million a year earlier. Same-branch sales declined less than 1% on a consolidated basis, while installation-segment same-branch sales fell 2%. A 6% decline in new residential same-branch sales was partially offset by a 10% increase in commercial same-branch sales. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Top 3 Homebuilder Stocks to Watch as Rates Drop Chairman and CEO Jeff Edwards said the company continued to navigate a challenging housing environment marked by affordability concerns and lower consumer confidence. He said IBP’s more diversified operating platform provided multiple avenues for growth, including commercial installation, manufacturing and distribution. IBP said its commercial end market recorded double-digit installation sales growth for the fifth consecutive quarter. Heavy commercial sales rose more than 15% during the quarter, with CFO Michael Miller later describing the business as a key growth driver. Heavy commercial same-branch sales rose about 16%, though Miller said growth rates could moderate in the second half as comparisons become more difficult. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High 3 Midcap Building Industry Stocks Constructing Good Price Action The company said its light-commercial operations turned positive sooner than expected and were expected to remain positive through the balance of the year, though not necessarily at a significant rate of growth. Meanwhile, new single-family activity remained challenged. Miller said revenue from public builders declined at a rate similar to the combined mid-single-digit decline reported by public homebuilders that had released results. Revenue from private builders also declined, but by less than public-builder revenue, he said. → No Hangover: Revisiting Microsoft One Week After Earnings Public builders represented roughly 25% of IBP’s single-family revenue and approximately 15% of total company revenue, according to Miller. He said public builders’ lower average job values mean they account for a larger share of the company’s single-family job volume than revenue. IBP also cited improving trends in multifamily. Edwards said contract backlog continued to grow, while Miller said multifamily sales turned positive in June and remained positive in July. The company’s multifamily business has particular exposure to the South Census region, which represented about 60% of its multifamily revenue, Miller said. Adjusted gross margin was 33.3% in the second quarter, compared with 34.2% in the prior-year period. Installation-segment gross margin declined to 36.5% from 37.1%, primarily because higher fuel expense reduced that segment’s margin by 50 basis points. The company’s “other” segment, which includes distribution and manufacturing operations, grew 50% net of eliminations, partly reflecting acquisitions. On a same-branch basis, the segment grew about 28%, Miller said. While that growth contributed to consolidated gross profit, the segment carries structurally lower margins than installation operations and created a 40-basis-point headwind to the consolidated gross-margin percentage. Gross margin in the other segment improved to 24.7% from 23%, according to Miller. The segment includes cellulose insulation manufacturing, where the company cited demand from repair and remodeling, industrial fibers and road fibers. Adjusted selling and administrative expense increased 3% year over year and represented 18.9% of sales, compared with 18.8% a year earlier. Higher medical insurance costs reduced EBITDA margin by 30 basis points, management said. Excluding medical costs, same-branch general and administrative expenses declined about 2% from the prior year. Adjusted EBITDA totaled $131 million, representing an adjusted EBITDA margin of 16.9%. Adjusted net income was $78 million, or $2.91 per diluted share. Miller said price mix increased 1% during the quarter and rose 3% when heavy commercial is included. Volume declined 5%, primarily because of lower new single-family volume. The company said it has begun to see some benefit from manufacturer price increases for spray foam insulation, though management expects the effect could be uneven in the third quarter as customers adjust to the size of the increase. Miller said the material-cost increase was approximately 25% and that IBP expects the impact to be at least margin neutral over time. Management said it had not seen meaningful demand destruction from customers shifting from spray foam to fiberglass. Spray foam represents roughly 11% of company revenue, compared with approximately 50% for fiberglass, Miller said. On fiberglass, Edwards and Miller said material was readily available and that additional capacity was coming online. They said the market environment did not appear particularly supportive of a proposed manufacturer price increase, though the company remained in frequent discussions with suppliers. IBP completed acquisitions during the second quarter and July representing approximately $30 million in annual sales. The acquired businesses included: An upper Midwest mechanical-insulation installer with about $12 million in annual sales, serving industrial and commercial retrofit applications. A Minnesota-area installer of shower doors, closet shelving, mirrors and accessories with about $7 million in annual sales. An installer of door, bath and fencing hardware serving new residential markets in South Carolina and Georgia, also with about $7 million in annual sales. The company said it expects to acquire at least $100 million of annual revenue during 2026. Management said it is interested in pursuing a larger platform acquisition in adjacent commercial or industrial installation categories, including mechanical and industrial insulation and commercial roofing. IBP’s mechanical and industrial insulation business currently generates about $50 million in revenue, Miller said. At June 30, IBP’s net-debt-to-trailing-12-month adjusted EBITDA ratio was 1.34 times, below its stated target of 2 times. Miller said the company could raise leverage as high as 3 times for the right transaction or set of transactions, citing the business’s free-cash-flow generation. IBP ended the quarter with $395 million in cash and repurchased approximately 365,000 shares for $76 million. About $398 million remained available under its share repurchase program as of June 30. The board also approved a quarterly dividend of $0.39 per share, payable Sept. 30 to shareholders of record Sept. 15, representing an increase of more than 5% from the prior-year period. Installed Building Products, Inc (NYSE: IBP) is a leading national installer of specialty building products serving the U.S. residential construction market. The company partners with homebuilders and contractors to deliver a comprehensive range of interior and exterior finishing services, including insulation, drywall finishing, protective coatings and basement waterproofing systems. By offering a single-source solution, Installed Building Products helps streamline project coordination and ensures consistent service quality across multiple trades. Founded in 1977 and headquartered in Columbus, Ohio, Installed Building Products has expanded from a regional insulation installer into a nationwide platform operating in nearly every state. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Installed Building Products Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Consolidated revenue growth was sustained by a 15% surge in heavy commercial sales and strong performance in the manufacturing and distribution segments, offsetting a 6% decline in new residential same-branch sales. Management attributed residential weakness to affordability concerns and low consumer confidence, which have disproportionately impacted entry-level single-family volume. The 'Other' segment (manufacturing and distribution) saw 50% revenue growth, though this created a 40-basis point headwind to consolidated gross margins due to its structurally lower margin profile compared to installation. Installation segment gross margins were pressured by a 50-basis point headwind from increased fuel expenses, though product margins remained slightly up year-over-year. The company is successfully passing through a 25% material cost increase in spray foam, primarily to custom and semi-custom homebuilders who are less price-sensitive than entry-level builders. Operational resilience is being maintained through local-level pricing negotiations and a diversified platform that captures growth in industrial and commercial retrofit markets. Management expects to acquire at least $100 million of annual revenue in 2026, with a strong pipeline of opportunities in residential, commercial, and industrial end markets. The company is actively seeking a 'platform' acquisition in an adjacent trade, such as commercial roofing or mechanical insulation, to further diversify the revenue base. Third-quarter margins may experience 'bumpy' results as the company works through the lag in passing through significant spray foam price increases. Public homebuilder guidance and consensus for the back half of 2026 suggest sequential improvement, with activity potentially turning positive in low single digits during the fourth quarter. Capital allocation will prioritize M&A as the top priority, followed by opportunistic share repurchases and a commitment to growing the dividend. Medical insurance costs rose significantly, impacting EBITDA margins by 30 basis points during the quarter. Net debt to trailing 12-month adjusted EBITDA stands at 1.34x, well below the 2.0x target, providing flexibility to increase leverage up to 3.0x for the right strategic acquisition. New fiberglass capacity coming online from competitors is expected to keep material supply loose, potentially challenging the stickiness of manufacturer price increases. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted that private builders are currently outperforming public builders in terms of relative revenue stability. IBP's revenue from public builders typically tracks their reported homebuilding revenue closely, which was down mid-single digits this quarter. Mechanical insulation is viewed as an attractive adjacent trade with a large MRO (maintenance, repair, and operations) component and less cyclicality than residential construction. The segment offers higher barriers to entry due to skilled labor requirements and a complex SKU environment that favors scaled operators. Despite broader market skepticism regarding census data, IBP's multifamily backlog is growing, with sales inflecting positively in June and July. Strength is particularly concentrated in the South Census region, where IBP maintains a high market share relative to total U.S. completions.

Installed Building Products (IBP) came out with quarterly earnings of $2.91 per share, beating the Zacks Consensus Estimate of $2.57 per share. This compares to earnings of $2.95 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +13.23%. A quarter ago, it was expected that this residential insulation installer would post earnings of $2.09 per share when it actually produced earnings of $1.79, delivering a surprise of -14.35%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Installed Building Products, which belongs to the Zacks Building Products - Miscellaneous industry, posted revenues of $777.8 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 5.05%. This compares to year-ago revenues of $760.3 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Installed Building Products shares have lost about 6.9% since the beginning of the year versus the S&P 500's gain of 12.8%. While Installed Building Products has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Installed Building Products was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.96 on $771.62 million in revenues for the coming quarter and $10.22 on $2.91 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Miscellaneous is currently in the top 44% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Quanex Building Products (NX), has yet to report results for the quarter ended July 2026. This housing materials maker is expected to post quarterly earnings of $0.68 per share in its upcoming report, which represents a year-over-year change of -1.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Quanex Building Products' revenues are expected to be $498 million, up 0.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Installed Building Products, Inc. (IBP) : Free Stock Analysis Report Quanex Building Products Corporation (NX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

COLUMBUS, Ohio, August 06, 2026--(BUSINESS WIRE)--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 second quarter ended June 30, 2026. Second Quarter 2026 Highlights (Comparisons are to Prior Year Period) Net revenue increased 2.3% to a record second quarter of $777.8 million Net income of $64.9 million Adjusted EBITDA* of $130.9 million Net income per diluted share of $2.43 Adjusted net income* was $77.8 million, or $2.91 per diluted share At June 30, 2026, IBP had $394.5 million in cash and cash equivalents Repurchased approximately 365 thousand shares of common stock at a total cost of approximately $76.2 million Declared second quarter dividend of $0.39 per share that was paid to shareholders on June 30, 2026 Recent Developments IBP’s Board of Directors declared the third 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 "Our team continued to execute well during the second quarter, working closely with our customers to navigate a challenging residential housing backdrop, while maintaining the high level of service they expect from IBP. We delivered positive consolidated revenue growth, supported by the contribution from recent acquisitions and growth within our heavy and light commercial business. These results demonstrate the value of our diversified operating platform and the multiple avenues available to support growth across varying market conditions. We also continued to deploy capital in a disciplined manner to support returns to shareholders, while advancing our growth-oriented acquisition strategy. Although we expect affordability and consumer confidence to continue to weigh on the U.S. residential housing market, we remain focused on controlling what we can control, serving our customers, and positioning IBP for continued long-term growth," stated Jeff Edwards, Chairman and Chief Executive Officer. Acquisition Update During the 2026 second quarter and July 2026, IBP completed the following acquisitions and two bolt-ons, which added approximately $30 million of annual revenue: Year to date we have acquired approximately $59 million in revenue and continue to believe we will acquire at least $100 million in revenue in 2026. 2026 Third Quarter Regular Cash Dividend IBP’s Board of Directors has approved the Company’s quarterly cash dividend of $0.39 per share, payable on September 30, 2026, to stockholders of record on September 15, 2026. The third quarter regular cash dividend represents an over 5% increase from last year's third quarter cash dividend payment. Share Repurchases During the three months ended June 30, 2026, IBP repurchased approximately 365 thousand shares of its common stock at a total cost of $76.2 million. At June 30, 2026, the Company had $398 million available under its stock repurchase program, which expires March 1, 2027. Second Quarter 2026 Results Overview For the second quarter of 2026, net revenue was $777.8 million, an increase of 2.3% from $760.3 million for the second quarter of 2025. On a consolidated same branch basis, net revenue decreased 0.6% from the prior year quarter. Residential same branch sales within the Company's Installation segment were down 6.1% in the quarter while commercial same branch sales within the Installation segment were up 10.4% from the prior year quarter. Our price/mix results increased 0.7% during the second quarter and job volumes were down 5.2% relative to the same period 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 that price/mix and volume disclosure. Including the heavy commercial installation sales, but still excluding the Other segment results, price mix increased 2.5% while job volume was down 4.9% during the 2026 second quarter. Gross profit decreased 0.4% to $258.9 million in the second quarter of 2026 from $259.9 million in the prior year quarter. As a percent of net revenue, gross profit was 33.3% and adjusted gross profit* was 33.3%, compared to 34.2% in the same period last year. Adjusted gross profit primarily adjusts for the Company's share-based compensation expense. Gross profit margin was reduced by the higher relative mix of the Other segment compared to the Installation segment. Gross margin in the second quarter of 2026 was 36.5% in the Installation segment and 24.7% in the Other segment. Additionally, higher fuel expense as a percent of net revenue served as a notable headwind to our second quarter 2026 adjusted gross profit margin* performance relative to the prior year period. Selling and administrative expense, as a percent of total revenue, was 19.8% in the second quarter of 2026 and 19.6% in the prior year period. Adjusted selling and administrative expense*, as a percent of net revenue, was 18.9% compared to 18.8% in the prior year quarter. Administrative expense as a percent of net revenue was primarily impacted by higher medical insurance relative to the prior year. Net income was $64.9 million, or $2.43 per diluted share, compared to $69.0 million, or $2.52 per diluted share in the prior year quarter. Net profit margin for the second quarter was 8.3% compared to 9.1% in the prior year quarter. Adjusted net income* was $77.8 million, or $2.91 per diluted share, compared to $80.8 million, or $2.95 per diluted share in the prior year quarter. Adjusted net profit margin* for the second quarter was 10.0% compared to 10.6% 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* in the second quarter of 2026 was $124.0 million, a 3.3% decrease from $128.2 million in the prior year quarter. Adjusted EBITDA* was $130.9 million, a 2.3% decrease from the prior year quarter, representing an adjusted EBITDA margin* of 16.9%. In the prior year quarter, adjusted EBITDA* was $134.0 million, representing an adjusted EBITDA margin* of 17.6%. Conference Call and Webcast The Company will host a conference call and webcast on August 6, 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 August 20, 2026 by dialing 844-512-2921 (domestic) or 412-317-6671 (international) and entering the passcode 13760723. 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 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; geopolitical conflicts; 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, 2025, 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. INSTALLED BUILDING PRODUCTS, INC. SEGMENT INFORMATION (unaudited, in millions) 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 six months ended June 30, 2026 and 2025 (in millions): 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): 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. INSTALLED BUILDING PRODUCTS, INC. RECONCILIATION OF GAAP TO NON-GAAP MEASURES ADJUSTED NET INCOME CALCULATIONS (unaudited, in millions, except share and per share amounts) 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. Per share figures may reflect rounding adjustments and consequently totals may not appear to sum. INSTALLED BUILDING PRODUCTS, INC. RECONCILIATION OF GAAP TO NON-GAAP MEASURES ADJUSTED GROSS PROFIT CALCULATIONS (unaudited, in millions) The table below reconciles Adjusted Gross Profit to the most directly comparable GAAP financial measure, gross profit, for the periods presented therein. INSTALLED BUILDING PRODUCTS, INC. RECONCILIATION OF GAAP TO NON-GAAP MEASURES ADJUSTED SELLING AND ADMINISTRATIVE EXPENSE CALCULATIONS (unaudited, in millions) The table below reconciles Adjusted Selling and Administrative expense to the most directly comparable GAAP financial measure, selling and administrative expense, for the periods presented therein. INSTALLED BUILDING PRODUCTS, INC. RECONCILIATION OF GAAP TO NON-GAAP MEASURES EBITDA AND ADJUSTED EBITDA CALCULATIONS (unaudited, in millions) The tables below reconcile EBITDA and Adjusted EBITDA to the most directly comparable GAAP financial measure, net income, for the periods presented therein. INSTALLED BUILDING PRODUCTS, INC. SUPPLEMENTARY TABLE (unaudited) INSTALLED BUILDING PRODUCTS, INC. INCREMENTAL REVENUE AND ADJUSTED EBITDA MARGINS (unaudited, in millions) View source version on businesswire.com: https://www.businesswire.com/news/home/20260803779037/en/ Contacts Contact Information:Investor Relations:[email protected]

Arcosa (ACA) came out with quarterly earnings of $1.13 per share, missing the Zacks Consensus Estimate of $1.18 per share. This compares to earnings of $1.27 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -4.24%. A quarter ago, it was expected that this provider of infrastructure-related products and services would post earnings of $0.13 per share when it actually produced earnings of $0.51, delivering a surprise of +292.31%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Arcosa, which belongs to the Zacks Building Products - Miscellaneous industry, posted revenues of $658.7 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 4.17%. This compares to year-ago revenues of $736.9 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Arcosa shares have added about 36.6% since the beginning of the year versus the S&P 500's gain of 13%. While Arcosa has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Arcosa was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.55 on $723.9 million in revenues for the coming quarter and $4.25 on $2.62 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Miscellaneous is currently in the top 44% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Installed Building Products (IBP), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This residential insulation installer is expected to post quarterly earnings of $2.57 per share in its upcoming report, which represents a year-over-year change of -12.9%. The consensus EPS estimate for the quarter has been revised 0.7% lower over the last 30 days to the current level. Installed Building Products' revenues are expected to be $740.43 million, down 2.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Arcosa, Inc. (ACA) : Free Stock Analysis Report Installed Building Products, Inc. (IBP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research