Installed Building Products (NYSE: IBP) posts Q1 2026 results, lifts dividend and details acquisitions
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Installed Building Products reported softer first-quarter 2026 results as U.S. residential construction slowed, partly offset by strength in commercial and manufacturing. Net revenue fell 3.5% to $660.5 million and net income declined to $34.8 million, or $1.29 per diluted share, with adjusted EBITDA down to $92.1 million and margin slipping to 13.9%.
Residential new construction revenue dropped to $443.3 million, while commercial installation sales rose to $125.4 million and Other segment revenue increased to $50.7 million. Despite lower earnings, operating cash flow improved 11.1% to $102.3 million and cash rose to $474.3 million.
The company completed four acquisitions adding about $28 million of annual revenue, repurchased roughly 91 thousand shares for $25.4 million, and its board declared a second-quarter cash dividend of $0.39 per share, more than 5% above last year’s level.
Positive
- None.
Negative
- Earnings and margins declined materially, with net income dropping from $45.4 million to $34.8 million, adjusted EBITDA falling from $102.4 million to $92.1 million, and adjusted EBITDA margin compressing from 15.0% to 13.9% amid weaker residential demand and higher operating costs.
Insights
Quarter shows volume-driven earnings pressure, but strong cash flow and balance sheet flexibility.
Installed Building Products saw net revenue decline 3.5% to $660.5 million, with net income falling to $34.8 million. Same-branch sales dropped 5.9%, driven by an 11.2% decline in residential same-branch revenue, while commercial same-branch revenue rose 10.7%, highlighting a clear end-market divergence.
Profitability compressed as gross profit margin eased to 32.1% and adjusted EBITDA fell to $92.1 million with a 13.9% margin. Higher vehicle, medical, and liability costs weighed on margins, and interest expense increased to $10.3 million, reducing earnings leverage despite relatively stable operating expense dollars.
On the positive side, net cash from operations rose 11.1% to $102.3 million and cash balances increased to $474.3 million, helped by a $500 million Senior Notes issuance and term debt refinancing. Management continued capital returns via a $0.39 quarterly dividend and $25.4 million of buybacks, while completing acquisitions adding about $28 million of annual revenue. Subsequent filings may provide more detail on how residential trends evolve against the commercial strength seen in the quarter.
8-K Event Classification
3 items: 2.02, 7.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Net revenue: $660.5 million
Net income: $34.8 million
Adjusted EBITDA: $92.1 million
+5 more
8 metrics
Net revenue
$660.5 million
Three months ended March 31, 2026; down 3.5% year over year
Net income
$34.8 million
Three months ended March 31, 2026; compared with $45.4 million in 2025
Adjusted EBITDA
$92.1 million
Q1 2026; down from $102.4 million with 13.9% margin
Operating cash flow
$102.3 million
Net cash provided by operating activities in Q1 2026; up 11.1%
Cash and cash equivalents
$474.3 million
Balance as of March 31, 2026 on consolidated balance sheet
Quarterly dividend
$0.39 per share
Second-quarter 2026 regular cash dividend; over 5% above prior year Q2
Share repurchases
$25.4 million
Approx. 91 thousand shares repurchased in Q1 2026
Acquisition-generated revenue
$28 million
Approximate annual revenue from Q1 2026 acquisitions
Key Terms
Adjusted EBITDA, same branch sales, heavy commercial, Senior Notes, +2 more
6 terms
Adjusted EBITDA financial
"Adjusted EBITDA* was $92.1 million, a 10.1% decrease from the prior year quarter"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
same branch sales financial
"On a consolidated same branch basis, net revenue decreased 5.9% from the prior year quarter."
heavy commercial financial
"Including the heavy commercial installation sales, but still excluding the Other segment results, price mix increased 2.9%"
Senior Notes financial
"Proceeds from Senior Notes | $ | 500.0 |"
Senior notes are a type of loan that a company borrows from investors, promising to pay it back with interest. They are called "senior" because in case the company faces financial trouble, these lenders are paid back before others. This makes senior notes safer for investors compared to other types of loans or bonds.
Adjusted Gross Profit financial
"The table below reconciles Adjusted Gross Profit to the most directly comparable GAAP financial measure"
Adjusted gross profit is a company’s revenue from selling goods or services minus the direct costs of producing them, with one-time or unusual items added back or removed to show the core margin. Investors use it like a cleaned-up snapshot of how much a business actually earns on its products, similar to measuring body weight after removing heavy clothes, because it helps compare performance across periods and companies without noise from rare events.
non-GAAP financial measures financial
"this press release contains the non-GAAP financial measures of EBITDA, Adjusted EBITDA, Adjusted EBITDA margin"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
Earnings Snapshot
Revenue: $660.5 million
Q1 2026
Revenue
$660.5 million
-3.5% year over year
Net income
$34.8 million
Diluted EPS
$1.29
Adjusted EBITDA
$92.1 million
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________________
FORM 8-K
___________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported)
___________________________________
(Exact name of registrant as specified in its charter)
___________________________________
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification Number) | ||||||
(Address of principal executive offices and zip code) | ||||||||
( | ||||||||
(Registrant's telephone number, including area code) | ||||||||
___________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act: | ||||||||
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Item 2.02 Results of Operations and Financial Condition
On May 7, 2026, Installed Building Products, Inc. (the “Company”) issued a press release reporting the financial results for the three months ended March 31, 2026. The full text of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
The information contained in this Item 2.02, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. Furthermore, the information contained in this Item 2.02, including Exhibit 99.1 attached hereto, shall not be deemed to be incorporated by reference into any registration statement or other document filed with the Securities and Exchange Commission, except as shall be expressly set forth by specific reference in such filing.
Item 7.01 Regulation FD Disclosure
The May 7, 2026 press release also announced that the Board of Directors approved a quarterly cash dividend of $0.39 per share payable on June 30, 2026 to stockholders of record at the close of business on June 15, 2026.
One or more representatives of the Company will meet with prospective investors during the second quarter of 2026. The materials used in connection with these meetings have been posted on the Company’s website (www.installedbuildingproducts.com) under the Investor Relations section.
The information contained in this Item 7.01 is being furnished and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. Furthermore, the information contained in this Item 7.01 shall not be deemed to be incorporated by reference into any registration statement or other document filed with the Securities and Exchange Commission, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits:
Exhibit No. | Description | |||||||
99.1 | Press Release, dated May 7, 2026, announcing results for the three months ended March 31, 2026 and quarterly dividend | |||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized on this 7th day of May, 2026.
INSTALLED BUILDING PRODUCTS, INC. | |||||
By: | /s/ Michael T. Miller | ||||
Name: | Michael T. Miller | ||||
Title: | Chief Financial Officer | ||||
INSTALLED BUILDING PRODUCTS REPORTS
FIRST QUARTER 2026 RESULTS;
DECLARES REGULAR QUARTERLY CASH DIVIDEND
Columbus, Ohio, May 7, 2026, Installed Building Products, Inc. (the "Company" or "IBP") (NYSE: IBP), an industry-leading installer of insulation and complementary building products, today announced results for the first quarter ended March 31, 2026.
First Quarter 2026 Highlights (Comparisons are to Prior Year Period)
•Net revenue decreased 3.5% to $660.5 million
◦Installation revenue decreased 5.8% to $609.8 million, including sales from IBP's recent acquisitions
◦Other revenue, net of eliminations, which includes IBP’s manufacturing and distribution operations, increased 34.8% to $50.7 million
•Net income decreased to $34.8 million
•Adjusted EBITDA* decreased to $92.1 million
•Net income per diluted share decreased to $1.29
•Adjusted net income* was $48.4 million, or $1.79 per diluted share
•Net cash flow from operations increased 11.1% to $102.3 million
•At March 31, 2026, IBP had $474.3 million in cash and cash equivalents
•Repurchased approximately 91 thousand shares of common stock at a total cost of approximately $25.4 million
•Declared first quarter dividend of $0.39 per share that was paid to shareholders on March 31, 2026
Recent Developments
•IBP’s Board of Directors declared the second 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
•Effective May 6, 2026, Ryan Ricketts has been appointed Director of Investor Relations and Financial Planning, succeeding Darren Hicks, who will be departing the Company to pursue another opportunity
“We delivered solid top-line results amidst challenging regional weather conditions and a macroeconomic backdrop that has raised uncertainty with respect to U.S. consumer sentiment and new home sales activity. Throughout the quarter, we remained focused on meeting customers' needs through maintaining elevated service quality while emphasizing product diversification and prudent expense management. Our commercial end market continued to show strength, delivering double-digit installation sales growth. Heavy commercial sales growth exceeded 20% and the commercial end market also benefited from light commercial acquisition revenue. While we expect near-term challenges within U.S. residential construction to continue, we remain intentional with our pursuit of growth and capital allocation decisions,” stated Jeff Edwards, Chairman and Chief Executive Officer.
“I also want to thank Darren, who has been a valued member of our team since joining IBP in March 2021,” continued Mr. Edwards. “Ryan, as Director of Financial Planning, has played an integral role in our financial planning and analysis function, and he is a natural fit to lead our investor relations efforts. I look forward to his contributions as we continue to execute on our strategy and engage with the investment community and wish Darren the best in his future endeavors.”
Acquisition Update
During the 2026 first quarter, IBP completed the following acquisitions, which added approximately $28 million of annual revenue:
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Close Date | Acquisition | Core End Market (1) | Primary Product Category | Approximate Annual Sales | ||||||||||
Jan. 2026 | Biomax Spray Foam Insulation, LLC | Res. + Com. | Insulation | $5 million | ||||||||||
Feb. 2026 | Thermo-Tech Mechanical Insulation, Inc. | Com. + Ind. | Mechanical Insulation | $13 million | ||||||||||
Feb. 2026 | Northstar Comfort Services | Res. | Insulation | $3 million | ||||||||||
| Mar. 2026 | Waterproofing, Inc. | Res. + Com. | Waterproofing | $7 million | ||||||||||
(1) Res. - Residential end market, which includes single-family and multi-family. Com. - Commercial end market, which includes heavy and light commercial. Ind. - Industrial end market.
2026 Second Quarter Regular Cash Dividend
IBP’s Board of Directors has approved the Company’s quarterly cash dividend of $0.39 per share, payable on June 30, 2026, to stockholders of record on June 15, 2026. The second quarter regular cash dividend represents an over 5% increase from last year's second quarter cash dividend payment.
Share Repurchases
During the three months ended March 31, 2026, IBP repurchased approximately 91 thousand shares of its common stock at a total cost of $25.4 million. At March 31, 2026, the Company had $474.6 million available under its stock repurchase program, which expires March 1, 2027.
First Quarter 2026 Results Overview
For the first quarter of 2026, net revenue was $660.5 million, a decrease of 3.5% from $684.8 million for the first quarter of 2025. On a consolidated same branch basis, net revenue decreased 5.9% from the prior year quarter. Residential same branch sales within the Company's Installation segment were down 11.2% in the quarter while commercial same branch sales within the Installation segment were up 10.7% from the prior year quarter.
Our price/mix results were flat during the first quarter and job volumes were down 10.0% 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 2.9% while job volume was down 9.9% during the 2026 first quarter.
Gross profit decreased 5.1% to $212.3 million in the first quarter of 2026 from $223.7 million in the prior year quarter. As a percent of net revenue, gross profit was 32.1% and adjusted gross profit* was 32.2%, compared to 32.7% in the same period last year. Higher vehicle-related expense as a percent of net revenue served as a notable headwind to our first quarter of 2026 adjusted gross profit margin performance relative to the prior year period. Adjusted gross profit primarily adjusts for the Company’s share-based compensation expense.
Selling and administrative expense, as a percent of total revenue, was 21.8% in the first quarter of 2026 and 21.0% in the prior year period. Adjusted selling and administrative expense*, as a percent of net revenue, was 20.9% compared to 20.1% in the prior year quarter. Adjusted administrative expense as a percent of net revenue was impacted by higher medical and general liability insurance relative to the prior year.
Net income was $34.8 million, or $1.29 per diluted share, compared to $45.4 million, or $1.64 per diluted share in the prior year quarter. Net profit margin for the first quarter was 5.3% compared to 6.6% in the prior year quarter. Adjusted net income* was $48.4 million, or $1.79 per diluted share, compared to $57.6 million, or $2.08 per diluted share in the prior year quarter. Adjusted net profit margin* for the first quarter was 7.3% compared to 8.4% 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.
2
EBITDA* in the first quarter of 2026 was $85.4 million, an 11.0% decrease from $96.0 million in the prior year quarter. Adjusted EBITDA* was $92.1 million, a 10.1% decrease from the prior year quarter representing an adjusted EBITDA margin* of 13.9%. In the prior year quarter, adjusted EBITDA* was $102.4 million, representing an adjusted EBITDA margin* of 15.0%.
Conference Call and Webcast
The Company will host a conference call and webcast on May 7, 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 May 21, 2026 by dialing 844-512-2921 (domestic) or 412-317-6671 (international) and entering the passcode 13759110.
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.
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*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.
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INSTALLED BUILDING PRODUCTS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(unaudited, in millions, except share and per share amounts)
| Three months ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net revenue | $ | 660.5 | $ | 684.8 | |||||||
| Cost of sales | 448.2 | 461.1 | |||||||||
| Gross profit | 212.3 | 223.7 | |||||||||
| Operating expenses | |||||||||||
| Selling | 34.0 | 35.4 | |||||||||
| Administrative | 110.2 | 108.4 | |||||||||
| Amortization | 10.5 | 10.1 | |||||||||
| Operating income | 57.6 | 69.8 | |||||||||
| Other expense, net | |||||||||||
| Interest expense, net | 10.3 | 8.3 | |||||||||
| Other expense | 0.2 | 0.2 | |||||||||
| Income before income taxes | 47.1 | 61.3 | |||||||||
| Income tax provision | 12.3 | 15.9 | |||||||||
| Net income | $ | 34.8 | $ | 45.4 | |||||||
| Other comprehensive income (loss), net of tax: | |||||||||||
| Net change on cash flow hedges, net of tax (provision) benefit of ($0.1) and $1.8 for the three months ended March 31, 2026 and 2025, respectively. | 0.3 | (5.3) | |||||||||
| Comprehensive income | $ | 35.1 | $ | 40.1 | |||||||
| Earnings Per Share: | |||||||||||
| Basic | $ | 1.30 | $ | 1.65 | |||||||
| Diluted | $ | 1.29 | $ | 1.64 | |||||||
| Weighted average shares outstanding: | |||||||||||
| Basic | 26,798,598 | 27,517,419 | |||||||||
| Diluted | 26,965,335 | 27,695,912 | |||||||||
| Cash dividends declared per share | $ | 2.19 | $ | 2.07 | |||||||
5
INSTALLED BUILDING PRODUCTS, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited, in millions, except share and per share amounts)
| March 31, | December 31, | ||||||||||
| 2026 | 2025 | ||||||||||
| ASSETS | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 474.3 | $ | 321.9 | |||||||
| Accounts receivable (less allowance for credit losses of $14.6 and $13.9 at March 31, 2026 and December 31, 2025, respectively) | 426.4 | 444.1 | |||||||||
| Inventories | 205.7 | 203.0 | |||||||||
| Prepaid expenses and other current assets | 63.7 | 73.6 | |||||||||
| Total current assets | 1,170.1 | 1,042.6 | |||||||||
| Property and equipment, net | 191.0 | 183.3 | |||||||||
| Operating lease right-of-use assets | 99.2 | 98.7 | |||||||||
| Goodwill | 460.8 | 450.4 | |||||||||
| Customer relationships, net | 175.1 | 172.2 | |||||||||
| Other intangibles, net | 91.4 | 89.3 | |||||||||
| Other non-current assets | 42.2 | 31.5 | |||||||||
| Total assets | $ | 2,229.8 | $ | 2,068.0 | |||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
| Current liabilities | |||||||||||
| Current maturities of long-term debt | $ | 35.6 | $ | 36.6 | |||||||
| Current maturities of operating lease obligations | 38.1 | 37.0 | |||||||||
| Current maturities of finance lease obligations | 3.6 | 2.7 | |||||||||
| Accounts payable | 124.9 | 119.0 | |||||||||
| Accrued compensation | 55.0 | 69.5 | |||||||||
| Other current liabilities | 92.6 | 79.4 | |||||||||
| Total current liabilities | 349.8 | 344.2 | |||||||||
| Long-term debt | 1,035.4 | 850.0 | |||||||||
| Operating lease obligations | 60.9 | 61.4 | |||||||||
| Finance lease obligations | 7.0 | 4.0 | |||||||||
| Deferred income taxes | 24.5 | 24.7 | |||||||||
| Other long-term liabilities | 84.7 | 73.8 | |||||||||
| Total liabilities | 1,562.3 | 1,358.1 | |||||||||
| Commitments and contingencies | |||||||||||
| Stockholders’ equity | |||||||||||
| Preferred Stock; $0.01 par value: 5,000,000 authorized and 0 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively | — | — | |||||||||
| Common stock; $0.01 par value: 100,000,000 authorized, 33,891,774 and 33,837,379 issued and 26,938,128 and 26,975,227 shares outstanding at March 31, 2026 and December 31, 2025, respectively | 0.3 | 0.3 | |||||||||
| Additional paid in capital | 291.3 | 284.1 | |||||||||
| Retained earnings | 1,019.0 | 1,043.4 | |||||||||
| Treasury stock; at cost: 6,953,646 and 6,862,152 shares at March 31, 2026 and December 31, 2025, respectively | (665.5) | (640.0) | |||||||||
| Accumulated other comprehensive income | 22.4 | 22.1 | |||||||||
| Total stockholders’ equity | 667.5 | 709.9 | |||||||||
| Total liabilities and stockholders’ equity | $ | 2,229.8 | $ | 2,068.0 | |||||||
6
INSTALLED BUILDING PRODUCTS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in millions)
| Three months ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Cash flows from operating activities | |||||||||||
| Net income | $ | 34.8 | $ | 45.4 | |||||||
| Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
| Depreciation and amortization of property and equipment | 17.5 | 16.3 | |||||||||
| Amortization of operating lease right-of-use assets | 9.7 | 8.8 | |||||||||
| Amortization of intangibles | 10.5 | 10.1 | |||||||||
| Amortization of deferred financing costs and debt discount | 0.5 | 0.4 | |||||||||
| Provision for credit losses | 1.7 | 2.1 | |||||||||
| Write-off of debt issuance costs | 1.2 | — | |||||||||
| Gain on sale of property and equipment | (0.3) | (0.2) | |||||||||
| Non-cash stock compensation | 5.7 | 5.9 | |||||||||
| Other, net | (1.7) | (2.4) | |||||||||
| Changes in assets and liabilities, excluding effects of acquisitions | |||||||||||
| Accounts receivable | 19.4 | 12.4 | |||||||||
| Inventories | (2.1) | (3.4) | |||||||||
| Other assets | 2.7 | 11.4 | |||||||||
| Accounts payable | 4.1 | (1.6) | |||||||||
| Income taxes receivable/payable | 12.9 | 11.6 | |||||||||
| Other liabilities | (14.3) | (24.7) | |||||||||
| Net cash provided by operating activities | 102.3 | 92.1 | |||||||||
| Cash flows from investing activities | |||||||||||
| Purchases of property and equipment | (16.6) | (20.2) | |||||||||
Acquisitions of businesses, net of cash acquired of $- in 2026 and 2025, respectively | (28.8) | (8.3) | |||||||||
| Proceeds from sale of property and equipment | 0.5 | 0.4 | |||||||||
| Settlements with interest rate swap counterparties | — | 3.4 | |||||||||
| Other | (0.4) | (1.4) | |||||||||
| Net cash used in investing activities | $ | (45.3) | $ | (26.1) | |||||||
7
INSTALLED BUILDING PRODUCTS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
(unaudited, in millions)
| Three months ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Cash flows from financing activities | |||||||||||
| Proceeds from Senior Notes | $ | 500.0 | $ | — | |||||||
| Payments on Senior Notes | (300.0) | — | |||||||||
| Payments on Term Loan | (1.3) | (1.3) | |||||||||
| Proceeds from vehicle and equipment notes payable | — | 5.8 | |||||||||
| Debt issuance costs | (9.0) | — | |||||||||
| Principal payments on long-term debt | (8.3) | (7.2) | |||||||||
| Principal payments on finance lease obligations | (1.1) | (0.7) | |||||||||
| Dividends paid | (58.7) | (56.8) | |||||||||
| Acquisition-related obligations | (0.7) | (0.4) | |||||||||
| Repurchase of common stock | (25.4) | (34.3) | |||||||||
| Surrender of common stock awards by employees | (0.1) | — | |||||||||
| Net cash provided by (used in) financing activities | 95.4 | (94.9) | |||||||||
| Net change in cash and cash equivalents | 152.4 | (28.9) | |||||||||
| Cash and cash equivalents at beginning of period | 321.9 | 327.6 | |||||||||
| Cash and cash equivalents at end of period | $ | 474.3 | $ | 298.7 | |||||||
| Supplemental disclosures of cash flow information | |||||||||||
| Net cash paid during the period for: | |||||||||||
| Interest | $ | 16.4 | $ | 14.7 | |||||||
| Income taxes, net of refunds | (0.6) | 0.7 | |||||||||
| Supplemental disclosures of non-cash activities | |||||||||||
| Right-of-use assets obtained in exchange for operating lease obligations | $ | 10.2 | $ | 10.2 | |||||||
| Property and equipment obtained in exchange for finance lease obligations | 5.0 | 0.2 | |||||||||
| Seller obligations in connection with acquisition of businesses | 3.0 | 0.6 | |||||||||
| Unpaid purchases of property and equipment included in accounts payable | 2.3 | 3.0 | |||||||||
8
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 months ended March 31, 2026 and 2025 (in millions):
| Three months ended March 31, | |||||||||||
| Installation Segment | 2026 | 2025 | |||||||||
| Revenue | $ | 609.8 | $ | 647.2 | |||||||
Cost of sales (1) | 393.5 | 417.7 | |||||||||
| Segment gross profit | $ | 216.3 | $ | 229.5 | |||||||
| Segment gross profit percentage | 35.5 | % | 35.5 | % | |||||||
(1) Cost of sales included in the Installation segment gross profit is exclusive of depreciation and amortization for the three months ended March 31, 2026 and 2025.
The reconciliation of Installation revenue and segment gross profit for each period as shown in the table above to consolidated net revenue and income before income taxes is as follows (in millions):
| Three months ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Reconciliation of revenue: | |||||||||||
| Installation segment revenue | $ | 609.8 | $ | 647.2 | |||||||
Other revenue (1) | 68.4 | 43.9 | |||||||||
| Elimination of inter-segment revenue | (17.7) | (6.3) | |||||||||
| Total consolidated net revenue | $ | 660.5 | $ | 684.8 | |||||||
| Reconciliation of segment gross profit: | |||||||||||
| Installation segment gross profit | $ | 216.3 | $ | 229.5 | |||||||
Other gross profit (1) | 17.7 | 11.3 | |||||||||
| Elimination of inter-segment gross profit | (5.4) | (1.9) | |||||||||
| Less: | |||||||||||
| Depreciation and amortization | 16.3 | 15.2 | |||||||||
| Total consolidated gross profit, as reported | 212.3 | 223.7 | |||||||||
| Operating expenses | 154.7 | 153.9 | |||||||||
| Operating income | 57.6 | 69.8 | |||||||||
| Other expense, net | 10.5 | 8.5 | |||||||||
| Income before income taxes | $ | 47.1 | $ | 61.3 | |||||||
(1) Other revenue and other gross profit include the remaining two operating segments, Distribution and Manufacturing before inter-segment eliminations. These operating segments are each below the quantitative thresholds for being reported as a reportable segment for the three months ended March 31, 2026 and 2025.
9
INSTALLED BUILDING PRODUCTS, INC.
REVENUE BY END MARKET
(unaudited, in millions)
| Three months ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Installation | |||||||||||||||||||||||
| Residential new construction | $ | 443.3 | 67 | % | $ | 494.4 | 72 | % | |||||||||||||||
| Repair and remodel | 41.1 | 6 | % | 42.4 | 6 | % | |||||||||||||||||
| Commercial | 125.4 | 19 | % | 110.4 | 17 | % | |||||||||||||||||
| Net revenues - Installation | $ | 609.8 | 92 | % | $ | 647.2 | 95 | % | |||||||||||||||
| Other | 50.7 | 8 | % | 37.6 | 5 | % | |||||||||||||||||
| Net revenue, as reported | $ | 660.5 | 100 | % | $ | 684.8 | 100 | % | |||||||||||||||
10
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.
11
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.
| Three months ended March 31, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Net income, as reported | $ | 34.8 | $ | 45.4 | ||||||||||
| Adjustments for adjusted net income | ||||||||||||||
| Share-based compensation expense | 5.7 | 5.9 | ||||||||||||
| Acquisition related expenses | 1.0 | 0.5 | ||||||||||||
Amortization expense (1) | 10.5 | 10.1 | ||||||||||||
Loan refinancing expenses (2) | 1.2 | — | ||||||||||||
Tax impact of adjusted items at a normalized tax rate (3) | (4.8) | (4.3) | ||||||||||||
| Adjusted net income | $ | 48.4 | $ | 57.6 | ||||||||||
| Weighted average shares outstanding (diluted) | 26,965,335 | 27,695,912 | ||||||||||||
| Diluted net income per share, as reported | $ | 1.29 | $ | 1.64 | ||||||||||
Adjustments for diluted adjusted net income, net of tax impact, per share (4) | 0.50 | 0.44 | ||||||||||||
| Diluted adjusted net income per share | $ | 1.79 | $ | 2.08 | ||||||||||
(1) Addback of all non-cash amortization resulting from business combinations.
(2) Includes $1.2 million of non-cash write-off of capitalized loan expense in connection with loan refinancing for the three months ended March 31, 2026.
(3) Normalized effective tax rate of 26.0% applied to periods presented.
(4) Includes adjustments related to the items noted above, net of tax.
12
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.
| Three months ended March 31, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Gross profit | $ | 212.3 | $ | 223.7 | ||||||||||
| Share-based compensation expense | 0.3 | 0.3 | ||||||||||||
| Adjusted gross profit | $ | 212.6 | $ | 224.0 | ||||||||||
| Gross profit margin | 32.1% | 32.7% | ||||||||||||
| Adjusted gross profit margin | 32.2% | 32.7% | ||||||||||||
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 to the most directly comparable GAAP financial measure, selling and administrative, for the periods presented therein.
| Three months ended March 31, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Selling expense | $ | 34.0 | $ | 35.4 | ||||||||||
| Administrative expense | 110.2 | 108.4 | ||||||||||||
| Selling and Administrative expense, as reported | 144.2 | 143.8 | ||||||||||||
| Share-based compensation expense | 5.4 | 5.6 | ||||||||||||
| Acquisition related expenses | 1.0 | 0.5 | ||||||||||||
| Adjusted Selling and Administrative expense | $ | 137.8 | $ | 137.7 | ||||||||||
| Selling and Administrative expense - % Net revenue | 21.8% | 21.0% | ||||||||||||
| Adjusted Selling and Administrative expense - % Net revenue | 20.9% | 20.1% | ||||||||||||
13
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.
| Three months ended March 31, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Net income, as reported | $ | 34.8 | $ | 45.4 | ||||||||||
| Interest expense | 10.3 | 8.3 | ||||||||||||
| Provision for income tax | 12.3 | 15.9 | ||||||||||||
| Depreciation and amortization | 28.0 | 26.4 | ||||||||||||
| EBITDA | 85.4 | 96.0 | ||||||||||||
| Acquisition related expenses | 1.0 | 0.5 | ||||||||||||
| Share-based compensation expense | 5.7 | 5.9 | ||||||||||||
| Adjusted EBITDA | $ | 92.1 | $ | 102.4 | ||||||||||
| Net profit margin | 5.3 | % | 6.6 | % | ||||||||||
| EBITDA margin | 12.9 | % | 14.0 | % | ||||||||||
| Adjusted EBITDA margin | 13.9 | % | 15.0 | % | ||||||||||
14
INSTALLED BUILDING PRODUCTS, INC.
SUPPLEMENTARY TABLE
(unaudited)
| Three months ended March 31, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Period-over-period Growth | ||||||||||||||
| Consolidated Sales Growth | (3.5) | % | (1.2) | % | ||||||||||
Consolidated Same Branch Sales Growth(1) | (5.9) | % | (4.2) | % | ||||||||||
Installation Segment Sales Growth | ||||||||||||||
Sales Growth(2) | (5.8) | % | (1.3) | % | ||||||||||
Residential Sales Growth(3) | (10.3) | % | (1.7) | % | ||||||||||
Single-Family Sales Growth(4) | (10.1) | % | (1.0) | % | ||||||||||
Multi-Family Sales Growth(5) | (11.0) | % | (4.2) | % | ||||||||||
Commercial Sales Growth(6) | 13.6 | % | (2.3) | % | ||||||||||
Installation Segment Same Branch Sales Growth(1) | ||||||||||||||
Same Branch Sales Growth(2) | (7.0) | % | (3.7) | % | ||||||||||
Volume Growth, Including Heavy Commercial(7)(8)(11) | (9.9) | % | (6.0) | % | ||||||||||
Price/Mix Growth, Including Heavy Commercial(7)(9)(11) | 2.9 | % | 2.3 | % | ||||||||||
Volume Growth, Excluding Heavy Commercial(7)(8)(11) | (10.0) | % | (5.6) | % | ||||||||||
Price/Mix Growth, Excluding Heavy Commercial(7)(9)(11) | (0.1) | % | 1.5 | % | ||||||||||
Residential Same Branch Sales Growth(3) | (11.2) | % | (4.6) | % | ||||||||||
Single-Family Same Branch Sales Growth(4) | (11.3) | % | (4.5) | % | ||||||||||
Multi-Family Same Branch Sales Growth(5) | (11.2) | % | (5.0) | % | ||||||||||
Commercial Same Branch Sales Growth(6) | 10.7 | % | (2.8) | % | ||||||||||
Other Sales Growth (Net of Eliminations) | ||||||||||||||
Sales Growth (10)(11) | 34.8 | % | 1.6 | % | ||||||||||
Same Branch Sales Growth (1)(10)(11) | 13.6 | % | (12.7) | % | ||||||||||
U.S. Housing Market Growth (12) | ||||||||||||||
| Total Completions Growth | (13.6) | % | 1.3 | % | ||||||||||
| Single-Family Completions Growth | (12.3) | % | 4.6 | % | ||||||||||
| Multi-Family Completions Growth | (16.7) | % | (4.2) | % | ||||||||||
(1) Same-branch basis represents period-over-period change in sales for branch locations owned greater than 12 months as of each financial statement date.
(2) Calculated based on period-over-period change in sales of all end markets for our Installation segment,.
(3) Calculated based on period-over-period change in sales in the residential new construction end market for our Installation segment.
(4) Calculated based on period-over-period change in sales in the single-family subset of the residential new construction end market for our Installation segment,
(5) Calculated based on period-over-period change in sales in the multi-family subset of the residential new construction end market for our Installation segment,
(6) Calculated based on period-over-period change in sales in the total commercial end market for our Installation segment, Our commercial end market consists of heavy and light commercial projects.
(7) The heavy commercial end market, a subset of our total commercial end market, comprises projects that are much larger than our average installation job. As such, per-job revenue is much larger than the average job in all other end markets.
(8) Calculated as period-over-period change in the number of completed same-branch jobs within our Installation segment for all markets.
(9) Defined as change in the mix of products sold and related pricing changes and calculated as the change in period-over-period average selling price per same-branch jobs within our Installation segment for all markets we serve, multiplied by total current year jobs. The mix of end customer and product would have an impact on the year-over-year price per job.
15
(10) Calculated based on period-over-period gross sales change, excluding intercompany transactions, in our Other category
which consists of our Manufacturing and Distribution operating segments.
(11) We revised this calculation to exclude certain intercompany sales. Percentages in all periods presented conform to this
revised method.
(12) U.S. Census Bureau data, as revised.
16
INSTALLED BUILDING PRODUCTS, INC.
INCREMENTAL REVENUE AND ADJUSTED EBITDA MARGINS
(unaudited, in millions)
INCREMENTAL REVENUE AND ADJUSTED EBITDA MARGINS
(unaudited, in millions)
| Revenue Increase | ||||||||||||||||||||||||||
| Three months ended March 31, | ||||||||||||||||||||||||||
| 2026 | % Total | 2025 | % Total | |||||||||||||||||||||||
| Same Branch | $ | (40.1) | NMF | $ | (29.0) | NMF | ||||||||||||||||||||
| Acquired | 15.8 | NMF | 21.0 | NMF | ||||||||||||||||||||||
| Total | $ | (24.3) | 100.0 | % | $ | (8.0) | 100.0 | % | ||||||||||||||||||
Adjusted EBITDA Margin Contributions | ||||||||||||||||||||||||||
| Three months ended March 31, | ||||||||||||||||||||||||||
| 2026 | % Margin | 2025 | % Margin | |||||||||||||||||||||||
Same Branch (1) | $ | (12.3) | (30.7) | % | $ | (18.2) | (62.8) | % | ||||||||||||||||||
| Acquired | 2.0 | 12.7 | % | 3.4 | 16.2 | % | ||||||||||||||||||||
| Total | $ | (10.3) | (42.4) | % | $ | (14.8) | NMF | |||||||||||||||||||
(1) Same branch adjusted EBITDA margin contribution percentage is a percentage of same branch revenue increase.
The negative same branch % margin result reflects a decremental margin. NMF - Not meaningful figure.
Source: Installed Building Products, Inc.
Contact Information:
Investor Relations:
614-221-9944
investorrelations@installed.net
17
FAQ
How did Installed Building Products (IBP) perform in Q1 2026?
Installed Building Products’ Q1 2026 net revenue was $660.5 million, down 3.5% year over year. Net income fell to $34.8 million, or $1.29 per diluted share, and adjusted EBITDA declined to $92.1 million with a 13.9% margin, reflecting softer residential demand.
What were the key revenue drivers for IBP in the first quarter of 2026?
Revenue was led by $609.8 million from the Installation segment and $50.7 million from the Other segment. Residential new construction contributed $443.3 million, while commercial installation revenue reached $125.4 million, with commercial growing as residential volumes weakened compared with the prior year.
How did IBP’s margins change in Q1 2026 compared to 2025?
Gross profit margin declined from 32.7% to 32.1%, and adjusted gross margin slipped to 32.2%. Adjusted EBITDA margin decreased from 15.0% to 13.9%, as higher vehicle-related, medical, and liability costs offset price/mix benefits and efficiencies, pressuring overall profitability.
What cash flow and balance sheet trends did IBP report for Q1 2026?
Net cash from operating activities increased 11.1% to $102.3 million. Cash and cash equivalents rose to $474.3 million, while total assets were $2,229.8 million and total liabilities $1,562.3 million, reflecting new Senior Notes, term debt repayment, and continued investment in growth initiatives.
What dividends did Installed Building Products declare in 2026?
IBP declared a first-quarter 2026 dividend of $0.39 per share, paid March 31, 2026. Its board also approved a second-quarter regular cash dividend of $0.39 per share, payable June 30, 2026 to stockholders of record on June 15, representing over 5% growth from last year’s second-quarter dividend.
What acquisition activity did IBP complete during Q1 2026?
During Q1 2026, IBP completed four acquisitions—Biomax Spray Foam Insulation, Thermo-Tech Mechanical Insulation, Northstar Comfort Services, and Waterproofing, Inc. These deals span residential, commercial, and industrial markets and are expected to add approximately $28 million of annual revenue to the company.