Installed Building Products (IBP)
NYSE:IBP
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Installed Building Products
(NYSE:IBP)
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Rating:55Neutral
Price Target:
$210.00
▼(-29.44% Downside)
Action:Reiterated
Date:05/21/26
IBP scores mid-range primarily due to solid underlying profitability and supportive earnings-call fundamentals (cash generation, liquidity, shareholder returns, and M&A plans), but the score is held down by a strongly bearish technical setup and a high P/E valuation. Near-term operating risks remain centered on residential demand weakness and cost-driven margin pressure.
Positive Factors
Commercial / Heavy-Commercial Strength
Sustained outperformance in commercial and heavy-commercial end markets provides durable revenue diversification versus volatile single-family demand. Strong heavy-commercial growth and backlog enhance multi-quarter visibility, support higher utilization of specialized crews, and reduce reliance on cyclical homebuilding volumes.
Negative Factors
Residential New Single-Family Weakness
Material exposure to new single-family construction ties a meaningful portion of revenue to homebuilding cycles. Sustained weakness in production/entry-level builders lowers volumes, reduces fixed-cost absorption, and can compress margins and cash conversion across multiple quarters if demand recovery is slow.
Read all positive and negative factors
Positive Factors
Negative Factors
Commercial / Heavy-Commercial Strength
Sustained outperformance in commercial and heavy-commercial end markets provides durable revenue diversification versus volatile single-family demand. Strong heavy-commercial growth and backlog enhance multi-quarter visibility, support higher utilization of specialized crews, and reduce reliance on cyclical homebuilding volumes.
Read all positive factors
Installed Building Products Key Performance Indicators (KPIs)
Any
Installation Same Branch Sales Growth Breakdown
Analyzes sales growth within existing branches, highlighting organic growth and the effectiveness of local strategies and customer retention.
Analyzes sales growth within existing branches, highlighting organic growth and the effectiveness of local strategies and customer retention.
Data provided by:
The Fly
The FlyInstalled Building Products (IBP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.77B
Dividend Yield1.2%
Average Volume (3M)482.77K
Price to Earnings (P/E)51.0
Beta (1Y)0.88
Revenue Growth0.45%
EPS Growth6.77%
CountryUS
Employees10,800
SectorConsumer Cyclical
Sector Strength84
IndustryResidential Construction
Share Statistics
EPS (TTM)9.43
Shares Outstanding26,940,710
10 Day Avg. Volume647,680
30 Day Avg. Volume482,775
Financial Highlights & Ratios
PEG Ratio3.94
Price to Book (P/B)9.83
Price to Sales (P/S)2.35
P/FCF Ratio23.20
Enterprise Value/Market Cap1.12
Enterprise Value/Revenue2.20
Enterprise Value/Gross Profit6.56
Enterprise Value/Ebitda9.29
Forecast
1Y Price Target
$247.44Price Target Upside-16.86% Downside
Rating ConsensusHold
Number of Analyst Covering9
EPS Forecast (FY)10.19
Revenue Forecast (FY)$2.96B
Installed Building Products Business Overview & Revenue Model
Company Description
Installed Building Products, Inc., together with its subsidiaries, engages in the installation of insulation for residential and commercial builders in the United States. It operates through three segments: Installation, Distribution, and Manufact...
How the Company Makes Money
IBP makes money primarily by selling and installing building products for homebuilders, multifamily developers, and commercial customers. Its core revenue model is project-based contracting: IBP (1) wins work from builders and general contractors,...
Installed Building Products Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: clear strengths in commercial and heavy-commercial performance, strong operating cash flow, ample liquidity, an active M&A pipeline, and shareholder returns initiatives. These positives were contrasted with notable near-term headwinds: weaker residential/new-single-family demand, a meaningful volume decline (partly weather-driven), margin pressure from rising insurance, vehicle and fuel costs, and some project slowdowns. Management expressed confidence in the long-term fundamentals, expects further M&A activity, and reaffirmed a full-year gross margin range (32%–34%), but acknowledged persistent cost pressures that could pressure quarterly results.Positive Updates
Solid commercial and heavy-commercial growth
Commercial same-branch sales increased 11% year-over-year in Q1, with heavy commercial outperforming (more than 20% growth, cited as ~22% in comments). Heavy commercial backlog growth positions that end market for continued strength in 2026.
Negative Updates
Consolidated revenue and same-branch declines
Consolidated net revenue decreased 4% to $661 million in Q1 (from $685M prior year); consolidated same-branch sales declined ~6% and Installation-segment same-branch sales declined 7%.
Read all updates
Q1-2026 Updates
Positive
Negative
Solid commercial and heavy-commercial growth
Commercial same-branch sales increased 11% year-over-year in Q1, with heavy commercial outperforming (more than 20% growth, cited as ~22% in comments). Heavy commercial backlog growth positions that end market for continued strength in 2026.
Read all positive updates
Company Guidance
Management said it was not providing comprehensive guidance but gave several forward-looking estimates and key metrics: Q2 amortization ~ $10M and full‑year 2026 amortization ~ $40M (subject to change with acquisitions), an expected effective tax rate of 25%–27% for FY‑2026, Q2 net interest expense of ~ $10M, and an expected $15M–$20M incremental other COGS headwind from fuel for the remainder of the year; they expect to acquire at least $100M of annual revenue in 2026, will continue to target positive free cash flow to support dividends and opportunistic buybacks (Q1 repurchases ~91k shares for $25M, $475M remaining authorization through Mar 1, 2027), and declared a Q2 dividend of $0.39/share (payable Jun 30, >5% YoY increase). For context, Q1 results included consolidated revenue of $661M (down 4%), adjusted EBITDA $92M (13.9% margin), adjusted net income $48M ($1.79/sh), adjusted gross margin 32.2%, cash on hand ~$474M, net debt / LTM adj. EBITDA 1.2x (target <2x), working capital (ex‑cash) $346M, and Q1 operating cash flow $102M (up 11% YoY).Installed Building Products Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
63
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.95B | 2.97B | 2.94B | 2.78B | 2.67B | 1.97B |
| Gross Profit | 987.40M | 1.01B | 994.50M | 930.70M | 827.78M | 589.45M |
| EBITDA | 697.10M | 492.50M | 517.80M | 495.80M | 462.60M | 288.02M |
| Net Income | 254.80M | 265.40M | 256.60M | 243.70M | 223.40M | 118.80M |
Balance Sheet | ||||||
| Total Assets | 2.23B | 2.07B | 2.06B | 1.98B | 1.78B | 1.65B |
| Cash, Cash Equivalents and Short-Term Investments | 474.30M | 321.90M | 327.60M | 386.50M | 229.60M | 333.49M |
| Total Debt | 1.18B | 1.05B | 978.30M | 954.80M | 946.00M | 937.38M |
| Total Liabilities | 1.56B | 1.36B | 1.35B | 1.31B | 1.29B | 1.24B |
| Stockholders Equity | 667.50M | 709.90M | 705.30M | 670.30M | 493.50M | 416.84M |
Cash Flow | ||||||
| Free Cash Flow | 63.10M | 300.80M | 251.40M | 278.60M | 232.26M | 101.30M |
| Operating Cash Flow | 75.10M | 371.40M | 340.00M | 340.20M | 277.90M | 138.30M |
| Investing Cash Flow | -47.10M | -112.00M | -159.10M | -103.40M | -158.70M | -278.44M |
| Financing Cash Flow | -74.80M | -265.10M | -239.80M | -79.90M | -223.10M | 242.09M |
Installed Building Products Technical Analysis
Negative
297.64
Price Trends
265.87
Negative
284.37
Negative
271.07
Negative
Market Momentum
-19.91
Positive
37.48
Neutral
74.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IBP, the sentiment is Negative. The current price of 297.64 is above the 20-day moving average (MA) of 243.01, above the 50-day MA of 265.87, and above the 200-day MA of 271.07, indicating a bearish trend. The MACD of -19.91 indicates Positive momentum. The RSI at 37.48 is Neutral, neither overbought nor oversold. The STOCH value of 74.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IBP.
Installed Building Products Risk Analysis
Installed Building Products disclosed 48 risk factors in its most recent earnings report. Installed Building Products reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Installed Building Products Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $3.91B | 21.27 | 17.55% | ― | 11.36% | 15.51% | |
70 Outperform | $3.93B | ― | 13.58% | ― | 7.26% | 6.61% | |
68 Neutral | $4.28B | 18.83 | 7.40% | 2.62% | -10.63% | -45.01% | |
68 Neutral | $5.42B | 13.92 | 10.85% | ― | -8.99% | -22.26% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | $21.82B | 30.47 | 8.04% | 1.91% | -7.52% | -49.33% | |
55 Neutral | $5.77B | 51.05 | 37.46% | 1.20% | 0.45% | 6.77% |
* Consumer Cyclical Sector Average
IBP
Installed Building Products
217.13
56.44
35.13%
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LEN
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MTH
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SKY
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TMHC
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Installed Building Products Corporate Events
Executive/Board ChangesShareholder Meetings
Installed Building Products Shareholders Approve Directors and Auditor
Positive
May 20, 2026
At its 2026 Annual Meeting, Installed Building Products reported that 26,938,333 common shares were entitled to vote as of the March 23, 2026 record date, and stockholders elected three directors — Michael T. Miller, Marchelle E. Moore and R...
Business Operations and StrategyStock BuybackM&A Transactions
Installed Building Products Expands with Diamond Energy Acquisition
Positive
May 19, 2026
Installed Building Products, Inc., an industry-leading installer of insulation and complementary building products for residential and commercial builders across the continental U.S., has expanded its portfolio with a focus on mechanical insulatio...
Business Operations and StrategyExecutive/Board ChangesStock BuybackDividendsFinancial Disclosures
Installed Building Products Posts Lower Q1 Results, Raises Dividend
Negative
May 7, 2026
Installed Building Products reported that first-quarter 2026 net revenue fell 3.5% year over year to $660.5 million, with installation revenue down 5.8% and other revenue up 34.8%, while net income declined to $34.8 million, or $1.29 per diluted s...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresPrivate Placements and Financing
Installed Building Products Reports Record 2025 Profitability, Boosts Payouts
Positive
Feb 26, 2026
Installed Building Products reported record profitability for the fourth quarter and full year 2025 on February 26, 2026, despite a 0.4% year-over-year decline in quarterly net revenue to $747.5 million as residential markets softened. Net income ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.