Installed Building Products (IBP)
NYSE:IBP
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Installed Building Products
(NYSE:IBP)
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Rating:72Outperform
Price Target:
$317.00
▲(10.89% Upside)
Action:UpgradedDate:02/27/26
IBP scores well on fundamentals, led by strong profitability and cash generation, and is further supported by an earnings call highlighting record margins, strong liquidity, active capital returns, and disciplined leverage. The score is tempered by cyclical top-line pressure in residential markets, mixed near-term technicals, and a relatively high P/E with only a modest dividend yield.
Positive Factors
Strong Free Cash Flow
Sustained, sizable FCF provides durable financial flexibility: funds M&A, buybacks and dividends while supporting branch investment and working capital. High cash conversion versus net income bolsters resilience through construction cycles and underpins shareholder returns and strategic optionality.
Negative Factors
Residential Market Cyclicality
Heavy revenue exposure to new residential construction and production builders creates cyclicality risk: affordability headwinds and lower job volumes can persist for multiple quarters, reducing top-line visibility and pressuring utilization, branch throughput and long-term growth pacing until housing demand recovers.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Free Cash Flow
Sustained, sizable FCF provides durable financial flexibility: funds M&A, buybacks and dividends while supporting branch investment and working capital. High cash conversion versus net income bolsters resilience through construction cycles and underpins shareholder returns and strategic optionality.
Read all positive factors
Installed Building Products (IBP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.71B
Dividend Yield1.2%
Average Volume (3M)348.46K
Price to Earnings (P/E)26.3
Beta (1Y)1.04
Revenue Growth2.12%
EPS Growth3.08%
CountryUS
Employees10,800
SectorConsumer Cyclical
Sector Strength84
IndustryResidential Construction
Share Statistics
EPS (TTM)3.24
Shares Outstanding26,975,174
10 Day Avg. Volume292,243
30 Day Avg. Volume348,456
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 Cap1.11
Enterprise Value/Revenue2.88
Enterprise Value/Gross Profit8.47
Enterprise Value/Ebitda12.11
Forecast
1Y Price Target
$280.57Price Target Upside-1.86% Downside
Rating ConsensusHold
Number of Analyst Covering8
EPS Forecast (FY)11.21
Revenue Forecast (FY)$3.00B
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 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 Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call presented strong operational and financial performance (record gross margins, record adjusted EBITDA, rising operating cash flow, healthy liquidity, active M&A and increased shareholder returns). These positives were balanced against persistent residential headwinds: lower job volumes, weaker entry-level production builder demand, and near-term weather-driven seasonality that will pressure Q1. Management emphasized commercial strength, continued margin discipline, and an active acquisition pipeline, signaling confidence in navigating near-term residential softness.Positive Updates
Record Profitability and Margins
Q4 adjusted gross margin reached a record 35% (up from 33.6% year-ago) and Q4 adjusted EBITDA was a record $142 million with an adjusted EBITDA margin of 19%.
Negative Updates
Residential New Construction Weakness
Full year 2025 Installation residential same-branch sales were down 4%; Q4 new residential same-branch sales declined 9% and production/public builder revenue was down ~6% for the year, reflecting affordability headwinds.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Profitability and Margins
Q4 adjusted gross margin reached a record 35% (up from 33.6% year-ago) and Q4 adjusted EBITDA was a record $142 million with an adjusted EBITDA margin of 19%.
Read all positive updates
Company Guidance
Management did not give comprehensive earnings guidance but provided targeted 2026 metrics: amortization of ~ $10 million in Q1 and ~$38 million for the full year, an expected effective tax rate of 25%–27%, and estimated Q1 interest expense of ~ $11 million (Q4 net interest was $8 million); they expect positive free cash flow to fund shareholder returns and plan to acquire at least $100 million of annual revenue in 2026 (after 11 acquisitions in 2025 adding > $64 million and Q4 deals adding > $23 million). Financial position metrics include $371 million of operating cash flow in the 12 months ended 12/31/25, adjusted ROIC of 24% for 2025, net debt/TTM adjusted EBITDA of ~1.1x (well below the 2x target) and nearly $900 million of available liquidity following a $500 million 5.625% note issuance, repayment of $300 million notes, and an increased $375 million ABL (maturity Jan 2031). They also announced shareholder actions and expected impacts: a new $500 million buyback authorization, Q4 repurchases of 150,000 shares for $38 million (850,000 shares for $173 million in 2025), a Q1 regular dividend of $0.39/share (>5% YoY increase) and a $1.80/share annual variable dividend (nearly 6% increase), plus an estimated ~$20 million weather-related Q1 revenue headwind (Jan–Feb).Installed Building Products Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
66
Positive
Cash Flow
84
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.97B | 2.94B | 2.78B | 2.67B | 1.97B |
| Gross Profit | 1.01B | 994.50M | 930.70M | 827.78M | 589.45M |
| EBITDA | 492.50M | 517.80M | 495.80M | 462.60M | 288.02M |
| Net Income | 265.40M | 256.60M | 243.70M | 223.40M | 118.80M |
Balance Sheet | |||||
| Total Assets | 2.07B | 2.06B | 1.98B | 1.78B | 1.65B |
| Cash, Cash Equivalents and Short-Term Investments | 321.90M | 327.60M | 386.50M | 229.60M | 333.49M |
| Total Debt | 1.05B | 978.30M | 954.80M | 946.00M | 937.38M |
| Total Liabilities | 1.36B | 1.35B | 1.31B | 1.29B | 1.24B |
| Stockholders Equity | 709.90M | 705.30M | 670.30M | 493.50M | 416.84M |
Cash Flow | |||||
| Free Cash Flow | 300.80M | 251.40M | 278.60M | 232.26M | 101.30M |
| Operating Cash Flow | 371.40M | 340.00M | 340.20M | 277.90M | 138.30M |
| Investing Cash Flow | -112.00M | -159.10M | -103.40M | -158.70M | -278.44M |
| Financing Cash Flow | -265.10M | -239.80M | -79.90M | -223.10M | 242.09M |
Installed Building Products Technical Analysis
Positive
285.88
Price Trends
296.70
Negative
284.47
Positive
261.06
Positive
Market Momentum
-4.61
Negative
53.49
Neutral
88.89
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IBP, the sentiment is Positive. The current price of 285.88 is above the 20-day moving average (MA) of 272.46, below the 50-day MA of 296.70, and above the 200-day MA of 261.06, indicating a neutral trend. The MACD of -4.61 indicates Negative momentum. The RSI at 53.49 is Neutral, neither overbought nor oversold. The STOCH value of 88.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IBP.
Installed Building Products Risk Analysis
Installed Building Products disclosed 48 risk factors in its most recent earnings report. Installed Building Products reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Installed Building Products Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $5.72B | 8.21 | 12.83% | ― | 6.98% | 9.74% | |
74 Outperform | $4.38B | 22.24 | 13.58% | ― | 12.14% | 48.68% | |
72 Outperform | $7.71B | 26.29 | 39.12% | 1.20% | 2.12% | 3.08% | |
66 Neutral | $4.01B | 26.87 | 17.14% | ― | 15.81% | 37.89% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $4.45B | 10.29 | 8.65% | 2.62% | -6.06% | -32.39% | |
56 Neutral | $21.84B | 30.47 | 8.04% | 1.91% | -3.78% | -44.21% |
* Consumer Cyclical Sector Average
IBP
Installed Building Products
285.88
119.71
72.04%
CVCO
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517.30
41.83
8.80%
LEN
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88.97
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MTH
Meritage
66.55
3.66
5.83%
SKY
Champion Homes
79.12
-3.50
-4.24%
TMHC
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59.41
3.44
6.15%
Installed Building Products Corporate Events
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 ...
Business Operations and StrategyM&A Transactions
Installed Building Products expands footprint with three acquisitions
Positive
Feb 2, 2026
On February 2, 2026, Installed Building Products announced it had completed three acquisitions: Thermo-Tech Mechanical Insulation, Inc. on February 2, 2026, Biomax Spray Foam Insulation, LLC on January 19, 2026, and CKV Finished Products LLC on De...
Business Operations and StrategyPrivate Placements and Financing
Installed Building Products completes major refinancing and upsizing
Positive
Jan 22, 2026
On January 21, 2026, Installed Building Products completed a private offering of $500 million in 5.625% senior unsecured notes due 2034 and used approximately $308.2 million of the roughly $490 million in net proceeds to fully redeem its outstandi...
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.