Installed Building Products (IBP) AI Stock Analysis

• Market Cap: $8.68B
• Dividend Yield: 1.2%
• Average Volume (3M): 296.05K
• Price to Earnings (P/E): 34.4
• Beta (1Y): 1.03
• Revenue Growth: 2.12%
• EPS Growth: 3.08%
• Country: US
• Employees: 10,800
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Residential Construction
• EPS (TTM): 3.24
• Shares Outstanding: 27,125,357
• 10 Day Avg. Volume: 290,314
• 30 Day Avg. Volume: 296,052
• PEG Ratio: 3.94
• Price to Book (P/B): 9.83
• Price to Sales (P/S): 2.35
• P/FCF Ratio: 23.20
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 2.95
• Enterprise Value/Gross Profit: 8.68
• Enterprise Value/Ebitda: 31.09
• 1Y Price Target: $288.00
• Price Target Upside: -10.56% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): 10.96
• Revenue Forecast (FY): $3.00B

• Rating: 72 Outperform
• Price Target: $334.00 ▲(3.72% Upside)
• Action: Upgraded Date: 02/27/26
• Date: Action: Upgraded 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 Cash Generation

Sustained, substantial operating and free cash flow provides durable funding for acquisitions, buybacks, and dividends while buffering cyclical revenue swings. High cash conversion supports reinvestment in branches and distribution, enabling long-term growth and financial flexibility.

Record Profitability and Margins

Elevated and improving gross and EBITDA margins reflect disciplined pricing, mix gains and operational leverage. Sustained margin expansion increases earnings resilience during volume downturns and supports return-on-capital targets, reinforcing the company's long-term profitability profile.

Strong Liquidity & M&A Firepower

Robust liquidity and conservative net leverage versus the 2x target give management room to pursue strategic acquisitions and shareholder returns without stressing near-term operations. Extended maturities and an upsized ABL enhance optionality and reduce refinancing timing risk.

Negative Factors

Residential Demand Weakness

IBP's core exposure to single-family and production builders makes revenue and job volumes sensitive to housing affordability and cyclical downturns. Prolonged weakness compresses utilization and limits organic growth, making long-term performance reliant on successful diversification and M&A.

Meaningful Leverage on Balance Sheet

Elevated leverage increases sensitivity to rising rates or prolonged demand weakness, constraining strategic flexibility. While net debt/EBITDA sits near 1.1x, underlying debt relative to equity heightens refinancing and covenant risk if cash flow weakens, pressuring long-term resilience.

Higher Interest & Amortization from Acquisitions

Incremental interest and acquisition-related amortization raise fixed costs and reduce headline free cash flow over time. These recurring expenses make earnings and cash returns more dependent on successful integration and sustained revenue from acquired businesses, elevating execution risk.

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 Manufacturing Operations. The company offers a range of insulation materials, such as fiberglass and cellulose, and spray foam insulation materials. It is also involved in the installation of insulation and sealant materials in various areas of a structure, which includes basement and crawl space, building envelope, attic, and acoustical applications. In addition, the company installs a range of caulk and sealant products that control air infiltration in residential and commercial buildings; basic sliding door and complex custom designs; and custom designed mirrors, as well as closet shelving systems. Further, it installs and services garage doors and openers, including steel, aluminum, wood, and vinyl garage doors, as well as opener systems; installs waterproofing and caulking and moisture protection systems; offers sheet and hot applied waterproofing membrane, deck coating, bentonite, and air and vapor systems; and provides rain gutters installation services. Additionally, the company provides fire-stopping systems, including fire-rated joint assemblies, perimeter fire containment, and smoke and fire containment systems installation services; and cordless blinds, shades, and shutters installation services, as well as other complementary building products. It also distributes products and materials purchased wholesale from manufacturers, such as spray foam insulation, metal building insulation, residential insulation, and mechanical and fabricated Styrofoam insulation; and insulation products, including equipment, machines, and services. The company was formerly known as CCIB Holdco, Inc. Installed Building Products, Inc. was founded in 1977 and is based in Columbus, Ohio.

How the Company Makes Money

IBP generates revenue primarily through the installation of insulation and other building materials. The company's revenue model is based on service contracts with homebuilders and general contractors, where they charge for both materials and labor associated with the installation process. Key revenue streams include residential insulation, commercial insulation, and the installation of various building products such as gutters and garage doors. Significant partnerships with manufacturers and suppliers allow IBP to source quality materials at competitive prices, enhancing their profitability. Additionally, IBP benefits from the growing demand for energy-efficient building solutions, which drives increased sales and expands their market presence.

Installed Building Products Financial Statement Overview

Summary

Strong profitability and cash generation support the score (solid margins and robust TTM operating/free cash flow). Offsetting factors are the recent TTM revenue decline and elevated leverage risk on the balance sheet.

Income Statement

Profitability remains solid, with TTM (Trailing-Twelve-Months) gross margin around 33.6% and net margin near 8.6%, broadly consistent with the last several years and well above 2020–2021 levels. Earnings power also looks resilient with EBIT margin holding in the low-teens. The main concern is growth: TTM (Trailing-Twelve-Months) revenue declined about 9.1% versus the prior period after multiple years of positive growth, signaling a softer top-line environment.

Balance Sheet

The company generates strong returns on shareholder capital (TTM (Trailing-Twelve-Months) return on equity ~37.8%), but the balance sheet is meaningfully levered with debt running around 1.45x equity in TTM (Trailing-Twelve-Months) (and generally elevated in prior years as well). Equity has improved versus 2020–2022, which helps stability, yet leverage remains a key risk if residential demand weakens or financing costs rise.

Cash Flow

Cash generation is a clear strength. TTM (Trailing-Twelve-Months) operating cash flow (~$646M) and free cash flow (~$519M) are materially higher than recent annual levels, and free cash flow remains substantial relative to net income (TTM (Trailing-Twelve-Months) free cash flow is about 71% of net income). A watch item is volatility: free cash flow growth swung sharply in TTM (Trailing-Twelve-Months), following a weaker 2024, suggesting cash flow can be lumpy year to year.

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	281.90M	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	991.70M	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	0.00	-239.80M	-79.90M	-223.10M	242.09M

Installed Building Products Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 322.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IBP, the sentiment is Neutral. The current price of 322.01 is above the 20-day moving average (MA) of 318.22, above the 50-day MA of 296.03, and above the 200-day MA of 244.22, indicating a neutral trend. The MACD of 6.33 indicates Positive momentum. The RSI at 42.91 is Neutral, neither overbought nor oversold. The STOCH value of 24.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IBP.

Installed Building Products Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TMHC	77 Outperform	$6.44B	8.42	12.87%	―	6.98%	9.74%
IBP	72 Outperform	$8.68B	34.45	36.66%	1.20%	2.12%	3.08%
SKY	71 Outperform	$5.27B	24.70	13.69%	―	12.14%	48.68%
CVCO	66 Neutral	$4.58B	25.22	17.18%	―	15.81%	37.89%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
LEN	60 Neutral	$28.50B	14.58	8.26%	1.91%	-3.78%	-44.21%
MTH	60 Neutral	$5.18B	12.20	8.76%	2.62%	-6.06%	-32.39%

Installed Building Products Corporate Events

Installed Building Products Reports Record 2025 Profitability, Boosts Payouts

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 rose 14.5% to a quarterly record $76.6 million, adjusted EBITDA increased 7.7% to a record $142.2 million, margins expanded, and the company ended 2025 with $321.9 million in cash after repurchasing $210.2 million of stock for the year.

The board approved a higher first-quarter 2026 regular dividend of $0.39 per share and a $1.80 annual variable dividend, both payable March 31, 2026, and authorized a new $500 million share repurchase program through March 1, 2027, underscoring a shareholder-friendly capital allocation strategy. IBP also closed $500 million of 5.625% senior unsecured notes due 2034, upsized and extended its ABL facility, received initial credit ratings from Fitch, and advanced its acquisition program with 11 deals in 2025 and additional transactions through February 2026, positioning the company for continued growth despite near-term homebuilding headwinds.

The most recent analyst rating on (IBP) stock is a Hold with a $355.00 price target. To see the full list of analyst forecasts on Installed Building Products stock, see the IBP Stock Forecast page.

Installed Building Products expands footprint with three acquisitions

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 December 11, 2025. The acquired companies collectively contribute more than $22 million in annual revenue and extend IBP’s reach in key regional residential, commercial and industrial markets across the Midwest, South and Southwest, adding mechanical insulation services, spray foam and fiberglass insulation, and complementary interior building products such as shower doors, shelving, mirrors, bath accessories and locksets. Management framed these deals as part of its ongoing acquisition-led growth strategy to broaden IBP’s national footprint, diversify products and end markets, and strengthen its revenue and cash flow profile.

The most recent analyst rating on (IBP) stock is a Hold with a $329.00 price target. To see the full list of analyst forecasts on Installed Building Products stock, see the IBP Stock Forecast page.

Installed Building Products completes major refinancing and upsizing

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 outstanding 5.75% senior unsecured notes due 2028, which were redeemed on January 22, 2026, thereby satisfying and discharging the related 2019 indenture. The company also amended and upsized its asset-based revolving credit facility from $250 million to $375 million, extended its maturity to January 21, 2031, and put in place an updated intercreditor agreement, moves that collectively extend IBP’s debt maturity profile, enhance borrowing capacity and liquidity, and provide greater financial flexibility and access to capital while subjecting the company to customary covenants and security arrangements under the new notes and ABL structure.

The most recent analyst rating on (IBP) stock is a Hold with a $336.00 price target. To see the full list of analyst forecasts on Installed Building Products stock, see the IBP Stock Forecast page.

Installed Building Products Prices $500 Million Senior Notes

On January 7, 2025, Installed Building Products announced it had priced a private offering of $500 million in 5.625% senior unsecured notes due 2034, with closing expected on or about January 21, 2026, for sale to qualified institutional buyers in the U.S. and certain investors abroad. The company plans to use the proceeds primarily to redeem in full its outstanding 5.75% senior unsecured notes due 2028, cover related fees and expenses, and fund general corporate purposes, a move that refinances its debt profile and may modestly lower interest costs while extending maturities, potentially strengthening its capital structure for future operations and growth initiatives.

The most recent analyst rating on (IBP) stock is a Hold with a $245.00 price target. To see the full list of analyst forecasts on Installed Building Products stock, see the IBP Stock Forecast page.

Installed Building Products Announces $500 Million Notes Offering

On January 6, 2025, Installed Building Products announced it had launched a private offering of $500 million in senior unsecured notes due 2034, with proceeds intended primarily to fund the conditional full redemption of its outstanding 5.75% senior unsecured notes due 2028, cover related fees and expenses, and support general corporate purposes. The transaction, which is limited to qualified institutional buyers and certain offshore investors and remains subject to market and other conditions, is set to refinance existing debt and could extend the company’s maturity profile and provide added financial flexibility, potentially strengthening its balance sheet and supporting ongoing operations and growth initiatives.

The most recent analyst rating on (IBP) stock is a Hold with a $245.00 price target. To see the full list of analyst forecasts on Installed Building Products stock, see the IBP Stock Forecast page.