COLUMBUS, Ohio - Installed Building Products, Inc. (NYSE: NYSE:IBP), a prominent insulation and building products installer, has announced the acquisition of Capital Insulation, LLC and CBS & Mirror, LLC, collectively referred to as Capital. Located in Houston, Texas, Capital serves various construction markets and specializes in installing fiberglass and spray foam insulation for new construction projects.
The acquisition, effective today, brings in over $12 million of annual revenue, bolstering Installed Building Products' existing operations in the Houston area. Jeff Edwards, Chairman and CEO of Installed Building Products, stated that acquisitions are a fundamental aspect of the company's growth strategy. He also mentioned that the company has added over $100 million of annual revenue through acquisitions in 2024 alone and maintains a robust pipeline of opportunities across diverse regions and markets. The company's strong financial position is evident in its healthy current ratio of 2.99 and revenue growth of 6.1% over the last twelve months. InvestingPro analysis reveals 10+ additional insights about IBP's financial health and growth prospects.
Capital's integration into Installed Building Products is expected to contribute to the company's expansion and reinforce its market position in the building product installation industry. The acquisition aligns with the company's ongoing efforts to diversify its product offerings and services, as well as to extend its national footprint. With a robust EBITDA of $487.4 million and a return on equity of 38%, IBP demonstrates strong operational efficiency. For detailed analysis and comprehensive insights, investors can access the full Pro Research Report available on InvestingPro, which covers over 1,400 US stocks.
The press release also contained forward-looking statements regarding the company's market and financial projections, including expectations for demand and earnings. These statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those projected.
Installed Building Products, Inc. is one of the largest residential insulation installers in the United States and provides a range of installation services for various building products. The company operates in all 48 continental states and the District of Columbia through over 250 branch locations.
The information in this article is based on a press release statement from Installed Building Products, Inc.
In other recent news, Installed Building Products (IBP) has experienced significant developments. The company reported a record net revenue of $761 million in Q3 2024, marking an 8% increase from the previous year. This robust growth was attributed to organic expansion across all end markets, with significant contributions from national production builders and resilient multifamily sales. Additionally, the company's adjusted EBITDA reached a new high of $132 million, with adjusted net income reported at $80 million.
On a different note, Seaport Global Securities has downgraded IBP's stock from Buy to Neutral due to expectations of a moderation in housing starts. Seaport anticipates growth from the largest public builders to be in the low to mid-single digits, with private builders projected to grow less. This outlook is set against a backdrop of increasing new home supply, which is currently 30% above the long-term average according to Census data.
These recent developments reflect a combination of strong financial performance and cautious market outlook. While IBP has demonstrated resilience in its financial results, analysts at Seaport Global Securities have expressed concerns over the housing market's trajectory, prompting a more conservative stance.
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