Installed Building Products reports 3.1% revenue increase in Q2

COLUMBUS - Installed Building Products, Inc. (NYSE:IBP), a major installer of insulation and complementary building products with a market capitalization of $5.8 billion, reported a 3.1% increase in second-quarter revenue to a record $760.3 million, up from $737.6 million in the same period last year. According to InvestingPro analysis, the company currently trades at a P/E ratio of 24.1x and shows strong momentum with a 22.6% year-to-date return.

Net income for the quarter ended June 30, 2025, rose 5.8% to $69.0 million, or $2.52 per diluted share, compared to $65.2 million, or $2.30 per diluted share, in the second quarter of 2024. The company’s adjusted EBITDA increased 3.2% to $134.0 million.

Installation revenue, which represents the bulk of IBP’s business, grew 2.6% to $715.6 million, including contributions from recent acquisitions. On a same-branch basis, residential sales within the Installation segment declined 1.1%, while commercial same-branch sales increased 9.3%.

The company maintained strong cash flow, with net cash from operations increasing 14.3% to $90.3 million. As of June 30, IBP held $305.2 million in cash and cash equivalents.

During the quarter, IBP repurchased 300,000 shares of common stock at a total cost of $49.2 million and paid a quarterly dividend of $0.37 per share. The company’s Board of Directors has declared a third-quarter dividend of $0.37 per share, payable September 30 to shareholders of record on September 15, representing a 6% increase from last year’s third-quarter dividend.

In May, IBP acquired Pro Foamers, Inc., a Wisconsin-based installer of spray foam and air barrier products in the commercial market with annual revenue of $4 million. The company stated it continues to focus on acquiring at least $100 million of annual revenue.

According to the press release statement, IBP expects housing affordability to remain a challenge in the near term but remains confident in the long-term fundamentals of the U.S. housing industry.

In other recent news, Installed Building Products reported its first-quarter earnings for 2025, revealing a slight miss on earnings per share (EPS) but surpassing revenue expectations. The company’s EPS was $2.08, falling short of the forecasted $2.23, while revenue reached $684.8 million, exceeding the forecast of $681.4 million. Despite the earnings miss, the revenue performance was a positive development for the company. Analyst firms have adjusted their outlooks in response to these results. Jefferies maintained a Market Perform rating but raised its price target to $175, noting that risks in the building products sector apply less to IBP compared to its competitors. Loop Capital, while cutting its price target to $200 from $210, kept a Buy rating, citing cautious demand in the residential sector. DA Davidson also maintained a Buy rating with a $225 price target, highlighting the company’s resilience in sales despite a slight year-over-year decline. The firm noted challenges with increased operating expenses but emphasized IBP’s relative stability in the market.

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