Installed Building Products (NYSE:IBP) Issues Earnings Results

Installed Building Products (NYSE:IBP) released its quarterly earnings results on Thursday. The construction company reported $3.24 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.83 by $0.41, FiscalAI reports. The company had revenue of $747.50 million for the quarter, compared to analysts’ expectations of $738.97 million. Installed Building Products had a net margin of 8.93% and a return on equity of 44.40%. The firm’s revenue for the quarter was down .4% compared to the same quarter last year. During the same period last year, the company earned $2.88 EPS.

Here are the key takeaways from Installed Building Products’ conference call:

• Company delivered record profitability and cash generation in FY2025 with adjusted gross margin of 35%, Adjusted EBITDA of $142M, $371M cash from operations and a conservative leverage position (net debt / EBITDA ~1.1x) giving strong financial flexibility.
• Commercial and heavy commercial end markets were a major growth driver (heavy commercial same-branch sales +38% in Q4), with growing commercial backlogs and improved complementary-product penetration supporting margins.
• Core residential installation faced headwinds: full-year same-branch residential sales down ~4% and new single-family starts weak due to affordability, plus an estimated ~$20M Q1 weather-related revenue impact that could pressure near-term results.
• Management is staying acquisitive and shareholder-friendly—11 acquisitions in 2025 (~$64M revenue), guidance to acquire at least $100M of annual revenue in 2026, a new $500M buyback authorization, and a higher variable dividend—supported by ~$900M available liquidity after recent debt transactions.
• Looking ahead, management expects full-year gross margins around the 32–34% range but warned of continued price/cost pressure in the production builder segment, higher 2026 amortization (~$38M) and some incremental interest/first-quarter headwinds from recent financing.

Installed Building Products Trading Up 1.9%

Shares of Installed Building Products stock traded up $6.26 during trading hours on Friday, reaching $328.27. The stock had a trading volume of 596,189 shares, compared to its average volume of 348,363. The firm has a market capitalization of $8.90 billion, a price-to-earnings ratio of 33.74, a P/E/G ratio of 7.51 and a beta of 1.92. Installed Building Products has a 1 year low of $150.83 and a 1 year high of $349.00. The company has a current ratio of 2.78, a quick ratio of 2.28 and a debt-to-equity ratio of 1.25. The firm has a 50 day simple moving average of $300.63 and a two-hundred day simple moving average of $274.28.

Installed Building Products Announces Dividend

The company also recently disclosed a special dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Friday, March 13th will be issued a $1.80 dividend. This represents a dividend yield of 56.0%. The ex-dividend date is Friday, March 13th. Installed Building Products’s dividend payout ratio (DPR) is 15.93%.

Analyst Ratings Changes

Several analysts have commented on the stock. Evercore set a $265.00 target price on shares of Installed Building Products in a research note on Thursday, November 6th. JPMorgan Chase & Co. restated an “underweight” rating and set a $245.00 price objective on shares of Installed Building Products in a report on Tuesday, January 13th. Vertical Research upgraded Installed Building Products from a “sell” rating to a “hold” rating and set a $326.00 target price for the company in a research note on Friday. Wells Fargo & Company reduced their target price on Installed Building Products from $355.00 to $340.00 and set an “equal weight” rating on the stock in a research report on Friday. Finally, Jefferies Financial Group raised their price target on Installed Building Products from $230.00 to $259.00 and gave the stock a “hold” rating in a research note on Monday, December 15th. One analyst has rated the stock with a Buy rating, eleven have assigned a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Reduce” and a consensus target price of $249.75.

Key Installed Building Products News

Here are the key news stories impacting Installed Building Products this week:

• Positive Sentiment: Q4 earnings and revenue beat expectations: IBP reported $3.24 EPS vs. consensus ~$2.83 and revenue of $747.5M (slightly down y/y), with the company saying it delivered record fourth‑quarter and FY2025 profitability — a core reason investors are buying the stock. Business Wire — IBP Q4 Results
• Positive Sentiment: Company announced a special cash dividend of $1.80 per share (ex‑dividend/record date reported as March 13; pay date March 31), representing an outsized yield headline that can attract income-focused buyers and help explain intraday strength.
• Positive Sentiment: Market commentary and headlines highlighting the beat and “stock soars” narrative amplified the move; several outlets ran summaries and call transcripts that increased investor attention. Yahoo Finance — Stock Soars
• Neutral Sentiment: Analyst actions are mixed: Wells Fargo trimmed its target from $355 to $340 but kept an “equal weight” rating (small upside vs. the current price), while Vertical Research upgraded IBP from “sell” to “hold” with a $326 target — both are essentially neutral to only mildly supportive. Benzinga / Finviz — Analyst Notes
• Negative Sentiment: Royal Bank of Canada raised its price target to $255 but maintained an “underperform” rating — that $255 PT implies material downside vs. the current price and introduces a meaningful bearish signal that could cap upside or prompt profit‑taking. Benzinga — RBC Note

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. Integrated Wealth Concepts LLC acquired a new stake in shares of Installed Building Products in the third quarter worth $223,000. Vident Advisory LLC boosted its position in Installed Building Products by 7.8% during the 2nd quarter. Vident Advisory LLC now owns 1,329 shares of the construction company’s stock worth $240,000 after purchasing an additional 96 shares during the period. Mercer Global Advisors Inc. ADV acquired a new stake in Installed Building Products in the 4th quarter valued at $243,000. iSAM Funds UK Ltd acquired a new stake in Installed Building Products in the 3rd quarter valued at $257,000. Finally, Quantitative Investment Management LLC purchased a new position in Installed Building Products in the third quarter valued at about $265,000. Hedge funds and other institutional investors own 99.61% of the company’s stock.

About Installed Building Products

Installed Building Products, Inc (NYSE: IBP) is a leading national installer of specialty building products serving the U.S. residential construction market. The company partners with homebuilders and contractors to deliver a comprehensive range of interior and exterior finishing services, including insulation, drywall finishing, protective coatings and basement waterproofing systems. By offering a single-source solution, Installed Building Products helps streamline project coordination and ensures consistent service quality across multiple trades.

Founded in 1977 and headquartered in Columbus, Ohio, Installed Building Products has expanded from a regional insulation installer into a nationwide platform operating in nearly every state.