IBP · Installed Building Products, Inc.

Installed Building Products reported first quarter 2026 results that reflected headwinds from challenging regional weather conditions and macroeconomic uncertainty impacting U.S. consumer sentiment and new home sales. Net revenue declined 3.5% to $660.5 million, driven by a 5.8% decrease in installation revenue to $609.8 million, partially offset by a 34.8% increase in other revenue (manufacturing and distribution) to $50.7 million. On a same-branch basis, net revenue fell 5.9%, with residential installation same-branch sales down 11.2% while commercial same-branch sales grew 10.7%. Gross profit margin contracted to 32.1% from 32.7% in the prior year, impacted by higher vehicle-related expenses. Adjusted gross profit margin was 32.2%. Selling and administrative expense as a percent of revenue increased to 21.8% from 21.0%, with adjusted SG&A at 20.9% versus 20.1%, driven by higher medical and general liability insurance costs. Net income decreased to $34.8 million ($1.29 per diluted share) from $45.4 million ($1.64 per diluted share) in the prior year quarter. Adjusted net income was $48.4 million ($1.79 per diluted share) compared to $57.6 million ($2.08 per diluted share). Adjusted EBITDA declined 10.1% to $92.1 million, with margin falling to 13.9% from 15.0%. Despite the earnings decline, the company generated strong operating cash flow of $102.3 million, up 11.1% year-over-year. Management noted that the commercial end market remained robust, with heavy commercial sales growth exceeding 20%. The company completed four acquisitions during the quarter, adding approximately $28 million in annual revenue. The Board declared a quarterly cash dividend of $0.39 per share, representing a more than 5% increase from the prior year period, payable on June 30, 2026. Additionally, the company repurchased approximately 91,000 shares for $25.4 million during the quarter.