Following my coverage on Installed Building Products, Inc. (NYSE: IBP ) in September ’23, in which I recommended a buy rating due to my expectation that the demand outlook was solid and IBP should ride on thatI take a fundamentals-based approach to value investing.I disagree with the common misconception held by many investors that low multiple stocks must be cheap. I look for companies that offer the best long-term durability at the most affordable prices. Consequently, I have a propensity to be drawn to c ...

Installed Building Products IBP is currently in Phase 17 of its 18-phase Adhishthana cycle. While the stock's rally may appear strong for now, a closer look under the Adhishthana framework raises questions about its sustainability over the long term.Weak Guna Triads Limit Upside Potential for Installed Building ProductsFig.1 Installed Building Products Adhishthana Guna Triads (Source: Adhishthana.com)In the Adhishthana framework, Phases 14, 15, and 16 are collectively known as the Guna Triads. These are piv ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period From _________ To ________ Commission File Number: 001-36307 Installed Building Products, Inc. (Exact name of registrant as specified in its charter) Delaware 45-3707650 (State or other jurisdiction of incorporation or orga ...

Installed Building Products (IBP) Q2 2025 Earnings Call August 07, 2025 10:00 AM ET Speaker0a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Darren Hicks, Vice President of Investor Relations.Thank you, sir. You may begin.Speaker1Good morning, and welcome to Installed Building Products' Second Quarter twenty twenty five Earnings Conference Call. Earlier today, we issued a press release on our financial results for the second quarter, which can be found in the Inve ...

INVESTOR PRESENTATION INSTALLED BUILDING PRODUCTS Q2 2025 NYSE: IBP AUG 7, 2025 Safe Harbor This presentation contains "forward-looking statements" as defined under U.S. federal securities laws. Forward -looking statements are generally identified by the use of the words "will," "may," "believes," "expects," "forecast," "intends," "anticipates," "projects," "outlook," "target," "plans" and "seeks," and, in each case their negative, and other variations or comparable terminology. Forward-looking statements a ...

INSTALLED BUILDING PRODUCTS REPORTS RECORD SECOND QUARTER 2025 RESULTS; DECLARES REGULAR QUARTERLY CASH DIVIDEND Columbus, Ohio, August 7, 2025, Installed Building Products, Inc. (the "Company" or "IBP") (NYSE: IBP), an industry-leading installer of insulation and complementary building products, today announced results for the second quarter ended June 30, 2025. Second Quarter 2025 Highlights (Comparisons are to Prior Year Period) Recent Developments • IBP's Board of Directors declared the third quarter re ...

Core Viewpoint - Three stocks have been added to the Zacks Rank 5 (Strong Sell) List, indicating a negative outlook for these companies based on recent earnings estimate revisions. Group 1: Company Specifics - ARMOUR Residential REIT, Inc. (ARR) invests in residential mortgage-backed securities, with a Zacks Consensus Estimate for its current year earnings revised downward by 6.1% over the last 60 days [1] - Goosehead Insurance, Inc. (GSHD), the holding company for Goosehead Financial, LLC, has seen its Zacks Consensus Estimate for current year earnings revised downward by 1.6% over the last 60 days [1] - Installed Building Products, Inc. (IBP) is a leading installation contractor for insulation in residential and commercial sectors, with its Zacks Consensus Estimate for current year earnings revised downward by 2.1% over the last 60 days [2]

Group 1 - Installed Building Products, Inc. (IBP) is a leading installer of insulation, waterproofing, fireproofing, and other complementary building products for commercial and residential construction projects in the US [1] - The company has experienced substantial revenue growth [1] Group 2 - The analyst has no current stock, option, or similar derivative position in any of the companies mentioned but may initiate a beneficial long position in IBP within the next 72 hours [2] - The article expresses the author's own opinions and is not receiving compensation for it [2]

Financial Performance - Net revenue for the three months ended March 31, 2025, decreased by 1.2% to $684.8 million compared to the same period in 2024, primarily due to a 5.6% decrease in Installation segment volume[113] - Gross profit for the same period decreased by 4.6% to $223.7 million, with a gross profit percentage of 32.7%, down from 33.8% in 2024, mainly due to higher material and fixed vehicle costs[123] - Same branch sales from the residential end markets decreased by 4.6% for the three months ended March 31, 2025, with single-family sales growth down by 1.0% and multi-family sales growth down by 4.2%[123] - Operating expenses increased, with selling expenses rising by 6.3% to $35.4 million and administrative expenses increasing by 5.7% to $108.4 million, attributed to wage inflation and acquisitions[125][127] - Interest expense decreased by 30.3% to $8.3 million due to prior year term loan repricing, despite a decrease in interest income on money market accounts[129] - The effective tax rate for the three months ended March 31, 2025, was 25.9%, slightly down from 26.8% in 2024, impacted by non-deductible expenses[130] Shareholder Returns - The company returned $91.6 million to shareholders during the three months ended March 31, 2025, including a 6% increase in the regular quarterly dividend to $0.37 per share and a special dividend increase from $1.60 to $1.70 per share[114] Market Conditions - The U.S. residential new construction market is influenced by economic factors such as interest rates, inflation, and consumer confidence, with a noted decline in demand for new homes in early 2025[112][135] - The company anticipates that pressures from elevated mortgage rates will lessen over time if rates are reduced in the coming months, potentially improving housing affordability[133] - The company anticipates potential risks from increases in mortgage interest rates, inflation, and material pricing environments affecting future performance[173] Liquidity and Capital Structure - As of March 31, 2025, the company had cash and cash equivalents of $298.7 million and total liquidity of $544.7 million, including access to $250.0 million under its asset-based lending credit facility[139] - The company reported net cash provided by operating activities of $92.1 million for the three months ended March 31, 2025, an increase from $84.8 million in the same period of 2024[148] - The company's working capital, including cash and cash equivalents, decreased to $650.0 million as of March 31, 2025, down from $695.9 million as of December 31, 2024[147] - The company expects to spend cash to acquire various companies with at least $100.0 million in aggregate net revenue each fiscal year[141] - The company had $1.1 billion in aggregate long-term material cash requirements as of December 31, 2024, with commitments to purchase materials through December 2027[146] - Net cash used in financing activities increased to $94.9 million for the three months ended March 31, 2025, primarily due to dividends paid and stock repurchases[155] - The company issued $300.0 million in aggregate principal amount of 5.75% senior unsecured notes, maturing on February 1, 2028[156] - As of March 31, 2025, the company had $491.4 million due on its Term Loan, which matures on March 28, 2031[159] - The company had total outstanding loan balances relating to its Master Loan and Equipment Agreements of $80.9 million as of March 31, 2025[167] Risk Management - The company has $65.3 million in unsecured insurance letters of credit that do not reduce total liquidity[169] - As of March 31, 2025, the company has $495.0 million outstanding on its Term Loan, with $95.0 million exposed to market risks from interest rate fluctuations[174] - A hypothetical one percentage point increase in interest rates on variable rate debt would increase annual interest expense by approximately $1.0 million[174] - The company has three active and two forward interest rate swaps hedging $400.0 million of variable cash flows on its Term Loan through December 14, 2028[174] - The company's Senior Notes accrue interest at a fixed rate of 5.75%[174] Operational Outlook - The company operates over 250 branch locations across the U.S. and is well-positioned for long-term growth due to a strong balance sheet and ongoing acquisition strategy[111] - The company anticipates that seasonal trends will return, with higher sales expected in spring, summer, and fall compared to winter[143] - Forward-looking statements indicate expectations for demand for services and earnings in 2025, subject to various market risks[172] Accounting Policies - There have been no significant changes to critical accounting policies and estimates during the three months ended March 31, 2025[170]

Financial Data and Key Metrics Changes - Consolidated net revenue for Q1 2025 decreased by 1% to $685 million compared to $693 million in the same period last year [14] - Same branch sales were down 4% for the first quarter, with a 1.5% increase in price mix offset by a 5.6% decrease in job volumes [14][15] - Adjusted gross margin decreased to 32.7% from 33.9% in the prior year period, impacted by higher vehicle insurance and depreciation expenses [15] - Adjusted EBITDA for Q1 2025 decreased to $102 million, reflecting an adjusted EBITDA margin of 15% [16] Business Line Data and Key Metrics Changes - New single-family installation sales decreased relative to the same period last year, partially due to one less selling day and adverse weather conditions [8] - Multifamily sales in the installation segment decreased by 5% on a same branch basis, following a strong 13% increase in the previous year [9] - Heavy commercial sales grew significantly, driven by strong demand in the data center construction industry, while light commercial markets saw a decline [9][67] Market Data and Key Metrics Changes - Single-family starts year-to-date through March 2025 decreased by 6%, indicating a challenging market environment [11] - The multifamily starts year-to-date are reported to be up 9%, suggesting potential recovery in that segment [27] - The company noted that the regional and local builder business performed slightly better than the production builder business in the quarter [34] Company Strategy and Development Direction - The company remains focused on maintaining a high level of installation service and is committed to investing in growth through acquisitions [5][8] - The business model emphasizes geographic and product growth with a disciplined approach to capital allocation [7] - The company aims to optimize G&A costs, targeting at least $15 million in reductions, which are expected to start impacting results in Q3 [90] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term demand for installed services despite current market headwinds [6][66] - The company anticipates continued headwinds in both single-family and multifamily markets throughout 2025 [66] - Management highlighted the importance of strong customer relationships and experienced leadership in navigating market uncertainties [11][12] Other Important Information - The company repurchased 200,000 shares of common stock at a total cost of $34 million during Q1 2025 [18] - A second-quarter dividend of $0.37 per share was approved, representing a 6% increase over the prior year [18] Q&A Session Summary Question: How is the company managing its labor force in the current demand environment? - The company adjusts its install labor based on job volume fluctuations, holding labor during temporary situations like severe weather [22][24] Question: Can you discuss the performance of the multifamily segment? - Despite a 20% decrease in units under construction, multifamily revenue only declined by 5%, aided by the CQ team's management [25][26] Question: What was the impact of weather and lost selling days on revenue? - The lost selling day is estimated to have cost $10 million to $12 million, with weather impacts adding another $10 million to $20 million [29][30] Question: How do you view trends in single-family markets? - The regional/local builder business performed slightly better than production builders, with expectations of flat to low single-digit declines in single-family revenue [34][36] Question: What are the expectations for material prices? - Material costs are expected to remain stable, with no significant declines anticipated despite potential increases in supply [39][40] Question: What are the opportunities for cost reductions in G&A? - The company is targeting $15 million in G&A cost reductions, with actions already taken to realize these savings [90][104]