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]

UNITED STATES For the quarterly period ended March 31, 2025 OR ☐ 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 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 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: ...

Installed Building Products (IBP) Q1 2025 Earnings Call May 08, 2025 10:00 AM ET Company Participants Darren Hicks - VP & Head of Investor RelationsJeffrey Edwards - Chairman, CEO & PresidentMichael Miller - CFO, EVP & DirectorAatish Shah - Equity ResearchStephen Kim - Senior Managing DirectorMike Dahl - Managing Director - Equity ResearchTrey Grooms - Managing DirectorMaggie Grady Miller - VP - Equity ResearchAdam Baumgarten - Managing DirectorJeffrey Stevenson - Vice PresidentCollin Verron - Director Conf ...

Installed Building Products (IBP) Q1 2025 Earnings Call May 08, 2025 10:00 AM ET Speaker0 Greetings, and welcome to the Installed Building Products First Quarter twenty twenty five Financial Results Conference Call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce Darren Hicks, Vice President of Investor Relations. Please go ahead. Speaker1 Good mor ...

Installed Building Products (IBP) came out with quarterly earnings of $2.08 per share, missing the Zacks Consensus Estimate of $2.18 per share. This compares to earnings of $2.47 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -4.59%. A quarter ago, it was expected that this residential insulation installer would post earnings of $2.91 per share when it actually produced earnings of $2.90, delivering a surprise of -0.34%.Over ...

INVESTOR PRESENTATION INSTALLED BUILDING PRODUCTS Q1 2025 NYSE: IBP MAY 8, 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 FIRST QUARTER 2025 RESULTS; DECLARES REGULAR QUARTERLY CASH DIVIDEND Columbus, Ohio, May 8, 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 first quarter ended March 31, 2025. First Quarter 2025 Highlights (Comparisons are to Prior Year Period) Recent Developments "IBP delivered solid first quarter financial results, reflecting our ...

Q 4 2024 INSTALLED BUILDING PRODUCTS FEBRUARY 27, 2025 NYSE: IBP 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 are based on man ...

Financial Data and Key Metrics Changes - Consolidated net revenue for Q4 2024 increased 4% to a record $750 million compared to $721 million in the same period last year [17] - Adjusted net income rose to $81 million or $2.88 per diluted share, reflecting strong operational performance [22] - Adjusted EBITDA for Q4 2024 reached a record $132 million, with an adjusted EBITDA margin of 17.6% [21] Business Line Data and Key Metrics Changes - Single-family sales growth was supported by a diverse mix of builders, contributing to nearly 6% consolidated sales growth for the year [10][11] - Multifamily installation sales grew over 6% on a same-branch basis, indicating resilience in this segment [12] - Commercial sales in the installation segment improved modestly from the prior year, reflecting stable demand [12] Market Data and Key Metrics Changes - Single-family starts in 2024 were up 7%, indicating a positive trend in the housing market [14] - The company expects a relatively stable demand environment for single-family installation services in 2025, despite challenges in housing affordability [15] - The multifamily market is anticipated to face a decline of 20% to 25% in units under construction, which may take six months to normalize [35][36] Company Strategy and Development Direction - The company continues to invest in growth opportunities, with approximately $87 million allocated for acquisitions in 2024 [8] - A new stock buyback program has been authorized, expanding repurchase capacity to $500 million, reflecting confidence in financial stability [26] - The company aims to maintain a disciplined approach to capital allocation while focusing on profitable growth and maximizing shareholder returns [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term demand for installed services, despite current market challenges [15][89] - The company anticipates a slow start to the spring selling season, with expectations of low single-family starts growth in 2025 [38][41] - Management remains committed to delivering high service levels and operational improvements in 2025 and beyond [16] Other Important Information - The board approved a 6% increase in both the regular quarterly cash dividend and the annual variable dividend for 2025 [8][27] - The company generated $340 million in cash flow from operations for the year, maintaining strong liquidity [24] - The net debt to trailing twelve-month adjusted EBITDA leverage ratio was 1.08 times, well below the target of 2 times [25] Q&A Session Summary Question: Expectations for multifamily and single-family work in 2025 - Management believes multifamily will continue to outperform the market, but acknowledges a potential decline in units under construction [34][36] - For single-family, a good case scenario is low single-family starts growth, with expectations of negative comps in the first half of the year [38][41] Question: Outlook on price mix at the beginning of the year - Current price mix benefits are carryover from prior periods, with a benign inflationary environment impacting pricing [42][44] Question: Growth plans for multifamily and CQ's role - CQ is expected to expand into new markets, with significant opportunities for growth in multifamily sales [50][56] Question: Competitive dynamics and pricing pressures - The environment is competitive, but management emphasizes maintaining relationships with builders and prioritizing fair pricing over volume [86][88] Question: Impact of inventory levels on builders - Builders are managing high inventory levels, and the company is observing varied conditions across different markets [136][139] Question: Internal distribution capabilities and margin impact - Progress is being made in expanding internal distribution capabilities, with expectations that it will not significantly drag margins [142][143]

Revenue Breakdown - Insulation installation accounted for approximately 60% of net revenue, totaling $2.9 billion for the year ended December 31, 2024[27]. - The installation and service of garage doors represented approximately 6% of net revenue for the year ended December 31, 2024[33]. - The distribution segment comprised approximately 5% of net revenue for the year ended December 31, 2024[41]. - The manufacturing segment, focused on cellulose insulation, accounted for approximately 1% of net revenue for the year ended December 31, 2024[43]. - The company’s top ten customers accounted for approximately 15% of net revenue for the year ended December 31, 2024[67]. Market Presence and Growth - The company completed over 200 acquisitions since 1999, significantly expanding its market presence and product offerings[22]. - The company has diversified its product offerings, with insulation installation decreasing from 74% of revenues in 2013 to 60% in 2024[47]. - Commercial end market revenue increased from approximately 11% in 2013 to 16% in 2024, enhancing revenue visibility[47]. - The company operates approximately 250 branch locations across 48 states and the District of Columbia[21]. - The company’s expansion into new geographic markets may present competitive and operational challenges, potentially affecting future sales growth[141]. Employee and Operational Efficiency - Employee retention efforts have reduced turnover to below industry averages, contributing to operational efficiency[49]. - The average monthly turnover rate for installers was 2.8% in 2024, compared to 3.9% for the U.S. construction industry[74]. - The workforce is comprised of 51.3% Hispanic or Latino employees, exceeding the construction industry average, with over 50% ethnic minorities overall[77][78]. - The company experienced a 5% increase in total hours worked from 2023 to 2024, while the OSHA-defined incident rate per 100 employees decreased by 9% to 5.10 for the year ended December 31, 2024[66]. Financial Performance and Backlog - The company reported a backlog of $126.3 million as of December 31, 2024, down from $115.7 million as of December 31, 2023[68]. - The estimated backlog associated with the commercial end market was approximately $126.3 million as of December 31, 2024[146]. Economic and Market Conditions - Housing starts in 2024 were reported at 1.37 million, a 3.9% decrease from 1.42 million in 2023, with a forecasted decline to 1.32 million in 2025[59]. - Inflation in the U.S. averaged 2.9% in 2024, down from 3.4% in 2023, impacting material costs and housing affordability[62]. - The commercial sector is predicted to see a modest increase of 6% in investment dollars in 2025 over 2024[61]. - The commercial construction market increased by 7% in 2024 compared to 2023, as measured by investment dollars[103]. - Commercial building starts are expected to rise by 6% in 2025 from 2024, while institutional building starts are projected to increase by 4%[104]. Corporate Social Responsibility - The Installed Building Products Foundation supports employee education and community initiatives, enhancing corporate social responsibility[50]. - In 2024, the Foundation and the Company awarded over 750 grants totaling over $4.5 million, an increase from 172 grants totaling $2.5 million in 2023[75]. - The company is committed to socially responsible practices, including giving back to communities and providing financial wellness training to employees[86]. Regulatory and Compliance Risks - The company is subject to various federal, state, and local regulations, including those related to employee safety and environmental compliance, with no material costs incurred to date[86][91]. - Federal and state regulations regarding ESG practices are evolving, potentially increasing compliance costs and impacting access to capital[131]. - The company is subject to various federal, state, and local laws and regulations that could impose substantial costs and restrictions on its operations[165]. Competition and Market Risks - The company faces significant competition in the building products installation industry, which could adversely affect its financial condition and results of operations[109]. - Increased fuel costs could negatively impact the cost of delivering products, affecting net income if selling prices cannot be adjusted accordingly[125]. - The commercial construction market's strength is influenced by various economic factors, including capital availability, material costs, and interest rates[105]. Financial Obligations and Capital Needs - The company has significant debt obligations that may restrict future operations and impair the ability to meet obligations[171]. - A substantial portion of cash flow from operations will be dedicated to interest and principal payments on indebtedness, reducing funds available for operations and growth[171]. - The company anticipates needing additional capital for growth, which may not be available on favorable terms[185]. Cybersecurity and Risk Management - The Board of Directors oversees the company's Enterprise Risk Management program, including cybersecurity risks[208]. - The company maintains a cybersecurity program aligned with industry standards, including the CIS Control framework[204]. - The company has experienced cybersecurity incidents in the normal course of business but is not currently aware of any that materially affect operations[202]. Legal and Liability Risks - The company is exposed to product liability and other claims related to the products it installs or manufactures, which could adversely affect its financial condition[157]. - Legal claims and lawsuits, including wage and hour lawsuits, could materially affect the company's results of operations and financial condition[156]. - Changes in employment laws could adversely impact operating costs, particularly in areas such as wage and hour laws, minimum wage requirements, and workers' compensation rates[152].