Installed Building Products, Inc.

Installed Building Products, Inc. installs insulation and complementary building products for residential and commercial construction across the continental United States. The Delaware company is based in Columbus, Ohio, and trades on the New York Stock Exchange as IBP.

Its installation services include waterproofing, fireproofing, garage doors, gutters, shower doors, shelving and mirrors. More than 250 branch locations serve new homes, repair and remodeling work, and commercial projects. Separate distribution and manufacturing operations sell building materials and produce insulation and other products.

Quarterly results

Third quarter ended September 30. Dollars in millions, except per-share amounts. Cash flow covers the quarter alone.

Measure	2025	2026
Revenue	$778.2	$808.4
Operating income	$106.8	$91.7
Net income	$74.4	$59.4
Diluted EPS	$2.74	$2.24
Adjusted diluted EPS	$3.18	$2.76
Adjusted EBITDA	$139.9	$128.3
Operating cash flow	$124.0	$74.8

Second quarter ended June 30. Dollars in millions, except per-share amounts.

Measure	2025	2026
Revenue	$760.3	$777.8
Operating income	$101.0	$94.6
Net income	$69.0	$64.9
Diluted EPS	$2.52	$2.43
Adjusted diluted EPS	$2.95	$2.91
Adjusted EBITDA	$134.0	$130.9

Operating income, net income and diluted EPS follow U.S. accounting rules. Adjusted EBITDA excludes interest, taxes, depreciation, amortization, acquisition-related costs and share-based compensation. Adjusted EPS excludes acquisition-related costs, share-based compensation and intangible amortization, with related tax effects.

Established branches and margins

Third-quarter revenue rose 3.9%. Acquisitions contributed $25.4 million of the $30.2 million increase, while established branches added $4.8 million. Adjusted EBITDA at those branches fell $15.4 million; acquisitions added $3.8 million.

Same-branch sales, measured at locations owned for more than a year, improved from a 0.6% decline in the second quarter to 0.6% growth in the third. Residential installation sales on that basis fell 2.6%, including a 4.9% decline in single-family work and 7.5% growth in multifamily work. Commercial sales rose 10.3%.

The consolidated gross margin fell to 31.8% from 34.0%. The installation margin fell to 35.0% from 36.9%; distribution and manufacturing together fell to 23.1% from 25.2%. Those business-level margins exclude depreciation and amortization.

Cash and financing

Research by Ticker Byline shows that operating cash flow in the third quarter was $74.8 million, versus $124 million a year earlier, subtracting the respective first-half reports from the nine-month totals. Our analysis of record sales and falling profit examines the earnings and cash comparison.

Across the first nine months of 2026, operating cash flow was $245.9 million, down from $306.5 million. Capital spending was $50.0 million, versus $55.0 million. Cash reached $415.9 million at September 30, compared with $394.5 million in June.

Debt at September 30 had a carrying value of $1.05 billion. Lease liabilities were a separate $135.4 million. Available borrowing under the revolving credit facility was $372.1 million.

On October 27, IBP completed a $250 million term-loan addition, bringing outstanding term-loan principal to $737.5 million. The loan still matures on March 28, 2031, with floating interest at SOFR plus 1.75%, or an alternative base rate plus 0.75%. Proceeds are for general corporate purposes and transaction fees.

Completed deals and the next test

IBP completed purchases of Harkraft and Builders Hardware of South Carolina in July, Chesapeake Hearth & Stone in August, and First Oklahoma Insulation in September. Together, those businesses represented about $22 million of annual revenue.

By November, the year's acquisitions represented $67 million of annual revenue. Management retained the goal stated in August of acquiring businesses with at least $100 million of annual revenue during 2026.

The remaining results for the year will show whether IBP reaches that acquisition target and whether the return to modest same-branch sales growth starts to improve profit margins.