Installed Building Products Reports First Quarter 2026 Results; Declares Regular Quarterly Cash Dividend

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, 2026.

First Quarter 2026 Highlights (Comparisons are to Prior Year Period)

• Net revenue decreased 3.5% to $660.5 million
  • Installation revenue decreased 5.8% to $609.8 million, including sales from IBP's recent acquisitions
  • Other revenue, net of eliminations, which includes IBP's manufacturing and distribution operations, increased 34.8% to $50.7 million
• Net income decreased to $34.8 million
• Adjusted EBITDA* decreased to $92.1 million
• Net income per diluted share decreased to $1.29
• Adjusted net income* was $48.4 million, or $1.79 per diluted share
• Net cash flow from operations increased 11.1% to $102.3 million
• At March 31, 2026, IBP had $474.3 million in cash and cash equivalents
• Repurchased approximately 91 thousand shares of common stock at a total cost of approximately $25.4 million
• Declared first quarter dividend of $0.39 per share that was paid to shareholders on March 31, 2026

Recent Developments

• IBP's Board of Directors declared the second quarter regular cash dividend of $0.39 per share, representing more than a 5% increase to the Company's regular dividend in the prior year period
• Effective May 6, 2026, Ryan Ricketts has been appointed Director of Investor Relations and Financial Planning, succeeding Darren Hicks, who will be departing the Company to pursue another opportunity

"We delivered solid top-line results amidst challenging regional weather conditions and a macroeconomic backdrop that has raised uncertainty with respect to U.S. consumer sentiment and new home sales activity. Throughout the quarter, we remained focused on meeting customers' needs through maintaining elevated service quality while emphasizing product diversification and prudent expense management. Our commercial end market continued to show strength, delivering double-digit installation sales growth. Heavy commercial sales growth exceeded 20% and the commercial end market also benefited from light commercial acquisition revenue. While we expect near-term challenges within U.S. residential construction to continue, we remain intentional with our pursuit of growth and capital allocation decisions," stated Jeff Edwards, Chairman and Chief Executive Officer.

"I also want to thank Darren, who has been a valued member of our team since joining IBP in March 2021," continued Mr. Edwards. "Ryan, as Director of Financial Planning, has played an integral role in our financial planning and analysis function, and he is a natural fit to lead our investor relations efforts. I look forward to his contributions as we continue to execute on our strategy and engage with the investment community and wish Darren the best in his future endeavors."

Acquisition Update

During the 2026 first quarter, IBP completed the following acquisitions, which added approximately $28 million of annual revenue:

2026 Second Quarter Regular Cash Dividend

IBP's Board of Directors has approved the Company's quarterly cash dividend of $0.39 per share, payable on June 30, 2026, to stockholders of record on June 15, 2026. The second quarter regular cash dividend represents an over 5% increase from last year's second quarter cash dividend payment.

Share Repurchases

During the three months ended March 31, 2026, IBP repurchased approximately 91 thousand shares of its common stock at a total cost of $25.4 million. At March 31, 2026, the Company had $474.6 million available under its stock repurchase program, which expires March 1, 2027.

First Quarter 2026 Results Overview

For the first quarter of 2026, net revenue was $660.5 million, a decrease of 3.5% from $684.8 million for the first quarter of 2025. On a consolidated same branch basis, net revenue decreased 5.9% from the prior year quarter. Residential same branch sales within the Company's Installation segment were down 11.2% in the quarter while commercial same branch sales within the Installation segment were up 10.7% from the prior year quarter.

Our price/mix results were flat during the first quarter and job volumes were down 10.0% relative to the same period last year. It is important to note that the results of our heavy commercial end market and the Other segment results are not included in that price/mix and volume disclosure. Including the heavy commercial installation sales, but still excluding the Other segment results, price mix increased 2.9% while job volume was down 9.9% during the 2026 first quarter.

Gross profit decreased 5.1% to $212.3 million in the first quarter of 2026 from $223.7 million in the prior year quarter. As a percent of net revenue, gross profit was 32.1% and adjusted gross profit* was 32.2%, compared to 32.7% in the same period last year. Higher vehicle-related expense as a percent of net revenue served as a notable headwind to our first quarter of 2026 adjusted gross profit margin performance relative to the prior year period. Adjusted gross profit primarily adjusts for the Company's share-based compensation expense.

Selling and administrative expense, as a percent of total revenue, was 21.8% in the first quarter of 2026 and 21.0% in the prior year period. Adjusted selling and administrative expense*, as a percent of net revenue, was 20.9% compared to 20.1% in the prior year quarter. Adjusted administrative expense as a percent of net revenue was impacted by higher medical and general liability insurance relative to the prior year.

Net income was $34.8 million, or $1.29 per diluted share, compared to $45.4 million, or $1.64 per diluted share in the prior year quarter. Net profit margin for the first quarter was 5.3% compared to 6.6% in the prior year quarter. Adjusted net income* was $48.4 million, or $1.79 per diluted share, compared to $57.6 million, or $2.08 per diluted share in the prior year quarter. Adjusted net profit margin* for the first quarter was 7.3% compared to 8.4% in the prior year quarter. Adjusted net income accounts for the impact of non-core items in both periods, including an addback for non-cash amortization expense related to acquisitions.

EBITDA* in the first quarter of 2026 was $85.4 million, an 11.0% decrease from $96.0 million in the prior year quarter. Adjusted EBITDA* was $92.1 million, a 10.1% decrease from the prior year quarter representing an adjusted EBITDA margin* of 13.9%. In the prior year quarter, adjusted EBITDA* was $102.4 million, representing an adjusted EBITDA margin* of 15.0%.

Conference Call and Webcast

The Company will host a conference call and webcast on May 7, 2026 at 10:00 a.m. Eastern Time to discuss these results. To participate in the call, please dial 877-407-0792 (domestic) or 201-689-8263 (international). The live webcast will be available at www.installedbuildingproducts.com in the investor relations section. A replay of the conference call will be available through May 21, 2026 by dialing 844-512-2921 (domestic) or 412-317-6671 (international) and entering the passcode 13759110.

Alternatively, participants can register for the call 15 minutes prior to the event by using the call me option for a faster connection to join the conference call. You can enter your phone number and let the system call you right away. Click here for the call me option.

About Installed Building Products

Installed Building Products, Inc. is one of the nation's largest new residential insulation installers and is a diversified installer of complementary building products, including waterproofing, fire-stopping, fireproofing, garage doors, rain gutters, window blinds, shower doors, closet shelving and mirrors and other products for residential and commercial builders located in the continental United States. The Company manages all aspects of the installation process for its customers, from direct purchase and receipt of materials from national manufacturers to its timely supply of materials to job sites and quality installation. The Company offers its portfolio of services for new and existing single-family and multi-family residential and commercial building projects in all 48 continental states and the District of Columbia from its national network of over 250 branch locations.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws, including with respect to the housing market and the commercial market, our operations, industry and economic conditions, our financial and business model, payment of dividends, the demand for our services and product offerings, expansion of our national footprint and end markets, diversification of our products, our ability to grow and strengthen our market position, our ability to pursue and integrate value-enhancing acquisitions and the expected amount of acquired revenue, our ability to improve sales and profitability, and expectations for demand for our services and our earnings. Forward-looking statements may generally be identified by the use of words such as "anticipate," "believe," "expect," "intends," "plan," and "will" or, in each case, their negative, or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Any forward-looking statements that we make herein and in any future reports and statements are not guarantees of future performance, and actual results may differ materially from those expressed in or suggested by such forward-looking statements as a result of various factors, including, without limitation, general economic and industry conditions; increases in mortgage interest rates and rising home prices; inflation and interest rates; the material price and supply environment; increased tariffs; federal government shutdowns and uncertainty regarding the federal government's policy changes; geopolitical conflicts; the timing of increases in our selling prices; the risk that the Company may reduce, suspend or eliminate dividend payments in the future; and the factors discussed in the "Risk Factors" section of the Company's Annual Report on Form 10-K for the year ended December 31, 2025, as the same may be updated from time to time in our subsequent filings with the Securities and Exchange Commission. In addition, any future declaration of dividends will be subject to the final determination of our Board of Directors. Any forward-looking statement made by the Company in this press release speaks only as of the date hereof. New risks and uncertainties arise from time to time, and it is impossible for the Company to predict these events or how they may affect it. The Company has no obligation, and does not intend, to update any forward-looking statements after the date hereof, except as required by federal securities laws.

*Use of Non-GAAP Financial Measures

In addition to the financial measures prepared in accordance with U.S. generally accepted accounting principles ("GAAP"), this press release contains the non-GAAP financial measures of EBITDA, Adjusted EBITDA, Adjusted EBITDA margin (i.e., Adjusted EBITDA divided by net revenue), Adjusted Net Income, Adjusted Net Income per diluted share, Adjusted Gross Profit and Adjusted Selling and Administrative expense. The reasons for the use of these measures, reconciliations of EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income per diluted share, Adjusted Gross Profit, and Adjusted Selling and Administrative expense to the most directly comparable GAAP measures and other information relating to these measures are included below following the unaudited condensed consolidated financial statements. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for IBP's financial results prepared in accordance with GAAP.

Reconciliation of Non-GAAP Financial Measures

EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, Adjusted Gross Profit and Adjusted Selling and Administrative Expense measure performance by adjusting GAAP net income, EBITDA, gross profit and selling and administrative expense, respectively, for certain income or expense items that are not considered part of our core operations. We believe that the presentation of these measures provides useful information to investors regarding our results of operations because it assists both investors and us in analyzing and benchmarking the performance and value of our business.

We believe the Adjusted EBITDA measure is useful to investors and us as a measure of comparative operating performance from period to period as it measures our changes in pricing decisions, cost controls and other factors that impact operating performance, and removes the effect of our capital structure (primarily interest expense), asset base (primarily depreciation and amortization), items outside our control (primarily income taxes) and the volatility related to the timing and extent of other activities such as asset impairments and non-core income and expenses. Accordingly, we believe that this measure is useful for comparing general operating performance from period to period. In addition, we use various EBITDA-based measures in determining the achievement of awards under certain of our incentive compensation programs. Other companies may define Adjusted EBITDA differently and, as a result, our measure may not be directly comparable to measures of other companies. In addition, Adjusted EBITDA may be defined differently for purposes of covenants contained in our revolving credit facility or any future facility.

Although we use the Adjusted EBITDA measure to assess the performance of our business, the use of the measure is limited because it does not include certain material expenses, such as interest and taxes, necessary to operate our business. Adjusted EBITDA should be considered in addition to, and not as a substitute for, GAAP net income as a measure of performance. Our presentation of this measure should not be construed as an indication that our future results will be unaffected by unusual or non-recurring items. This measure has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. Because of these limitations, this measure is not intended as an alternative to net income as an indicator of our operating performance, as an alternative to any other measure of performance in conformity with GAAP or as an alternative to cash flow provided by operating activities as a measure of liquidity. You should therefore not place undue reliance on this measure or ratios calculated using this measure.

We also believe the Adjusted Net Income measure is useful to investors and us as a measure of comparative operating performance from period to period as it measures our changes in pricing decisions, cost controls and other factors that impact operating performance, and removes the effect of certain non-core items such as discontinued operations, acquisition related expenses, amortization expense, the tax impact of these certain non-core items, and the volatility related to the timing and extent of other activities such as asset impairments and non-core income and expenses. To make the financial presentation more consistent with other public building products companies, beginning in the fourth quarter 2016 we included an addback for non-cash amortization expense related to acquisitions. Accordingly, we believe that this measure is useful for comparing general operating performance from period to period. Other companies may define Adjusted Net Income differently and, as a result, our measure may not be directly comparable to measures of other companies. In addition, Adjusted Net Income may be defined differently for purposes of covenants contained in our revolving credit facility or any future facility.

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