Installed Building Products (NYSE:IBP – Get Free Report) issued its quarterly earnings results on Thursday. The construction company reported $2.76 earnings per share for the quarter, missing analysts’ consensus estimates of $2.83 by ($0.07), FiscalAI reports. The company had revenue of $808.40 million during the quarter, compared to analysts’ expectations of $787.70 million. Installed Building Products had a return on equity of 42.12% and a net margin of 8.46%. Installed Building Products’s quarterly revenue was up 3.9% compared to the same quarter last year. During the same period last year, the firm posted $3.18 earnings per share.
Here are the key takeaways from Installed Building Products’ conference call:
- IBP reported record third-quarter revenue of $808 million, up 4%, with slightly positive same-branch sales. Commercial sales rose 10% and multifamily sales 8%, helping offset a 5% decline in new single-family sales.
- Adjusted gross margin was 32%, pressured by higher aluminum, fuel and freight costs and a mix shift toward lower-margin complementary products. Management said it expects to be at the low end of its 32%–34% gross-margin range in 2027 and acknowledged full-year 2026 results face pressure.
- Management expects single-family and multifamily starts to decline by mid-single digits in 2027, with higher rates weighing on builders and developers; it also expects price mix to become more challenging. IBP said it aims to outperform through market-share gains and diversification, while heavy-commercial backlogs were up mid-teens.
- IBP completed four acquisitions in the quarter and said its pipeline supports at least $100 million of acquired annual revenue for 2026. The company also reported $416 million in cash, leverage below its 2x target, and a dividend increase of more than 5% year over year.
Installed Building Products Stock Performance
Shares of IBP stock traded down $3.05 during trading on Friday, reaching $220.03. 346,440 shares of the company’s stock traded hands, compared to its average volume of 394,223. The company has a market capitalization of $5.85 billion, a P/E ratio of 25.03, a PEG ratio of 8.76 and a beta of 1.65. The company has a current ratio of 2.98, a quick ratio of 2.41 and a debt-to-equity ratio of 1.62. The firm’s 50-day moving average is $204.57 and its 200 day moving average is $245.38. Installed Building Products has a 1 year low of $176.15 and a 1 year high of $349.00.
Installed Building Products Announces Dividend
The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 31st. Investors of record on Tuesday, December 15th will be paid a dividend of $0.39 per share. This represents a $1.56 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date is Tuesday, December 15th. Installed Building Products’s dividend payout ratio is presently 16.79%.
Analysts Set New Price Targets
Several analysts have commented on the stock. Wells Fargo & Company lowered their price objective on shares of Installed Building Products from $240.00 to $195.00 and set an “equal weight” rating on the stock in a research report on Friday, October 16th. DA Davidson increased their target price on shares of Installed Building Products from $242.00 to $250.00 and gave the company a “neutral” rating in a research report on Monday, August 10th. Weiss Ratings restated a “hold (c)” rating on shares of Installed Building Products in a research note on Tuesday, August 18th. Zacks Research lowered shares of Installed Building Products from a “strong-buy” rating to a “hold” rating in a research note on Monday, October 12th. Finally, Melius Research initiated coverage on shares of Installed Building Products in a report on Tuesday, October 6th. They issued a “hold” rating and a $217.00 price target on the stock. Two analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $229.92.
Check Out Our Latest Analysis on IBP
Insider Buying and Selling
In related news, Director Janet Jackson sold 1,086 shares of Installed Building Products stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $237.06, for a total value of $257,447.16. Following the completion of the transaction, the director directly owned 5,142 shares in the company, valued at approximately $1,218,962.52. The trade was a 17.44% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 13.80% of the company’s stock.
Installed Building Products News Summary
Here are the key news stories impacting Installed Building Products this week:
- Positive Sentiment: Third-quarter revenue rose 3.9% year over year to a record $808.4 million, topping expectations of $787.7 million. IBP also declared a quarterly dividend of $0.39 per share. Company results and dividend announcement
- Neutral Sentiment: Truist raised its price target from $160 to $180 but maintained a Hold rating. The higher target is still below the stock’s cited $220.03 price, making the revision a mixed signal. Truist analyst recommendations
- Negative Sentiment: Adjusted EPS of $2.76 missed analyst expectations of about $2.83 and declined from $3.18 a year earlier. The earnings shortfall may weigh on sentiment despite the revenue beat. Quarterly results coverage
- Negative Sentiment: Royal Bank of Canada cut its price target from $208 to $194 and retained a Sector Perform rating, implying downside from the cited current price. Royal Bank of Canada analyst recommendations
About Installed Building Products
Installed Building Products, Inc (NYSE: IBP) is a residential and commercial building-services company that provides installation services for insulation and other construction products. The company serves homebuilders, contractors, remodelers and other customers through a network of specialized installation businesses.
Its primary offerings include fiberglass, spray foam and blown-in insulation, as well as the installation of garage doors, gutters, fireplaces, shower enclosures, closet systems and other complementary building products.
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