Installed Building Products Reports Record Fourth Quarter 2024 Results

Installed Building Products, Inc. (the “Company” or “IBP”), an industry-leading installer of insulation and complementary building products, announced results for the fourth quarter and fiscal year ended December 31, 2024.

Fourth Quarter 2024 Highlights (Comparisons are to Prior Year Period)

• Net revenue increased 4.1% to a fourth quarter record of $750.2 million
  • Installation revenue increased 3.8% to $695.0 million, as growth across all end markets combined with sales from IBP’s recent acquisitions
  • Other revenue, net of eliminations, which includes IBP’s manufacturing and distribution operations, increased to $55.2 million from $50.9 million
• Net income increased 3.1% to $66.9 million
• Adjusted EBITDA* increased 2.9% to $132.0 million
• Net income per diluted share increased 4.4% to $2.39
• Adjusted net income* increased 4.3% to $80.6 million, or $2.88 per diluted share
• At December 31, 2024, IBP had $328 million in cash and cash equivalents
• Repriced Term Loan B facility, reducing the borrowing cost by over $1 million annually
• Repurchased 383 thousand shares of common stock at a total cost of approximately $79 million
• Declared fourth quarter dividend of $0.35 per share that was paid to shareholders on December 31, 2024

Recent Developments

• IBP’s Board of Directors declared the 2025 first quarter regular cash dividend of $0.37 per share, representing a 6% increase to the Company’s regular dividend in the prior year period
• IBP’s Board of Directors also declared an annual variable dividend of $1.70 per share, an increase of $0.10 per share over last year’s variable dividend
• IBP’s Board of Directors authorized a new stock repurchase program that allows for the repurchase of up to $500 million of the Company’s outstanding common stock, which expires March 1, 2026

“Our fourth-quarter results capped off another record year for IBP, reinforcing our longstanding commitment to providing residential and commercial customers with high-quality, efficient building product installation services. Record profitability in 2024 drove another year of strong operating cash flow. During 2024, we continued to grow the company by adding over $100 million in annual revenue through acquisitions while distributing a combined $230 million to shareholders through dividends and share repurchases,” stated Jeff Edwards, Chairman and Chief Executive Officer.

Mr. Edwards continued: “Our Board of Directors approved a 6% increase to both our regular quarterly cash dividend and annual variable dividend to $0.37 per share and $1.70 per share, respectively. These actions reflect the Board’s confidence in our financial position and ability to support a strategy of returning capital to our shareholders.”

“The long-term view on demand for our installed service remains positive. Although housing affordability continues to be a challenge for potential buyers, U.S. economic growth and employment data is healthy. We will continue to focus on the aspects of our business we can control and remain flexible under prevailing market conditions to realize operational and financial improvements this year,” concluded Mr. Edwards.

Acquisition Update

IBP continues to prioritize profitable growth through its proven strategy of acquiring well-run installers of insulation and complementary building products. During 2024, IBP completed nine acquisitions representing over $100 million of annual revenue. For 2025, IBP expects to acquire at least $100 million of annual revenue.

During the 2024 fourth quarter, IBP completed the following acquisitions:

• In October, IBP acquired Wholesale Insulation Supply, Inc. doing business as Insulation Supplies, a specialty distributor focused on supplying fiberglass insulation, spray foam insulation, cellulose insulation, and related accessories and machinery to residential and commercial end markets with annual revenue of over $22 million.
• In November, IBP acquired Tatum Insulation III, LLC, a North Carolina-based installer of multiple building products including fiberglass insulation, shower doors, shelving, mirrors, and other products installed in the interior of new residential and commercial buildings with annual revenue of over $17 million.
• In December, IBP acquired Capital Insulation, LLC and CBS & Mirror, LLC (collectively “Capital”), a Houston, Texas based single-family, multifamily, and commercial installer of fiberglass and spray foam insulation with annual revenue of over $12 million.

2025 First Quarter Regular Cash Dividend and 2025 Annual Variable Dividend

IBP’s Board of Directors has approved the Company’s quarterly cash dividend of $0.37 per share, payable on March 31, 2025, to stockholders of record on March 14, 2025. In addition, IBP’s Board of Directors has approved the Company’s annual variable cash dividend at $1.70 per share, which will also be payable on March 31, 2025, to stockholders of record on March 14, 2025.

Share Repurchases

During the three months ended December 31, 2024, IBP repurchased 383 thousand shares of its common stock at a total cost of approximately $79 million. IBP’s Board of Directors authorized a new stock repurchase program that allows for the repurchase of up to $500 million of the Company’s outstanding common stock. The new program replaces the previous program and is in effect through March 1, 2026.

Fourth Quarter 2024 Results Overview

For the fourth quarter of 2024, net revenue was $750.2 million, an increase of 4.1% from $720.7 million for the fourth quarter of 2023. On a consolidated same branch basis, net revenue increased 1.1% from the prior year quarter, supported by growth in our residential end market. Residential sales growth within the Company’s Installation segment was up 1.8% on a same branch basis in the quarter and both single-family and multi-family same branch sales increased from the prior year quarter. Commercial sales in the Installation segment were down 0.1% from the prior year quarter on a same branch basis.

Gross profit improved 2.5% to $251.8 million from $245.7 million in the prior year quarter. Gross profit and adjusted gross profit* as a percent of net revenue were both 33.6%, compared to 34.1% in the same period last year. Adjusted gross profit primarily adjusts for the Company’s share-based compensation expense.

Selling and administrative expense, as a percent of total revenue, was 19.0% compared to 19.1% in the prior year quarter. Adjusted selling and administrative expense*, as a percent of net revenue, was 18.1% compared to 18.3% in the prior year quarter.

Net income was $66.9 million, or $2.39 per diluted share, compared to $64.9 million, or $2.29 per diluted share in the prior year quarter. Net profit margin for the fourth quarter was 8.9% compared to 9.0% in the prior year quarter. Adjusted net income* was $80.6 million, or $2.88 per diluted share, compared to $77.3 million, or $2.72 per diluted share in the prior year quarter. Adjusted net profit margin* for the fourth quarter and the prior year quarter was 10.7%. 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* was $125.2 million, a 2.3% increase from $122.4 million in the prior year quarter. Adjusted EBITDA* was $132.0 million, a 2.9% increase from $128.3 million in the prior year quarter, representing an adjusted EBITDA margin* of 17.6% and 17.8%, respectively.

Full Year 2024 Results Overview

For the year ended December 31, 2024, net revenue was a record $2.9 billion, an increase of 5.9% from $2.8 billion in 2023. On a consolidated same branch basis, net revenue improved 3.5% from the prior year, supported primarily by growth in our residential end market. Residential sales growth within the Company’s Installation segment was up 4.0% on a same branch basis for 2024, as both single-family and multi-family same branch sales increased from the prior year. Commercial sales in the Installation segment was up 1.2% from the prior year on a same branch basis.

Gross profit improved 6.9% to $994.5 million from $930.7 million in the prior year. Gross profit and adjusted gross profit* as a percent of total revenue were both 33.8%, up from 33.5% last year. Adjusted gross profit primarily adjusts for the Company’s share-based compensation expense.

Selling and administrative expense, as a percent of net revenue, was 19.2%, compared to 18.6% in the prior year. Adjusted selling and administrative expense*, as a percent of net revenue, was 18.5%, compared to 18.0% in the prior year.

Net income was $256.6 million, or $9.10 per diluted share, compared to $243.7 million, or $8.61 per diluted share in the prior year. Net profit margin was 8.7%, compared to 8.8% in the prior year. Adjusted net income* was $311.4 million, or $11.05 per diluted share, compared to $290.8 million or $10.27 per diluted share in the prior year quarter. Adjusted net income margin* for year ended December 31, 2024 was 10.6% compared to 10.5% in the prior year. 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.

For the full year of 2024, EBITDA* was $484.9 million, a 3.9% increase from $466.8 million in the prior year. Adjusted EBITDA* was $511.4 million for the year ended December 31, 2024, a 5.2% increase from $485.9 million in the prior year, representing adjusted EBITDA margins* of 17.4% and 17.5%, respectively.

Net cash provided by operating activities was $340.0 million, compared to $340.2 million in the prior year as higher net income and non-cash items were offset by changes in working capital for the full year ended December 31, 2024.

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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 approximately 250 branch locations.

Source: Installed Building Products, Inc.