Start here if you're new
what it is
Installed Building Products puts insulation, garage doors, gutters, and other homebuilding basics into houses across the U.S.
how it gets paid
Last year Installed Bld. Prd made $3.0B in revenue. insulation was the main engine at $1.74B, or 58% of sales.
why it's growing
Revenue grew 1.0% last year. There was a dip in revenues in the fourth quarter as demand in the markets it serves remains sluggish.
what just happened
Q4 2025 adjusted EPS was $3.24, beating the $2.69 consensus by ~20%. Full-year adjusted EPS was about $11.44 vs ~$9.10 in 2024.
At a glance
B+ balance sheet — decent shape, but not bulletproof
80/100 earnings predictability — you can trust these numbers
28.5x trailing p/e — priced about right
0.5% dividend yield — cash in your pocket every quarter
16.0% return on capital — nothing to write home about
xvary composite: 73/100 — average
What they do
Installed Building Products puts insulation, garage doors, gutters, and other homebuilding basics into houses across the U.S.
Scale is the edge. IBP has 250 branches in 48 states and 10,400 employees, so your builder customer can use one installer instead of stitching together local crews. Insulation alone is 58% of 2025 sales, which gives IBP volume buying power and repeat work when you need the same job done fast across multiple markets.
How they make money
$3.0B
annual revenue · their business grew +1.0% last year
insulation
$1.74B
shower doors closets mirrors
$0.21B
garage doors
$0.18B
other installation and distribution
$0.87B
The products that matter
on-site building product installation
installation services
$3.0B revenue · entire business
it's the whole $3.0B company, delivered through 250 branches that install insulation, garage doors, rain gutters, and related products.
100% of revenue
branch-based local execution
branch network
250 locations · operating backbone
these 250 branches are the distribution and labor model at the same time, which is why scale matters more here than brand awareness.
local density
profit conversion
field-level economics
~10.5% net margin · ~25% ROE
a ~10.5% net margin on $3.0B of revenue and ~25% return on equity (per the health panel) tell you this is more profitable than a plain-vanilla contractor roll-up.
the key insight
Key numbers
28.5x
trailing p/e
P/E → stock price compared with past earnings → so what: you are paying $28.50 for each $1 of trailing profit in a cyclical housing business.
16.0%
return on capital
Return on capital → profit earned on money invested in the business → so what: IBP generates $16 of operating profit for every $100 tied up in the business.
18.5%
operating margin
Operating margin → profit after running the business but before interest and taxes → so what: IBP keeps $18.50 from every $100 of sales before financing costs.
$850M
long-term debt
Long-term debt → money owed over years, not quarters → so what: debt is 9% of capital, which is manageable but still ties IBP to the housing cycle.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 35 / 100
- long-term debt $850M (9% of capital)
- net profit margin 10.5% — keeps 10 cents of every dollar in revenue
- return on equity 25% — $0.25 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in IBP 3 years ago → it's now worth $29,150.
The index would have given you $14,540.
source: institutional data · total return
What just happened
beat estimates
Q4 2025 adjusted EPS was $3.24, beating the $2.69 consensus by ~20%.
Adjusted EBITDA hit a record level as product mix improved and pricing held up. Full-year adjusted EPS rose to ~$11.44 from ~$9.10 in 2024, even with annual revenue up just 1.0% to $3.0B.
$3.0B
rev (FY)
$3.24
adj. eps (Q4)
33.6%
gross margin (Q4)
the number that mattered
The Q4 EPS beat mattered because margin and mix did more work than the sluggish top line—full-year EPS ~$11.44 is the other half of the story.
-
installed building products finished 2025 in strong fashion.there was a dip in revenues in the fourth quarter as demand in the markets it serves remains sluggish.
-
however, adjusted ebitda reached a record level during the quarter as product mix turned favorable and price increases were achieved in certain product categories.
-
adjusted earnings per share rose 13%, to $3.24.
-
for the full year, profits were up 4%, to $11.44.
-
but results in the coming quarters could turn slightly negative.conditions in the home building market remain challenging, as overall consumer sentiment is negative and builders are cautious. the company is also expected to have higher integration costs as it incorporates the seven acquisitions that it has made over the past five months.
source: company earnings report, 2026
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What could go wrong
the #1 risk is a housing and remodeling slowdown hitting branch volume.
high
housing and remodeling slowdown
IBP installs products when homes get built or upgraded. if that activity slows, demand slows with it.
this risk touches 100% of its $3.0B revenue base.
med
labor and material inflation
this is a field-service model. higher wages or input costs pressure profitability if pricing does not keep up.
a ~10.5% net margin (per the health panel) is good—it is not infinite.
med
premium multiple on slow growth
the stock trades at 28.5x trailing earnings while revenue grew 1.0%. if growth stays muted, the market may stop paying a premium.
the street's 3–5 year midpoint is $278 versus a current price of $326.
low
execution across 250 branches
the branch network is the operating model. that also means local execution issues can add up fast.
250 locations create reach, but they also create a lot of moving parts.
a construction downturn does not just hit one segment. it hits the entire $3.0B installation engine.
source: institutional data · regulatory filings · risk analysis
Pay attention to
trend
revenue growth off the 1.0% base
if revenue reaccelerates from +1.0%, the premium multiple will look more justified. if it does not, investors will notice.
metric
fy2026 EPS estimate
the current number is $11.25. estimate cuts matter more here than tiny quarterly beats.
calendar
next quarterly progression
Q1 to Q4 EPS moved from $2.07 to $3.24. you want to know whether that slope continues or flattens.
risk
branch execution at scale
250 branches are the edge and the headache. any signs of weaker local demand or operating slippage matter fast.
Analyst rankings
short-term outlook
top 5%
momentum score 1 — the highest rating. in human-speak, analysts think this stock has stronger near-term price momentum than almost everything else they cover.
risk profile
average
stability score 3. you're not buying a defensive utility here, but you're not buying chaos either.
chart momentum
top 20%
technical score 2 — the tape still looks healthy even with the stock near the upper end of its $151–$349 range.
earnings predictability
80 / 100
the numbers have been steadier than the housing backdrop. for a cyclical business, that matters.
source: institutional data
Institutional activity
143 buyers vs. 145 sellers in 4q2025. total institutional holdings: 27.4M shares.
source: institutional data
Price targets
3-5 year target range
$129
$426
$326
current price
$278
target midpoint · 15% from current · 3-5yr high: $460 (+40% · 9% ann'l return)
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