Revenue growth stalled to 2.3% YoY in 2026Q2, with gross margin holding at 33.3% but operating margin contracting to 12.2% due to SG&A creep (19.8% of revenue), leading to a 5.9% decline in net income.
Installed Building Products, Inc. (IBP) annual income statement — 15-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 |
|---|
| Sales/Revenue | 2.99B | 2.97B | 2.94B | 2.78B | 2.67B | 1.97B | 1.65B | 1.51B | 1.34B | 1.13B | 862.98M | 662.72M | 518.02M | 431.93M | 301.25M | 238.45M |
| Revenue Growth % | 0.7% | 1% | 5.86% | 4.07% | 35.62% | 19.08% | 9.37% | 13.11% | 17.96% | 31.28% | 30.22% | 27.93% | 19.93% | 43.38% | 26.34% | - |
| Cost of Goods Sold | 2B | 1.96B | 1.95B | 1.85B | 1.84B | 1.38B | 1.14B | 1.08B | 964.84M | 808.9M | 610.53M | 474.43M | 377.97M | 322.24M | 227.21M | 181.22M |
| COGS % of Revenue | - | 66.03% | 66.19% | 66.5% | 68.99% | 70.06% | 69.15% | 71.23% | 72.2% | 71.4% | 70.75% | 71.59% | 72.96% | 74.61% | 75.42% | 76% |
| Gross Profit | 990.1M | 1.01B | 994.5M | 930.7M | 827.78M | 589.45M | 509.97M | 434.82M | 371.59M | 324.03M | 252.45M | 188.29M | 140.05M | 109.69M | 74.04M | 57.23M |
| Gross Margin % | 33.07% | 33.97% | 33.81% | 33.5% | 31% | 29.94% | 30.85% | 28.77% | 27.8% | 28.6% | 29.25% | 28.41% | 27.04% | 25.39% | 24.58% | 24% |
| Gross Profit Growth % | - | 1.49% | 6.86% | 12.43% | 40.43% | 15.58% | 17.28% | 17.02% | 14.68% | 28.35% | 34.07% | 34.45% | 27.68% | 48.14% | 29.39% | - |
| Operating Expenses | 637.4M | 622.9M | 612M | 561.6M | 482.4M | 401.6M | 348.11M | 313.66M | 278.37M | 249.76M | 186.4M | 143.34M | 114.47M | 96.61M | 75.94M | 74.36M |
| OpEx % of Revenue | - | 20.97% | 20.81% | 20.21% | 18.07% | 20.4% | 21.06% | 20.75% | 20.83% | 22.05% | 21.6% | 21.63% | 22.1% | 22.37% | 25.21% | 31.18% |
| Selling, General & Admin | 594.8M | 581.8M | 564.6M | 515M | 454.7M | 364.38M | 319.57M | 289.15M | 250.25M | 219M | 175.14M | 137.08M | 111.63M | 92.7M | 80.44M | 68.88M |
| SG&A % of Revenue | - | 19.58% | 19.2% | 18.53% | 17.03% | 18.51% | 19.33% | 19.13% | 18.73% | 19.33% | 20.29% | 20.68% | 21.55% | 21.46% | 26.7% | 28.89% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 41.1M | 47.4M | 46.6M | 27.7M | 37.22M | 28.54M | 24.51M | 28.12M | 30.76M | 13.56M | 7.36M | 2.84M | 3.91M | -4.5M | 5.47M |
| Operating Income | 352.7M | 386.4M | 382.5M | 369.1M | 345.41M | 187.9M | 161.87M | 121.16M | 93.22M | 74.27M | 66.05M | 44.95M | 25.59M | 13.08M | -1.9M | -17.13M |
| Operating Margin % | 11.78% | 13.01% | 13% | 13.28% | 12.94% | 9.54% | 9.79% | 8.02% | 6.98% | 6.56% | 7.65% | 6.78% | 4.94% | 3.03% | -0.63% | -7.18% |
| Operating Income Growth % | - | 1.02% | 3.63% | 6.86% | 83.83% | 16.08% | 33.6% | 29.98% | 25.52% | 12.44% | 46.93% | 75.69% | 95.64% | 789.77% | 88.93% | - |
| EBITDA | 496M | 531.3M | 517M | 494.8M | 463.11M | 290.9M | 249.86M | 200.22M | 151.94M | 129.41M | 100.88M | 68.19M | 40.6M | 24.51M | 5.82M | -8.74M |
| EBITDA Margin % | 16.57% | 17.88% | 17.58% | 17.81% | 17.35% | 14.78% | 15.11% | 13.25% | 11.37% | 11.42% | 11.69% | 10.29% | 7.84% | 5.67% | 1.93% | -3.67% |
| EBITDA Growth % | -4.27% | 2.77% | 4.49% | 6.84% | 59.2% | 16.42% | 24.79% | 31.78% | 17.41% | 28.28% | 47.94% | 67.97% | 65.64% | 320.9% | 166.63% | - |
| D&A (Non-Cash Add-back) | 143.3M | 144.9M | 134.5M | 125.7M | 117.7M | 103M | 88M | 79.06M | 58.73M | 55.14M | 34.83M | 23.24M | 15.01M | 11.43M | 7.72M | 8.39M |
| EBIT | 354.8M | 388.7M | 383.3M | 370.1M | 344.9M | 185.12M | 161.47M | 120.71M | 92.68M | 73.2M | 65.79M | 45.67M | 25.75M | 13.11M | -1.76M | 1.25M |
| Net Interest Income | -39.4M | -31.7M | -36.9M | -37M | -41.6M | -32.8M | -30.29M | -28.1M | -20.5M | -17.38M | -6.18M | -3.74M | -3.17M | -2.26M | -1.98M | -6.99M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 39.4M | 31.7M | 36.9M | 37M | 41.6M | 32.8M | 30.29M | 28.1M | 20.5M | 17.38M | 6.18M | 3.74M | 3.17M | 2.26M | 1.98M | 6.99M |
| Other Income/Expense | -37.3M | -29.4M | -36.1M | -36M | -42.1M | -32.42M | -30.69M | -28.55M | -21.03M | -18.45M | -6.44M | -3.02M | -3M | -2.22M | -1.84M | 11.39M |
| Pretax Income | 315.4M | 357M | 346.4M | 333.1M | 303.31M | 155.47M | 131.18M | 92.61M | 72.19M | 55.82M | 59.61M | 41.93M | 22.59M | 10.85M | -3.74M | -5.74M |
| Pretax Margin % | 10.53% | 12.02% | 11.78% | 11.99% | 11.36% | 7.9% | 7.93% | 6.13% | 5.4% | 4.93% | 6.91% | 6.33% | 4.36% | 2.51% | -1.24% | -2.41% |
| Income Tax | 79.7M | 91.6M | 89.8M | 89.4M | 79.88M | 36.71M | 33.94M | 24.45M | 17.44M | 14.68M | 21.17M | 15.41M | 8.61M | 4.22M | 555K | 1.45M |
| Effective Tax Rate % | 25.27% | 25.66% | 25.92% | 26.84% | 26.34% | 23.61% | 25.87% | 26.4% | 24.16% | 26.3% | 35.52% | 36.76% | 38.11% | 38.84% | -14.84% | -25.24% |
| Net Income | 235.7M | 265.4M | 256.6M | 243.7M | 223.4M | 118.8M | 97.24M | 68.16M | 54.75M | 41.14M | 38.44M | 26.52M | 13.93M | 6.04M | -1.91M | -8.98M |
| Net Margin % | 7.87% | 8.93% | 8.72% | 8.77% | 8.37% | 6.03% | 5.88% | 4.51% | 4.1% | 3.63% | 4.45% | 4% | 2.69% | 1.4% | -0.63% | -3.77% |
| Net Income Growth % | -7.82% | 3.43% | 5.29% | 9.09% | 88.05% | 22.17% | 42.66% | 24.5% | 33.08% | 7.04% | 44.95% | 90.33% | 130.66% | 416.89% | 78.79% | - |
| Net Income (Continuing) | 235.7M | 265.4M | 256.6M | 243.7M | 223.4M | 118.8M | 97.24M | 68.16M | 54.75M | 41.14M | 38.44M | 26.52M | 13.98M | 6.64M | -4.29M | -7.19M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -48K | -598K | 0 | -1.79M |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 8.89 | 9.71 | 9.10 | 8.61 | 7.74 | 4.01 | 3.27 | 2.28 | 1.75 | 1.30 | 1.23 | 0.85 | -0.20 | -0.01 | -0.26 | 2.56 |
| EPS Growth % | -5.38% | 6.7% | 5.69% | 11.24% | 93.02% | 22.63% | 43.42% | 30.29% | 34.62% | 5.69% | 44.71% | 525% | - | 97.62% | -110.16% | - |
| EPS (Basic) | - | 9.76 | 9.15 | 8.65 | 7.78 | 4.04 | 3.30 | 2.29 | 1.76 | 1.30 | 1.23 | 0.85 | -0.20 | -0.01 | -0.26 | 2.56 |
| Diluted Shares Outstanding | 26.51M | 27.05M | 28.19M | 28.31M | 28.87M | 29.63M | 29.72M | 29.87M | 31.23M | 31.76M | 31.36M | 31.33M | 30.11M | 22.03M | 30.6M | 28.78M |
| Basic Shares Outstanding | 26.45M | 26.9M | 28.03M | 28.16M | 28.71M | 29.37M | 29.5M | 29.75M | 31.11M | 31.64M | 31.3M | 31.3M | 30.11M | 29.48M | 30.6M | 28.78M |
| Dividend Payout Ratio | - | 33.01% | 33.01% | 25.89% | 28.05% | 29.71% | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying IBP stock.
For fiscal year 2025, Installed Building Products, Inc. (IBP) reported total revenue of $2.97B. This represents a 1145.9% increase compared to $238.4M in 2011.
Installed Building Products, Inc. (IBP) is profitable, generating $265.4M in net income for the fiscal year ending 2025 with a net profit margin of 8.9%.
Installed Building Products, Inc. (IBP) reported an operating income of $386.4M, resulting in an operating profit margin of 13.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Installed Building Products, Inc. (IBP) generated $1.01B in gross profit for the year, representing a gross profit margin of 34.0%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Housing downturn and EPS miss
Metrics are mathematically derived from official filings.
Revenue Growth Stalls Amid Housing Headwinds
IBP's revenue growth decelerated to 1.0% YoY in 2026Q2, down from 6.6% in 2024Q2, reflecting a challenging residential market. According to the latest quarterly report, revenue reached $777.8M, barely above prior-year levels.
The sequential pattern shows a clear deceleration: from 7.7% YoY growth in 2024Q3 to 2.3% in 2026Q2, with two quarters of negative growth in early 2026. This suggests that organic volume is likely contracting, and any growth may be acquisition-driven. The lack of formal guidance from management, coupled with the CEO's commentary on a 'challenging residential housing backdrop,' indicates limited visibility into a near-term recovery. Investors should monitor housing starts and order flow for signs of stabilization.
Gross Margin Resilience Despite Volume Pressure
Gross margin held at 33.3% in 2026Q2, down from 34.2% a year earlier but still above the 32.1% trough in 2026Q1. As reported in financial statements, IBP's gross margin has remained in a tight 32-35% band over the past two years.
The stability of gross margin despite revenue stagnation suggests that IBP retains pricing power, likely due to its ability to pass through material costs and its value-added installation services. However, the slight erosion from 34.2% to 33.3% YoY may indicate that input cost inflation is outpacing contract adjustments. The company's diversified product mix, including complementary products, may provide a buffer against pure insulation price competition. If housing starts continue to decline, gross margin could face further pressure as fixed labor costs are spread over fewer installations.
Operating Leverage Turns Negative in 2026
Operating income fell 6.3% YoY in 2026Q2 to $94.6M, while revenue grew 2.3%, indicating negative operating leverage. Based on the income statement, SG&A expenses rose to $153.8M, up from $148.8M in the prior-year quarter.
The 2026Q2 operating margin of 12.2% is below the 13.3% reported in 2025Q2, and the 2026Q1 margin of 8.7% was the lowest in the series. This suggests that SG&A costs are not scaling down with revenue, possibly due to fixed overhead or investments in growth initiatives. The sharp drop in 2026Q1, where revenue declined 3.5% YoY but SG&A only fell 0.3%, highlights the company's cost rigidity. If revenue remains flat, operating leverage will continue to weigh on margins, making cost discipline a key focus for management.
EPS Miss Clouds Earnings Quality
Diluted EPS of $2.43 in 2026Q2 missed consensus by $0.45, a 15.6% shortfall, despite a 2.3% revenue increase. According to the earnings release, net income fell to $64.9M from $69.0M a year earlier, a 5.9% decline.
The EPS miss is particularly concerning because it occurred on modest revenue growth, implying that margin compression or higher interest expenses are eroding profitability. The effective tax rate appears stable, but the $6.2M in stock-based compensation is relatively small, so it is not the primary driver. The lack of guidance and the CEO's hedged language suggest that management may not have a clear line of sight to a recovery, which could lead to further negative revisions. Investors should scrutinize the sustainability of net margins, which have fallen from 9.1% in 2025Q2 to 8.3% in 2026Q2.
SG&A Creep Pressures Margins
SG&A expenses rose to $153.8M in 2026Q2, up 3.4% YoY, while revenue grew only 2.3%, causing SG&A as a percentage of revenue to increase to 19.8% from 19.6%. As reported in the income statement, this is the highest SG&A ratio in the last eight quarters.
The increase in SG&A is notable because it suggests that overhead costs are not being managed tightly in a soft demand environment. While the absolute dollar increase is modest, the lack of operating leverage is evident. The company may be investing in sales personnel or technology to support future growth, but in the near term, this is a drag on profitability. If revenue remains stagnant, management will need to find cost savings to protect operating margins, which have already declined from 13.3% in 2025Q2 to 12.2% in 2026Q2.
What Could Invalidate the Base Case
The most significant risk is that the housing downturn deepens, leading to further revenue contraction and margin erosion. The Q2 2026 EPS miss of $0.45 suggests that the market's expectations were too high, and the lack of guidance implies management sees more downside.
Short-sellers would argue that IBP's revenue growth is heavily dependent on acquisitions, and with a debt-to-equity ratio of 1.48, the company may have limited capacity for further M&A. If organic growth is negative, as the data suggests, the company's earnings power could deteriorate faster than expected. Additionally, the gross margin, while stable, could compress if material costs rise and IBP cannot pass them through due to competitive pressures. The absence of formal guidance is a red flag, as it indicates uncertainty about the future. Investors should monitor housing starts and management's commentary for signs of a prolonged downturn.