Record Q3 income for Installed Building Products

As revenue softens due to market conditions, IBP continues to mount acquisitions.

HBSDealer Staff

11/9/2023

a large brick tower with a clock on the side of a building

IBP saw its job volume decline by 10.8% in the third quarter.

Installed Building Products (IBP) reported third quarter revenue decreased 1.8% to $706.5 million from third quarter 2022 revenue of $719.1 million.

The Columbus, Ohio-based company said installation revenue decreased 1.7% to $661.2 million during the period due to softer single-family sales. Installed sales were partially offset by multi-family and commercial sales growth, including incremental sales from IBP's recent acquisitions.

Altogether, IBP reported a 10.8% decline in job volume partially offset by a 3.5% increase in price.

Additional revenue, including IBP’s manufacturing and distribution operations, decreased slightly to $45.3 million from $46.2 million.

The installed sales provider also posted a third quarter net income $68 million, an 11.5% increase from a net income of nearly $61 million for the same period last year. This also marks a company record for the third quarter.

During the quarter IBP completed three acquisitions, including:

Interior 2000 Products, LLC, a Virginia-based installer of shower, shelving, and mirror products, as well as fireplaces into new and existing residential and commercial construction projects with annual revenue of approximately $6 million.
R-Pro Select, LLC, a North Carolina-based residential installer of fiberglass, spray foam, cellulose insulation, and fireplaces with annual revenue of approximately $2 million.
Interstate Spray Foam, LLC, a North Dakota-based installer of fiberglass and spray foam insulation with multifamily, residential and commercial customers with annual revenue of approximately $2 million.

Installed Building Products operates more than 240 branches in the United States. Services provided by the company include waterproofing, fire-stopping, fireproofing, garage doors, rain gutters, window blinds, shower doors, closet shelving and mirrors, and other products for residential and commercial builders.

###

The Bottom Line: While IBP saw a slight decrease in revenue for the third quarter, the company’s net income moved ahead by 11.5% to a company record of $68 million.

What the CEO said: “Our third quarter and year-to-date financial results reflect the continued benefits of our product, end-market, and geographic diversification strategies, as softer single-family sales were partially offset by the continuation of robust sales growth in our multi-family end market,” said Jeff Edwards, chairman and CEO of Installed Building Products. “While we expect interest rate volatility to exacerbate cyclicality in the housing industry, we believe the long-term opportunities in our residential and commercial end markets remain attractive and as of the end of the third quarter, our multi-family revenue is supported by a stable backlog.”

Company Info: Click here to read the full third quarter financial report from Installed Building Products.