third quarter 2026
Filed Nov 5, 2026Installed Building Products reported record third-quarter net revenue of $808.4 million, up 3.9%, while net income declined to $59.4 million and adjusted EBITDA declined to $128.3 million.
Revenue reached a record quarter and commercial sales, Other revenue and acquired revenue increased, but gross margin, net income, adjusted net income and adjusted EBITDA declined amid residential softness, a higher Other-segment mix, and fuel and aluminum cost inflation.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net revenue, three months ended September 30GAAP | $808.4M | – | 3.9% |
| Net revenue, nine months ended September 30GAAP | $2.25B | – | 1.1% |
| Consolidated same branch sales growth, three months ended September 30other | 0.6% | – | 0.6% |
| Consolidated same branch sales growth, nine months ended September 30other | (1.8)% | – | (1.8)% |
| Cost of sales, three months ended September 30GAAP | $551M | – | – |
| Cost of sales, nine months ended September 30GAAP | $1.52B | – | – |
| Gross profit, three months ended September 30GAAP | $257.4M | – | (2.6)% |
| Gross profit margin, three months ended September 30GAAP | 31.8% | – | – |
| Adjusted gross profit, three months ended September 30non-GAAP | $257.8M | – | – |
| Adjusted gross profit margin, three months ended September 30non-GAAP | 31.9% | – | – |
| Gross profit, nine months ended September 30GAAP | $728.6M | – | – |
| Gross profit margin, nine months ended September 30GAAP | 32.4% | – | – |
| Selling and administrative expense, three months ended September 30GAAP | $154.9M | – | – |
| Selling and administrative expense as a percentage of net revenue, three months ended September 30GAAP | 19.2% | – | – |
| Adjusted selling and administrative expense, three months ended September 30non-GAAP | $147.5M | – | – |
| Adjusted selling and administrative expense as a percentage of net revenue, three months ended September 30non-GAAP | 18.2% | – | – |
| Operating income, three months ended September 30GAAP | $91.7M | – | – |
| Operating income, nine months ended September 30GAAP | $243.9M | – | – |
| Net income, three months ended September 30GAAP | $59.4M | – | – |
| Net profit margin, three months ended September 30GAAP | 7.3% | – | – |
| Diluted net income per share, three months ended September 30GAAP | $2.24 | – | – |
| Basic earnings per share, three months ended September 30GAAP | $2.25 | – | – |
| Net income, nine months ended September 30GAAP | $159.1M | – | – |
| Diluted net income per share, nine months ended September 30GAAP | $5.95 | – | – |
| Adjusted net income, three months ended September 30non-GAAP | $73.1M | – | – |
| Adjusted net profit margin, three months ended September 30non-GAAP | 9.0% | – | – |
| Diluted adjusted net income per share, three months ended September 30non-GAAP | $2.76 | – | – |
| Adjusted net income, nine months ended September 30non-GAAP | $199.3M | – | – |
| Diluted adjusted net income per share, nine months ended September 30non-GAAP | $7.46 | – | – |
| EBITDA, three months ended September 30non-GAAP | $120.6M | – | (9.9)% |
| EBITDA margin, three months ended September 30non-GAAP | 14.9% | – | – |
| Adjusted EBITDA, three months ended September 30non-GAAP | $128.3M | – | (8.3)% |
| Adjusted EBITDA margin, three months ended September 30non-GAAP | 15.9% | – | – |
| Adjusted EBITDA, nine months ended September 30non-GAAP | $351.3M | – | – |
| Adjusted EBITDA margin, nine months ended September 30non-GAAP | 15.6% | – | – |
| Net cash provided by operating activities, nine months ended September 30GAAP | $245.9M | – | – |
| Purchases of property and equipment, nine months ended September 30GAAP | −$50M | – | – |
| Acquisitions of businesses, net of cash acquired, nine months ended September 30GAAP | −$63.2M | – | – |
| Net cash used in investing activities, nine months ended September 30GAAP | −$114.2M | – | – |
| Net cash used in financing activities, nine months ended September 30GAAP | −$37.7M | – | – |
| Cash and cash equivalentsGAAP | $415.9M | – | – |
| Current maturities of long-term debtGAAP | $33.7M | – | – |
| Long-term debtGAAP | $1.02B | – | – |
| Total assetsGAAP | $2.30B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Installation segment, three months ended September 30Residential same branch sales within the Installation segment were down 2.6% while commercial same branch sales within the Installation segment were up 10.3% from the prior year quarter. | $740.4M | – | 2.7% |
| Other revenue, net of eliminations, three months ended September 30Other revenue includes IBP's manufacturing and distribution operations. | $68M | – | 18.9% |
| Installation residential new construction, three months ended September 30Residential new construction represented 67% of net revenue. | $535.5M | – | (0.9)% |
| Installation repair and remodel, three months ended September 30Repair and remodel represented 6% of net revenue. | $48.4M | – | – |
| Installation commercial, three months ended September 30Commercial represented 19% of net revenue and commercial same branch sales growth was 10.3%. | $156.5M | – | 16.2% |
2026 outlook
- NoteYear to date we have acquired approximately $ 67 million in revenue and continue to believe we will acquire at least $100 million in revenue in 2026.
- NoteFourth quarter regular cash dividend of $0.39 per share, payable on December 31, 2026, to stockholders of record on December 15, 2026.
Capital returns
- Declared third quarter dividend of $0.39 per share that was paid to shareholders on September 30, 2026.
- IBP’s Board of Directors declared the fourth quarter regular cash dividend of $0.39 per share.
- Dividends paid were $80.1 million for the nine months ended September 30, 2026, compared to $77.7 million in the prior-year period.
- Repurchase of common stock was $101.7 million for the nine months ended September 30, 2026, compared to $134.9 million in the prior-year period.
- Cash dividends declared per share were $0.39 for the three months ended September 30, 2026, compared to $0.37 for the prior-year period, and $2.97 for the nine months ended September 30, 2026, compared to $2.81 for the prior-year period.
What drove it
- Consolidated same branch sales increased 0.6% in the third quarter.
- Price/mix increased 0.4% during the third quarter and job volumes were down 1.9% relative to the same period last year.
- Including heavy commercial installation sales but excluding Other segment results, price/mix increased 2.0% while job volume was down 1.7%.
- Acquired revenue contributed $25.4 million of the $30.2 million third-quarter revenue increase.
- IBP completed four third-quarter acquisitions that added approximately $ 22 million of annual revenue.
- Gross margin in the third quarter of 2026 was 35.0% in the Installation segment and 23.1% in the Other segment.
Concerns
- Residential same branch sales within the Installation segment were down 2.6% in the quarter.
- Gross profit margin was 31.8%, compared to 34.0% in the same period last year.
- Gross profit margin was reduced by the higher relative mix of the Other segment compared to the Installation segment.
- The company cited significant cost inflation in fuel and aluminum.
- Interest expense, net was $10.4 million in the third quarter of 2026, compared to $6.9 million in the prior-year quarter.
- Same branch adjusted EBITDA margin contribution was $(15.4) million in the third quarter.
What to watch
- The company continues to believe it will acquire at least $100 million in revenue in 2026.
- Commercial same branch sales growth was 10.3% in the third quarter, while residential same branch sales were down 2.6%.
- Installation segment gross profit percentage was 35.0%, and Other gross profit percentage was 23.1%.
- The fourth quarter regular cash dividend of $0.39 per share is payable on December 31, 2026.
- The company identified affordability and consumer confidence as headwinds for single-family construction.
Balance sheet and cash flow
- Cash and cash equivalents were $415.9 million at September 30, 2026, compared to $321.9 million at December 31, 2025.
- Long-term debt was $1,019.7 million at September 30, 2026, compared to $850.0 million at December 31, 2025.
- IBP closed a $250 million Add-On to its existing Term Loan B.
- Net cash provided by operating activities was $245.9 million for the nine months ended September 30, 2026, compared to $306.5 million in the prior-year period.
- Net change in cash and cash equivalents was $94.0 million for the nine months ended September 30, 2026, compared to $5.7 million in the prior-year period.
- Proceeds from Senior Notes were $500.0 million and payments on Senior Notes were $300.0 million for the nine months ended September 30, 2026.
Analysis
IBP delivered a record quarter of $808.4 million in net revenue, up 3.9% from $778.2 million. Growth was supported by $25.4 million of acquired revenue, $68.0 million of Other revenue net of eliminations, up 18.9%, and $156.5 million of commercial installation revenue, up 16.2%. Consolidated same branch sales grew 0.6%, with commercial same branch sales up 10.3%, while residential same branch sales declined 2.6%.
Profitability weakened despite revenue growth. Gross profit declined to $257.4 million from $264.2 million, and gross profit margin declined to 31.8% from 34.0%. IBP attributed the margin pressure to the higher relative mix of the Other segment, where gross margin was 23.1% compared with 35.0% in Installation, as well as significant cost inflation in fuel and aluminum. Adjusted selling and administrative expense as a percentage of net revenue was unchanged at 18.2%, but GAAP selling and administrative expense as a percentage of net revenue rose to 19.2% from 18.9%.
The lower gross profit and higher interest expense flowed through to earnings. Net income was $59.4 million, or $2.24 per diluted share, compared with $74.4 million, or $2.74 per diluted share. Adjusted EBITDA declined 8.3% to $128.3 million, and adjusted EBITDA margin declined to 15.9% from 18.0%. For the first nine months, net revenue was $2,246.7 million, adjusted EBITDA was $351.3 million, and net cash provided by operating activities was $245.9 million.
Capital allocation remained active. IBP completed four third-quarter acquisitions adding approximately $ 22 million of annual revenue and reported approximately $ 67 million in acquired revenue year to date. The company continues to believe it will acquire at least $100 million in revenue in 2026. It closed a $250 million Add-On to its existing Term Loan B, ended the period with $415.9 million in cash and cash equivalents and $1,019.7 million of long-term debt, repurchased $101.7 million of common stock during the first nine months, and declared a fourth-quarter dividend of $0.39 per share.
The central operating issue is whether commercial growth, acquisitions and price/mix can offset continued residential construction softness and restore margins. IBP reported price/mix growth of 0.4% excluding heavy commercial and 2.0% including heavy commercial, while volume growth was negative on both measures. Management identified commercial growth, acquisition integration, operational efficiency initiatives and disciplined capital allocation as its areas of focus.
Management, verbatim
During the third quarter, our team stayed focused on delivering a high level of installation service to our customers. Despite continued softness in residential construction activity, our same branch sales performance continued to outperform underlying market trends reflecting market share gains and the strength of our customer relationships across our branch network. Our third quarter, and year-to-date results reflect the benefits of our diversified operating platform, our continued focus on profitability, and our commitment to delivering value to customers across markets and economic cycles.
Jeff Edwards, Chairman and Chief Executive Officer
While affordability and consumer confidence remain headwinds for single-family construction, we continue to focus on commercial growth, acquisition integration, operational efficiency initiatives, and disciplined capital allocation. Importantly, our strong balance sheet, continued profitability, and cash flow generation will provide the financial flexibility to continue to execute our growth-oriented capital allocation strategy and create long-term shareholder value.
Jeff Edwards, Chairman and Chief Executive Officer
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported income-statement metrics were not provided.
- Free cash flow was not reported.
- A total-debt line item was not reported.
- Quarterly operating cash flow was not reported; the filing reported cash flow for the nine months ended September 30.
- Formal revenue, gross-margin, operating-expense and tax-rate guidance was not provided.
- Previous-release outlook was not provided, so no actual-versus-prior-guidance comparison is available.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.