# Installed Building Products Inc. (IBP) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-29  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/IBP/thesis · /stocks/IBP/memo

## Financial Snapshot

---
source: coverage-next-full
ticker: IBP
step: "04"
title: Financial Snapshot — 3-Year P&L Summary
created: 2026-05-29
---

### IBP — Financial Snapshot (FY 2021–2023)

#### Income Statement Summary

| Line Item | FY 2021 | FY 2022 | FY 2023 |
|-----------|---------|---------|---------|
| **Revenue** | $1,926M | $2,601M | $2,780M |
| Revenue Growth YoY | +30.7% | +35.1% | +6.9% |
| Cost of Sales | $1,277M | $1,729M | $1,864M |
| **Gross Profit** | $649M | $872M | $916M |
| Gross Margin | 33.7% | 33.5% | 32.9% |
| SG&A | $310M | $373M | $403M |
| SG&A as % of Revenue | 16.1% | 14.3% | 14.5% |
| **Operating Income (EBIT)** | $339M | $499M | $513M |
| EBIT Margin | 17.6% | 19.2% | 18.5% |
| Depreciation & Amortization | $110M | $127M | $145M |
| **EBITDA** | $449M | $626M | $658M |
| EBITDA Margin | 23.3% | 24.1% | 23.7% |
| Interest Expense | ($27M) | ($38M) | ($43M) |
| Other Income / (Expense) | $5M | $5M | $8M |
| **Pre-Tax Income** | $317M | $466M | $478M |
| Income Tax Expense | ($81M) | ($111M) | ($112M) |
| Effective Tax Rate | 25.6% | 23.8% | 23.4% |
| **Net Income** | $236M | $355M | $366M |
| Net Margin | 12.2% | 13.7% | 13.2% |
| **Diluted EPS** | $9.47 | $14.27 | $14.90 |
| Diluted Shares Outstanding | 24.9M | 24.9M | 24.6M |

#### Adjusted / Non-GAAP Metrics

IBP reports adjusted EBITDA and adjusted net income excluding acquisition-related amortization and other one-time items:

| Metric | FY 2021 | FY 2022 | FY 2023 |
|--------|---------|---------|---------|
| Adjusted EBITDA | ~$475M | ~$655M | ~$690M |
| Adjusted EBITDA Margin | ~24.7% | ~25.2% | ~24.8% |
| Adjusted Net Income | ~$255M | ~$375M | ~$390M |
| Adjusted Diluted EPS | ~$10.25 | ~$15.07 | ~$15.88 |

*Note: Adjusted figures exclude acquisition-related amortization (~$25-35M/year), share-based compensation, and other non-recurring items.*

#### Gross Margin Analysis

Gross margin has remained in the **32–34% range** through the cycle, demonstrating IBP's ability to pass through material costs:

- **2021–2022**: Gross margin held stable despite significant insulation material cost inflation as IBP successfully repriced contracts with homebuilder customers
- **2023**: Slight compression as materials moderately deflated but selling prices also normalized
- Management guidance: long-term gross margin target of **32–34%** is appropriate; IBP's model is labor-intensive and material cost pass-through is a structural feature

#### Operating Leverage Profile

IBP demonstrates significant operating leverage:
- **Fixed cost base**: Corporate overhead, branch fixed costs (~35–40% of SG&A) are relatively fixed
- **Variable costs**: Installer wages, fuel/vehicle costs, materials (pass-through) are variable
- From FY2019 to FY2022: Revenue roughly doubled while EBIT more than tripled — demonstrating the power of the fixed-cost leverage

#### Per-Share Financial History

| Year | Revenue/Share | EBITDA/Share | EPS (Diluted) | FCF/Share (approx.) |
|------|--------------|-------------|---------------|---------------------|
| FY 2019 | ~$55 | ~$12 | ~$4.00 | ~$5.50 |
| FY 2020 | ~$58 | ~$13 | ~$4.50 | ~$7.00 |
| FY 2021 | ~$77 | ~$18 | ~$9.47 | ~$12.00 |
| FY 2022 | ~$104 | ~$25 | ~$14.27 | ~$18.00 |
| FY 2023 | ~$113 | ~$27 | ~$14.90 | ~$17.00 |

#### Q3 2024 YTD Snapshot (through September 30, 2024)

| Metric | 9M 2024 | 9M 2023 | YoY Change |
|--------|---------|---------|------------|
| Revenue | ~$2,215M | ~$2,075M | +6.7% |
| Gross Profit | ~$720M | ~$678M | +6.2% |
| Gross Margin | 32.5% | 32.7% | -20bps |
| Adjusted EBITDA | ~$520M | ~$495M | +5.1% |
| Diluted EPS | ~$11.50 | ~$11.00 | +4.5% |

*Note: Q3 2024 run-rate suggests FY 2024 revenue of ~$2.9B and EPS of ~$15–16.*

#### Key Observations

1. **Revenue compounding**: IBP has grown revenue at a ~20% CAGR since its IPO in 2014, combining organic growth (housing cycle + codes) with acquisitions

2. **Margin resilience**: EBIT margins have compressed only modestly (~60bps) from the 2022 peak despite housing starts declining ~15% from 2021 highs — testament to price/mix and acquisition contribution

3. **EPS growth**: EPS growth has been amplified by modest share count reduction through buybacks, complementing income growth

4. **Working capital efficiency**: IBP generates strong operating cash flow because it collects quickly (homebuilders pay within 30 days typically) and manages payables actively

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/IBP/fundamental

## Navigation

- Overview: /stocks/IBP
- Financials (this page): /stocks/IBP/financials
- Thesis: /stocks/IBP/thesis
- Investment Memo: /stocks/IBP/memo
- Coverage universe: /stocks