Installed Building Products (IBP) Q2 2026 earnings summary

Executive summary

• Net revenue for Q2 2026 increased 2.3% year-over-year to $777.8 million, driven by 14.1% growth in commercial sales and recent acquisitions, offset by lower single-family residential installation volume.

• Adjusted EBITDA was $130.9 million (16.9% margin); adjusted net income was $77.8 million, or $2.91 per diluted share.

• Free cash flow remained strong, supporting increased dividends and share repurchases, with $394.5 million in cash at quarter end.

• Completed acquisitions representing $30 million in annual sales across residential, commercial, and industrial markets; outlook targets at least $100 million in annual acquired revenue for 2026.

• Continued disciplined capital allocation with focus on acquisitions, dividends, and share repurchases.

Financial highlights

• Q2 2026 consolidated net revenue rose 2.3% to $777.8 million; adjusted EBITDA margin was 16.9%, and adjusted net income per diluted share was $2.91.

• Gross profit decreased 0.4% to $258.9 million; gross margin was 33.3%, down from 34.2% last year.

• Net income was $64.9 million, with net profit margin at 8.3%; adjusted net profit margin was 10.0%.

• Cash and cash equivalents stood at $394.5 million at quarter-end.

• Dividend per share for Q2 2026 was $0.39, up over 5% year-over-year.

Outlook and guidance

• Management expects continued pressure on the U.S. residential housing market due to affordability and consumer confidence.

• Expects to acquire at least $100 million in revenue in 2026; $59 million acquired year-to-date.

• Effective tax rate anticipated at 25%-27% for full-year 2026; Q3 net interest expense expected to be ~$10 million.

• Anticipates continued strong acquisition activity and positive free cash flow to support shareholder returns.

• Long-term targets include mid-teens adjusted EPS growth and adjusted gross profit margin in the 32–34% range.