Installed Building Products Reports Record Fourth Quarter and Fiscal Year 2025 Profitability

Installed Building Products, Inc. (the "Company" or "IBP") (NYSE:IBP), an industry-leading installer of insulation and complementary building products, today announced results for the fourth quarter ended December 31, 2025.

Fourth Quarter 2025 Highlights (Comparisons are to Prior Year Period)

• Net revenue decreased 0.4% to $747.5 million
  • Installation revenue decreased 2.2% to $679.7 million, including sales from IBP's recent acquisitions
  • Other revenue, net of eliminations, which includes IBP's manufacturing and distribution operations, increased 22.8% to $67.8 million from $55.2 million
• Net income increased 14.5% to a record of $76.6 million
• Adjusted EBITDA* increased 7.7% to a record of $142.2 million
• Net income per diluted share increased 18.4% to $2.83
• Adjusted net income* was $87.7 million, or $3.24 per diluted share
• Net cash flow from operations was $64.9 million
• At December 31, 2025, IBP had $321.9 million in cash and cash equivalents
• Repurchased 150 thousand shares of common stock at a total cost of $37.6 million
• Declared fourth quarter dividend of $0.37 per share that was paid to shareholders on December 31, 2025

Recent Developments

• IBP's Board of Directors declared the first quarter regular cash dividend of $0.39 per share, representing more than a 5% increase to the Company's regular dividend in the prior year period
• IBP's Board of Directors also declared an annual variable dividend of $1.80 per share, an increase of $0.10 per share or nearly 6% over last year's variable dividend
• Fitch Ratings ("Fitch") assigned IBP a first-time Long-Term Issuer Default Rating (IDR) of ‘BB+', and assigned a ‘BBB-' rating with a Recovery Rating of ‘RR1' to IBP's ABL credit facility, a ‘BBB-‘/'RR2' rating to its senior secured term loan, and a ‘BB+'/'RR4' rating to the Company's senior unsecured notes with a Stable Rating Outlook
• IBP closed a private offering of $500 million in aggregate principal amount of 5.625% senior unsecured notes due 2034 and amended its existing $250 million asset-based lending revolving credit facility to, among other things, increase the commitments thereunder to $375 million and extend the maturity date to January 21, 2031
• IBP's Board of Directors authorized a new stock repurchase program that allows for the repurchase of up to $500 million of the Company's outstanding common stock, which expires March 1, 2027. The new program replaces the existing program.
• As previously announced on February 2, 2026, IBP completed three acquisitions with combined annual sales of over $22 million

"We closed out 2025 with a strong fourth quarter performance delivering record sales and profitability for the full year. With our core residential end markets experiencing headwinds, we maintained a disciplined approach to profitability and emphasized product diversification and quality of service. We continued to generate strong operating cash flow, which we used to support our growth-oriented capital allocation strategy. While we expect homebuilding activity to remain challenging in the near-term, our long-term outlook for our installed services remains positive, and we believe we are well positioned to continue investing in strategic acquisitions while returning cash to our shareholders," stated Jeff Edwards, Chairman and Chief Executive Officer.

Acquisition Update

IBP continues to prioritize profitable growth through its proven strategy of acquiring well-run installers of insulation and complementary building products. During 2025, IBP completed 11 acquisitions, including bolt-ons, representing over $64 million of annual revenue. For 2026, IBP expects to acquire at least $100 million of annual revenue.

During the 2025 fourth quarter and January and February 2026, IBP completed the following acquisitions, which added approximately $45 million of annual revenue:

2026 First Quarter Regular Cash Dividend and 2026 Annual Variable Dividend

IBP's Board of Directors has approved the Company's quarterly cash dividend of $0.39 per share, payable on March 31, 2026, to stockholders of record on March 13, 2026. In addition, IBP's Board of Directors has approved the Company's annual variable cash dividend at $1.80 per share, which will also be payable on March 31, 2026, to stockholders of record on March 13, 2026.

Share Repurchases

During the three months ended December 31, 2025, IBP repurchased 150 thousand shares of its common stock at a total cost of $37.6 million and 850 thousand shares at a total cost of $172.6 million during the twelve months ended December 31, 2025. IBP's Board of Directors authorized a new stock repurchase program that allows for the repurchase of up to $500 million of the Company's outstanding common stock. The new program replaces the previous program and is in effect through March 1, 2027.

Fourth Quarter 2025 Results Overview

For the fourth quarter of 2025, net revenue was $747.5 million, a decrease of 0.4% from $750.2 million for the fourth quarter of 2024. On a consolidated same branch basis, net revenue decreased 2.4% from the prior year quarter. Residential same branch sales within the Company's Installation segment were down 9.3% in the quarter while commercial same branch sales within the Installation segment were up 22.9% from the prior year quarter.

We achieved a 1.7% increase in price/mix during the fourth quarter. This result was offset by a 9.3% decrease in job volumes relative to the fourth quarter last year. It is important to note that the results of our heavy commercial end market and the Other segment results are not included in the price/mix and volume disclosures. Including the heavy commercial installation sales, but still excluding the Other segment results, price mix increased 5.8% while job volume decreased 8.9% during the 2025 fourth quarter.

Gross profit increased 3.9% to a fourth quarter record $261.5 million from $251.8 million in the prior year quarter. Gross profit and adjusted gross profit* as a percent of net revenue were both record margins at 35.0%, compared to 33.6% in the same period last year. Adjusted gross profit primarily adjusts for the Company's share-based compensation expense.

Selling and administrative expense, as a percent of total revenue, was 19.0% in both the 2025 fourth quarter and the prior year period. Adjusted selling and administrative expense*, as a percent of net revenue, was 18.3% compared to 18.1% in the prior year quarter.

Net income was $76.6 million, or $2.83 per diluted share, compared to $66.9 million, or $2.39 per diluted share in the prior year quarter. Net profit margin for the fourth quarter was 10.2% compared to 8.9% in the prior year quarter. Adjusted net income* was $87.7 million, or $3.24 per diluted share, compared to $80.6 million, or $2.88 per diluted share in the prior year quarter. Adjusted net profit margin* for the fourth quarter was 11.7% compared to 10.7% in the prior year quarter. Adjusted net income accounts for the impact of non-core items in both periods, including an addback for non-cash amortization expense related to acquisitions.

EBITDA* was a fourth quarter record $138.0 million, a 10.2% increase from $125.2 million in the prior year quarter. Adjusted EBITDA* was a fourth quarter record $142.2 million, a 7.7% increase from the prior year quarter and a record adjusted EBITDA margin* of 19.0%. In the prior year quarter, adjusted EBITDA* was $132.0 million, representing an adjusted EBITDA margin* of 17.6%.

Full Year 2025 Results Overview

For the year ended December 31, 2025, net revenue was a record $3.0 billion, an increase of 1.0% from $2.9 billion in 2024. On a consolidated same branch basis, net revenue declined 1.3% from the prior year, as same branch commercial sales growth was more than offset by residential same branch sales growth headwinds. Residential sales growth within the Company's Installation segment was down 4.4% on a same branch basis for 2025, as both single-family and multi-family same branch sales decreased from the prior year. Commercial sales in the Installation segment was up 10.4% from the prior year on a same branch basis.

Gross profit improved 1.5% to a record $1.0 billion from $994.5 million in the prior year. Gross profit and adjusted gross profit* as a percent of total revenue were both 34.0%, up from 33.8% last year. Adjusted gross profit primarily adjusts for the Company's share-based compensation expense.

Selling and administrative expense, as a percent of net revenue, was 19.6%, compared to 19.2% in the prior year. Adjusted selling and administrative expense*, as a percent of net revenue, was 18.8%, compared to 18.5% in the prior year.

Net income was $265.4 million, or $9.71 per diluted share, compared to $256.6 million, or $9.10 per diluted share in the prior year. Net profit margin was 8.9%, compared to 8.7% in the prior year. Adjusted net income* was $312.5 million, or $11.44 per diluted share, compared to $311.4 million or $11.05 per diluted share in the prior year. Adjusted net income margin* for year ended December 31, 2025 was 10.5% compared to 10.6% in the prior year. Adjusted net income accounts for the impact of one-time and non-core items, including an addback for non-cash amortization expense related to acquisitions.

For the full year of 2025, EBITDA* was a record $496.0 million, a 2.3% increase from $484.9 million in the prior year. Adjusted EBITDA* was a record $518.5 million for the year ended December 31, 2025, a 1.4% increase from $511.4 million in the prior year, representing adjusted EBITDA margins* of 17.5% and 17.4%, respectively.

Net cash provided by operating activities was $371.4 million, compared to $340.0 million in the prior year. The increase was due to higher net income and the benefit from changes in working capital for the full year ended December 31, 2025.

Conference Call and Webcast

The Company will host a conference call and webcast on February 26, 2026 at 10:00 a.m. Eastern Time to discuss these results. To participate in the call, please dial 877-407-0792 (domestic) or 201-689-8263 (international). The live webcast will be available at www.installedbuildingproducts.com in the investor relations section. A replay of the conference call will be available through March 26, 2026 by dialing 844-512-2921 (domestic) or 412-317-6671 (international) and entering the passcode 13758393.

Alternatively, participants can register for the call 15 minutes prior to the event by using the call me option for a faster connection to join the conference call. You can enter your phone number and let the system call you right away. Click here for the call me option.

About Installed Building Products

Installed Building Products, Inc. is one of the nation's largest new residential insulation installers and is a diversified installer of complementary building products, including waterproofing, fire-stopping, fireproofing, garage doors, rain gutters, window blinds, shower doors, closet shelving and mirrors and other products for residential and commercial builders located in the continental United States. The Company manages all aspects of the installation process for its customers, from direct purchase and receipt of materials from national manufacturers to its timely supply of materials to job sites and quality installation. The Company offers its portfolio of services for new and existing single-family and multi-family residential and commercial building projects in all 48 continental states and the District of Columbia from its national network of over 250 branch locations.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws, including with respect to the housing market and the commercial market, our operations, industry and economic conditions, our financial and business model, payment of dividends, the demand for our services and product offerings, expansion of our national footprint and end markets, diversification of our products, our ability to grow and strengthen our market position, our ability to pursue and integrate value-enhancing acquisitions and the expected amount of acquired revenue, our ability to improve sales and profitability, and expectations for demand for our services and our earnings. Forward-looking statements may generally be identified by the use of words such as "anticipate," "believe," "expect," "intends," "plan," and "will" or, in each case, their negative, or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Any forward-looking statements that we make herein and in any future reports and statements are not guarantees of future performance, and actual results may differ materially from those expressed in or suggested by such forward-looking statements as a result of various factors, including, without limitation, general economic and industry conditions; increases in mortgage interest rates and rising home prices; inflation and interest rates; the material price and supply environment; increased tariffs; federal government shutdowns and uncertainty regarding the federal government's policy changes; the timing of increases in our selling prices; the risk that the Company may reduce, suspend or eliminate dividend payments in the future; and the factors discussed in the "Risk Factors" section of the Company's Annual Report on Form 10-K for the year ended December 31, 2024, as the same may be updated from time to time in our subsequent filings with the Securities and Exchange Commission. In addition, any future declaration of dividends will be subject to the final determination of our Board of Directors. Any forward-looking statement made by the Company in this press release speaks only as of the date hereof. New risks and uncertainties arise from time to time, and it is impossible for the Company to predict these events or how they may affect it. The Company has no obligation, and does not intend, to update any forward-looking statements after the date hereof, except as required by federal securities laws.

*Use of Non-GAAP Financial Measures

In addition to the financial measures prepared in accordance with U.S. generally accepted accounting principles ("GAAP"), this press release contains the non-GAAP financial measures of EBITDA, Adjusted EBITDA, Adjusted EBITDA margin (i.e., Adjusted EBITDA divided by net revenue), Adjusted Net Income, Adjusted Net Income per diluted share, Adjusted Gross Profit and Adjusted Selling and Administrative expense. The reasons for the use of these measures, reconciliations of EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income per diluted share, Adjusted Gross Profit, and Adjusted Selling and Administrative expense to the most directly comparable GAAP measures and other information relating to these measures are included below following the unaudited condensed consolidated financial statements. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for IBP's financial results prepared in accordance with GAAP.

Additional Information - Stock Repurchase Program

Under the repurchase program, the Company may purchase shares of its common stock through open market transactions, accelerated share repurchase transactions, privately negotiated transactions, block purchases or otherwise in accordance with applicable federal securities laws, including Rule 10b-18 of the Securities Exchange Act of 1934, as amended and pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. The timing and amount of any repurchases under this program will be determined by the Company's management at its discretion based on a variety of factors, including the market price of our common stock, corporate considerations, general market and economic conditions, and legal requirements. The program may be modified, discontinued or suspended at any time or from time to time. The Company anticipates funding for this program to come from available corporate funds, including cash on hand and future cash flow.

Reconciliation of Non-GAAP Financial Measures

EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, Adjusted Gross Profit and Adjusted Selling and Administrative Expense measure performance by adjusting GAAP net income, EBITDA, gross profit and selling and administrative expense, respectively, for certain income or expense items that are not considered part of our core operations. We believe that the presentation of these measures provides useful information to investors regarding our results of operations because it assists both investors and us in analyzing and benchmarking the performance and value of our business.

We believe the Adjusted EBITDA measure is useful to investors and us as a measure of comparative operating performance from period to period as it measures our changes in pricing decisions, cost controls and other factors that impact operating performance, and removes the effect of our capital structure (primarily interest expense), asset base (primarily depreciation and amortization), items outside our control (primarily income taxes) and the volatility related to the timing and extent of other activities such as asset impairments and non-core income and expenses. Accordingly, we believe that this measure is useful for comparing general operating performance from period to period. In addition, we use various EBITDA-based measures in determining the achievement of awards under certain of our incentive compensation programs. Other companies may define Adjusted EBITDA differently and, as a result, our measure may not be directly comparable to measures of other companies. In addition, Adjusted EBITDA may be defined differently for purposes of covenants contained in our revolving credit facility or any future facility.

Although we use the Adjusted EBITDA measure to assess the performance of our business, the use of the measure is limited because it does not include certain material expenses, such as interest and taxes, necessary to operate our business. Adjusted EBITDA should be considered in addition to, and not as a substitute for, GAAP net income as a measure of performance. Our presentation of this measure should not be construed as an indication that our future results will be unaffected by unusual or non-recurring items. This measure has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. Because of these limitations, this measure is not intended as an alternative to net income as an indicator of our operating performance, as an alternative to any other measure of performance in conformity with GAAP or as an alternative to cash flow provided by operating activities as a measure of liquidity. You should therefore not place undue reliance on this measure or ratios calculated using this measure.

We also believe the Adjusted Net Income measure is useful to investors and us as a measure of comparative operating performance from period to period as it measures our changes in pricing decisions, cost controls and other factors that impact operating performance, and removes the effect of certain non-core items such as discontinued operations, acquisition related expenses, amortization expense, the tax impact of these certain non-core items, and the volatility related to the timing and extent of other activities such as asset impairments and non-core income and expenses. To make the financial presentation more consistent with other public building products companies, beginning in the fourth quarter 2016 we included an addback for non-cash amortization expense related to acquisitions. Accordingly, we believe that this measure is useful for comparing general operating performance from period to period. Other companies may define Adjusted Net Income differently and, as a result, our measure may not be directly comparable to measures of other companies. In addition, Adjusted Net Income may be defined differently for purposes of covenants contained in our revolving credit facility or any future facility.

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