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 second quarter ended June 30, 2025.

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

Net revenue increased 3.1% to a second quarter record of $760.3 million
- Installation revenue increased 2.6% to $715.6 million, including sales from IBP's recent acquisitions
- Other revenue, net of eliminations, which includes IBP's manufacturing and distribution operations, increased to $44.7 million from $40.3 million
Net income increased 5.8% to $69.0 million
Adjusted EBITDA* increased 3.2% to $134.0 million
Net income per diluted share increased 9.6% to $2.52
Adjusted net income* was $80.8 million, or $2.95 per diluted share
Net cash flow from operations increased 14.3% to $90.3 million
At June 30, 2025, IBP had $305.2 million in cash and cash equivalents
Repurchased 300,000 shares of common stock at a total cost of $49.2 million
Declared second quarter dividend of $0.37 per share that was paid to shareholders on June 30, 2025

Recent Developments

IBP's Board of Directors declared the third quarter regular cash dividend of $0.37 per share

"IBP continues to deliver strong financial results, demonstrating the high-value installation services we provide our homebuilding customers. Our market positioning and focus on service is especially valuable as many homebuilders rely on relationships with experienced partners to navigate today's evolving market dynamics. While we expect housing affordability to remain a challenge over the near-term, we are confident in the long-term fundamentals of the U.S. housing industry and the effectiveness of our growth-focused capital allocation strategy," stated Jeff Edwards, Chairman and Chief Executive Officer.

Mr. Edwards, added: "As we maintain a disciplined approach to acquisitions with a focus on favorable returns on invested capital, we continue to identify opportunities to enhance operational and financial performance, while returning capital to shareholders through dividends and share repurchases."

"Our performance thus far in 2025 reflects the dedication of our entire team and we believe IBP continues to operate from a position of strength as we take advantage of opportunities and navigate any challenges in the second half of the year," concluded Mr. Edwards.

Acquisition Update

IBP continues to prioritize profitable growth through its proven strategy of acquiring well-run installers of insulation and complementary building products. To date in 2025, IBP has acquired over $10 million of annual revenue and we continue to focus on acquiring at least $100 million of annual revenue.

As previously announced, during the 2025 second quarter, IBP completed the following acquisition:

In May 2025, IBP acquired Pro Foamers, Inc., an installer of spray foam and air barrier products in the commercial end market based in Green Bay, Wisconsin with annual revenue of $4 million.

2025 Third Quarter Cash Dividend

IBP's Board of Directors has approved the Company's quarterly cash dividend of $0.37 per share, payable on September 30, 2025, to stockholders of record on September 15, 2025. The third quarter regular cash dividend represents a 6% increase from last year's third quarter cash dividend payment.

Share Repurchases

During the three months ended June 30, 2025, IBP repurchased 300,000 shares of its common stock at a total cost of $49.2 million and 500,000 shares at a total cost of $83.5 million during the six months ended June 30, 2025. At June 30, 2025, the Company had approximately $416.5 million available under its stock repurchase program, expiring March 1, 2026.

Second Quarter 2025 Results Overview

For the second quarter of 2025, net revenue was a second quarter record of $760.3 million, an increase of 3.1% from $737.6 million for the second quarter of 2024. On a consolidated same branch basis, net revenue increased 0.7% from the prior year quarter. Residential same branch sales within the Company's Installation segment were down 1.1% in the quarter while commercial same branch sales within the Installation segment were up 9.3% from the prior year quarter.

Gross profit increased 3.4% to $259.9 million from $251.4 million in the prior year quarter. Gross profit and adjusted gross profit* as a percent of net revenue were a record 34.2%, compared to 34.1% 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 19.6% compared to 19.1% in the prior year quarter. Adjusted selling and administrative expense*, as a percent of net revenue, was 18.8% compared to 18.5% in the prior year quarter.

Net income was $69.0 million, or $2.52 per diluted share, compared to $65.2 million, or $2.30 per diluted share in the prior year quarter. Net profit margin for the second quarter was 9.1% compared to 8.8% in the prior year quarter. Adjusted net income* was $80.8 million, or $2.95 per diluted share, compared to $80.5 million, or $2.84 per diluted share in the prior year quarter. Adjusted net profit margin* for the second quarter was 10.6% compared to 10.9% 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 $128.2 million, a 7.2% increase from $119.6 million in the prior year quarter. Adjusted EBITDA* was $134.0 million, a 3.2% increase from $129.8 million in the prior year quarter, representing an adjusted EBITDA margin* of 17.6% for both periods.

Conference Call and Webcast

The Company will host a conference call and webcast on August 7, 2025 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 September 7, 2025 by dialing 844-512-2921 (domestic) or 412-317-6671 (international) and entering the passcode 13753926.

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; 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.


INSTALLED BUILDING PRODUCTS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (unaudited, in millions, except share and per share amounts)

	Three months ended June 30,						Six months ended June 30,
		2025			2024			2025			2024
Net revenue	$	760.3		$	737.6		$	1,445.1		$	1,430.5
Cost of sales		500.4			486.2			961.5			944.6
Gross profit		259.9			251.4			483.6			485.9
Operating expenses
Selling		35.7			34.5			71.1			67.8
Administrative		113.1			106.7			221.5			209.3
Asset impairment		—			4.9			—			4.9
Amortization		10.1			10.5			20.2			21.2
Operating income		101.0			94.8			170.8			182.7
Other expense, net
Interest expense, net		8.3			8.2			16.6			20.1
Other (income)		(0.7	)		(0.1	)		(0.5	)		(0.5	)
Income before income taxes		93.4			86.7			154.7			163.1
Income tax provision		24.4			21.5			40.3			42.0
Net income	$	69.0		$	65.2		$	114.4		$	121.1
Other comprehensive (loss) income, net of tax:
Net change on cash flow hedges, net of tax benefit (provision) of $1.4 and $- for the three months ended June 30, 2025 and 2024, respectively, and $3.2 and $(1.7) for the six months ended June 30, 2025 and 2024, respectively		(4.1	)		—			(9.4	)		4.7
Comprehensive income	$	64.9		$	65.2		$	105.0		$	125.8
Earnings Per Share:
Basic	$	2.53		$	2.32		$	4.17		$	4.30
Diluted	$	2.52		$	2.30		$	4.15		$	4.27
Weighted average shares outstanding:
Basic		27,323,118			28,174,677			27,420,268			28,173,061
Diluted		27,403,669			28,317,801			27,549,791			28,351,401

Cash dividends declared per share	$	0.37		$	0.35		$	2.44		$	2.30


INSTALLED BUILDING PRODUCTS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited, in millions, except share and per share amounts)

	June 30,			December 31,
		2025			2024
ASSETS
Current assets
Cash and cash equivalents	$	305.2		$	327.6
Accounts receivable (less allowance for credit losses of $12.4 and $10.7 at June 30, 2025 and December 31, 2024, respectively)		447.6			433.9
Inventories		192.0			194.6
Prepaid expenses and other current assets		72.6			98.8
Total current assets		1,017.4			1,054.9
Property and equipment, net		177.4			174.8
Operating lease right-of-use assets		100.4			95.6
Goodwill		436.9			432.6
Customer relationships, net		171.0			178.8
Other intangibles, net		88.7			91.7
Other non-current assets		28.3			31.5
Total assets	$	2,020.1		$	2,059.9
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current maturities of long-term debt	$	33.3		$	32.4
Current maturities of operating lease obligations		36.1			34.3
Current maturities of finance lease obligations		2.8			2.8
Accounts payable		150.1			146.6
Accrued compensation		63.5			66.4
Other current liabilities		70.8			76.5
Total current liabilities		356.6			359.0
Long-term debt		842.8			842.4
Operating lease obligations		64.2			61.0
Finance lease obligations		4.2			5.4
Deferred income taxes		23.0			26.3
Other long-term liabilities		64.8			60.5
Total liabilities		1,355.6			1,354.6
Commitments and contingencies (Note 16)
Stockholders' equity
Preferred Stock; $0.01 par value: 5,000,000 authorized and 0 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively		—			—
Common stock; $0.01 par value: 100,000,000 authorized, 33,835,259 and 33,713,662 issued and 27,326,871 and 27,758,491 shares outstanding at June 30, 2025 and December 31, 2024, respectively		0.3			0.3
Additional paid in capital		275.4			261.3
Retained earnings		912.5			865.5
Treasury stock; at cost: 6,508,388 and 5,955,171 shares at June 30, 2025 and December 31, 2024, respectively		(549.3	)		(456.8	)
Accumulated other comprehensive income		25.6			35.0
Total stockholders' equity		664.5			705.3
Total liabilities and stockholders' equity	$	2,020.1		$	2,059.9


INSTALLED BUILDING PRODUCTS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in millions)

	Six months ended June 30,
		2025			2024
Cash flows from operating activities
Net income	$	114.4		$	121.1
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization of property and equipment		32.7			28.0
Amortization of operating lease right-of-use assets		17.9			16.3
Amortization of intangibles		20.2			21.2
Amortization of deferred financing costs and debt discount		0.8			0.8
Provision for credit losses		4.0			3.1
Write-off of debt issuance costs		—			1.1
Gain on sale of property and equipment		(0.7	)		(1.2	)
Non-cash stock compensation		11.2			8.7
Asset impairment		—			4.9
Other, net		(5.6	)		(6.8	)
Changes in assets and liabilities, excluding effects of acquisitions
Accounts receivable		(16.4	)		(18.4	)
Inventories		3.0			(11.4	)
Other assets		13.1			5.1
Accounts payable		4.5			(1.6	)
Income taxes receivable/payable		—			(0.6	)
Other liabilities		(16.6	)		(6.5	)
Net cash provided by operating activities		182.5			163.8
Cash flows from investing activities
Purchases of property and equipment		(35.8	)		(42.6	)
Acquisitions of businesses, net of cash acquired of $— in 2025 and 2024, respectively		(11.3	)		(22.7	)
Proceeds from sale of property and equipment		1.2			1.8
Settlements with interest rate swap counterparties		6.9			9.0
Other		(4.2	)		(0.7	)
Net cash used in investing activities	$	(43.2	)	$	(55.2	)
	Six months ended June 30,
		2025			2024
Cash flows from financing activities
Proceeds from Term Loan	$	—		$	142.9
Payments on Term Loan		(2.5	)		(134.2	)
Proceeds from vehicle and equipment notes payable		18.1			15.0
Debt issuance costs		—			(1.5	)
Principal payments on long-term debt		(14.8	)		(15.5	)
Principal payments on finance lease obligations		(1.4	)		(1.5	)
Dividends paid		(67.7	)		(65.2	)
Acquisition-related obligations		(1.5	)		(1.0	)
Repurchase of common stock		(83.5	)		(45.7	)
Surrender of common stock awards by employees		(8.4	)		(8.1	)
Net cash used in financing activities		(161.7	)		(114.8	)
Net change in cash and cash equivalents		(22.4	)		(6.2	)
Cash and cash equivalents at beginning of period		327.6			386.5
Cash and cash equivalents at end of period	$	305.2		$	380.3
Supplemental disclosures of cash flow information
Net cash paid during the period for:
Interest	$	20.5		$	21.9
Income taxes, net of refunds		36.6			42.7
Supplemental disclosures of non-cash activities
Right-of-use assets obtained in exchange for operating lease obligations	$	22.9		$	23.6
Property and equipment obtained in exchange for finance lease obligations		0.3			1.8
Seller obligations in connection with acquisition of businesses		1.7			2.2
Unpaid purchases of property and equipment included in accounts payable		4.2			2.7
Accrued excise tax on common stock repurchases		0.6			—

INSTALLED BUILDING PRODUCTS, INC.

SEGMENT INFORMATION

(unaudited, in millions)

Information on Segments

Our Company has three operating segments consisting of Installation, Distribution and Manufacturing. The Other category reported below reflects the operations of our Distribution and Manufacturing operating segments. The following tables represent our segment information for the three and six months ended June 30, 2025 and 2024 (in millions):

	Three months ended June 30,						Six months ended June 30,
Installation Segment		2025			2024			2025			2024
Revenue	$	715.6		$	697.3		$	1,362.8		$	1,353.2
Cost of sales⁽¹⁾		450.1			443.1			867.8			862.4
Segment gross profit	$	265.5		$	254.2		$	495.0		$	490.8
Segment gross profit percentage		37.1	%		36.5	%		36.3	%		36.3	%

⁽¹⁾

Cost of sales included in the Installation segment gross profit is exclusive of depreciation and amortization for the three and six months ended June 30, 2025 and 2024.

The reconciliation of Installation revenue and segment gross profit for each period as shown in the table above to consolidated net revenue and income before income taxes is as follows (in millions):

	Three months ended June 30,						Six months ended June 30,
		2025			2024			2025			2024
Reconciliation of revenue:
Installation segment revenue	$	715.6		$	697.3		$	1,362.8		$	1,353.2
Other revenue⁽¹⁾		56.7			44.0			100.6			84.3
Elimination of inter-segment revenue		(12.0	)		(3.7	)		(18.3	)		(7.0	)
Total consolidated net revenue	$	760.3		$	737.6		$	1,445.1		$	1,430.5
Reconciliation of segment gross profit:
Installation segment gross profit	$	265.5		$	254.2		$	495.0		$	490.8
Other gross profit⁽¹⁾		13.0			11.5			24.3			23.3
Elimination of inter-segment gross profit		(3.4	)		(0.9	)		(5.3	)		(1.9	)
Less:
Depreciation and amortization		15.2			13.4			30.4			26.3
Total consolidated gross profit, as reported		259.9			251.4			483.6			485.9
Operating expenses		158.9			156.6			312.8			303.2
Operating income		101.0			94.8			170.8			182.7
Other expense, net		7.6			8.1			16.1			19.6
Income before income taxes	$	93.4		$	86.7		$	154.7		$	163.1

⁽¹⁾

Other revenue and other gross profit include the remaining two operating segments, Distribution and Manufacturing before inter-segment eliminations. These operating segments are each below the quantitative thresholds for being reported as a reportable segment for the three and six months ended June 30, 2025 and 2024.


INSTALLED BUILDING PRODUCTS, INC. REVENUE BY END MARKET (unaudited, in millions)

	Three months ended June 30,								Six months ended June 30,
	2025				2024				2025				2024
Installation
Residential new construction	$	548.8	72	%	$	542.4	74	%	$	1,043.2	72	%	$	1,045.2	73	%
Repair and remodel		43.2	6	%		42.5	6	%		85.6	6	%		82.6	6	%
Commercial		123.6	16	%		112.4	15	%		234.0	16	%		225.4	16	%
Net revenues - Installation	$	715.6	94	%	$	697.3	95	%	$	1,362.8	94	%	$	1,353.2	95	%
Other		44.7	6	%		40.3	5	%		82.3	6	%		77.3	5	%
Net revenue, as reported	$	760.3	100	%	$	737.6	100	%	$	1,445.1	100	%	$	1,430.5	100	%

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.

INSTALLED BUILDING PRODUCTS, INC.

RECONCILIATION OF GAAP TO NON-GAAP MEASURES

ADJUSTED NET INCOME CALCULATIONS

(unaudited, in millions, except share and per share amounts)

The tables below reconcile Adjusted Net Income to the most directly comparable GAAP financial measure, net income, for the periods presented therein. We have included Adjusted Net Income in this press release because it is a key measure used by our management team to understand the operating performance and profitability of our business. During the three months ended June 30, 2024, we decided to wind down the operations of a single new commercial end market-oriented branch that focused on the installation of a non-core end product, due to shifting market conditions, an unfavorable contract settlement, and sub-standard operating performance. For the periods ended June 30, September 30, and December 31, 2024 we reported Adjusted Net Income (Loss), Diluted Adjusted Net Income (Loss) per Share, dispositions and net of dispositions in order to provide useful insight and metrics relevant to understanding and evaluating the results of our ongoing operations given plans to close a single new commercial end market-oriented branch. As of the three months ended June 30, 2025, the closing of this branch is essentially complete and its financial results were insignificant. Therefore, we have chosen not to report any financial results for dispositions or net of dispositions in the tables below.

Per share figures may reflect rounding adjustments and consequently totals may not appear to sum.

	Three months ended June 30,						Six months ended June 30,
		2025			2024			2025			2024
Net income, as reported	$	69.0		$	65.2		$	114.4		$	121.1
Adjustments for adjusted net income
Share-based compensation expense		5.3			4.7			11.2			8.7
Acquisition related expenses		0.5			0.6			1.0			1.1
Amortization expense⁽¹⁾		10.1			10.5			20.2			21.2
Loan refinancing expenses⁽²⁾		—			—			—			4.1
Asset impairment⁽³⁾		—			4.9			—			4.9
Tax impact of adjusted items at a normalized tax rate⁽⁴⁾		(4.1	)		(5.4	)		(8.4	)		(10.4	)
Adjusted net income	$	80.8		$	80.5		$	138.4		$	150.7
Weighted average shares outstanding (diluted)		27,403,669			28,317,801			27,549,791			28,351,401
Diluted net income per share, as reported	$	2.52		$	2.30		$	4.15		$	4.27
Adjustments for diluted adjusted net income, net of tax impact, per share⁽⁵⁾		0.43			0.54			0.87			1.05
Diluted adjusted net income per share	$	2.95		$	2.84		$	5.02		$	5.32

⁽¹⁾		Addback of all non-cash amortization resulting from business combinations.

⁽²⁾		Includes $1.1 million of non-cash write-off of capitalized loan expense and $3.0 million of cash paid to third parties in connection with loan refinancing for the three months ended March 31, 2024.

⁽³⁾		During the three and six months ended June 30, 2024, we recognize intangible and asset impairment charges for a combined amount of $4.9 million related to winding down the operations of a branch that installs one of our non-core building products.

⁽⁴⁾		Normalized effective tax rate of 26.0% applied to periods presented.

⁽⁵⁾		Includes adjustments related to the items noted above, net of tax.

INSTALLED BUILDING PRODUCTS, INC.

RECONCILIATION OF GAAP TO NON-GAAP MEASURES

ADJUSTED GROSS PROFIT CALCULATIONS

(unaudited, in millions)

The table below reconciles Adjusted Gross Profit to the most directly comparable GAAP financial measure, gross profit, for the periods presented therein.

	Three months ended June 30,						Six months ended June 30,
		2025			2024			2025			2024
Gross profit	$	259.9		$	251.4		$	483.6		$	485.9
Share-based compensation expense		0.3			0.3			0.6			0.6
Adjusted gross profit	$	260.2		$	251.7		$	484.2		$	486.5

Gross profit margin		34.2	%		34.1	%		33.5	%		34.0	%
Adjusted gross profit margin		34.2	%		34.1	%		33.5	%		34.0	%

INSTALLED BUILDING PRODUCTS, INC.

RECONCILIATION OF GAAP TO NON-GAAP MEASURES

ADJUSTED SELLING AND ADMINISTRATIVE EXPENSE CALCULATIONS

(unaudited, in millions)

The table below reconciles Adjusted Selling and Administrative to the most directly comparable GAAP financial measure, selling and administrative, for the periods presented therein.

	Three months ended June 30,						Six months ended June 30,
		2025			2024			2025			2024
Selling expense	$	35.7		$	34.5		$	71.1		$	67.8
Administrative expense		113.1			106.7			221.5			209.3
Selling and Administrative expense, as reported		148.8			141.2			292.6			277.1
Share-based compensation expense		5.0			4.4			10.6			8.2
Acquisition related expenses		0.5			0.6			1.0			1.1
Adjusted Selling and Administrative expense	$	143.3		$	136.2		$	281.0		$	267.8

Selling and Administrative expense - % Total revenue		19.6	%		19.1	%		20.2	%		19.4	%
Adjusted Selling and Administrative expense - % Total revenue		18.8	%		18.5	%		19.4	%		18.7	%

INSTALLED BUILDING PRODUCTS, INC.

RECONCILIATION OF GAAP TO NON-GAAP MEASURES

EBITDA AND ADJUSTED EBITDA CALCULATIONS

(unaudited, in millions)

The tables below reconcile EBITDA and Adjusted EBITDA to the most directly comparable GAAP financial measure, net income, for the periods presented therein. For the periods ended June 30, September 30, and December 31, 2024 we reported Adjusted EBITDA, dispositions and net of dispositions in order to provide useful insight and metrics relevant to understanding and evaluating the results of our ongoing operations given plans to close a single new commercial end market-oriented branch. As of the three months ended June 30, 2025, the closing of this branch is essentially complete and its financial results were insignificant. Therefore, we have chosen not to report any financial results for dispositions or net of dispositions in the tables below.

	Three months ended June 30,						Six months ended June 30,
		2025			2024			2025			2024
Net income, as reported	$	69.0		$	65.2		$	114.4		$	121.1
Interest expense		8.3			8.2			16.6			20.1
Provision for income tax		24.4			21.5			40.3			42.0
Depreciation and amortization		26.5			24.7			52.9			49.2
EBITDA		128.2			119.6			224.2			232.4
Acquisition related expenses		0.5			0.6			1.0			1.1
Share based compensation expense		5.3			4.7			11.2			8.7
Asset impairment⁽¹⁾		—			4.9			—			4.9
Adjusted EBITDA	$	134.0		$	129.8		$	236.4		$	247.1

Net profit margin		9.1	%		8.8	%		7.9	%		8.5	%
EBITDA margin		16.9	%		16.2	%		15.5	%		16.2	%
Adjusted EBITDA margin		17.6	%		17.6	%		16.4	%		17.3	%

⁽¹⁾

During the three and six months ended June 30, 2024, we recognized intangible and asset impairment charges for a combined amount of $4.9 million related to winding down the operations of a branch that installs one of our non-core building products.


INSTALLED BUILDING PRODUCTS, INC. SUPPLEMENTARY TABLE (unaudited)

	Three months ended June 30,				Six months ended June 30,
	2025		2024		2025		2024
Period-over-period Growth
Consolidated Sales Growth	3.1	%	6.6	%	1.0	%	5.9	%
Consolidated Same Branch Sales Growth	0.7	%	4.8	%	(1.7	)%	3.9	%

Installation
Sales Growth	2.6	%	7.0	%	0.7	%	6.2	%
Same Branch Sales Growth	0.6	%	5.2	%	(1.5	)%	4.2	%

Single-Family Sales Growth	2.6	%	10.4	%	0.9	%	7.1	%
Single-Family Same Branch Sales Growth	(0.4	)%	7.9	%	(2.3	)%	4.7	%

Multi-Family Sales Growth	(3.9	)%	6.2	%	(4.0	)%	9.6	%
Multi-Family Same Branch Sales Growth	(4.0	)%	5.2	%	(4.5	)%	8.8	%

Residential Sales Growth	1.2	%	9.4	%	(0.2	)%	7.7	%
Residential Same Branch Sales Growth	(1.1	)%	7.3	%	(2.8	)%	5.6	%

Commercial Sales Growth⁽¹⁾	10.0	%	(4.1	)%	3.8	%	(0.7	)%
Commercial Same Branch Sales Growth	9.3	%	(5.3	)%	3.3	%	(3.1	)%

Other⁽²⁾
Sales Growth	28.7	%	4.3	%	19.3	%	4.2	%
Same Branch Sales Growth	20.2	%	2.4	%	8.6	%	3.2	%

Same Branch Sales Growth - Installation
Volume Growth⁽³⁾	(1.1	)%	(1.4	)%	(3.3	)%	(1.4	)%
Price/Mix Growth⁽³⁾	0.8	%	6.4	%	1.1	%	5.1	%

U.S. Housing Market⁽⁴⁾
Total Completions Growth	(13.1	)%	12.6	%	(6.5	)%	9.1	%
Single-Family Completions Growth	(9.8	)%	8.6	%	(3.4	)%	1.8	%
Multi-Family Completions Growth	(19.7	)%	20.7	%	(12.2	)%	24.4	%

⁽¹⁾		Our commercial end market consists of heavy and light commercial projects.
⁽²⁾		Other business segment category includes our manufacturing and distribution businesses operating segments.
⁽³⁾		The heavy commercial end market is excluded from these metrics given its much larger per-job revenue compared to our average job.
⁽⁴⁾		U.S. Census Bureau data, as revised.


INSTALLED BUILDING PRODUCTS, INC. INCREMENTAL REVENUE AND ADJUSTED EBITDA MARGINS (unaudited, in millions)

Revenue Increase
	Three months ended June 30,								Six months ended June 30,
		2025	% Total			2024	% Total			2025		% Total			2024	% Total
Same Branch	$	5.0	22.0	%	$	32.5	71.4	%	$	(24.0	)	(163.3	)%	$	51.9	65.6	%
Acquired		17.7	78.0	%		13.0	28.6	%		38.7		263.3	%		27.2	34.4	%
Total	$	22.7	100.0	%	$	45.5	100.0	%	$	14.7		100.0	%	$	79.1	100.0	%

Adjusted EBITDA Margin Contributions^*
	Three months ended June 30,								Six months ended June 30,
		2025	% Margin			2024	% Margin			2025		% Margin^*			2024	% Margin
Same Branch⁽¹⁾	$	0.8	16.0	%	$	5.4	16.6	%	$	(17.4	)	(72.5	)%	$	15.1	29.1	%
Acquired		3.3	18.6	%		2.3	17.7	%		6.7		17.3	%		4.8	17.6	%
Total	$	4.1	18.1	%	$	7.7	16.9	%	$	(10.7	)	NMF		$	19.9	25.2	%

⁽¹⁾		Same branch adjusted EBITDA margin contribution percentage is a percentage of same branch revenue increase.
^*		During the six months ended June 30, 2025, same branch revenue decreased and same branch and total adjusted EBITDA decreased. The negative same branch % margin result reflects a decremental margin. NMF - Not meaningful figure.

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