Installed Building Products (IBP) Q2 2021 earnings summary

Executive summary

• Achieved 23.9% year-over-year revenue growth in Q2 2021, reaching $488.1 million, and net income of $37.2 million, up 46.9% year-over-year.

• Adjusted EBITDA was $78 million for Q2 2021, with a margin of 16.0%, and adjusted net income per diluted share was $1.59.

• Demand remained strong, with sales up 11.7% sequentially from Q1 2021, despite ongoing supply chain and material challenges.

• Five acquisitions completed year-to-date, representing $79 million in annual revenues, with a robust pipeline for further growth.

• Announced a quarterly dividend of $0.30 per share and extended $100 million share repurchase program through March 2022.

Financial highlights

• Same branch sales growth was 13.1% in Q2 2021, up from 2.3% in Q2 2020.

• Adjusted gross profit margin reached 31.1% in Q2 2021, up from 28.7% in Q1 2021.

• Adjusted S&A expenses as a percentage of revenue decreased to 17.4% in Q2 2021.

• Cash and equivalents stood at $204 million at quarter-end, with net debt/adjusted EBITDA at 1.4x.

• Gross profit was $151.9 million, up 19.5% year-over-year.

Outlook and guidance

• Long-term outlook targets mid-teens adjusted EPS growth and 20–25% organic adjusted EBITDA growth.

• 2021 single-family completion growth expected to increase by mid to high-single digits.

• Expectation for continued supply chain constraints impacting material availability and project completion, especially in multi-family end markets.

• Full-year effective tax rate forecasted at 25% to 27%.

• Anticipates 2021 to be another record year, supported by strong demand and acquisition pipeline.