Installed Building Products (IBP) Q2 2024 earnings summary

Executive summary

• Q2 2024 net revenue grew 6.6%–8% year-over-year to $737.6–$740 million, driven by strong single-family and resilient multi-family sales, as well as recent acquisitions.

• Single-family same branch sales rose 7.9%–8%, multi-family same branch sales increased 5%–5.2%, and commercial sales were modestly positive or declined, with all figures net of a non-core commercial branch disposition.

• The company exited a non-core commercial product line/branch, incurring $4.9 million in asset impairment charges; all reported figures exclude this impact.

• Acquisitions remain a top capital allocation priority, with over $50 million in annualized revenue acquired year-to-date, including Euroview Enterprises and others.

• Business model leverages national scale, local presence, and product diversification, supporting free cash flow and acquisition-driven growth.

Financial highlights

• Adjusted gross margin reached 34.9% in Q2, with gross profit up 8.1% to $251.4 million and margin improvement to 34.1% from 33.6% last year.

• Adjusted EBITDA grew 6.3%–11.3% to $129.8–$136.6 million, with margin at 17.6%–18.5%.

• Net income for Q2 was $65.2 million, up from $61.6 million, with EPS (diluted) at $2.30; adjusted net income per diluted share increased to $3.02.

• Operating cash flow for the first half of 2024 was $163.8–$164 million, up from $138 million year-over-year.

• Cash and cash equivalents stood at $380.3 million as of June 30, 2024.

Outlook and guidance

• Management expects continued positive performance in 2024, with robust end-market demand, ongoing acquisition activity, and mid-single digit growth in single-family markets.

• No formal guidance, but Q3 amortization expense is expected at ~$10 million and full-year 2024 at ~$42 million; effective tax rate for 2024 expected to be 24.8%–27%.

• Multi-family backlog remains elevated, with normalization expected by early 2025.

• Plans to acquire at least $100 million in annual net revenue each year.