Installed Building Products (IBP) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 2025 net revenue of $760.3 million, up 3.1% year-over-year, with net income rising 5.8% to $69.0 million and adjusted EBITDA up 3.2% to $134.0 million, driven by commercial sales growth and recent acquisitions.

• Maintained a strong national presence with over 250 locations and a diversified product and end-market mix, supporting long-term growth.

• Generated over $1B in free cash flow over five years, supporting acquisitions and shareholder returns.

• Cash and cash equivalents stood at $305.2 million as of June 30, 2025, with no borrowings on the revolving credit facility.

• Focused on disciplined capital allocation, geographic expansion, and product diversification to drive long-term growth.

Financial highlights

• Consolidated net revenue rose 3% year-over-year to $760 million in Q2 2025, with LTM net revenue at $2.96B.

• Adjusted gross margin reached a record 34.2% in Q2 2025; LTM gross margin was 33.6%.

• Adjusted EBITDA was $134 million (17.6% margin) in Q2 2025; LTM adjusted EBITDA was $500.7M (16.9% margin).

• Net income for Q2 2025 was $69.0 million; LTM net income was $249.9M.

• Cash flow from operations for the first half of 2025 increased 11% to $182 million.

Outlook and guidance

• Expects continued headwinds in single-family and multifamily markets in the second half of 2025, with single-family starts likely to decline double digits.

• Multifamily backlogs and bidding activity are increasing, setting up for a stronger 2026.

• Long-term outlook targets organic revenue growth outperforming U.S. residential completions and at least $100 million in acquired annual revenue.

• Gross profit margin expected to remain in the 30-32% range; effective tax rate expected at 25%-27%.