Installed Building Products (IBP) Q4 2025 earnings summary

Executive summary

• Achieved record sales and profitability for 2025, with net revenue of $2,970.8M, a 1.0% increase year-over-year, despite headwinds in core residential markets due to housing affordability issues.

• Adjusted EBITDA reached $518.5M (17.5% margin), and net income hit all-time highs, supported by disciplined cost management and product diversification.

• Free cash flow for 2025 was $300.8M, contributing to over $1.1B in cumulative free cash flow over five years.

• Completed 11 acquisitions in 2025, adding over $64M in annual revenue, and maintained a national platform with over 250 locations.

• Continued strong operating cash flow enabled significant capital returns and strategic acquisitions, with a disciplined approach to capital allocation and a positive long-term outlook for installed services.

Financial highlights

• Q4 2025 net revenue was $747.5M, down 0.4% year-over-year; full year revenue up 1.0% to $3.0B.

• Adjusted gross margin reached a record 35% in Q4, with full year gross profit margin at 34.0%.

• Adjusted EBITDA for Q4 was $142.2M (19.0% margin); full year adjusted EBITDA was $518.5M (17.5% margin).

• Adjusted net income for 2025 was $312.5M (10.5% margin); Q4 net income rose 14.5% to $76.6M.

• Operating cash flow for 2025 was $371.4M, up 9% year-over-year.

Outlook and guidance

• Expect continued headwinds in residential construction in the near term, but maintain a positive long-term outlook for installed services.

• Acquisition pipeline for 2026 is strong, targeting at least $100M in annual revenue.

• Gross profit margin expected to remain in the 30-32% range; effective tax rate expected to be 25%-27% for 2026.

• Q1 and full-year 2026 amortization expense expected at $10M and $38M, respectively.

• Weather-related impacts expected to affect Q1 2026, with $20M revenue impact in January and February.