Installed Building Products' Same-Branch Sales Turn Positive

The Tip Desk · November 7, 2026 · 3 min read

Net revenue rose 3.9% to a record $808.4 million as consolidated same-branch sales increased 0.6% after a second-quarter decline.

Installed Building Products, Inc. (IBP), an installer of insulation and complementary building products, reported net revenue of $808.4 million for the third quarter ended September 30, 2026, up 3.9% from $778.2 million a year earlier. That growth rate was faster than the 2.3% increase to $777.8 million in the second quarter.

On a consolidated same-branch basis, net revenue increased 0.6% from the prior-year quarter, reversing a 0.6% same-branch decline in the second quarter. Chairman and Chief Executive Officer Jeff Edwards said same-branch sales continued to outperform underlying market trends, citing market share gains and customer relationships across the branch network, even as residential construction activity remained soft.

Installation revenue rose 2.7% to $740.4 million, including sales from recent acquisitions, after a 0.7% decline to $710.7 million in the second quarter. Commercial same-branch Installation sales were up 10.3%, essentially unchanged from the 10.4% increase in the second quarter. Residential same-branch Installation sales were down 2.6%, a smaller decline than the 6.1% drop in the second quarter. Commercial Installation revenue was $156.5 million, or 19% of total net revenue, versus $134.7 million, or 17%, a year earlier. Residential new construction Installation revenue was $535.5 million, or 67% of total net revenue.

Price/mix increased 0.4% and job volumes were down 1.9% versus the year-ago quarter. Including heavy commercial installation sales but excluding the Other segment, price/mix increased 2.0% and job volume was down 1.7%. Other revenue, net of eliminations, which includes manufacturing and distribution operations, increased 18.9% to $68.0 million, slowing from a 50.4% increase to $67.1 million in the second quarter.

Gross profit decreased 2.6% to $257.4 million. Gross margin was 31.8%, and adjusted gross profit margin was 31.9%, compared with 34.0% a year earlier. The company said the margin was reduced by a higher relative mix of the Other segment versus Installation, and by significant cost inflation in fuel and aluminum. Installation segment gross profit percentage was 35.0% versus 36.9% a year earlier; Other gross profit percentage was 23.1% versus 25.2%.

Net income was $59.4 million, or $2.24 a share, compared with $74.4 million, or $2.74 a share, a year earlier. Adjusted net income was $73.1 million, or $2.76 a share, versus $86.4 million, or $3.18 a share. Adjusted EBITDA was $128.3 million, an 8.3% decrease, with an adjusted EBITDA margin of 15.9% versus 18.0% a year earlier.

During the third quarter IBP completed four acquisitions that added approximately $22 million of annual revenue: Harkraft, Inc.; Builders Hardware of South Carolina, Inc.; Chesapeake Hearth and Stone; and First Oklahoma Insulation. Year to date the company said it had acquired approximately $67 million in revenue and continued to believe it would acquire at least $100 million in revenue in 2026.

IBP closed a $250 million add-on to its existing Term Loan B. At September 30, 2026, cash and cash equivalents were $415.9 million. The board declared a fourth-quarter regular cash dividend of $0.39 a share, payable December 31, 2026, representing more than a 5% increase from the year-ago quarter. Edwards said the company continues to focus on commercial growth, acquisition integration, operational efficiency and disciplined capital allocation.