Installed Bldg Prods — Income Statement, Cash Flows & Balance Sheet
Is Installed Building Products profitable?
Installed Building Products has grown revenue and net income steadily for three consecutive years, with margins holding firm.
| Metric | 2023 | 2024 | 2025 | Change (2023–2025) |
|---|---|---|---|---|
| Net revenue ($M) | $2,778.6 | $2,941.3 | $2,970.8 | +$192.2 / +6.9% |
| Gross profit ($M) | $930.7 | $994.5 | $1,009.3 | +$78.6 / +8.4% |
| Gross margin | 33.5% | 33.8% | 34.0% | +0.5 pts |
| Net income ($M) | $243.7 | $256.6 | $265.4 | +$21.7 / +8.9% |
| Net margin | 8.8% | 8.7% | 8.9% | +0.1 pts |
Revenue growth has been modest but consistent, and the company has nudged margins slightly higher each year. Net income grew faster than revenue, reflecting disciplined cost management and a meaningful drop in net interest expense as IBP benefited from its interest rate swap arrangements.
A one-time impairment charge in 2024 modestly distorted that year's operating income, but 2025 was clean.
| Item | 2023 | 2024 | 2025 |
|---|---|---|---|
| Asset impairment ($M) | $0.0 | $4.9 | $0.0 |
| Operating income ($M) | $369.1 | $382.5 | $386.4 |
The 2024 impairment related to winding down a single branch and did not recur. Stripping it out, underlying operating performance improved steadily across all three years.
Where does Installed Building Products' revenue come from?
Residential new construction is the dominant end market, but commercial installation is the fastest-growing piece.
| End Market | 2023 | 2024 | 2025 | Change (2023–2025) |
|---|---|---|---|---|
| Residential new construction ($M) | $1,999.4 | $2,127.3 | $2,072.1 | +$72.7 / +3.6% |
| Commercial ($M) | $447.2 | $460.6 | $512.1 | +$64.9 / +14.5% |
| Repair & remodel ($M) | $159.0 | $174.0 | $179.4 | +$20.4 / +12.8% |
| Other (Dist. & Mfg.) ($M) | $173.0 | $179.4 | $207.2 | +$34.2 / +19.8% |
Residential new construction dipped slightly in 2025 after a strong 2024, reflecting softness in homebuilding activity. Commercial and the distribution/manufacturing businesses picked up the slack, with the Other segment growing notably after several acquisitions — including a cellulose insulation manufacturer added in late 2025.
Insulation dominates product revenue, but fireproofing and waterproofing are gaining share.
| Product | 2023 | 2024 | 2025 | Change (2023–2025) |
|---|---|---|---|---|
| Insulation ($M) | $1,666.0 | $1,767.7 | $1,708.9 | +$42.9 / +2.6% |
| Fireproofing/firestopping ($M) | $73.7 | $86.3 | $116.6 | +$42.9 / +58.2% |
| Waterproofing ($M) | $133.3 | $142.2 | $160.7 | +$27.4 / +20.6% |
Insulation remains the core product but is growing slowly. Fireproofing and waterproofing are much smaller in absolute terms but have grown rapidly, suggesting IBP is successfully diversifying its product mix beyond its historical core.
Does Installed Building Products generate cash?
IBP converts profits into cash reliably, and free cash flow (operating cash minus capital expenditures) is strong.
| Metric ($M) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Operating cash flow | $340.2 | $340.0 | $371.4 |
| Capital expenditures | $(61.6) | $(88.6) | $(70.6) |
| Free cash flow (GAAP-derived) | $278.6 | $251.4 | $300.8 |
| Acquisitions | $(59.6) | $(88.6) | $(51.5) |
Operating cash flow grew meaningfully in 2025 while capital spending declined from a 2024 peak, lifting free cash flow to its highest level in three years. IBP deployed that cash into a mix of dividends, share buybacks, and bolt-on acquisitions — returning the majority to shareholders while continuing to grow through M&A.
How strong is Installed Building Products' balance sheet?
IBP carries meaningful debt, but its interest burden is manageable and declining.
| Metric ($M) | 2024 | 2025 | Change |
|---|---|---|---|
| Total long-term debt (gross) | $874.8 | $886.6 | +$11.8 |
| Net interest expense | $36.9 | $31.7 | -$5.2 |
| Cash & equivalents | $327.6 | $321.9 | -$5.7 |
Total debt is roughly stable year over year, and interest expense fell as IBP benefited from its interest rate swap program. The company holds over $320 million in cash — well above its near-term debt obligations — providing ample liquidity. Note that after year-end, IBP issued new senior notes and used the proceeds partly to retire its 2028 notes, extending its debt maturity profile to 2034.
Shareholder returns are substantial, but buybacks are rapidly accumulating treasury stock.
| Metric ($M) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Dividends paid | $63.1 | $84.7 | $87.6 |
| Share repurchases | $6.3 | $145.3 | $172.6 |
| Total returned to shareholders | $69.4 | $230.0 | $260.2 |
IBP has sharply ramped up capital returns, spending more than $260 million in 2025 alone on dividends and buybacks. Treasury stock on the balance sheet has grown to $640 million, reflecting the cumulative scale of repurchase activity. This is funded comfortably by free cash flow, though it leaves less room for large acquisitions without tapping credit facilities.