Installed Building Products, Inc. (IBP)
NYSEConsumer DiscretionaryResidential ConstructionSnapshot 2026-09-09
$210.54-7.67%
Close 2026-09-09 · 1-day change
NYSEConsumer DiscretionaryResidential ConstructionSnapshot 2026-09-09
Intact: The reason to own it still holds.
Installed Building Products grows with acquisitions adding $12 million revenue. It repurchases shares with $425 million left to spend. The company pays a $0.39 quarterly dividend. Analysts expect about 3% revenue growth next year.
Earnings fell 8.7% last quarter and revenue dropped 3.5%. Net income declined sharply from $76.6 million to $34.8 million. The stock is down nearly 30% from its high.
The price is about 38% above our fair value near $160. Analysts expect 3% revenue growth, but our model is more cautious.
Breaks if: acquisition revenue contribution falls below $10 million annually
Complete the acquisition of Diamond Energy Systems to expand mechanical insulation offerings.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on growth through acquisitions and returning capital to shareholders. The current thesis state is intact, supported by recent positive earnings and ongoing dividend increases.
The market appears to price in an expensive valuation relative to peers, reflecting a durable premium. There is an expectations gap, suggesting that investors anticipate continued strong performance despite the elevated valuation.
Fundamentals are likely to remain stable in the near term, with management focused on achieving acquisition targets and maintaining dividend growth. However, there is a risk of missing earnings expectations, as seen in industry peers.
The thesis hinges on management's ability to execute on acquisition plans and maintain dividend increases. Additionally, external factors like inflation and sector performance will play a crucial role in shaping future outcomes.
The most important moves since the prior daily snapshot.
Mixed, the news cuts both ways. The company reported higher revenue and adjusted EBITDA. Q2 revenue was $777.8 million, beating estimates of $745 million. Adjusted EBITDA was $130.9 million, above the $122.2 million estimate. However, management noted that residential demand remains soft. This could challenge future growth targets.
as of 2026-09-09
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: dividend falls below $0.35 per share quarterly
Breaks if: revenue growth falls below 1% YoY in FY26
Breaks if: repurchases fall below $40 million in next 4 quarters
Over the next 1 to 3 years, IBP's performance will depend on effective management execution and external economic conditions. Not investment advice.