Installed Building Products (IBP) Q3 2026 earnings summary

Executive summary

• Record Q3 revenue was $808.4M, up 3.9% YoY; commercial strength and acquisitions offset softer residential activity.

• Earnings declined as gross margins compressed under higher labor, material, fuel and aluminum costs.

Financial highlights

• Q3 net income was $59.4M versus $74.4M; diluted EPS was $2.24 versus $2.74. Adjusted net income was $73.1M, or $2.76 per diluted share.

• Gross profit fell 2.6% to $257.4M; operating income was $91.7M versus $106.8M.

• Adjusted EBITDA was $128.3M, down 8.3%, at a 15.9% margin versus 18.0%; adjusted S&A was 18.2% of revenue, flat YoY.

• 9M revenue increased 1.1% to $2,246.7M; net income fell to $159.1M from $188.8M and adjusted EBITDA to $351.3M from $376.3M.

• Cash was $415.9M at September 30; 9M operating cash flow was $245.9M versus $306.5M.

Outlook and guidance

• Management expects 2027 single-family and multifamily starts to decline mid-single digits; price mix may face greater pressure into Q4 and 2027.

• 2027 gross margin is expected within the 32%-34% range, at the low end; Q4 and FY26 margins face fuel, freight and aluminum headwinds.

• Fiberglass and spray foam pricing is expected to remain stable for the next couple of quarters; Q4 Other-segment revenue growth is expected to moderate to mid-single digits.

• FY26 effective tax rate is expected at 25%-27%; Q4/FY26 amortization is expected at $10M/$42M and Q4 net interest expense at ~$15M.