Installed Building Products (IBP) Q4 2023 earnings summary

Executive summary

• FY2023 net revenue reached a record $2,778.6M, up 4.1%; adjusted EBITDA rose to $485.9M and net income to $243.7M.

• Q4 net revenue rose 5.0% to a record $720.7M; multi-family and commercial growth offset softer single-family demand.

Financial highlights

• Q4 adjusted EBITDA increased 11.2% to $128.3M; adjusted net income was $77.3M, or $2.72 per diluted share, versus $69.1M and $2.43.

• FY adjusted gross profit was $931.6M, with a 33.5% margin, versus $828.4M and 31.0% in FY2022.

• FY adjusted net income was $290.8M, or $10.27 per diluted share; reported net income was $243.7M, or $8.61 per diluted share.

• FY net cash from operating activities rose to $340.2M from $277.9M.

Outlook and guidance

• 2024 outlook calls for resilient new residential housing activity, supported by stable employment and limited existing-home inventory.

• Long-term targets include organic revenue growth above U.S. residential completions growth, adjusted EPS growth in the mid-teens, and adjusted EBITDA growth of 20–25%.

• 2024 acquisition target is at least $100M of annual revenue; long-term assumptions include immediate accretion and acquired EBITDA margins above 10%.