Installed Building Products Inc · Q1 2023 earnings

Briefing

Installed Building Products reported record first-quarter sales and profitability due to the exceptional effort of employees and the excellent service they provide to residential and commercial customers.

Installed Building Products reported a record first quarter in 2023, with net revenue increasing by 12.2% to $659.3 million and net income increasing by 45.7% to $49.3 million. The company's performance was driven by recent acquisitions and robust same-branch growth, particularly in the multifamily and light commercial end markets. IBP continues to prioritize installation job profitability over volume.

• Net revenue increased 12.2% to a first quarter record of $659.3 million.
• Installation revenue increased 10.9% to $622.7 million, driven by growth across both IBP’s residential and commercial new construction markets.
• Net income increased 45.7% to $49.3 million.
• Adjusted EBITDA increased 24.7% to a first quarter record of $105.0 million.

Headline financials

Revenue & EPS history

Despite continued economic volatility, the residential housing market is expected to remain resilient through the remainder of 2023 due to strong employment trends and relatively low existing home inventory levels. The company is well-positioned to navigate the cyclicality of the U.S. housing market given its strong customer relationships, experienced leadership team, national scale, and diverse product categories and end markets. The company's strong balance sheet and high operating cash flow generating capability support ongoing acquisition activity, dividend distributions, and opportunistic share repurchases.