NYSE$IBP

Installed Building Products Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Installed Building Products reported mixed results for Q3 2023. Revenue decreased slightly, but net income and adjusted EBITDA increased to record levels.

Installed Building Products reported a slight decrease in net revenue, but achieved record net income and adjusted EBITDA. The company's diversification strategy helped offset softer single-family sales with growth in multi-family and commercial sectors. IBP continues to focus on value over volume, resulting in strong margins and profitability.

  • Net revenue decreased 1.8% to $706.5 million.
  • Net income increased 11.5% to a record $68.0 million.
  • Adjusted EBITDA increased to a record $130.5 million.
  • IBP had $339.8 million in cash and cash equivalents at the end of the quarter.

Headline financials

Total Revenue

$706M

Previous: $719M-1.8%
EPS (adj)

$2.79

Previous: $2.51+11.2%
Consolidated Same Branch Sales Growth

-5.2%

Previous: 28.5%-118.2%
Installation Same Branch Sales Growth

-5.4%

Previous: 28.4%-119.0%
Capital Expenditures

-$46.9M

Previous: -$35.2M-33.2%
Free Cash Flow

$21.1M

Previous: $25.8M-18.1%
Net Income

$68M

Previous: $61M+11.5%
Operating Income

$102M

Previous: $93.9M+8.9%
Gross Profit

$242M

Previous: $221M+9.4%
Cash & Equivalents

$340M

Previous: $203M+67.0%
Total Assets

$1.92B

Previous: $1.76B+8.9%
Stock-Based Comp

$3.52M

Previous: $3.21M+9.5%

Revenue & EPS history

Installed Building Products · Revenue · Quarterly

$706M

Q3 2023-1.8%vs Q3 2022
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Installed Building Products · $1.32B total across 4 segments · Q3 2023

  • Installation
    $661M
  • Residential new construction
    $518M-2.7%
  • Commercial
    $105M+3.7%
  • Repair and remodel
    $37.8M-3.3%

Forward guidance

The company expects interest rate volatility to exacerbate cyclicality in the housing industry, but believes the long-term opportunities in residential and commercial end markets remain attractive. IBP continues to prioritize profitable growth through acquisitions.

Tailwinds

  • Long-term opportunities in residential and commercial end markets remain attractive
  • Multi-family revenue is supported by a stable backlog
  • Prioritizing value of services over volume drives strong margins
  • Strong balance sheet and asset light business model
  • Pursuing growth through acquisitions, while distributing cash dividends, and opportunistically repurchasing common stock

Headwinds

  • Interest rate volatility to exacerbate cyclicality in the housing industry
  • Softer single-family sales
  • Acquisition targets may be delayed
  • Acquired revenue for 2023 being less than annual goal of $100 million
  • Decline in IBP's reported job volume

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

+0.4%

Avg return

Earnings day

+0.0%

Avg return

5 days after

+2.2%

Avg return

30 days after

59%

29 / 49 earnings

Positive

+18.5%

Q1 2016

Best reaction

-28.0%

Q1 2026

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-28.0%-32.4%-34.6%
Q4 2025+6.9%+8.3%-12.8%
Q3 2025+2.8%+8.2%+12.7%
Q1 2025-0.6%+4.2%+0.5%
Q4 2024-1.1%-3.4%-0.8%
Q3 2024-7.7%-8.8%-5.9%
Q2 2024-14.3%-17.1%-17.8%
Q1 2024+0.7%-0.2%-9.4%
Q4 2023+15.6%+17.5%+27.4%
Q3 2023-0.3%+2.0%+32.7%
Q2 2023+1.0%+5.5%-1.6%
Q1 2023-4.5%-6.8%-7.2%
Q4 2022+10.7%+12.0%+4.6%
Q3 2022+1.6%-1.1%+10.6%
Q2 2022+1.1%+0.2%-8.6%
Q1 2022+3.4%+0.5%+13.8%
Q4 2021-3.0%+4.7%-9.6%
Q3 2021+0.3%-0.2%-0.6%
Q2 2021+3.6%+4.8%+3.8%
Q1 2021-6.8%-16.0%-13.2%
Q4 2020-12.8%-6.4%-7.9%
Q3 2020-8.2%-8.8%-9.9%
Q2 2020+1.3%+2.2%+4.9%
Q1 2020+1.9%-7.6%+43.4%
Q4 2019-5.2%-5.7%-36.5%
Q3 2019+10.1%+8.4%+9.9%
Q2 2019+3.5%+5.4%+2.7%
Q1 2019+13.5%+13.3%+6.2%
Q4 2018+3.2%+1.7%+6.7%
Q3 2018+15.4%+18.4%+27.2%
Q2 2018-6.4%-0.9%-14.0%
Q1 2018+2.2%+6.0%+6.0%
Q4 2017-18.3%-15.8%-11.7%
Q3 2017-3.5%-10.0%+14.0%
Q2 2017+7.2%+9.3%+6.1%
Q1 2017-9.3%-9.8%-1.9%
Q4 2016+14.8%+21.1%+27.0%
Q3 2016+2.0%+7.7%+28.1%
Q2 2016-10.4%-10.0%+0.3%
Q1 2016+18.5%
Q4 2015+5.0%
Q3 2015-17.4%
Q2 2015+6.1%
Q1 2015-4.1%
Q4 2014+5.1%
Q3 2014+9.9%
Q2 2014-0.5%
Q1 2014+4.6%
Q4 2013+9.8%
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012

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