Installed Building Products, one of the largest installers of insulation and complementary building materials, is forging ahead with its long-term growth strategy despite continued softness in the U.S. housing market.
The company said it is navigating near-term challenges, including labor availability, weather disruptions, and affordability pressures, while maintaining focus on acquisitions and operational expansion across residential and commercial end markets.
During the first quarter and into May, IBP completed two acquisitions totaling over $10 million in annual revenue. The company acquired a South Carolina-based installer of after-paint products, including closet shelving and shower doors, and a Wisconsin-based spray foam and air barrier contractor focused on commercial work.
“Acquisitions continue to be our top priority as we consider all of our options for capital allocation,” said chairman and CEO Jeff Edwards during the company’s most recent quarterly earnings call based on a transcript from Seeking Alpha. “We believe a meaningful opportunity still exists for us to expand our geographic presence and diversify the mix of building products we install across our national branch network.”
IBP said it expects to close additional acquisitions in 2025, aiming to add over $100 million in annual revenue through deals.
The housing market showed signs of strain in the first quarter. Single-family housing starts were down 6% year-to-date through March, according to U.S. Census Bureau data, and IBP’s same-branch sales in the new single-family segment declined. The company attributed some of the slowdown to severe weather and wildfires that disrupted construction schedules, particularly in the South and West.
“We continue to believe that our business is supported by a fundamental undersupply of residential housing,” Edwards said. “Our homebuilding customers are operating from a position of health, which helps in navigating market uncertainty.”
The company said weather-related disruptions and a shorter selling calendar led to an estimated $20–30 million in delayed revenue during the quarter, which it expects to recover over the remainder of the year.
Despite a 20% decline in multifamily units under construction year-over-year, IBP held same-branch multifamily sales to just a 5% drop. The company credited its centralized multifamily division—known internally as “CQ”—with helping local branches win and manage projects efficiently.
“CQ does not manage all our multifamily revenue. They only manage around 45%, but they continue to show strong results,” said CFO Michael Miller on the call. “Their backlog continues to be very solid. We feel very strongly that we will continue to outperform the multifamily opportunity.”
IBP expects multifamily construction activity to remain soft through 2025, though Census data shows starts have risen 9% year-to-date—an encouraging sign for 2026.
IBP’s commercial installation segment also experienced mixed results. Same-branch commercial sales dipped slightly, but demand for heavy commercial projects remained strong, particularly those tied to the growing data center construction market.
“Based on our current backlog, we expect growth in heavy commercial sales to continue throughout this year,” Edwards said.
IBP reiterated that its business model remains centered on geographic and end-market expansion, supported by disciplined capital allocation. The company continues to generate strong cash flow and is investing in growth while returning capital to shareholders through dividends and share buybacks.
“Our strong customer relationships, experienced leadership team, national scale and diverse product categories across multiple end markets are advantages when navigating the ebbs and flows of demand related to the U.S. construction market,” Edwards said.
While the company did not provide full-year revenue guidance, leadership expressed confidence in its positioning and long-term prospects.
“We remain focused on profitability and effective capital allocation to drive earnings growth and value for our shareholders,” Edwards added. “I remain encouraged by our competitive positioning and optimistic about the prospects ahead.”
For the first quarter ending March 31, net revenue decreased 1.2% to $684.8 million from $692.9 million the prior year. Net income was $45.4 million compared to $55.9 million in the first quarter of 2024.
Don’t miss any content from Distribution Strategy Group. Join our list.
