Installed Building Products — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net revenue increased 3.9% year-over-year to $808.4 million for the third quarter of 2026, compared to $778.2 million in the prior year period.
• Installation revenue grew 2.7% to $740.4 million, while Other revenue (manufacturing and distribution) increased 18.9% to $68.0 million.
• Net income was $59.4 million ($2.24 per diluted share), down from $74.4 million ($2.74 per diluted share) in the prior year quarter.
• Adjusted net income was $73.1 million ($2.76 per diluted share), compared to $86.4 million ($3.18 per diluted share) in the prior year quarter.
• Gross profit decreased 2.6% to $257.4 million; gross profit margin was 31.8% compared to 34.0% in the prior year quarter.
• Adjusted gross profit margin was 31.9% compared to 34.0% in the prior year quarter.
• Selling and administrative expense was 19.2% of total revenue in the third quarter of 2026, compared to 18.9% in the prior year period.
• Adjusted selling and administrative expense was 18.2% of net revenue, consistent with the prior year quarter.
• Net profit margin was 7.3% in the third quarter of 2026, down from 9.6% in the prior year quarter.
• Adjusted net profit margin was 9.0% in the third quarter of 2026, down from 11.1% in the prior year quarter.
• EBITDA was $120.6 million, a 9.9% decrease from $133.8 million in the prior year quarter.
• Adjusted EBITDA was $128.3 million, an 8.3% decrease from $139.9 million in the prior year quarter, representing an adjusted EBITDA margin of 15.9% (down from 18.0%).
• Cash and cash equivalents were $415.9 million at September 30, 2026, compared to $321.9 million at December 31, 2025.
• Long-term debt was $1,019.7 million at September 30, 2026, compared to $850.0 million at December 31, 2025.
• For the nine months ended September 30, 2026, net revenue was $2,246.7 million (up 1.1% from $2,223.3 million), and net income was $159.1 million (down from $188.8 million).

Guidance and Future Outlook:

• The Company expects to acquire at least $100 million in revenue in 2026, having already acquired approximately $67 million year-to-date.
• Management continues to focus on commercial growth, acquisition integration, operational efficiency initiatives, and disciplined capital allocation.
• The Company aims to execute its growth-oriented capital allocation strategy to create long-term shareholder value.

Business Segments and Product Lines:

• Installation segment gross profit margin was 35.0% in the third quarter of 2026, compared to 36.9% in the prior year quarter.
• Other segment gross profit margin was 23.1% in the third quarter of 2026, compared to 25.2% in the prior year quarter.
• Commercial same branch sales within the Installation segment increased 10.3% year-over-year.
• Residential same branch sales within the Installation segment decreased 2.6% year-over-year.
• Price/mix results increased 0.4% during the third quarter, while job volumes were down 1.9%.
• Including heavy commercial installation sales, price/mix increased 2.0% while job volume was down 1.7%.
• The Company completed four acquisitions in the third quarter (Harkraft, Inc., Builders Hardware of South Carolina, Inc., Chesapeake Hearth and Stone, and First Oklahoma Insulation), adding approximately $22 million of annual revenue.

Market and Competitive Landscape:

• Same branch sales performance outperformed underlying market trends, reflecting market share gains and strong customer relationships.
• Residential construction activity remained soft, with single-family same branch sales down 4.9% and multi-family same branch sales up 7.5%.
• U.S. Housing Market Total Completions Growth was down 17.2% year-over-year for the quarter.
• The Company operates a national network of over 250 branch locations across the continental United States.

Risks and Challenges:

• Headwinds include affordability issues and consumer confidence affecting single-family construction.
• Significant cost inflation in fuel and aluminum impacted third quarter gross profit margins.
• Forward-looking statements note risks such as general economic and industry conditions, rising mortgage interest rates, inflation, material price and supply environment, increased tariffs, federal government shutdowns, geopolitical conflicts, and the risk of reducing, suspending, or eliminating dividend payments.

Management Commentary and Tone:

• Jeff Edwards, Chairman and CEO, stated the team stayed focused on delivering high-level installation service and that results reflect the benefits of a diversified operating platform and commitment to profitability.
• Management expressed confidence that the strong balance sheet and cash flow generation will provide financial flexibility to execute the growth strategy.
• The tone emphasizes resilience against residential softness through commercial growth and acquisition integration.

Other Key Points:

• The Board declared a regular quarterly cash dividend of $0.39 per share for the fourth quarter of 2026, payable on December 31, 2026, representing a more than 5% increase from the prior year period.
• IBP closed a $250 million Add-On to its existing Term Loan B to strengthen liquidity and financial flexibility for its acquisition strategy.
• For the nine months ended September 30, 2026, the Company repurchased $101.7 million of common stock.
• The Company paid $80.1 million in dividends during the nine months ended September 30, 2026.
• Net cash provided by operating activities was $245.9 million for the nine months ended September 30, 2026.
• Net cash used in investing activities was $114.2 million for the nine months ended September 30, 2026, primarily due to $63.2 million spent on acquisitions and $50.0 million on property and equipment purchases.