Installed Building Products reported record third‑quarter revenue of $778.2 million, up 2.3% from $760.6 million a year earlier. Net income rose to $74.4 million, or $2.74 per diluted share, while adjusted net income reached $86.4 million, or $3.18 per diluted share. The company’s earnings beat analyst expectations by $0.24 per share, a 9% surprise, driven by disciplined cost management and a favorable pricing mix that lifted revenue by 1.5% despite a 4.8% decline in overall job volume.
Revenue growth was largely supported by a 21.7% jump in the “other revenue” segment, which includes manufacturing and distribution, and by stronger heavy‑commercial activity that offset the decline in residential job volume. The 1.5% price‑mix lift reflects higher average selling prices in the commercial channel, while the mix shift toward higher‑margin products helped lift gross profit to $264.2 million, a 2.9% increase and a margin of 34.0% versus 33.8% a year earlier.
Gross profit margin expansion to 34.0% and net profit margin to 9.6%—up 0.2 and 0.6 percentage points, respectively—illustrate effective pricing power and cost control. EBITDA reached $133.8 million, an 18.0% margin, up 0.6 percentage points from the prior year, reflecting the company’s ability to convert higher revenue into operating cash flow while keeping selling, general and administrative expenses in check.
Operating efficiency improved as selling and administrative expense fell to 18.9% of revenue from 19.1% a year ago, and adjusted selling and administrative expense dropped to 18.2% from 18.5%. The decline is attributable to scale benefits and disciplined expense management across the company’s 200+ branches.
Capital allocation remained robust: the company declared a quarterly cash dividend of $0.37 per share, payable on December 31, 2025, and completed share repurchases of 200,000 shares at a cost of $51.5 million and 700,000 shares at $134.9 million during the nine‑month period, underscoring its commitment to returning value to shareholders while maintaining liquidity.
Management reaffirmed its full‑year 2025 guidance, indicating confidence in sustaining profitability and maintaining the current margin trajectory. CEO Jeff Edwards highlighted the company’s “encouraging year” and praised the branches’ execution, noting that scale, product diversity, and a focus on service continue to drive performance.
Analysts noted the earnings beat and margin expansion, citing effective cost control and pricing power as key factors behind the strong results.
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