Loop Capital has trimmed its price target for Installed Building Products (IBP, Financial) from $210 to $200, while maintaining a Buy rating on the stock. The adjustment follows the company's modest performance in the first quarter and a more cautious outlook on residential demand. Despite these challenges, IBP saw a favorable installation price/mix. The positive pricing in fiberglass was attributed to the continuation of last year's mid-year price hikes, along with an uptick in spray foam pricing.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 11 analysts, the average target price for Installed Building Products Inc (IBP, Financial) is $189.45 with a high estimate of $260.00 and a low estimate of $145.00. The average target implies an upside of 17.70% from the current price of $160.96. More detailed estimate data can be found on the Installed Building Products Inc (IBP) Forecast page.
Based on the consensus recommendation from 12 brokerage firms, Installed Building Products Inc's (IBP, Financial) average brokerage recommendation is currently 2.8, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Installed Building Products Inc (IBP, Financial) in one year is $161.39, suggesting a upside of 0.27% from the current price of $160.96. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Installed Building Products Inc (IBP) Summary page.
IBP Key Business Developments
Release Date: May 08, 2025
- Consolidated Net Revenue: Decreased 1% to $685 million compared to $693 million in the prior year.
- Same Branch Sales: Decreased 4% for the first quarter.
- Adjusted Gross Margin: 32.7%, down from 33.9% in the prior year period.
- Adjusted EBITDA: Decreased to $102 million with a margin of 15%.
- Adjusted Net Income: Decreased to $58 million or $2.08 per diluted share.
- Cash Flow from Operating Activities: Increased 9% to $92 million.
- Capital Expenditures and Finance Leases: Approximately $21 million, about 3% of revenue.
- Stock Repurchase: 200,000 shares repurchased at a total cost of $34 million.
- Dividend: Second quarter dividend of $0.37 per share, a 6% increase over the prior year period.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Installed Building Products Inc (IBP, Financial) delivered solid first quarter financial results, maintaining a high level of installation service across the US.
- The company continues to generate strong operating cash flow, with a 9% increase to $92 million in cash flow from operating activities.
- IBP remains committed to growth through acquisitions, having completed acquisitions in South Carolina and Wisconsin, adding nearly $10 million in annual revenue.
- The heavy commercial segment showed strong performance, with over 14% growth, driven by success in the data center construction industry.
- IBP's business model focuses on geographic and product market growth, with less than 10% of products sourced outside the US, minimizing potential tariff impacts.
Negative Points
- Consolidated sales decreased by 1%, with same branch growth down 4%, impacted by a slower than expected spring selling season and difficult weather conditions.
- New single-family installation sales were down compared to the same period last year, partly due to one less selling day and adverse weather.
- Adjusted gross margin decreased to 32.7% from 33.9% in the prior year, affected by higher vehicle insurance and depreciation expenses.
- Adjusted selling and administrative expenses increased to 20.1% of sales, up from 19% in the prior year, due to lower sales and higher administrative costs.
- The light commercial market experienced a decline of over 10%, offsetting growth in the heavy commercial segment.