IBP (Installed Building Products) Operating Income: $374 Mil (TTM As of Mar. 2026)

What is Installed Building Products Operating Income?

Installed Building Products IBP -1.10% 91 Operating Income is $374 Mil as of Mar. 2026. GuruFocus rates IBP with a GF Score™ of 91/100 and a GF Value™ of $225.64 (Fairly Valued). The stock has 2 warning signs investors should review.

Installed Building Products's Operating Income for the three months ended in Mar. 2026 was $58 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $374 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Installed Building Products's Operating Income for the three months ended in Mar. 2026 was $58 Mil. Installed Building Products's Revenue for the three months ended in Mar. 2026 was $661 Mil. Therefore, Installed Building Products's Operating Margin % for the quarter that ended in Mar. 2026 was 8.72%.

Good Sign:

Installed Building Products Inc operating margin is expanding. Margin expansion is usually a good sign.

Installed Building Products's 5-Year average Growth Rate for Operating Margin % was 7.30% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Installed Building Products's annualized ROC % for the quarter that ended in Mar. 2026 was 10.45%. Installed Building Products's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 31.71%.

Installed Building Products (NYSE:IBP) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Installed Building Products's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

	ROC % (Q: Mar. 2026 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2025 )	+	Invested Capital (Q: Mar. 2026 ))	/ count )
=	230.4 * ( 1 - 26.11% )	/	( (1627.1	+	1630.6)	/ 2 )
=	170.24256	/	1628.85
=	10.45 %

where

	Invested Capital		(Q: Dec. 2025 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	2068	-	119	-	( 321.9	-	max(0, 344.2	-	1042.6	+	321.9	))
=	1627.1

	Invested Capital		(Q: Mar. 2026 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	2229.8	-	124.9	-	( 474.3	-	max(0, 349.8	-	1170.1	+	474.3	))
=	1630.6

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Installed Building Products's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Mar. 2026 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Dec. 2025		Q: Mar. 2026
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	229.6	/	( ( (282 + max(452.8, 0))	+	(290.2 + max(423.3, 0)) )	/	2 )
=	229.6	/	( ( 734.8	+	713.5 )	/	2 )
=	229.6	/	724.15
=	31.71 %

where Working Capital is:

	Working Capital		(Q: Dec. 2025 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(444.1	+	203	+	73.6)	-	(119	+	0	+	148.9)
=	452.8

	Working Capital		(Q: Mar. 2026 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(426.4	+	205.7	+	63.7)	-	(124.9	+	0	+	147.6)
=	423.3

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Installed Building Products's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as:

Operating Margin %	=	Operating Income (Q: Mar. 2026 )	/	Revenue (Q: Mar. 2026 )
	=	57.6	/	660.5
	=	8.72 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Installed Building Products Operating Income Related Terms

Installed Building Products Operating Income Historical Data

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The historical data trend for Installed Building Products's Operating Income can be seen below:

Installed Building Products Operating Income Chart

Installed Building Products Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Dec25

Operating Income

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186.80

329.30

369.10

387.40

386.40

Installed Building Products Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25	Jun25	Sep25	Dec25	Mar26
Operating Income	Get a 7-Day Free Trial															69.80	101.00	106.80	108.80	57.60

91GF Score

Installed Building Products Inc IBP

Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.

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Installed Building Products Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $374 Mil.

Frequently Asked Questions Learn more about Operating Income →

What does a Operating Income of $374 Mil mean?

Installed Building Products (IBP) has a Operating Income of $374 Mil as of Mar. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Installed Building Products and its competitors.

Is Installed Building Products' Operating Income too high?

Installed Building Products' current Operating Income is $374 Mil. Overall, Installed Building Products has a GF Score™ of 91/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.

How does Installed Building Products' Operating Income compare to TMHC and MTH?

Installed Building Products' Operating Income of $374 Mil can be compared against companies in the Homebuilding & Construction industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good Operating Income for a Homebuilding & Construction company?

A good Operating Income depends on the Homebuilding & Construction industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.

What does a high Operating Income mean?

A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Installed Building Products and its competitors. Installed Building Products's current Operating Income is $374 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Installed Building Products stock overvalued right now?

Based on GuruFocus' analysis, Installed Building Products (IBP) is currently considered Fairly Valued. The stock's GF Value™ is $225.64, compared to a current price of $225.74 — trading 0% above its estimated fair value. The current Operating Income is $374 Mil. Installed Building Products' overall GF Score™ is 91/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is Operating Income calculated?

Operating Income is calculated from a company's financial statements. For Installed Building Products (IBP), the current Operating Income is $374 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Installed Building Products (IBP) Overvalued in 2026?

Based on GuruFocus' analysis, Installed Building Products stock appears to be overvalued. The current stock price of $225.74 is trading 0% above its estimated GF Value™ of $225.64. GuruFocus considers Installed Building Products to be Fairly Valued.

Key valuation signals for IBP:

Operating Income: $374 Mil
GF Value™: $225.64 vs. price of $225.74 (0% above fair value)
GF Score™: 91/100 with 2 warning signs

No single metric tells the full story. See the IBP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Installed Building Products Business Description

Industry Consumer Cyclical Homebuilding & Construction

Comparable Companies TMHC MTH SKY CVCO MHO KBH GRBK DFH LGIH HOV DHI PHM LEN NVR TOL TSE:1928 LSE:BTRW TSE:1911 LSE:PSN TSE:1808

Address 495 South High Street, Suite 50, Columbus, OH, USA, 43215

Website https://www.installedbuildingproducts.com

Installed Building Products Inc is an insulation installer serving the residential new construction market and are also a diversified installer of complementary building products, including waterproofing, fire-stopping and fireproofing, garage doors, rain gutters, window blinds, shower doors, closet shelving, mirrors and other products throughout the United States. The company installs fiberglass insulation, spray foam insulation, and cellulose insulation. The company has three operating segments consisting of Installation, Manufacturing and Distribution operations. Majority of revenue is derived from Installation segment.

91GF Score

Get the complete analysis for IBP

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$225.74

Price

$225.64

GF Value

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