Installed Building Products, Inc. (NYSE: IBP) has reported record fourth-quarter and fiscal year 2023 results, with net revenue reaching a new high of $720.7 million for the fourth quarter, representing a 5.0% increase from the prior year period. The company's net income was reported at $64.9 million, or $2.29 per diluted share, with adjusted EBITDA increasing to $128.3 million.
Jeff Edwards, Chairman and Chief Executive Officer of Installed Building Products, expressed pride in the company's performance in 2023, citing healthy sales in the multi-family and commercial end-markets which offset softer single-family sales. He also highlighted the company's record annual net profit and adjusted EBITDA margins in 2023, attributing this success to the talent and commitment of the employees, the strength of the business model, and the value provided to residential and commercial customers.
Edwards also noted the company's investment of approximately $60 million in its acquisition strategy during 2023, along with returning nearly $70 million to shareholders through dividends and share repurchases. The company finished the year with a strong liquidity position and $387 million in cash on its balance sheet. Looking ahead, Edwards stated, "As we look ahead, we believe new residential housing construction activity will remain resilient in 2024 as stable employment and limited existing home inventory levels will continue to support building construction and demand for our services. We believe 2024 will be another good year for IBP."
In line with its growth strategy, IBP completed eight acquisitions in 2023, representing approximately $75 million of annual revenue. The company expects to acquire at least $100 million of annual revenue in 2024.
Regarding dividends and share repurchases, IBP's board of directors declared a 6% increase in the 2024 first-quarter regular cash dividend to $0.35 per share and an annual variable dividend of $1.60 per share, representing a $0.70 per share increase over last year’s variable dividend. Additionally, the board authorized a new stock repurchase program that allows for the repurchase of up to $300 million of IBP's outstanding common stock.
For the full year of 2023, IBP reported a record net revenue of $2.8 billion, representing a 4.1% increase from the prior year. The company's gross profit, net income, and adjusted EBITDA all experienced significant improvements compared to the previous year.
The company's shares have moved 10.0%, and are now trading at a price of $222.75.
Installed Building Products, Inc. will host a conference call and webcast on February 22, 2024, at 10:00 a.m. Eastern Time to discuss these results.
The company's full 8-K submission is available here.
