Installed Building Products, Inc. has recently released its 10-Q report, revealing key financial and operational insights. The company, based in Columbus, Ohio, specializes in the installation of insulation and a range of complementary building products for residential and commercial builders in the United States. It operates through three segments: Installation, Distribution, and Manufacturing Operations, offering services for new and existing single-family and multi-family residential and commercial building projects across the 48 continental states and the District of Columbia.
In the 2025 second quarter, Installed Building Products reported a 3.1% increase in net revenue to $760.3 million, with gross profit rising 3.4% to $259.9 million compared to the same period in 2024. The growth was primarily driven by a 10.0% increase in commercial end market sales and a 2.6% increase in revenue within the residential single-family new construction end market. The company also achieved a 6% increase in its regular quarterly dividend to $0.37 per share and repurchased $49.2 million of its outstanding common stock during the same period, totaling a capital return to shareholders of $59.3 million.
Key measures of performance revealed that consolidated sales growth for the three months ended June 30, 2025, was 3.1%, while same branch sales growth was 0.7%. The gross profit percentage increased to 34.2% during this period. However, the company experienced challenges, with same branch sales from the single-family and multi-family end markets declining by 0.4% and 4.0%, respectively.
Operating expenses also saw increases, with selling expenses rising by 3.5% and administrative expenses increasing by 6.0% during the three months ended June 30, 2025, compared to the same period in 2024. Additionally, interest expense, net, increased by 1.2% during this period.
The effective tax rate for the three months ended June 30, 2025, was 26.1%, impacted unfavorably by certain expenses not being deductible for income tax reporting purposes. Furthermore, the company recorded unrealized losses of $4.3 million on its cash flow hedges during the same period.
Installed Building Products highlighted that inflation, housing affordability, and interest rates have impacted the economy and housing demand. The company expects to be impacted by the current elevated rates for the remainder of 2025 but anticipates pressures to lessen with potential easing of rates.
Today the company's shares have moved 20.15% to a price of $254.51. For the full picture, make sure to review Installed Building Products's 10-Q report.
