Installed Building Products Q3 revenue beats estimates on same branch sales growth
Overview
U.S. insulation installer Q3 revenue rose 3.9%, beating analyst expectations
Adjusted EPS for Q3 declined year-over-year
Gross margin narrowed due to higher costs and segment mix
Outlook
Company declares Q4 cash dividend of $0.39 per share, up over 5% from last year
Company expects to acquire at least $100 mln in revenue in 2026
Company says affordability and consumer confidence remain headwinds for single-family construction
Result Drivers
MARKET SHARE GAINS - Co said same branch sales outperformed market trends due to market share gains and customer relationships
COMMERCIAL GROWTH - Commercial same branch sales rose 10.3% while residential same branch sales declined
COST INFLATION AND SEGMENT MIX - Co said higher fuel and aluminum costs and a greater mix of lower-margin segments reduced gross margin
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $808.40 mln | $787.27 mln (13 Analysts) |
Q3 Net Income | $59.40 mln | ||
Q3 Gross Profit | $257.40 mln | ||
Q3 Operating Income | $91.70 mln | ||
Q3 Pretax Profit | $81.20 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 11 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the construction & engineering peer group is "buy."
Wall Street's median 12-month price target for Installed Building Products, Inc. is $220.00, about 6.5% below its November 4 closing price of $235.42
The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 21 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)