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Installed Building Products Q3 revenue beats estimates on same branch sales growth

By Reuters News


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


Reuters Recommended Reads

  • Nov 4 - Martin Marietta Q3 revenue beats estimates but profit misses on inflationary pressure

  • Nov 4 - Eagle Materials Q2 revenue beats estimates, helped by public infrastructure demand

  • Nov 4 - Owens Corning misses Q3 profit estimates on weak residential markets, low storm activity


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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