Installed Building Products Q1 revenue misses amid weak residential market

Installed Building Products,

07/05/2026 12:42

Overview

U.S. insulation installer's Q1 revenue fell 3.5% yr/yr, missing analyst expectations

Adjusted EPS declined from prior year as macro uncertainty and weather weighed on results

Company raised quarterly dividend by over 5% and repurchased $25.4 mln in shares

Outlook

Company expects near-term challenges in U.S. residential construction to continue

Company says commercial end market continues to show strength

Company notes increased uncertainty in U.S. consumer sentiment and new home sales activity

Result Drivers

WEAK RESIDENTIAL MARKET - Co said residential same branch sales within Installation segment fell 11.2%, citing challenging weather and macro uncertainty affecting U.S. consumer sentiment and new home sales

COMMERCIAL STRENGTH - Commercial installation sales grew double digits, with heavy commercial sales up over 20% and light commercial boosted by acquisitions

HIGHER EXPENSES - Gross profit margin was pressured by higher vehicle-related expenses and increased medical and general liability insurance costs

Company press release: ID:nBw2VWMMwa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Miss
$660.5 mln
$668.66 mln (14 Analysts)
Q1 Net Income
$34.8 mln
Q1 Gross Profit
$212.3 mln
Q1 Operating Income
$57.6 mln
Q1 Pretax Profit
$47.1 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 11 "hold" and 2 "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 $300.00, about 0.2% above its May 6 closing price of $299.47

The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 27 three months ago

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.)