Installed Building Products Posts Record $142M EBITDA, Expands 35% Gross Margin
Installed Building Products ended fiscal 2025 with record adjusted EBITDA of $142 million and gross margin expansion to 35%, driven by a 38% surge in heavy commercial same-branch sales. The company completed 11 acquisitions adding over $64 million in annual revenue, holds ~$900 million in available liquidity and plans $100 million more buys in 2026.
1. Fiscal 2025 Financial Performance
Installed Building Products closed fiscal 2025 with record adjusted EBITDA of $142 million, a 35% adjusted gross margin (up from 33.6%) and net income of $88 million ($3.24 per share), despite only 1% consolidated sales growth and a 1% same-branch sales decline.
2. Q4 Segment Trends
In the fourth quarter, net revenue held nearly flat at $748 million, with commercial same-branch sales up 23% nearly offsetting a 9% drop in residential. Price/mix rose 1.7% but volume fell 9.3%, while heavy commercial sales surged 38%, driving margin gains.
3. M&A Activity and Liquidity
The company completed 11 acquisitions in 2025 adding over $64 million of annual revenue and expects at least $100 million more in 2026. It issued $500 million in notes, expanded its revolver to retain approximately $900 million in liquidity, and repurchased $173 million of stock.
4. Outlook and Market Dynamics
Management forecasts full-year gross margins to remain in a 32%–34% range, noting entry-level residential pressure and weather-related headwinds that cut Q1 revenue by $20 million. Continued commercial strength and disciplined cost management are cited as supports for profitability.