Overview

* Installed Building Products ( IBP ) Q2 revenue grows 3.1%, beating analyst expectations

* Net income for Q2 increased 5.8% year-over-year to $69.0 million

* Company repurchased 300,000 shares at a total cost of $49.2 million

Outlook

* Company expects housing affordability to remain a challenge in near-term

* Company targets $100 mln in annual revenue from acquisitions in 2025

Result Drivers

* ACQUISITIONS - Revenue growth partly driven by recent acquisitions, including Pro Foamers, Inc., contributing $4 mln in annual revenue

* INSTALLATION REVENUE - Installation revenue increased 2.6% to $715.6 mln, including sales from recent acquisitions

* MARKET POSITIONING - Strong financial results attributed to high-value installation services and market positioning, per CEO Jeff Edwards

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $760.30 $710.70

Revenue mln mln (10

Analysts

)

Q2 Net $69 mln

Income

Q2 Gross $259.90

Profit mln

Q2 $101 mln

Operatin

g Income

Q2 $93.40

Pretax mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 7 "hold" and 1 "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 ( IBP ) is $183.00, about 15.7% below its August 6 closing price of $211.82

* The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release:

(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.)