In This Article:
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Revenue: 4th quarter net revenue increased 4% to $750 million compared to $721 million in the prior year period.
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Same Branch Sales Growth: Up 1% for the fourth quarter.
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Adjusted Gross Margin: 33.6%, down from 34.1% in the prior year period.
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Adjusted EBITDA: Increased to a record $132 million with a margin of 17.6% for the fourth quarter.
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Net Income: Adjusted income increased to $81 million or $2.88 per diluted share.
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Cash Flow from Operations: $340 million for the year ended December 31, 2024.
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Acquisitions: Nine businesses acquired in 2024 with combined annual revenue of over $100 million.
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Share Repurchases: 383,000 shares repurchased in Q4, totaling $145 million for 2024.
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Dividend Increase: Regular quarterly cash dividend increased by 6% to $0.37 per share; annual variable dividend increased by 6% to $1.70 per share.
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Net Debt to EBITDA Ratio: 1.08 times as of December 31, 2024.
Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Installed Building Products Inc (NYSE:IBP) achieved record revenue and profitability in 2024, supported by organic growth across residential markets.
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The company invested approximately $87 million in acquisitions and allocated $230 million to dividends and share repurchases in 2024.
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IBP's board approved a 6% increase to both the regular quarterly cash dividend and the annual variable dividend, reflecting confidence in the company's financial position.
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The company completed nine acquisitions in 2024, adding over $100 million in annual revenue, with a strong outlook for further acquisitions in 2025.
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IBP's net income and EBITDA growth in 2024 were driven by a focus on operationally and financially attractive jobs, achieving record diluted net income per share and adjusted EBITDA.
Negative Points
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The company's adjusted gross margin decreased to 33.6% in the fourth quarter, down from 34.1% in the prior year, due to higher sales growth in lower-margin segments.
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IBP experienced a less than 1% decrease in job volumes in the fourth quarter, despite a 1.2% increase in price.
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The company anticipates challenges in the multi-family segment, with a potential 20-25% decline in units under construction over the next six months.
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IBP's selling and administrative expenses as a percentage of sales were slightly higher than expected, impacting overall profitability.
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The company faces a benign inflationary environment, which may limit price mix benefits in the near term.
Q & A Highlights
Q: What is IBP's outlook for multi-family and single-family markets in the new year? A: Michael Miller, CFO, stated that IBP expects to outperform the market in the multi-family segment, despite a projected 20-25% decline in units under construction. For single-family, IBP anticipates low single-digit growth, with a slow start to the year but potential improvement in the second half.