On this page of StockholderLetter.com we present the latest annual shareholder letter from Installed Building Products, Inc. — ticker symbol IBP. Reading current and past IBP letters to shareholders can bring important insights into the investment thesis.

 •  4/8/2026 Letter Continued (Full PDF)
 •  4/13/2023 IBP Stockholder Letter
 •  4/11/2024 IBP Stockholder Letter
 •  4/8/2025 IBP Stockholder Letter
 •  More "Construction" Category Stockholder Letters
 •  IBP Benford's Law Stock Score = 97

IBP Shareholder/Stockholder Letter Transcript:

2025
Annual Report

FINANCIAL HIGHLIGHTS
$3.0
$9.71
11
BILLION
NET INCOME PER
DILUTED SHARE
ACQUISITIONS
1%
7%
$64
NET REVENUE
GROWTH
NET INCOME PER
DILUTED SHARE
GROWTH
MILLION
NET REVENUE
ACQUIRED
ANNUAL REVENUE
Net Revenue
($ in millions)
Operating Income
($ in millions)
Net Income
($ in millions)
N.I. per diluted share

Cash
($ in millions)
Total Debt
($ in millions)
Working Capital
($ in millions)
2025
2,971
386
265
9.71
322
893
376
2024
2,941
383
257
9.10
328
883
368
2023
2,779
369
244
8.61
386
877
337
2022
2,670
345
223
7.74
230
870
327
2021
1,969
188
119
4.01
333
868
218
2020
1,653
162
97
3.27
232
570
156
Year
Strong Revenue Growth
(in millions)
Net Income
(in millions)
Completed Acquisitions
We have a successful acquisition
strategy with proven integration
$265
$2,970
110
71
3
2016
2019
2022
2025
2016
2019
2022
2025
1994   2007
2008   2010
2011   2025

To Our Stockholders,
In response to ongoing housing affordability
challenges and declining U.S. consumer
sentiment, our core new residential
installation business faced muted demand
growth throughout 2025. However, end
market diversi   cation worked in our favor as
fundamentals were more supportive in our
commercial installation business with sales in
our heavy commercial business leading the
growth. Although commercial sales strength
was encouraging, we recognized the persistent
headwinds in our largest end markets and took
decisive action to optimize labor productivity
and enhance accessory procurement
economics, which improved pro   t margins.
Additionally, we shared expertise across
markets to further elevate service quality and
win business. We empowered managers to
explore opportunities in new products and end
markets as well. The resilience of our business
and our employees was on full display in 2025,
and we are proud not only of the results but
also of the way we do business.
When confronted with macroeconomic
challenges, our response was to pursue new
paths for growth, which included diversifying
service offerings and venturing into adjacent
markets where our expertise could add value. In
Minnesota, we secured attractive jobs installing
complementary products, which thrived in new
residential markets, offsetting softer insulation
demand. A north Florida branch deepened its
collaboration with CQ Insulation, another IBP
branch and multi-family project specialist, to
expand beyond its typical operating radius and
capture additional share of pro   table garage
door installation work. These initiatives not
only diversi   ed our revenue streams but also
strengthened our reputation and competitive
positioning in newer markets.
Partnership, support, and sharing resources
have proven to yield positive results at IBP. We
believe our business works best when these
values are combined with manager autonomy
and an entrepreneurial spirit. From our incentive
compensation structure,    nancial wellness
programs, and the general support we offer
over 250 IBP branches, we believe everyone
is aligned for success and set up for economic,
professional, and personal growth. We are
excited for what is to come with employee
growth and development in 2026 and beyond.
expenditure requirements across our business
(2-3% of sales), we believe the company
remains well positioned to sustain positive free
cash    ow, supporting our capacity to    nance
acquisitions and return capital to shareholders.
Looking ahead, we aim to maintain our
disciplined approach to capital allocation while
exploring new paths for growth and increasing
value for our shareholders.
Record Sales & Pro   tability
Continues Driving Strong
Cash Flow from Operations
Committed to Progress with ESG
In 2025, we reached another top-line milestone,
generating record net revenue of $3.0 billion
up 1% from 2024 while our team worked
diligently to sustain pro   t margins, achieving
record net income of $265 million, or $9.71
per diluted share. Driven by record pro   tability
and improved working capital management,
we generated cash    ow from operations of
$371 million, up 9% from 2024. We allocated
over 80% of cash    ow from operations and
all our free cash    ow toward share buybacks,
accretive acquisitions, and dividends.
Applying Discipline and Flexibility
to Capital Allocation with Increasing
Shareholder Value as Priority #1
During another year of diligent acquisition
evaluations, emphasizing returns on invested
capital and cultural compatibility, we acquired 11
businesses (including bolt-ons) for approximately
$60 million. These acquisitions are a key part
of our long-term growth plan, positioning the
company to better serve our customers,    ll
geographic opportunities, and diversify our
revenue to help steady sales and earnings
   uctuations throughout industry cycles.
Although acquisitions remain our top priority
with respect to capital allocation, a large portion
of our free cash in 2025 was directed toward
repurchasing approximately 850,000 shares for
$173 million, which accounted for more than 3%
of our diluted shares outstanding. We also paid
approximately $88 million in cash dividends,
up $3 million from last year as we raised our
quarterly dividend 6% to $0.37 per share and
our annual variable dividend 6% to $1.70 per
share. These actions re   ect our commitment
to returning excess cash to shareholders while
exhibiting    exibility to allocate in ways that are
consistent with what we believe are the best
prevailing opportunities for our shareholders.
Given the asset-light nature of our core
installation services and modest overall capital
I am proud to share we published our    fth
annual Environmental, Social & Governance
(   ESG   ) report in October 2025 [access
report here]. Our ESG journey is still in its
early stages, and we are deepening our
commitment to address climate change by
advancing our enterprise risk management
framework and expanding our focus
beyond carbon. Although many issues within
the broader topic of ESG are urgent, we
understand that the best solutions rarely come
fast or easily, so we are making a consistent
effort toward reaching our long-term goals.
Resilient Business Model,
Finding Paths for Growth
We believe we operate a fundamentally
attractive business. At the core, long-term
demand for our installation services remains
favorable, driven by a shortage of residential
housing in the U.S. Relationships with both our
customers and suppliers are long-standing.
Still, even with a favorable business model,
2025 was a testament that when near-term
industry fundamentals are challenging, it is our
employees, and the business decisions they
make, and the effort they put forth, that drives
growth and outperformance in the marketplace.
As a company, we want to acknowledge and
reward that effort with    nancial incentives,
useful and practical employee programs, and
by operating in a way that engenders pride and
shows we truly care about relationships with our
employees, customers, suppliers, communities,
and the environment.
On behalf of everyone at IBP, we also want to
acknowledge and thank you, our shareholders,
for your investment in us. As always, we are
grateful to have your trust and support this year
and for many years to come.
Sincerely,
Jeffrey W. Edwards
Chairman, President, and CEO
2025 Annual Report
1

Annual Revenue
Percentages
4%
3%
4%
5%
6%
6%
58%
7%
We get the
job done ...
7%
Note: All references to product revenue percentages
are for the twelve months ended December 31, 2025.
All product percentages except    Other    fall within the
Installation operating segment. See below and following
page for product details.
Insulation
We are one of the largest
new residential insulation
installers in the United
States based on our internal
estimates. Insulation installation
comprised approximately
58% of our net revenue. We
handle every stage of the
installation process, including
material procurement, project
scheduling and logistics, multiphase professional installation,
and quality inspection.
We offer a wide range
of insulation materials
consisting of:
2
Installed Building Products
Fiberglass and
Cellulose Insulation
Spray Foam
Insulation
Fiberglass insulation is made of
   brous glass that is held together by
a thermoset resin creating insulating
air pockets. It is typically comprised of
an average of 50% recycled material,
with some products containing up to
80% recycled material. It is primarily
available in two forms: batts (also
referred to as blankets) and loose   ll
(also referred to as blown in). Fiberglass
is the most widely used residential
insulation material in the United States.
Cellulose insulation is made primarily
of waste paper and cardboard and has
a composition of at least 75% recycled
content. Cellulose is only available
in loose   ll form and is blown into the
structure with specialized equipment.
Fiberglass and cellulose insulation
accounted for approximately 83% of
our insulation installation sales.
Spray foam insulation, which is
generally a polyurethane foam, is
applied at a job site by mixing two
chemical components together in
specialized application equipment.
While typically having the highest
insulating value per inch and sealing
effectiveness of all insulation
materials that we offer, spray foam
is also typically the most expensive
on an installed basis. Spray foam
insulation accounted
for approximately 17% of our
installation insulation sales.

Shower Doors, Closet
Shelving, and Mirrors
Some of our locations install a variety
of shower enclosures, ranging from
basic sliding door designs to complex
custom designs. We have the ability
to meet our customers    diverse needs
by customizing shower enclosures
by size and style according to their
speci   cations, including framing,
hardware, and glass options.
Other Building
Products
Some of our locations install other
complementary building products,
none of which is an individually
signi   cant percentage of net revenue.
Rain Gutters
Some of our locations install a wide
range of rain gutters, which direct
water from a home   s roof away from
the structure and foundation. Rain
gutters are typically constructed from
aluminum or copper and are available
in a wide variety of colors, shapes,
and widths. They are generally
assembled on the job site using
specialized equipment.
Other
Re   ects the operations of our two
remaining operating segments,
Distribution and Manufacturing.
Waterproo   ng
Some of our locations install
waterproo   ng, caulking, and moisture
protection systems for commercial and
industrial construction projects. We
offer a variety of waterproo   ng options,
including, but not limited to, sheet and
hot applied waterproo   ng membranes,
deck coating systems, bentonite
systems, and air & vapor systems.
Garage Doors
Some of our locations install and
service garage doors and openers for
new residential construction builders,
homeowners, and commercial customers.
We offer a variety of options from some
of the best-known garage door brands.
We offer steel, aluminum, wood, and vinyl
garage doors as well as opener systems.
Unlike the other products we install, the
garage door business has an ongoing
aftermarket service component, which
represented almost one-third of the net
revenue resulting from garage doors.
Fire-Stopping
& Fireproo   ng
Some of our locations install    re-stopping
systems, including    re-rated joint
assemblies, perimeter    re containment,
and smoke and    re containment systems.
Fire-stopping is a passive    re protection
approach that relies on compartmentalization
of various building components, including
   re-rated walls, joints, and    oors.
Window Blinds
Some of our locations install different
types of window blinds, including
cordless blinds, shades, and shutters.
... in more ways
than one.
2025 Annual Report
3

4/8/2026 Letter Continued (Full PDF)

 

Nothing in StockholderLetter.com is intended to be investment advice, nor does it represent the opinion of, counsel from, or recommendations by BNK Invest Inc. or any of its affiliates, subsidiaries or partners. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All viewers agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. By visiting, using or viewing this site, you agree to the following Full Disclaimer & Terms of Use and Privacy Policy.