Installed Building Products, Inc. announced its first-quarter 2025 financial results, with net revenue decreasing 1.2% year-over-year to $684.8 million, though this figure surpassed Street forecasts of $673.2 million. Consolidated same-branch net revenue declined by 4.2% from the prior year quarter, with residential same-branch sales down 4.6% and commercial same-branch sales down 2.8%.
The company reported a gross profit of $223.7 million, a 4.6% decrease from Q1 2024, with the gross profit percentage falling to 32.7% from 33.8%. Adjusted net income was $57.6 million, or $2.08 per diluted share, missing analyst estimates of $2.18 per share. Adjusted EBITDA decreased by 12.7% to $102.4 million, resulting in an adjusted EBITDA margin of 15.0%.
Margin reductions were primarily attributed to higher administrative wages, facility costs, vehicle insurance, and depreciation expenses. Despite these pressures, IBP's Board of Directors approved a quarterly cash dividend of $0.37 per share, a 6% increase from last year's second-quarter dividend. The company also repurchased 200,000 shares for $34.3 million in Q1 2025 and acquired over $10 million in annual revenue year-to-date, targeting at least $100 million in acquisitions for 2025.
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