Installed Building Products, Inc. announced record second-quarter 2025 financial results, with net revenue increasing 3.1% year-over-year to $760.3 million, surpassing the consensus GAAP estimate of $711.4 million. Consolidated same-branch net revenue increased by 0.7% from the prior year quarter, driven by a 9.3% increase in commercial same-branch sales, offsetting a 1.1% decline in residential same-branch sales.
The company achieved a record gross profit percentage of 34.2%, up from 34.1% in the same period last year, with gross profit increasing 3.4% to $259.9 million. Adjusted net income reached $80.8 million, or $2.95 per diluted share, exceeding analyst expectations of $2.40. Adjusted EBITDA increased by 3.2% to $134.0 million, maintaining an adjusted EBITDA margin of 17.6%.
IBP's Board of Directors approved a quarterly cash dividend of $0.37 per share, representing a 6% increase from last year's third-quarter dividend. The company repurchased 300,000 shares for $49.2 million in Q2 2025, bringing year-to-date repurchases to 500,000 shares for $83.5 million. Management expects housing affordability to remain a challenge for residential activity but is targeting at least $15 million in G&A cost reductions starting in Q3 2025.
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