Installed Building Products Q2 Earnings Call Highlights

Installed Building Products NYSE: IBP reported second-quarter 2026 revenue growth despite continued pressure in new single-family housing, as strength in commercial installation, manufacturing and distribution businesses helped offset softer residential activity. Consolidated net revenue increased 2% to $778 million from $760 million a year earlier. Same-branch sales declined less than 1% on a consolidated basis, while installation-segment same-branch sales fell 2%. A 6% decline in new residential same-branch sales was partially offset by a 10% increase in commercial same-branch sales.

Chairman and CEO Jeff Edwards said the company continued to navigate a challenging housing environment marked by affordability concerns and lower consumer confidence. He said IBP’s more diversified operating platform provided multiple avenues for growth, including commercial installation, manufacturing and distribution.

IBP said its commercial end market recorded double-digit installation sales growth for the fifth consecutive quarter. Heavy commercial sales rose more than 15% during the quarter, with CFO Michael Miller later describing the business as a key growth driver. Heavy commercial same-branch sales rose about 16%, though Miller said growth rates could moderate in the second half as comparisons become more difficult.

The company said its light-commercial operations turned positive sooner than expected and were expected to remain positive through the balance of the year, though not necessarily at a significant rate of growth. Meanwhile, new single-family activity remained challenged. Miller said revenue from public builders declined at a rate similar to the combined mid-single-digit decline reported by public homebuilders that had released results. Revenue from private builders also declined, but by less than public-builder revenue, he said. Public builders represented roughly 25% of IBP’s single-family revenue and approximately 15% of total company revenue, according to Miller. He said public builders’ lower average job values mean they account for a larger share of the company’s single-family job volume than revenue.

IBP also cited improving trends in multifamily. Edwards said contract backlog continued to grow, while Miller said multifamily sales turned positive in June and remained positive in July. The company’s multifamily business has particular exposure to the South Census region, which represented about 60% of its multifamily revenue, Miller said.

Adjusted gross margin was 33.3% in the second quarter, compared with 34.2% in the prior-year period. Installation-segment gross margin decli...