COLUMBUS, Ohio - Installed Building Products, Inc. (NYSE:IBP), a leading installer of insulation and complementary building products, reported a robust first quarter with record earnings that surpassed analyst expectations.
The company's adjusted earnings per share (EPS) for the first quarter ended March 31, 2024, reached $2.47, outperforming the analyst estimate of $2.30. This figure represents a significant 14.9% increase from the same quarter last year.
Net revenue saw a healthy increase of 5.1% to $692.9 million, exceeding the consensus estimate of $683.65 million and marking a notable rise from $659.3 million in the first quarter of the previous year. Installation revenue, which includes sales from recent acquisitions, contributed to this growth with a 5.3% rise to $655.9 million. Other revenue, encompassing the company's manufacturing and distribution operations, also saw an uptick to $37.0 million from $36.6 million.
IBP's net income climbed to a first-quarter record of $55.9 million, a substantial 13.4% improvement from the prior year period. The company's net profit margin for the quarter increased to 8.1% from 7.5% in the previous year. Adjusted EBITDA followed suit, setting a first-quarter record with an 11.6% increase to $117.3 million.
Chairman and Chief Executive Officer Jeff Edwards commented on the results, "Our first quarter financial results reflect improvements in our single-family end-market and the continuation of healthy sales growth in our multi-family end market. We believe our customers are committed to building single-family homes in the current macroeconomic and industry backdrop."
Edwards also highlighted the company's strategic focus, which has led to record net profit margin and adjusted EBITDA margin for the three months ended March 31, 2024. With a strong balance sheet and cash flow generation, IBP is prioritizing acquisitions and cash dividends distribution, while also considering the repurchase of common stock.
Looking ahead, IBP's board of directors declared a second quarter regular cash dividend of $0.35 per share, which represents a 6% increase from last year's second quarter cash dividend payment. This announcement aligns with the company's commitment to delivering shareholder value and confidence in its financial stability.
IBP's acquisition strategy remains a key component of its growth, with the recent purchases of First State Building Products, LLC, and Trade Partners, Inc., which are expected to contribute to the company's expansion and revenue generation.
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