Notes from the Road: Installed Building Products Inc.

Goldman Sachs remains bullish on Installed Building Products (IBP) following investor meetings, citing resilient margins, robust M&A pipeline, and potential for EPS growth through buybacks.

Key Takeaways

• 1.Management expects gradual improvement in residential activity in the second half of 2026, supported by public builders expanding community counts.
• 2.IBP targets a gross margin range of 32-34% despite a temporary mix shift toward lower-margin distribution/other segments.
• 3.Pricing for fiberglass remains flat due to ample supply, but spray foam and aluminum-based products (gutters) are seeing significant inflationary price increases.

Table of Contents

• Valuation & Risks
• Disclosure Appendix
• GS Factor Profile
• M&A Rank
• Quantum
• Disclosures
• Company-specific regulatory disclosures
• Distribution of ratings/investment banking relationships
• Price target and rating history chart(s)
• Target price history table(s)
• Regulatory disclosures
• Ratings, coverage universe and related definitions
• Global product; distributing entities
• General disclosures

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