Installed Building Products, Inc. (IBP) Stock Analysis

Installed Building Products (IBP) holds several durable competitive advantages in the fragmented U.S. building products installation market. Its national scale—over 250 branches in 48 states—enables superior purchasing power, operational efficiency, and consistent service quality. IBP is the largest or second-largest installer of insulation in more than half its markets, with an estimated 30% share in new residential insulation, far ahead of regional competitors and the only other national player, TopBuild.

IBP’s vertically integrated model—direct sourcing from manufacturers and in-house installation—reduces reliance on third-party distributors, improving margins (2024 gross margin: 33.8%) and supply chain resilience. The company’s focus on complementary products (garage doors, waterproofing, fireproofing, etc.) diversifies revenue and deepens customer relationships, reducing cyclicality tied to new home construction.

Customer retention is high, with the top 10 customers accounting for only 15% of revenue, limiting concentration risk. IBP’s disciplined acquisition strategy (nine acquisitions in 2024, adding $104 million in annual revenue) accelerates market penetration and product expansion, while maintaining local brand equity and management.

Culturally, IBP’s employee retention outpaces industry averages (installer turnover: 2.8% vs. 3.9% for the sector), supported by robust training, safety, and benefits programs. This underpins service reliability—a key differentiator versus smaller, less capitalized rivals. In sum, IBP’s scale, integration, product breadth, and human capital create a defensible moat in a highly competitive industry.