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IBP to Benefit From Production Capacity Expansion in Bucyrus
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Installed Building Products, Inc.’s (IBP - Free Report) subsidiary company, Advanced Fiber Technology (“AFT”), has increased its production capacity with the opening of the second line of its manufacturing plant in Bucyrus, OH.
This $5.5 million capacity expansion project comprises a $4.75 million investment in leading-edge technology, robotics and automation for the wastepaper conversion industry.
Post the announcement, IBP stock rallied 5.3% during the trading hours and 0.4% in the after-hours on Tuesday.
IBP’s Benefits From the Strategic Move
Backed by safe and efficient technology, the new manufacturing line expansion will enable AFT to produce high-performance and reliable Carbon-Smart Loose-Fill Cellulose Insulation and support Bucyrus’ economic growth. Furthermore, this move will also help enhance AFT’s ability to meet the growing commercial and residential customers’ demand for its products by strengthening its operations and ensuring sustainability.
Carbon-Smart Loose-Fill Cellulose Insulation is AFT’s environmentally-friendly product made from more than 85% recycled content, primarily recycled newsprint and cardboard.
Installed Building’s president and CEO, Jeff Edwards, shared optimistic views regarding this capacity expansion project. Through the expansion in Bucyrus, IBP’s ability to meet rising demand for its high-quality insulation products will be enhanced and the commitment to offer innovative solutions across the nation will be reinforced.
IBP’s Capital Allocation Strategies
Installed Building focuses on strategic capital allocation initiatives, which drive its profitability and growth prospects. The company allocates its capital per the available market and product enhancement opportunities while maintaining shareholder value. The effective capital mix ensures functional efficiencies and drives growth momentum even in an uncertain market.
The primary aspects of IBP’s capital allocation include inorganic growth initiatives and returns to shareholders, with fair attention toward organic growth strategies. The company’s capital allocation strategy has been faring well for the past few quarters due to the increased same-branch sales in both its single-family and multi-family residential new construction end markets, accompanied by revenue contributions from its recent acquisitions.
During the second quarter of 2024, the company acquired three companies, including North Carolina-based Trade Partners, Inc., Oklahoma-based Thrice Energy Solutions, LLC and Illinois-based residential and commercial installer of building products collectively known as Euroview. IBP also announced a 6% hike in its quarterly cash dividend of $0.35 per share, payable on Sep. 30, 2024, to shareholders on record as of Sep. 15.
Image Source: Zacks Investment Research
Shares of IBP have gained 30.3% in the year-to-date period, outperforming the Zacks Building Products - Miscellaneous industry’s 17.5% growth. Owing to the improving market trends, Installed Building aims to continue focusing on profitability and effective capital allocation to drive earnings growth and value for its shareholders.
IBP’s Zacks Rank & Key Picks
Installed Building currently carries a Zacks Rank #3 (Hold).
Here are some better-ranked stocks from the Construction sector.
FIX delivered a trailing four-quarter earnings surprise of 20.6%, on average. The stock has surged 95.8% in the past year. The Zacks Consensus Estimate for FIX’s 2024 sales and earnings per share (EPS) indicates growth of 29.4% and 57.8%, respectively, from the prior-year levels.
Frontdoor, Inc. (FTDR - Free Report) presently sports a Zacks Rank of 1. FTDR delivered a trailing four-quarter earnings surprise of 279%, on average. The stock has gained 57.2% in the past year.
The Zacks Consensus Estimate for FTDR’s 2024 sales and EPS indicates an increase of 3% and 21.3%, respectively, from a year ago.
M/I Homes, Inc. (MHO - Free Report) currently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter earnings surprise of 4.8%, on average. Shares of MHO have risen 86.7% in the past year.
The consensus estimate for MHO’s 2024 sales and EPS implies an increase of 9.6% and 21.9%, respectively, from the prior-year levels.
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IBP to Benefit From Production Capacity Expansion in Bucyrus
Installed Building Products, Inc.’s (IBP - Free Report) subsidiary company, Advanced Fiber Technology (“AFT”), has increased its production capacity with the opening of the second line of its manufacturing plant in Bucyrus, OH.
This $5.5 million capacity expansion project comprises a $4.75 million investment in leading-edge technology, robotics and automation for the wastepaper conversion industry.
Post the announcement, IBP stock rallied 5.3% during the trading hours and 0.4% in the after-hours on Tuesday.
IBP’s Benefits From the Strategic Move
Backed by safe and efficient technology, the new manufacturing line expansion will enable AFT to produce high-performance and reliable Carbon-Smart Loose-Fill Cellulose Insulation and support Bucyrus’ economic growth. Furthermore, this move will also help enhance AFT’s ability to meet the growing commercial and residential customers’ demand for its products by strengthening its operations and ensuring sustainability.
Carbon-Smart Loose-Fill Cellulose Insulation is AFT’s environmentally-friendly product made from more than 85% recycled content, primarily recycled newsprint and cardboard.
Installed Building’s president and CEO, Jeff Edwards, shared optimistic views regarding this capacity expansion project. Through the expansion in Bucyrus, IBP’s ability to meet rising demand for its high-quality insulation products will be enhanced and the commitment to offer innovative solutions across the nation will be reinforced.
IBP’s Capital Allocation Strategies
Installed Building focuses on strategic capital allocation initiatives, which drive its profitability and growth prospects. The company allocates its capital per the available market and product enhancement opportunities while maintaining shareholder value. The effective capital mix ensures functional efficiencies and drives growth momentum even in an uncertain market.
The primary aspects of IBP’s capital allocation include inorganic growth initiatives and returns to shareholders, with fair attention toward organic growth strategies. The company’s capital allocation strategy has been faring well for the past few quarters due to the increased same-branch sales in both its single-family and multi-family residential new construction end markets, accompanied by revenue contributions from its recent acquisitions.
During the second quarter of 2024, the company acquired three companies, including North Carolina-based Trade Partners, Inc., Oklahoma-based Thrice Energy Solutions, LLC and Illinois-based residential and commercial installer of building products collectively known as Euroview. IBP also announced a 6% hike in its quarterly cash dividend of $0.35 per share, payable on Sep. 30, 2024, to shareholders on record as of Sep. 15.
Image Source: Zacks Investment Research
Shares of IBP have gained 30.3% in the year-to-date period, outperforming the Zacks Building Products - Miscellaneous industry’s 17.5% growth. Owing to the improving market trends, Installed Building aims to continue focusing on profitability and effective capital allocation to drive earnings growth and value for its shareholders.
IBP’s Zacks Rank & Key Picks
Installed Building currently carries a Zacks Rank #3 (Hold).
Here are some better-ranked stocks from the Construction sector.
Comfort Systems USA, Inc. (FIX - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
FIX delivered a trailing four-quarter earnings surprise of 20.6%, on average. The stock has surged 95.8% in the past year. The Zacks Consensus Estimate for FIX’s 2024 sales and earnings per share (EPS) indicates growth of 29.4% and 57.8%, respectively, from the prior-year levels.
Frontdoor, Inc. (FTDR - Free Report) presently sports a Zacks Rank of 1. FTDR delivered a trailing four-quarter earnings surprise of 279%, on average. The stock has gained 57.2% in the past year.
The Zacks Consensus Estimate for FTDR’s 2024 sales and EPS indicates an increase of 3% and 21.3%, respectively, from a year ago.
M/I Homes, Inc. (MHO - Free Report) currently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter earnings surprise of 4.8%, on average. Shares of MHO have risen 86.7% in the past year.
The consensus estimate for MHO’s 2024 sales and EPS implies an increase of 9.6% and 21.9%, respectively, from the prior-year levels.