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Installed Building Expands With Insulation Supplies Buyout

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Installed Building Products, Inc. (IBP - Free Report) acquired Wholesale Insulation Supply, Inc., known as Insulation Supplies.

Established in 1986 and headquartered in New Hope, MN, Insulation Supplies serves customers across Minnesota and the upper Midwest. The company generates over $22 million in annual revenues, specializing in the distribution of fiberglass, spray foam, and cellulose insulation, along with insulation accessories and machinery for both residential and commercial markets.

IBP’s Stock Performance

Shares of this industry-leading installer of insulation and complementary building products have gained 96.3% in the past year compared with the Zacks Building Products – Miscellaneous industry’s 50.6% growth.

Zacks Investment Research
Image Source: Zacks Investment Research

Acquisitions have been a preferred mode of expansion for IBP for years. The company’s persistent focus on prioritizing profitable growth through the acquisition of well-run installers of insulation and complementary building products bodes well. So far in 2024, IBP has acquired approximately $73 million of annual revenues. It intends to have a robust pipeline of opportunities across multiple geographies, products, and end markets.

IBP’s Solid 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.

IBP’s Zacks Rank and Key Picks

Installed Building currently carries a Zacks Rank #4 (Sell).

Here are some better-ranked stocks from the Zacks Construction sector:

Latham Group, Inc. (SWIM - Free Report) : Based in Latham, NY, the company stands as the leading designer, manufacturer and marketer of in-ground residential swimming pools and pool accessories. It presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

SWIM’s 2024 earnings per share (EPS) remained stable at 13 cents in the past 60 days. The estimated figure indicates 750% year-over-year growth.

Knife River Corporation (KNF - Free Report) : Headquartered in Bismarck, ND, this firm offers construction materials and contracting services throughout the United States, specializing in aggregates-based solutions. It presently flaunts a Zacks Rank #1.

KNF has seen an upward estimate revision to $3.72 from $3.57 for 2024 EPS over the past 60 days. The estimated figure indicates 15.2% year-over-year growth for 2024.

Frontdoor, Inc. (FTDR - Free Report) : Based in Memphis, TN, this company provides home warranties in the United States. It presently sports a Zacks Rank of 1.

FTDR has seen an upward estimate revision for 2024 EPS to $2.79 from $2.70 over the past 60 days. The estimated figure indicates 21.3% year-over-year growth.

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