IBP - Earnings call transcript Q2 2024 | Installed Building Products, Inc.

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Operator

Greetings, and welcome to Installed Building Products Fiscal 2024 Second Quarter Financial Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Darren Hicks, Vice President of Investor Relations. Please go ahead.

Darren Hicks

Good morning, and welcome to Installed Building Products' Second Quarter 2024 Earnings Conference Call. Earlier today, we issued a press release on our financial results for the second quarter, which can be found in the Investor Relations section of our website. On today's call, management's prepared remarks and answers to your questions may contain forward-looking statements within the meaning of the federal securities laws. based current are and statements forward-looking on expectations management's beliefs. These described uncertainties are to factors those SEC the filings, subject on in statements annual XX-K. risk and statements differ refer and cautionary to from including results These our actual risks, other factors to cause that materially report our today. Please Form could future forward-looking federal result of a We duty undertake as by or no required information obligation events, or statement securities as to laws. update any except new

adjusted and non-GAAP measures certain to refers management addition, call. this financial In on

morning's You GAAP section a Administrative Edwards, presentation, is joined EBITDA will Executive Sustainability investor fiscal reconciliation of website. This additional earnings the Chief can conference earlier of Chief and find our Miller, Relations Chief for Jeff such and equivalent release now which to Financial the are and over measures Officer; and Chairman reconciliation company's our for in nearest and by adjusted available Officer; EBITDA Niswonger, in on hosted the to our years Michael Jeff. Investor by and our call Officer. I turn Jason our call our

Jeffrey Edwards

Thanks, us morning everyone today's call. to Darren. on Good joining

will and the before As start and our turn with Michael, your the questions. call take we capital results, discuss who over some usual, then financial position in to detail highlights call will I more

our structures. useful it branch of the During branch statement metrics that the believe this single building and typical the in ongoing installed income that is second results operations, constructed noncore. We understanding evaluating a quarter, financial we of non-core commercial began into the our down process of is as excluding results operations winding from of products the newly

and aforementioned net on statement the exclude are dispositions. such, mentioned figures branch income this As thus call of all results

end relative by homeownership sales quarter current multi-family build XX the continuing last growth We new market, single-family are committed new and to backdrop. our Our the construction believe demand homes fundamental meeting end to in customers to good in our sales market. in our results months reflect single-family improvements second continue to macroeconomic

we backlog in in to to multi-family believe as the encouraged markets term, achieved The in We Longer busy from fourth it nearly year-over-year same-branch sales strongest keep market. the multi-family national expect despite in geographic quarter our during was by in X% single-family quarter. positive markets starts. our same-branch of quarter sales the core Single-family attractive. I'm end of in unit end a sales near the we increase increase branches term, production multi-family proportion our by sales growth remain was opportunities growing ongoing XXXX. supported industry relates since growth headwinds the the builders

align Our market knowledge, pricing relationships, to ability sales our value local key results. were single-family deep we our to our the and offer quarter second customer with customers

with our be sales Installation in the continued resilient installation service-oriented branch On Our same a to centralized, our operational segment X%. growth of benefits multi-family model. sales apparent basis, multi-family increased

reflects IBP's The multi-family some experience branches, commercial tends continues market commercial lag across construction headwinds commercial addition, as different In growth continues not submarkets light results segment dynamics commercial our customers. The continues heavy growth, up cycle to construction our light healthy end our single-family market. that experience to make activity. commercial the while market sell that our for markets sales have the be historically an services to installation in opportunity served installation in X to our there to

efficiently most complete and quarter. positive profitability continued Strong the Excluding quarter the commercial expertise to attractive business. jobs to local apply sales second strategic reflect our growth in for was operationally our market the during dispositions, financially modestly our to priority local

for as believe be allocation. we expanded for products of of us top network. presence growth national we and across Despite our still the our mix XX.X%. Acquisitions priority to to As the our to building a expand our over capital our we exists install our adjusted diversify years, quarter margin second all result, consider branch geographic EBITDA continue meaningful options opportunities

value a combined approximately of with growth a quarter are insulation acquired single-family single-family in During million. services. year multi-family and shareholders. revenue million, $XX We XXXX, Based and second on over building growth pace Bureau, we our with 'XX have building Illinois-based well by in expect we the on for set We we U.S. continue gutters million. To-date, acquisition other as of the of positioned and products diversified revenue Oklahoma-based installer a acquisitions: $XX for through installation of An and favorable of year-to-date year and approximately installer June healthy of our market growth. of to have revenue, capital annual earnings believe XXXX we annual strong allocation million profitability, and another single-family Massachusetts-based of to of an July, effective installer annual revenue diversified customers to following we with environment products and be and $XX serving for insulation over a current starts Carolina-based North completed believe of $X of operational starts installer and drive annual Census XXXX another XX%. performance financial focus the supports increased the

for you market. I'm in commitment meet the your changes to ability To consistently for hard insulation excited and construction in excellence thank scale well. success, product be to mandates and done new customer your the the team's navigate the on job always government installation Additionally, United help by drivers, product homes typical customers. continue business. and needs favorable end beyond future commitment, efficiency of a categories in strong existing what multiple energy everyone at our standards for the will IBP and other more single-family work, ahead IBP, remain our tough to stringent experienced national incentives the prospects planned demand U.S. any our I to We team, across through broader proud relationships, continued to we can the towards States business. believe we control, company markets intend and our leadership of diverse focus leveraging and

quarter So, turn with call like financial results. to review, this second over on provide I'd the more to Michael our to detail

Michael Miller

everyone. Jeff, and you, good Thank morning,

noted earlier, Jeff increased Consolidated quarter $XXX same quarter my comments of residential new net the last driven our to references markets. The second compared increase was statement in million revenue are for dispositions. year. $XXX As sales to by the period income X% for million in and existing net growth the during in all

during while quarter. increased Our single-family our second branch increased the X%, same sales X% branch same multifamily sales

our to during which the line second more from relative than experience the we to quarter, disclosure in improvement that parts several are Although forecast X.X% down and modestly increase second to job offset price/mix volumes, the last components year. behind quantify, continue top have price/mix volume and lighter moving quarter difficult X.X% a

the year. margin selling XX.X% as a Adjusted from in the measured to margin XX.X%, variable excluding was of the record expenses, performance the flat as period. Within quarter to second second EBITDA quarter XX.X% to and and to prior XX.X% of adjusted Our adjusted same second expense gross of business EBITDA year increased quarter to margin and the compared XXXX that result, quarter, second with for quarter for improved of related by million, $XXX.X the adjusted of higher net profit EBITDA administrative XXXX. in was margin period variable XX.X%. achieved EBITDA profit gross compensation first last administrative adjusted XXXX results an compensation, a and Adjusted higher of strong sales XX.X% due percent XX.X%

target We continue range adjusted the XX% incremental margins year to full to same-branch EBITDA in long-term XX%. of

share was diluted Adjusted improved XX.X% the second per EBITDA net income $X.XX XXXX adjusted per margin For incremental XX%. quarter, share. total same-branch to

in periods. an we any third Although effective expense the of provide ending million, expense Also, comprehensive XX, we based we change acquisitions rate we of quarter year year and to estimates continue expect XX% would tax expect on future We XXXX to approximately million. full December these amortization full acquisitions, do not XXXX. financial approximately XX% recent $XX close expect $XX guidance, with of for to XXXX

at let's more Now, position, look sheet and detail. balance liquidity requirements capital our in

from period. the increase working the cash The cash we compared June and primarily XXXX, was effective income operating to year-over-year net ended million capital. $XXX management in generated XX, with X in $XXX in higher months year prior associated For million flow flow operations of

X roughly last equivalents. total is to from position in prior amount cash months to excluding revenue, a Capital approximately leverage period, same we June $XXX had the which year-ago incurred net expand and $XX million debt leases million line the net XXXX, interest period. At relative target June year June for of primarily combined, to interest year. With ratio our of finance [ the which Our decreased higher below greater interest At was financial million we and cash $X.X income the shareholders. and X.XXx of continue XXXX equivalents we Xx. stated on EBITDA and to balances modest rates in to cash to leverage, return with well XX, X% acquisition XXXX, had quarter second a and the from of million June adjusted $X.X business our expenditures through capital liquidity XXXX, XX, cash due trailing were of XX, expense in working compared XX-month ] higher at ended approximately capital, strong period X.XXx to XX,

of under company Directors During cost million XXXX, on at of had common XX, of its June of which to of quarter, September the XXXX, total XXX,XXX record $X.XX shares stock second million. approved the the repurchase $XXX At XX, third program. IBP's dividend XXXX on per a stock payable $XX is XXXX. IBP available share, September Board repurchased its XX, stockholders quarter over

overview, now remarks. turn X% a this back represents dividend over for year quarter third Jeff will the the I period. With prior The call increase closing to

Jeffrey Edwards

again company. prepared work, Thanks, dedication our hard Michael. commitment remarks for conclude and like to to IBP thanking our their once employees by I'd

Our up success for the let's call you. Operator, is open possible over made years because questions. the of

Operator

Your Stephen ISI. first from with question [Operator Instructions] Kim Evercore comes

Stephen Kim

little missed speak then any for it's or Thanks any my is about think we this But additional sense out was, maybe potential that that's a then all going you your well, you third price and have projections, quarter but verticals a the I broadly, what internal sense is you curious questions. color. could one year? increase when And the pass-through get My if we your is, going. verticals? wanted if worth talk about fiberglass, usual, could think first as bit to how for the in maybe also, calling slowed to the guess

Michael Miller

Michael. is this Stephen,

So, on much right naturally our end business, with verticals, development. markets, of commercial weakest part light very of say is part relative cycles as in But single-family which the previous the business the all to the we of highlighted clearly, I that that in all would expectations. business, lines quarters, now performed first the line question had behind

would seen a we've into of as board, we say that that know go recover. business better would of part year, performed I to in a So, early business if that, revenue expected I we actually latter across that that. expect, single-family the start the margin gross want and the than the given But talk half from you to we expected don't perspective would and to perspective. performed year from this next strength as

Jeffrey Edwards

Yes. Stephen, this is Jeff.

and very In material, of still terms market. tightness pricing, tight a it is material

suppose. We environment expect an it's to as manufacturers where we the probably up. it's it of least able stay late can Obviously, need a speculate been through way whether that try the little in at which to to there's make I realize not, it's one one a third to have continue in price end in or and which I that to ground the up the make year, we to year.

speculate. maybe I won't So

Stephen Kim

organic fine. little the Okay. a because about assume you That's margin. the little bit little on to we whether the to questioning else that mandate, I around that EBITDA and a the We've not talked Wondering to that. bit maybe if see been I HUD guess, which just as weighing coming -- I'm also disappear, all getting with came address single-family, if mandate I incremental then, whether Energy to you comp. Mike, lower suite potential the on then, was due Republican thoughts out next a might in curious hear there case. could the around year. were that what anything was expecting. And know ruling a is, is word that Great. you And this. by us Chevron don't know than just undo incremental HUD guess, all what Code maybe not incentive maybe may there's call been FHFA respect we or or just mean follow the of the I but I the on. And this the maybe around Chevron -- for your questions Chevron. to

could about you if the talk So, HUD just curious mandate broadly.

Michael Miller

relative and that believe the I speculate but, process far timing continuing. heard in there push as change in back is far to it's the be happen for the would everything that as as some we might difficult very that We mean, us know, implementation, political as environment. we've a of to what

working, So, they this as know will and because have as cost are as ultimately, sort place, getting Energy 'XX the put the benefits we're we to in more the towards customers credit tax still all going that far of as of our working the builder, than and offset far Code. it

So, I to stay be to going will everyone continue think that, believes is available. still and

make for the for them it sense So economic homeowner obviously does well. and as

getting logic builders the think political building that outcome more Energy to 'XX will of So, we economics the push regardless and to forward, continue Code.

of driven and in dispositions. all our the strong couple a our line dollars, at the costs from if selling were They've if gross on -- the adjusted question, and quarter a really quarter that revenue terms perspective, both look quite has the past revenue. as all a administrative and very quarters. at adjusted quite We're -- excluding it selling past are X by on And variable I basically, that your for variable In you leverage, number EBITDA X right? been for you of compensation, G&A was was margin frankly. just look basis to been flat quarters relative percentage of should higher, compensation. And of that And adjusted basis that comments say margin net of margin higher

Jeffrey Edwards

probably, -- up the the there energy only as I'd things. that insulation in -- Code those It's known willy-nilly. moment, to terms saves kind the the kind the wasn't been environment it from and of backing the of well thing -- of is, costs for home politics because, combat insulation mean, good and up kind payback to of it's for is to on certainly ultimately. just it's as environment from some the it The add not relates And XXXX the most it I way a effective the tiers. in like effects that created of it's top energy against It's if of created

Operator

with Zelman Next Associates. question, Baumgarten Adam &

Adam Baumgarten

half expect still same-store just how about Maybe, on the in multi-family, It's do positive. this back year. the the growth multi-family think bit, sales half First, point? kind of of we a you but decelerated positive in at back

Michael Miller

are provide guidance. But as would elevated of I at Well, the we a a multi-family you level. couple don't on say know, things still side. The highly backlogs

things under consistent to the of on of look with we if are that long-term is one to currently basis, at So of months, running a around single-family look sort X it's you which pre-COVID. at relative that X somewhere trends, construction units kind And starts.

aware, market market. On little that is cycle in Currently, the quite be running multi-family, to continues construction backlog normal normalized would have XX of it's the improved bit maybe like say starts. elevated. as we the call XX think would XX or months Normal in to more probably single-family months XX to on everybody starts. So, times construction of under completely be units a single-family, around I above in that

market ability construction under to headwind industry So, probably starts good multi-family that multi-family. construction to that normalization come revenue from given creates But in us. We construction continuing that to and the a need relative X And feel our think to would say, going in market market improve we and to a have to the or be share versus continue cross-sell of seeing perspective impact have But than products units of a happen clearly, I we is still had about gain just to come our of able under an means we'll going the growth. we the and -- that the expected, to XX% sooner to gains readjustment the XX% units we other say on that significant our sales. market share the multi-family focus is period significant construction gain stabilization that in units for to meaning that overall months current then down to for that X from on will under share growth level. normalize, changed is sooner maybe than to what's may also expected, ago.

will then construction. XXX,XXX answering that because is for way full I which -- to in stable a and the but under for said operating a So, good that we in multi-family we that there comes normalized XXX,XXX more long-winded if of provide completions question, units multi-family essence your environment that guidance. year XX is between XX But creates to construction get months, not think, a you don't do chance

Adam Baumgarten

Okay. it. Got

that's about more then what additional color disposition, or on maybe think helpful. on non-core if the that of product And any Now, dispositions? we your opportunities just then rest And the footprint, just for a was. line little other plans

Michael Miller

Absolutely not.

it's All our wish in of really it in locations of one-off our done. are good This branches expectations now. and our that multi-family us hadn't the other or into noncore deal even exceeding And, we a expectations. the a product. install we was is It is, hindsight, it commercial behind any to and don't obviously, We news our vertical. was performing

Operator

question, Michael with Rehaut Next JPMorgan.

Michael Rehaut

margins. on the first gross hit to Wanted

above about, minus your You're now, to X XX% outlook long-term last guess XX%, which X, -- quarters plus I or XX% that basically, XX%. I long-term goal, where the is talking or longer-term solidly think

several to that kind current of levels basically near down of not again, these necessarily saying this ago, that. continued -- the a through you the And X around maintained little I But around forward there's next seems a of what that term around perhaps this it increasingly not any to level And away near still least. I quarter year. kind think was in quarters, strength So thought alluded at maybe giving perhaps in this this eat I likely at can talked but medium this maybe from consistently levels, metric, comfortable like might you're be or exceeding wondering mix this about drivers strength no do thoughts push negative push metric but would can in necessarily level end materially know guidance, feel lower that persist. the to you starting if your term? or metric. XX% it that is the you've this

Michael Miller

would that I XX.X%. say that is the net Yes, quarter, question. in dispositions, thanks What around gross was of margin gross margin for adjusted

call running you're in right, quarters, XX%. XX%. And just let's previous it the So we've been around

certainly above go to we it the So for should XX% near expect where is the to don't term, to be think, and the as really say XX% to I half back year, XX%. reasonable. more in the the to opposed range the it XX% of But for XX%,

helping We would as we've have the in we've on quarters there. strong multiple production impact of jobs "mix had the growth which improvement quarter. quarter efficiency with very the in We builders, builders as margin I the growth for say production builder it of headwinds" job had completing talked excellent an the the improving doing has been relates production gross business. that in been the about

the a the starts not been the what in above to good is to medium vast comparison the term sales year, going that with out. But about, we're is XX% actually to going in XX% nothing near we've that were but in and which consistent production Our the coming the from certainly the medium there reasonable talking to builders approximately builders quarter range term guys assume X% that have had near production but growth a be regional and local and up with probably that local what builders, staying to about builders the likely, XX% for of certainly and that was regional to production production for with XX% is think builders, to play it's the their would reasonable. majority I seeing in and is

Michael Rehaut

around helpful. the That's maybe second very I M&A Great. guess backdrop. that. Great. question, just Appreciate

characterize kind doing annualized You've How months front in pipeline versus the by a target million would $XX about million XX kind bit. year, X in of highlighted maybe year-to-date. the or you and of far you opportunity set ago. you the revenue of so today $XXX little missed Last

is year. what change you staying say you're I outlook think million what increasing, Any of if kind would kind thinking that? the maybe I this year same? right, outlook for recall or of reiterated of the how And exceeding of odds the M&A might of you the are you But do about or in decreasing, kind this year? $XXX pipeline next

Jeffrey Edwards

Yes.

last $XXX say of of versus really, speaking, least saying would ago, really I X we're we're What -- the all and for really or blew a lumpy. Jeff. had. pipelines this But historically part that also robust pretty deal, of best months it's is ended time. up certainly year guilty would they're But this guilty we XX at this being ever the saying million. too, year $XX-plus-million it's But know larger I So, is -- first exceeding one have is good last that a at the up the of

And I counting rolling hit -- pipeline it and already still again, LOI. forward, guess in all numbers. that really period to if will really. days, grow up as on at of even the just Going opposed to are time the great are kind along that probably of look you'll depends the of about calendar it, deals feel signed you the timing, prospects It we

Operator

Mike Dahl RBC question, Markets. with Next Capital

Michael Dahl

in you sense I the moving hard know the and of on price the but of moving on a too the true there's ballpark kind it's price a give to lot mix? mix versus us quarter. be pieces, can composition of of Just pieces specific,

Michael Miller

way the growth We our we the from than did in that of same say in higher I mix revenue, more got And price would those is than single-family. acceleration that factoring given branch in price when single-family determined, being revenue X rate got because branch the just definitely higher multi-family same price/mix the quarter. we components,

Michael Dahl

like disposed then down. you issues negative of EBITDA negative big I kind you're net then, on also the maybe adding it back. that adjusted seems there in branch. process EBITDA, of called think said were And revenue, And pretty of winding Then you. stand-alone, it the that, back adjusted helpful. Okay, I negative just behind mean terms some a as it's

like a are adjustment the impacts more there So be of company still on to then to total a additional kind into lingering helpful. the why Just could specifically because that pressured, results little color maybe were second a just secondly, a results. And going on basis, big you provide would so the -- here? any half go-forward be was

Michael Miller

Yes, the never we in is up profitable. of a me, -- clean of quarter frankly, expect fully because issues adjustments wound going forward. will we very and down that were results location that important the branch of and the, again, of going operations a completely anything the but large impact all of the to our quite the we so that impact the year, distinction beginning take next by non-core an excuse were that be that been have immaterial of the that made forward, care it this material is on there, Part else will kind reason has, do This decisions there. dispose of out immaterial,

Jeffrey Edwards

I'm mean, line. it's branch. hesitant even I product it to really, a

Michael Miller

Yes, former so... branch,

Jeffrey Edwards

located it's think don't really product than we really Sure, in Yes. more branch, under I that, which line it's participate. but

Michael Miller

done time we've is has frankly, quite over XXX this the And happened. This acquisitions. Exactly. first

I pretty darn record. think that's track a good

Michael Dahl

Yes.

gross and that a margin SG&A part us flow otherwise of it's higher EBITDA that than higher? that was reason if would for, Any was breakdown? that backed the the give sense that. the did have quick -- of SG&A that if report a gross that the imply adjusted your SG&A, through of of like cost expected, and not being out sense way follow-up, more could since you margin And as but your you does been Just -- reason

Michael Miller

table just mean, But enough XX.X%. said dispositions, we as to in I in concise I would adjusted was to quarter, -- the the wanted our excluding margin of question, been put in previous it adjustment. the the show make in gross have to the tables and we answer try It that terms

the lines negatively statement. it -- impacted income it all basically of So impacted,

Michael Dahl

missed Okay, got I it. had that comment.

Operator

Garner question, Benchmark Reuben with Next Company.

Reuben Garner

the to commercial right think sorry this, basis? just EBITDA that the added it loss but out So, stripped it revenue $X clarification to quarterly quarter on the a way in run a go-forward on Is of basis, the much million on losing that harp being profit and a take rate business meaning to that's on about second Was money out? front.

Michael Miller

the in much yes. commercial. It second lost quarter, that it And is money

branch quarter So, revenue, and commercial negative. was the disposition, basically excluding in the our same flat not

Reuben Garner

And Okay. performance typically of environment completions guys then, X you to volume the compare for your markets. the end kind

quite that you would You there lead you're differences Is national There's that call geographical not MSAs some guys that are not anything in. broadly? completions your may out the yet. and environment to between performance

Michael Miller

impactful in glad or stress I at time. period asked quarter looking as over I'm not any that to had it is you longer it's to that No, and tried a important though, because as this, looking we've useful completions same is question, think at our one of branch revenue compared

between going branch with dynamics say the always But a think, think so sales just of of we say, we about had -- for year, a normalizes under there the of our multi-family at So, more I sort a about quarter this sales at disconnect mid-single-digit mid-single points, delta think several the sort growth. growth level, X%, very going likely construction, for and sales market months we've about call we look which year, under being you we've basis construction I that -- be, given were to of consistent it some grew on quarters, maybe So, late to of multi-family digit were next above relative the the what branch starts, in than as single-family that growth same know, period if would first terms is is side multi-family completions, about happen of completions you the completions. I talking earlier of up units what most to on reasonable more until past our number that; talked right right? the one, now several will over multi-family X.X%, same year-to-date first stellar branch in about And which X the is units of multi-family time, same XXX multi-family year. X%. or

Reuben Garner

a if just there, remind go-forward single-family in you fades. could as I a just Can basis how multi-family quick guys. sneak that us follow-up and impact to recovers And The plays out? mix multi-family on

Michael Miller

It job a job a be It's hundredth or of to weaker. makes because headwind single-family the a of mix the even XXth what mix a multi-family a is. component can

Operator

Seaport Zener Research Next with question, Partners. Ken

Kenneth Zener

here. Just a questions couple of

growth gross that Can of adjusted. why from the strength customers, be is that out beginning somewhat you it a is playing record that to to in margin your counterintuitive. exposure the drag, that you way? Given given not to guess, talk large Can as the certain your, the seems of talk I to builders pandemic, and happened why

Michael Miller

team reflected field customers. value to with of doing and and managing production be in honest an our do that getting continuing that. the aligning And, then our making Our to sure job they're incredible is compensation, for rewarded gets of with you, services they're variable

Kenneth Zener

you in talked at you period that called yes, not structure, pricing to ] wanting builders, -- seems But -- customers out, time. given the like, [ about to back experience. that is leverage your you had like after increased that about, Jeff, talked leverage. the gross you margin, large when you well, exposure It Going up price, that I mess SG&A believe is get

actual [Indiscernible] because does bids this seem be of really choose to don't in that? of i.e., you they public variety that that given gross suggest quarter, space. wide are a because to you in shift, rather a your distinct pricing the it guys service, However, Does that If the have stronger margins there's sense. still that sustainable margins especially dominant installation really of growth is from, X discipline and

Michael Miller

just Well, has of are overall team relatively lot cost. a can are percentage a do is gross field, and and start are it's level, Jeff But they differentiate is and that puts the our we whether the that largest and growth job would this for public which mean, And efficient big it that or there think I And I is takes really margin. have for X there revenue. have local customers, But with is environment. done service. as of local us. But trying at to be beneficial into finish. contractors would regional a while ourselves not Michael. builders, to old in I'll I our price competitive small And also of builders I have public our and possible we strong work. bidding is extremely the also as that align mean, great on all -- builder I there an to they're still choices, say, and say

Kenneth Zener

right. All

Jeffrey Edwards

really bit a for I've I'm think I know but certain say. that It's that mean, answer understand that says mean, -- get their question. in than give still there I to rewarded the I we and our preach fuzzy, I the that performing. I that But going little bigger and are even more think, do, believe would others I been builders rooms people to a

that of So are does making sure. price-only they insulated more situation about keep For inspections it the in get highly much volume. mean our markets large there's sometimes? to them as that many need larger in and some when jobs past they concerned competitive more sure we get builders But just

Kenneth Zener

Understood.

than positive Michael, about was perhaps of mix little price say, that you than that negative? -- that got to said that's and differently on it that you could say negative component talked is your variable? positive a one was my peers. that But be You comment of and you that Could price -- understood reported just calculation to is mix given more

Michael Miller

comment -- look at and we mix, more positive, mix more were that solid. price really both were they than price Both was And was if but there right. my

Operator

question, Next with Jefferies. Ng Phil

Philip Ng

Your Certainly, housing the staying sounds last more a with bit few upbeat. months been in little still choppier have pretty elevated. a forward rates starts on going commentary

talking about rate cuts. potential certainly, Now, we're

from just I'm activity hearing customers? are what curious, managing any you seeing Are their all? So, quoting any you your in Are at they differently? slowdown business

Michael Miller

up the We're still think I rate orders in that like X%. clear coming growth publics is I busy. X%, are I starts it's far, reported The so think mean, down. very that their have

but the were earlier still growth, So, in seeing the that of not year. growth kind we

stabilized based relative growth earlier, a Clearly, for a perform. us industry. And not early that But for about kind significant well healthy to single-family other feel a to with of are for to operating very us honestly, think environment headwinds is with a we products. talked multi-year on of if on environment industry. really ability if So, the about to good insulation, gaining we're level, starts, back a current market, also more very say our we we what path as market 'XX, and as there get opposed focus to I creates And doing for but is we do mean, mid-single-digit share, again, the side, extremely in we multi-family. the even 'XX stable half that just us the and the allows on multi-family continue

Jeffrey Edwards

work market, going just, multi-family itself and everywhere was great different of are we prepared through from mean a work the too. on to because really bid of I that we're to hopefully in general yet, those we're the a can branches, quoting bidding we're make little built from that that deliver than as pipeline our I our a perspective, of said into kind multi-family one not operations geographic and both and we continue, just we machine penetrated projects remarks, has for get of doing And managing capable that and we comment, continues

Philip Ng

in don't growth se, then, Michael, appreciate per year, And perhaps earlier Got volume but I mid-single-digit business conversations your you. you for think organically. the guide

about that full do inflect? completion path the for stuff. your of Appreciating that all good way to lag it and think you to framework I there's times in Is kind comments you see? and think seems great and kind a What volumes a year? were, still achievable. expecting cycle plausible Are of starts mid-single-digit

Michael Miller

digits. at, the just mid-single single we up say, If were volumes so look Yes. single-family family, quarter in

Philip Ng

the framework, your the terms that given drop But way that of the in about some to recently. think demand overall, Okay. seen year? terms just a in we've of of good broader still moderation, is Or maybe some

Michael Miller

some from business continue will mean, will we we're where and half have headwinds really, to volume footing light that this on much 'XX. to the particularly -- to through be, better And again expect commercial of have perspective, business. year, headwinds, that I a find should going in will the Yes. commercial continue be back in a the light

Philip Ng

is remind heavy, commercial Okay. Can the business us light like versus of splits? your much you how

Michael Miller

Sure.

is So, X% roughly and revenue heavy XX% commercial light of total is commercial.

Operator

Goldman with question, Next Sachs. Maklari Susan

Susan Maklari

talk My back first about increasingly bit coming in the they quarter. a about you've of is in you products. Can the this on half question And the a on performed how we ancillary from the that's that about several talked through how as we'll year. have And Are perspective about we think still next quarters? upcoming should margin the think implications track with just that? that we something

Michael Miller

Yes.

that they other So, the products becoming sales not the probably fairly XX XX near time makes term, probably in growth just was see, why would it's considerably would And that gross will, I will products higher grow were in progress as insulation, medium some band consistent, We to make from in that growth we reasons a probably business the tad margin you products. They're I other of other remain the multi-family, with the the -- they than to saying in term, the continuing our the continuing that earlier, insulation, one that in as in to new consistent we we're piece would later story, think was the were to to although we're margins say. residential would cycle expect if there. residential relates lower the in our make progress say, improving insulation. the those single-family, it forward gross see products relative near to of of of here, would sense. still though, insulation business the piece but than

Susan Maklari

quarter. you is, follow-up buy my some then stock And did this Okay.

about that? perhaps I Can over the the thinking we be bit should how this you've biggest -- a about further repurchase in was just do buybacks had the And the think share XXXX. future? talk since you decision to

Michael Miller

repurchase and believe opportunities, we will to will, continue that Yes, to us you lot that very company, it and a free cash we mature continue strong do generate public of as or a a to as We we gives from we it. flow time, that continue to continue shares if above a can capital $XXX million of support an allocation pipeline accelerated platform currently confident same M&A very and consistent deals more and we feel even target, basis. on the perspective at our

Susan Maklari

luck Okay, and good with everything.

Operator

Hughes Truist question, Securities. Next Keith with

Keith Hughes

Just of. that getting close any some branch appreciable be move you details to going asset this anticipate this out there it? Are to from on sales would you're

Michael Miller

it half that results the an forward. fully immaterial have nothing of significant. the year, will for impact We No, really until -- fact it's back -- in be disposed going it'll on

Keith Hughes

press something in EBITDA, unfavorable second that half? is release. of include would in there care and contract there is the the that all language settlement impact the assume quarter in of about the I Was And no an taken

Michael Miller

Correct. And so EBITDA the quarterly that's why contribution the negative. was reason

Keith Hughes

tell And out? what it's but Okay. us this non-core, know can you're getting what product is -- you line specifically I is, what?

Michael Miller

It's non-core.

Keith Hughes

me see you in much how let And, dividend, discussion I thinking of you you thought Have -- that would guess, did internally the are know quarter. other excess in question. on share your way? about there's Okay. the is if any repurchase. about, who some the go I it

Michael Miller

X to the about roughly then, went to And over went from allocation and you million $XXX XX% a million the or acquisitions, $XXX $XXX went mean, look capital if years, XX% perspective, Yes. say, share million past, I repurchases. to and almost almost dividend. or

#X said will So, consistent we've then we as I dividend. And to [ in repurchases, on to go-forward regular the then share think, our continue be answer said, we M&A, it's be priority Sue's that question, as will share basis. in belief and repurchases the a more ]

Operator

floor I Jeff would like for to remarks. closing turn over to Edwards the

Jeffrey Edwards

Thank our quarterly you for to next call. forward your look questions, you. Thank and I

Operator

teleconference. concludes This today's

your and time disconnect thank you participation. at lines for this your may You

Installed Building Products (IBP) 1 Aug 242024 Q2 Earnings call transcript