Yahoo Finance Installed Building (IBP) Expands Presence With Two Acquisitions
Installed Building Products, Inc. IBP acquired Thrice Energy Solutions, LLC (Thrice) and Gutter Pro Enterprises, Inc (Gutter Pro). These acquisitions are expected to add approximately $14 million in annual revenues. IBP repurchased $46 million of common stock in June under its existing repurchase program.
Thrice Energy Solutions is based in Oklahoma City, OK, and operates in Oklahoma and Texas, focusing on residential and commercial fiberglass and spray foam insulation. This marks IBP's first branch in one of Oklahoma's largest new construction markets, enhancing its presence in a key area for residential and commercial projects.
The company completed the acquisition of Gutter Pro, a gutter installation company, on Jun 3. Located in Plymouth, Massachusetts, Gutter Pro serves residential and commercial customers in Massachusetts and Rhode Island. The acquisition strengthens IBP's position in the Northeast region.
The move signifies IBP's efforts to expand into new geographic areas and diversify its product offerings. Acquisitions are a crucial part of the company's growth strategy, with IBP maintaining a robust pipeline and actively pursuing opportunities across various regions, products and markets.
Focus on Acquisitions Bode Well
Shares of this Zacks Rank #3 (Hold) company have surged 69% in the past year compared with the Zacks Building Products – Miscellaneous industry’s 35.7% rise. The company is benefiting from enhancements in the single-family end market and sustained robust sales growth in the multi-family end market. Also, the emphasis on strategic acquisitions bodes well.
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The company is focused on acquisitions as its primary priority for capital allocation. Despite significant growth, IBP sees ample opportunity to expand its geographic footprint and diversify its product offerings across its national branch network.
During first-quarter 2024 and in April, IBP completed the acquisition of a Delaware-based installer specializing in fireplaces for new single-family construction projects, generating approximately $5 million in annual revenues. It acquired a North Carolina-based residential installer of insulation and complementary building products with annual revenues exceeding $6 million.
The company expects its multifamily backlog to sustain activity in core geographic markets, despite ongoing challenges in multifamily unit starts. The long-term prospects in residential and commercial end markets remain highly promising.
Key Picks
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The Zacks Consensus Estimate for MPTI’s 2024 sales and EPS indicates a rise of 8.8% and 58.6%, respectively, from prior-year levels.
Gates Industrial Corporation plc GTES presently carries a Zacks Rank #2. GTES has a trailing four-quarter earnings surprise of 14.9%, on average.
The Zacks Consensus Estimate for GTES’ 2024 sales indicates a 0.2% decline but EPS growth of 2.9% from the prior-year levels.
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Installed Building Products, Inc. (IBP) : Free Stock Analysis Report
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