IBP Q2 2026 - Preliminary Earnings Alert
Event: Quartr Q2 2026 event Retrieved: 2026-08-06T11:40:00Z Comparison mode: maximal Scorecard contract: v1 Source status: release=available | financials=earnings release only | transcript=not yet available (call 2026-08-06 14:00Z)
Consensus scorecard
| Metric / basis | Quartr actual | API Ninjas consensus | Beat/Miss | Beat/Miss % |
|---|---|---|---|---|
| Revenue / consolidated net revenue | $777.800m | $743.333m | Beat +$34.467m | +4.6% |
| EPS / adjusted diluted | $2.91 | $2.55 | Beat +$0.36 | +14.1% |
- Consensus scorecard, bulleted equivalent:
- Revenue / consolidated net revenue: Quartr actual $777.800m against API Ninjas consensus $743.333m - Beat +$34.467m, +4.6%.
- EPS / adjusted diluted: Quartr actual $2.91 against API Ninjas consensus $2.55 - Beat +$0.36, +14.1%.
Reported results and guidance
| Metric ($m unless noted) | Q2 2026 | Q2 2025 | Change |
|---|---|---|---|
| Net revenue | $777.8 | $760.3 | +2.3% |
| Cost of sales | $518.9 | $500.4 | +3.7% |
| Gross profit | $258.9 | $259.9 | −0.4% |
| Gross profit margin | 33.3% | 34.2% | −90 bps |
| Selling expense | $36.6 | $35.7 | +2.5% |
| Administrative expense | $117.2 | $113.1 | +3.6% |
| Amortization | $10.5 | $10.1 | +4.0% |
| Operating income | $94.6 | $101.0 | −6.3% |
| Operating margin | 12.2% | 13.3% | −112 bps |
| Interest expense, net | $10.5 | $8.3 | +26.5% |
| Other (income) | $(1.0) | $(0.7) | +42.9% |
| Income before income taxes | $85.1 | $93.4 | −8.9% |
| Income tax provision | $20.2 | $24.4 | −17.2% |
| Effective tax rate | 23.7% | 26.1% | −239 bps |
| Net income | $64.9 | $69.0 | −5.9% |
| Net profit margin | 8.3% | 9.1% | −73 bps |
| Net change on cash flow hedges, net of tax | $1.0 | $(4.1) | to a gain |
| Comprehensive income | $65.9 | $64.9 | +1.5% |
| EPS, basic | $2.44 | $2.53 | −3.6% |
| EPS, diluted | $2.43 | $2.52 | −3.6% |
| Weighted average shares, basic | 26,634,628 | 27,323,118 | −2.5% |
| Weighted average shares, diluted | 26,711,418 | 27,403,669 | −2.5% |
| Cash dividends declared per share | $0.39 | $0.37 | +5.4% |
- Q2 income statement, bulleted equivalent (Q2 2026 vs Q2 2025): net revenue $777.8m vs $760.3m (+2.3%); cost of sales $518.9m vs $500.4m (+3.7%); gross profit $258.9m vs $259.9m (−0.4%) at a 33.3% versus 34.2% margin; selling expense $36.6m vs $35.7m; administrative expense $117.2m vs $113.1m; amortization $10.5m vs $10.1m; operating income $94.6m vs $101.0m (−6.3%); interest expense, net $10.5m vs $8.3m (+26.5%); other income $(1.0)m vs $(0.7)m; income before income taxes $85.1m vs $93.4m (−8.9%); tax provision $20.2m vs $24.4m at a 23.7% versus 26.1% effective rate; net income $64.9m vs $69.0m (−5.9%); comprehensive income $65.9m vs $64.9m after a $1.0m hedge gain versus a $(4.1)m hedge loss; basic EPS $2.44 vs $2.53 and diluted EPS $2.43 vs $2.52; basic shares 26,634,628 vs 27,323,118 and diluted shares 26,711,418 vs 27,403,669; dividends declared per share $0.39 vs $0.37.
| Six-month item ($m unless noted) | 6M 2026 | 6M 2025 | Change |
|---|---|---|---|
| Net revenue | $1,438.3 | $1,445.1 | −0.5% |
| Cost of sales | $967.1 | $961.5 | +0.6% |
| Gross profit | $471.2 | $483.6 | −2.6% |
| Gross profit margin | 32.8% | 33.5% | −70 bps |
| Selling expense | $70.6 | $71.1 | −0.7% |
| Administrative expense | $227.4 | $221.5 | +2.7% |
| Amortization | $21.0 | $20.2 | +4.0% |
| Operating income | $152.2 | $170.8 | −10.9% |
| Interest expense, net | $20.8 | $16.6 | +25.3% |
| Other (income) | $(0.8) | $(0.5) | +60.0% |
| Income before income taxes | $132.2 | $154.7 | −14.5% |
| Income tax provision | $32.5 | $40.3 | −19.4% |
| Net income | $99.7 | $114.4 | −12.8% |
| Comprehensive income | $101.0 | $105.0 | −3.8% |
| EPS, basic | $3.73 | $4.17 | −10.6% |
| EPS, diluted | $3.71 | $4.15 | −10.6% |
| Cash dividends declared per share | $2.58 | $2.44 | +5.7% |
- Six-month results, bulleted equivalent (6M 2026 vs 6M 2025): net revenue $1,438.3m vs $1,445.1m (−0.5%); cost of sales $967.1m vs $961.5m; gross profit $471.2m vs $483.6m (−2.6%) at 32.8% versus 33.5%; selling expense $70.6m vs $71.1m; administrative expense $227.4m vs $221.5m; amortization $21.0m vs $20.2m; operating income $152.2m vs $170.8m (−10.9%); interest expense, net $20.8m vs $16.6m (+25.3%); other income $(0.8)m vs $(0.5)m; income before income taxes $132.2m vs $154.7m (−14.5%); tax provision $32.5m vs $40.3m; net income $99.7m vs $114.4m (−12.8%); comprehensive income $101.0m vs $105.0m; basic EPS $3.73 vs $4.17 and diluted EPS $3.71 vs $4.15; dividends declared per share $2.58 vs $2.44; six-month weighted average basic shares 26,716,160 vs 27,420,268 and diluted shares 26,837,923 vs 27,549,791.
| Non-GAAP measure ($m unless noted) | Q2 2026 | Q2 2025 | Change | 6M 2026 | 6M 2025 | Change |
|---|---|---|---|---|---|---|
| Adjusted gross profit | $259.2 | $260.2 | −0.4% | $471.8 | $484.2 | −2.6% |
| Adjusted gross profit margin | 33.3% | 34.2% | −90 bps | 32.8% | 33.5% | −70 bps |
| Selling and administrative expense, as reported | $153.8 | $148.8 | +3.4% | $298.0 | $292.6 | +1.8% |
| Adjusted selling and administrative expense | $147.2 | $143.3 | +2.7% | $285.0 | $281.0 | +1.4% |
| S&A as a percentage of net revenue | 19.8% | 19.6% | +20 bps | 20.7% | 20.2% | +50 bps |
| Adjusted S&A as a percentage of net revenue | 18.9% | 18.8% | +10 bps | 19.8% | 19.4% | +40 bps |
| EBITDA | $124.0 | $128.2 | −3.3% | $209.4 | $224.2 | −6.6% |
| EBITDA margin | 15.9% | 16.9% | −100 bps | 14.6% | 15.5% | −90 bps |
| Adjusted EBITDA | $130.9 | $134.0 | −2.3% | $223.0 | $236.4 | −5.7% |
| Adjusted EBITDA margin | 16.9% | 17.6% | −70 bps | 15.5% | 16.4% | −90 bps |
| Adjusted net income | $77.8 | $80.8 | −3.7% | $126.2 | $138.4 | −8.8% |
| Adjusted net profit margin | 10.0% | 10.6% | −62 bps | 8.8% | 9.6% | −80 bps |
| Adjusted diluted EPS | $2.91 | $2.95 | −1.4% | $4.70 | $5.02 | −6.4% |
- Non-GAAP measures, bulleted equivalent: adjusted gross profit $259.2m vs $260.2m in the quarter and $471.8m vs $484.2m over six months, at 33.3% versus 34.2% and 32.8% versus 33.5% margins; selling and administrative expense as reported $153.8m vs $148.8m in the quarter and $298.0m vs $292.6m over six months; adjusted selling and administrative expense $147.2m vs $143.3m and $285.0m vs $281.0m; S&A at 19.8% versus 19.6% of net revenue in the quarter and 20.7% versus 20.2% over six months, adjusted 18.9% versus 18.8% and 19.8% versus 19.4%; EBITDA $124.0m vs $128.2m and $209.4m vs $224.2m at 15.9% versus 16.9% and 14.6% versus 15.5% margins; adjusted EBITDA $130.9m vs $134.0m and $223.0m vs $236.4m at 16.9% versus 17.6% and 15.5% versus 16.4% margins; adjusted net income $77.8m vs $80.8m and $126.2m vs $138.4m; adjusted diluted EPS $2.91 vs $2.95 and $4.70 vs $5.02.
| Adjusted net income reconciliation ($m unless noted) | Q2 2026 | Q2 2025 | 6M 2026 | 6M 2025 |
|---|---|---|---|---|
| Net income, as reported | $64.9 | $69.0 | $99.7 | $114.4 |
| Share-based compensation expense | $6.2 | $5.3 | $11.9 | $11.2 |
| Acquisition related expenses | $0.7 | $0.5 | $1.7 | $1.0 |
| Amortization expense | $10.5 | $10.1 | $21.0 | $20.2 |
| Loan refinancing expenses | - | - | $1.2 | - |
| Tax impact of adjusted items at a normalized rate | $(4.5) | $(4.1) | $(9.3) | $(8.4) |
| Adjusted net income | $77.8 | $80.8 | $126.2 | $138.4 |
| Diluted net income per share, as reported | $2.43 | $2.52 | $3.71 | $4.15 |
| Per-share adjustments, net of tax | $0.48 | $0.43 | $0.99 | $0.87 |
| Diluted adjusted net income per share | $2.91 | $2.95 | $4.70 | $5.02 |
- Adjusted net income reconciliation, bulleted equivalent: net income $64.9m, $69.0m, $99.7m and $114.4m; plus share-based compensation $6.2m, $5.3m, $11.9m and $11.2m; plus acquisition related expenses $0.7m, $0.5m, $1.7m and $1.0m; plus amortization expense $10.5m, $10.1m, $21.0m and $20.2m; plus $1.2m of loan refinancing expenses in 6M 2026 only; less the tax impact of the adjusted items at a normalized 26.0% rate of $(4.5)m, $(4.1)m, $(9.3)m and $(8.4)m; equals adjusted net income $77.8m, $80.8m, $126.2m and $138.4m. Per share, reported diluted EPS of $2.43, $2.52, $3.71 and $4.15 plus adjustments of $0.48, $0.43, $0.99 and $0.87 equals adjusted diluted EPS of $2.91, $2.95, $4.70 and $5.02. The amortization addback is all non-cash amortization resulting from business combinations; the loan refinancing expense is a non-cash write-off of capitalized loan expense.
| EBITDA reconciliation ($m) | Q2 2026 | Q2 2025 | 6M 2026 | 6M 2025 |
|---|---|---|---|---|
| Net income, as reported | $64.9 | $69.0 | $99.7 | $114.4 |
| Interest expense | $10.5 | $8.3 | $20.8 | $16.6 |
| Provision for income tax | $20.2 | $24.4 | $32.5 | $40.3 |
| Depreciation and amortization | $28.4 | $26.5 | $56.4 | $52.9 |
| EBITDA | $124.0 | $128.2 | $209.4 | $224.2 |
| Acquisition related expenses | $0.7 | $0.5 | $1.7 | $1.0 |
| Share-based compensation expense | $6.2 | $5.3 | $11.9 | $11.2 |
| Adjusted EBITDA | $130.9 | $134.0 | $223.0 | $236.4 |
- EBITDA reconciliation, bulleted equivalent: net income $64.9m, $69.0m, $99.7m and $114.4m; plus interest expense $10.5m, $8.3m, $20.8m and $16.6m; plus income tax provision $20.2m, $24.4m, $32.5m and $40.3m; plus depreciation and amortization $28.4m, $26.5m, $56.4m and $52.9m; equals EBITDA $124.0m, $128.2m, $209.4m and $224.2m; plus acquisition related expenses $0.7m, $0.5m, $1.7m and $1.0m and share-based compensation $6.2m, $5.3m, $11.9m and $11.2m; equals adjusted EBITDA $130.9m, $134.0m, $223.0m and $236.4m.
| Segment revenue and gross profit ($m) | Q2 2026 | Q2 2025 | Change | 6M 2026 | 6M 2025 | Change |
|---|---|---|---|---|---|---|
| Installation segment revenue | $710.7 | $715.6 | −0.7% | $1,320.5 | $1,362.8 | −3.1% |
| Installation segment cost of sales | $451.2 | $450.1 | +0.2% | $844.7 | $867.8 | −2.7% |
| Installation segment gross profit | $259.5 | $265.5 | −2.3% | $475.8 | $495.0 | −3.9% |
| Installation segment gross profit percentage | 36.5% | 37.1% | −60 bps | 36.0% | 36.3% | −30 bps |
| Other revenue (before eliminations) | $90.2 | $56.7 | +59.1% | $158.6 | $100.6 | +57.7% |
| Other gross profit (before eliminations) | $22.3 | $13.0 | +71.5% | $40.0 | $24.3 | +64.6% |
| Other gross profit percentage | 24.7% | 23.0% | +170 bps | 25.2% | 24.2% | +100 bps |
| Elimination of inter-segment revenue | $(23.1) | $(12.0) | +92.5% | $(40.8) | $(18.3) | +123.0% |
| Elimination of inter-segment gross profit | $(6.4) | $(3.4) | +88.2% | $(11.8) | $(5.3) | +122.6% |
| Depreciation and amortization in cost of sales | $16.5 | $15.2 | +8.6% | $32.8 | $30.4 | +7.9% |
| Total consolidated net revenue | $777.8 | $760.3 | +2.3% | $1,438.3 | $1,445.1 | −0.5% |
| Total consolidated gross profit | $258.9 | $259.9 | −0.4% | $471.2 | $483.6 | −2.6% |
| Total consolidated gross profit percentage | 33.3% | 34.2% | −90 bps | 32.8% | 33.5% | −70 bps |
- Segment detail, bulleted equivalent: Installation revenue $710.7m vs $715.6m in the quarter (−0.7%) and $1,320.5m vs $1,362.8m over six months (−3.1%); Installation cost of sales $451.2m vs $450.1m and $844.7m vs $867.8m; Installation gross profit $259.5m vs $265.5m (−2.3%) and $475.8m vs $495.0m (−3.9%) at 36.5% versus 37.1% and 36.0% versus 36.3% margins; Other revenue before eliminations $90.2m vs $56.7m and $158.6m vs $100.6m; Other gross profit before eliminations $22.3m vs $13.0m and $40.0m vs $24.3m at 24.7% versus 23.0% and 25.2% versus 24.2% margins; inter-segment revenue eliminations $(23.1)m vs $(12.0)m and $(40.8)m vs $(18.3)m; inter-segment gross profit eliminations $(6.4)m vs $(3.4)m and $(11.8)m vs $(5.3)m; depreciation and amortization within cost of sales $16.5m vs $15.2m and $32.8m vs $30.4m; total consolidated net revenue $777.8m vs $760.3m and $1,438.3m vs $1,445.1m; total consolidated gross profit $258.9m vs $259.9m and $471.2m vs $483.6m. Other comprises the Distribution and Manufacturing operating segments, each below the reportable-segment threshold.
| Revenue by end market ($m) | Q2 2026 | % of total | Q2 2025 | % of total | Change |
|---|---|---|---|---|---|
| Installation - residential new construction | $522.6 | 67% | $548.8 | 72% | −4.8% |
| Installation - repair and remodel | $47.1 | 6% | $43.2 | 6% | +9.0% |
| Installation - commercial | $141.0 | 18% | $123.6 | 16% | +14.1% |
| Net revenue - Installation | $710.7 | 91% | $715.6 | 94% | −0.7% |
| Other | $67.1 | 9% | $44.7 | 6% | +50.1% |
| Net revenue, as reported | $777.8 | 100% | $760.3 | 100% | +2.3% |
- Q2 revenue by end market, bulleted equivalent: residential new construction $522.6m (67% of revenue) vs $548.8m (72%), −4.8%; repair and remodel $47.1m (6%) vs $43.2m (6%), +9.0%; commercial $141.0m (18%) vs $123.6m (16%), +14.1%; Installation total $710.7m (91%) vs $715.6m (94%), −0.7%; Other $67.1m (9%) vs $44.7m (6%), +50.1% as calculated from the rounded figures against the company's stated 50.4%; net revenue as reported $777.8m vs $760.3m, +2.3%.
| Six-month revenue by end market ($m) | 6M 2026 | % of total | 6M 2025 | % of total | Change |
|---|---|---|---|---|---|
| Installation - residential new construction | $965.9 | 67% | $1,043.2 | 72% | −7.4% |
| Installation - repair and remodel | $88.2 | 6% | $85.6 | 6% | +3.0% |
| Installation - commercial | $266.4 | 19% | $234.0 | 16% | +13.8% |
| Net revenue - Installation | $1,320.5 | 92% | $1,362.8 | 94% | −3.1% |
| Other | $117.8 | 8% | $82.3 | 6% | +43.1% |
| Net revenue, as reported | $1,438.3 | 100% | $1,445.1 | 100% | −0.5% |
- Six-month revenue by end market, bulleted equivalent: residential new construction $965.9m (67%) vs $1,043.2m (72%), −7.4%; repair and remodel $88.2m (6%) vs $85.6m (6%), +3.0%; commercial $266.4m (19%) vs $234.0m (16%), +13.8%; Installation total $1,320.5m (92%) vs $1,362.8m (94%), −3.1%; Other $117.8m (8%) vs $82.3m (6%), +43.1%; net revenue as reported $1,438.3m vs $1,445.1m, −0.5%.
| Company-stated growth metric (Q2 2026 vs prior-year quarter) | Value |
|---|---|
| Consolidated sales growth | +2.3% |
| Consolidated same branch sales growth | −0.6% |
| Installation segment sales growth | −0.7% |
| Installation segment same branch sales growth | −2.3% |
| Installation residential same branch sales growth | −6.1% |
| Installation commercial same branch sales growth | +10.4% |
| Volume growth, including heavy commercial | −4.9% |
| Price/mix growth, including heavy commercial | +2.5% |
| Volume growth, excluding heavy commercial | −5.2% |
| Price/mix growth, excluding heavy commercial | +0.7% |
| Other sales growth, net of eliminations | +50.4% |
| Other same branch sales growth | +27.7% |
| U.S. total housing completions growth (Census) | −4.9% |
| U.S. single-family completions growth (Census) | −5.8% |
| U.S. multi-family completions growth (Census) | −2.8% |
- Company-stated Q2 growth metrics, bulleted equivalent: consolidated sales +2.3% and consolidated same branch −0.6%; Installation segment sales −0.7% and Installation same branch −2.3%, with residential same branch −6.1% and commercial same branch +10.4%; volume −4.9% and price/mix +2.5% including heavy commercial, and volume −5.2% and price/mix +0.7% excluding it; Other sales +50.4% and Other same branch +27.7%; against U.S. Census housing completions of −4.9% total, −5.8% single-family and −2.8% multi-family.
| Incremental revenue and adjusted EBITDA contribution ($m) | Q2 2026 | % of total | Q2 2025 | % of total |
|---|---|---|---|---|
| Revenue increase - same branch | $(4.5) | (25.7)% | $5.0 | 22.0% |
| Revenue increase - acquired | $22.0 | 125.7% | $17.7 | 78.0% |
| Revenue increase - total | $17.5 | 100.0% | $22.7 | 100.0% |
| Adjusted EBITDA contribution - same branch | $(6.3) | (140.0)% | $0.8 | 16.0% |
| Adjusted EBITDA contribution - acquired | $3.2 | 14.5% | $3.3 | 18.6% |
| Adjusted EBITDA contribution - total | $(3.1) | NMF | $4.1 | 18.1% |
- Incremental revenue and margin, bulleted equivalent: the $17.5m of Q2 2026 revenue growth is $22.0m of acquired revenue against $(4.5)m of same-branch decline, versus $22.7m of growth a year ago that was $17.7m acquired and $5.0m same branch; adjusted EBITDA fell $3.1m, comprising $(6.3)m from same branch - a 140% decremental margin on the same-branch revenue decline - and $3.2m from acquired revenue at a 14.5% incremental margin, against a $4.1m increase a year ago at an 18.1% incremental margin. Over six months, revenue fell $6.8m ($(44.6)m same branch, $37.8m acquired) and adjusted EBITDA fell $13.4m ($(18.6)m same branch at a 41.7% decremental margin, $5.2m acquired at a 13.8% incremental margin), against a six-month 2025 revenue increase of $14.7m and adjusted EBITDA decline of $10.7m.
| Balance sheet item ($m) | 30 Jun 2026 | 31 Dec 2025 | Change |
|---|---|---|---|
| Cash and cash equivalents | $394.5 | $321.9 | +22.6% |
| Accounts receivable, net | $469.6 | $444.1 | +5.7% |
| Inventories | $223.5 | $203.0 | +10.1% |
| Prepaid expenses and other current assets | $68.2 | $73.6 | −7.3% |
| Total current assets | $1,155.8 | $1,042.6 | +10.9% |
| Property and equipment, net | $196.4 | $183.3 | +7.1% |
| Operating lease right-of-use assets | $117.3 | $98.7 | +18.8% |
| Goodwill | $469.8 | $450.4 | +4.3% |
| Customer relationships, net | $175.4 | $172.2 | +1.9% |
| Other intangibles, net | $92.8 | $89.3 | +3.9% |
| Other non-current assets | $43.7 | $31.5 | +38.7% |
| Total assets | $2,251.2 | $2,068.0 | +8.9% |
| Current maturities of long-term debt | $34.7 | $36.6 | −5.2% |
| Current maturities of operating lease obligations | $42.0 | $37.0 | +13.5% |
| Current maturities of finance lease obligations | $4.3 | $2.7 | +59.3% |
| Accounts payable | $151.7 | $119.0 | +27.5% |
| Accrued compensation | $65.4 | $69.5 | −5.9% |
| Other current liabilities | $89.3 | $79.4 | +12.5% |
| Total current liabilities | $387.4 | $344.2 | +12.6% |
| Long-term debt | $1,027.5 | $850.0 | +20.9% |
| Operating lease obligations | $82.3 | $61.4 | +34.0% |
| Finance lease obligations | $6.4 | $4.0 | +60.0% |
| Deferred income taxes | $24.6 | $24.7 | −0.4% |
| Other long-term liabilities | $83.5 | $73.8 | +13.1% |
| Total liabilities | $1,611.7 | $1,358.1 | +18.7% |
| Additional paid in capital | $297.8 | $284.1 | +4.8% |
| Retained earnings | $1,073.5 | $1,043.4 | +2.9% |
| Treasury stock, at cost | $(755.5) | $(640.0) | +18.0% |
| Accumulated other comprehensive income | $23.4 | $22.1 | +5.9% |
| Total stockholders' equity | $639.5 | $709.9 | −9.9% |
| Total liabilities and stockholders' equity | $2,251.2 | $2,068.0 | +8.9% |
- Balance sheet, bulleted equivalent (30 Jun 2026 vs 31 Dec 2025): cash $394.5m vs $321.9m (+22.6%); accounts receivable net of a $15.1m versus $13.9m allowance $469.6m vs $444.1m; inventories $223.5m vs $203.0m; prepaid and other current assets $68.2m vs $73.6m; total current assets $1,155.8m vs $1,042.6m; property and equipment net $196.4m vs $183.3m; operating lease right-of-use assets $117.3m vs $98.7m; goodwill $469.8m vs $450.4m; customer relationships net $175.4m vs $172.2m; other intangibles net $92.8m vs $89.3m; other non-current assets $43.7m vs $31.5m; total assets $2,251.2m vs $2,068.0m; current maturities of long-term debt $34.7m vs $36.6m; current operating lease obligations $42.0m vs $37.0m; current finance lease obligations $4.3m vs $2.7m; accounts payable $151.7m vs $119.0m; accrued compensation $65.4m vs $69.5m; other current liabilities $89.3m vs $79.4m; total current liabilities $387.4m vs $344.2m; long-term debt $1,027.5m vs $850.0m; non-current operating lease obligations $82.3m vs $61.4m; non-current finance lease obligations $6.4m vs $4.0m; deferred income taxes $24.6m vs $24.7m; other long-term liabilities $83.5m vs $73.8m; total liabilities $1,611.7m vs $1,358.1m; common stock $0.3m in both periods; additional paid in capital $297.8m vs $284.1m; retained earnings $1,073.5m vs $1,043.4m; treasury stock $(755.5)m vs $(640.0)m; accumulated other comprehensive income $23.4m vs $22.1m; total stockholders' equity $639.5m vs $709.9m; total liabilities and equity $2,251.2m vs $2,068.0m. Shares issued were 33,941,274 versus 33,837,379 and shares outstanding 26,579,168 versus 26,975,227, with treasury shares of 7,362,106 versus 6,862,152.
| Leverage | 30 Jun 2026 | 31 Dec 2025 |
|---|---|---|
| Long-term debt ($m) | $1,027.5 | $850.0 |
| Current maturities of long-term debt ($m) | $34.7 | $36.6 |
| Total debt excluding leases ($m) | $1,062.2 | $886.6 |
| Cash and cash equivalents ($m) | $394.5 | $321.9 |
| Net debt excluding leases ($m) | $667.7 | $564.7 |
| Total stockholders' equity ($m) | $639.5 | $709.9 |
- Leverage, bulleted equivalent: long-term debt $1,027.5m versus $850.0m plus current maturities of $34.7m versus $36.6m gives total debt excluding leases of $1,062.2m versus $886.6m; against cash of $394.5m versus $321.9m that is net debt of $667.7m versus $564.7m, a $103.0m increase over six months, while total stockholders' equity fell to $639.5m from $709.9m. These debt aggregates are calculated from the release's balance sheet; the company does not present a leverage table in this release.
| Six-month cash flow ($m) | 6M 2026 | 6M 2025 |
|---|---|---|
| Net income | $99.7 | $114.4 |
| Depreciation and amortization of property and equipment | $35.3 | $32.7 |
| Amortization of operating lease right-of-use assets | $19.8 | $17.9 |
| Amortization of intangibles | $21.0 | $20.2 |
| Amortization of deferred financing costs and debt discount | $0.9 | $0.8 |
| Provision for credit losses | $3.9 | $4.0 |
| Write-off of debt issuance costs | $1.2 | - |
| Gain on sale of property and equipment | $(0.2) | $(0.7) |
| Non-cash stock compensation | $11.9 | $11.2 |
| Other, net | $(3.5) | $(5.6) |
| Accounts receivable | $(24.1) | $(16.4) |
| Inventories | $(19.5) | $3.0 |
| Other assets | $0.4 | $13.1 |
| Accounts payable | $30.4 | $4.5 |
| Income taxes receivable / payable | $3.4 | - |
| Other liabilities | $(9.5) | $(16.6) |
| Net cash provided by operating activities | $171.1 | $182.5 |
| Purchases of property and equipment | $(33.5) | $(35.8) |
| Acquisitions of businesses, net of cash acquired | $(47.7) | $(11.3) |
| Proceeds from sale of property and equipment | $0.8 | $1.2 |
| Settlements with interest rate swap counterparties | - | $6.9 |
| Other investing | $(2.4) | $(4.2) |
| Net cash used in investing activities | $(82.8) | $(43.2) |
| Proceeds from Senior Notes | $500.0 | - |
| Payments on Senior Notes | $(300.0) | - |
| Payments on Term Loan | $(2.5) | $(2.5) |
| Proceeds from vehicle and equipment notes payable | - | $18.1 |
| Debt issuance costs | $(9.1) | - |
| Principal payments on long-term debt | $(16.3) | $(14.8) |
| Principal payments on finance lease obligations | $(1.9) | $(1.4) |
| Dividends paid | $(69.8) | $(67.7) |
| Acquisition-related obligations | $(1.3) | $(1.5) |
| Repurchase of common stock | $(101.7) | $(83.5) |
| Surrender of common stock awards by employees | $(13.1) | $(8.4) |
| Net cash used in financing activities | $(15.7) | $(161.7) |
| Net change in cash and cash equivalents | $72.6 | $(22.4) |
| Cash and cash equivalents at beginning of period | $321.9 | $327.6 |
| Cash and cash equivalents at end of period | $394.5 | $305.2 |
- Cash flow, bulleted equivalent (6M 2026 vs 6M 2025): net income $99.7m vs $114.4m; depreciation and amortization of property and equipment $35.3m vs $32.7m; amortization of operating lease right-of-use assets $19.8m vs $17.9m; amortization of intangibles $21.0m vs $20.2m; amortization of deferred financing costs $0.9m vs $0.8m; provision for credit losses $3.9m vs $4.0m; a $1.2m write-off of debt issuance costs in 2026 only; gain on sale of property and equipment $(0.2)m vs $(0.7)m; non-cash stock compensation $11.9m vs $11.2m; other net $(3.5)m vs $(5.6)m; accounts receivable $(24.1)m vs $(16.4)m; inventories $(19.5)m vs $3.0m; other assets $0.4m vs $13.1m; accounts payable $30.4m vs $4.5m; income taxes receivable/payable $3.4m in 2026 only; other liabilities $(9.5)m vs $(16.6)m; operating cash flow $171.1m vs $182.5m. Investing: capital expenditure $(33.5)m vs $(35.8)m; acquisitions $(47.7)m vs $(11.3)m; proceeds from asset sales $0.8m vs $1.2m; interest rate swap settlements nil vs $6.9m; other $(2.4)m vs $(4.2)m; investing outflow $(82.8)m vs $(43.2)m. Financing: $500.0m of Senior Notes proceeds and $(300.0)m of Senior Notes payments in 2026 only; term loan payments $(2.5)m in both; vehicle and equipment note proceeds nil vs $18.1m; debt issuance costs $(9.1)m in 2026 only; principal payments on long-term debt $(16.3)m vs $(14.8)m; finance lease principal $(1.9)m vs $(1.4)m; dividends paid $(69.8)m vs $(67.7)m; acquisition-related obligations $(1.3)m vs $(1.5)m; share repurchases $(101.7)m vs $(83.5)m; surrender of awards by employees $(13.1)m vs $(8.4)m; financing outflow $(15.7)m vs $(161.7)m. Net change in cash $72.6m vs $(22.4)m, ending at $394.5m vs $305.2m. Cash interest paid was $24.4m vs $20.5m and cash income taxes net of refunds $36.5m vs $36.6m, the 2026 figure including $7.0m paid for federal tax credits. Non-cash: right-of-use assets obtained $43.3m vs $22.9m; property and equipment via finance leases $6.0m vs $0.3m; seller obligations from acquisitions $5.0m vs $1.7m; unpaid purchases of property and equipment in accounts payable $2.6m vs $4.2m; accrued excise tax on repurchases $0.8m vs $0.6m.
| Acquisition | Close date | Core end market | Primary product category | Approximate annual sales |
|---|---|---|---|---|
| Diamond Energy Systems, Inc. | May 2026 | Commercial + Industrial | Mechanical insulation | $12m |
| Harkraft, Inc. | Jul 2026 | Residential | Shower doors, shelving, mirrors, accessories | $7m |
| Builders Hardware of South Carolina, Inc. | Jul 2026 | Residential | Door, bath, and fencing hardware | $7m |
- Acquisitions, bulleted equivalent: Diamond Energy Systems (May 2026, commercial and industrial, mechanical insulation, about $12m of annual sales); Harkraft (July 2026, residential, shower doors, shelving, mirrors and accessories, about $7m); Builders Hardware of South Carolina (July 2026, residential, door, bath and fencing hardware, about $7m). Together with two bolt-ons these added approximately $30m of annual revenue. Year to date the company has acquired approximately $59m in revenue.
| Forward statement | Company statement |
|---|---|
| 2026 acquired revenue | "continue to believe we will acquire at least $100 million in revenue in 2026"; approximately $59m acquired year to date |
| Q3 2026 regular cash dividend | $0.39 per share, payable 30 September 2026 to holders of record 15 September 2026; an over 5% increase on the prior-year third quarter |
| Share repurchase capacity | $398m available at 30 June 2026 under a program expiring 1 March 2027 |
| Revenue, margin or earnings guidance | None given |
-
Forward statements, bulleted equivalent: the company reiterated its target of acquiring at least $100m of annual revenue in 2026 and has acquired approximately $59m year to date; declared a third-quarter dividend of $0.39 per share payable 30 September 2026 to holders of record 15 September 2026, more than 5% above the prior-year third quarter; had $398m of repurchase capacity remaining under a program expiring 1 March 2027; and gave no revenue, margin or earnings guidance.
-
Scorecard recap: net revenue of $777.8m beat consensus by 4.6% and adjusted diluted EPS of $2.91 beat the $2.55 estimate by 14.1%, while GAAP diluted EPS of $2.43 fell 3.6% year over year.
-
Net revenue was a record second quarter, but all of the growth and more came from acquisitions: acquired revenue added $22.0m against a $4.5m same-branch decline.
-
The company repurchased approximately 365 thousand shares for approximately $76.2m in the quarter, an average of roughly $208.77 per share.
-
CEO Jeff Edwards said the team "continued to execute well during the second quarter," pointed to "the contribution from recent acquisitions and growth within our heavy and light commercial business," and said the company expects "affordability and consumer confidence to continue to weigh on the U.S. residential housing market."
-
The release attributes the gross margin decline to the higher relative mix of the lower-margin Other segment and to higher fuel expense as a percentage of net revenue, and the administrative expense increase primarily to higher medical insurance.
-
The 10:00 a.m. Eastern call on 6 August 2026 has not yet been held and no Quartr transcript exists.
Key bullish aspects
- Net revenue of $777.8m was a record second quarter, rose 2.3% year over year and beat consensus by 4.6% in a quarter when U.S. total housing completions fell 4.9%.
- Adjusted diluted EPS of $2.91 beat the $2.55 consensus by 14.1% and fell only 1.4% year over year despite a 5.9% decline in GAAP net income, because the 2.5% reduction in the diluted share count offset most of the earnings decline.
- Commercial is the growth engine and is compounding: Installation commercial revenue rose 14.1% to $141.0m in the quarter and 13.8% to $266.4m over six months, with commercial same-branch sales up 10.4%, and commercial is now 18% of revenue against 16% a year ago.
- The Other category (Manufacturing and Distribution) grew revenue net of eliminations 50.4% to $67.1m and lifted its gross margin to 24.7% from 23.0%, so the diversification is growing and improving profitability at the same time.
- Other same-branch sales grew 27.7%, so the Other growth is not purely acquisitive.
- Repair and remodel revenue rose 9.0% to $47.1m in the quarter, a counter-cyclical offset to the new-construction decline.
- Price/mix remains positive at +0.7% excluding heavy commercial and +2.5% including it, so the company is not discounting into weaker volume.
- The acquisition program is on track and self-funding: approximately $59m of annual revenue acquired year to date against a reiterated target of at least $100m for 2026, funded from $171.1m of six-month operating cash flow.
- Liquidity improved substantially: cash rose 22.6% over six months to $394.5m and the company refinanced, issuing $500m of Senior Notes and retiring $300m.
- Capital returns are large and growing: $101.7m of six-month buybacks against $83.5m a year earlier, $69.8m of dividends, and a third-quarter dividend raised more than 5% to $0.39, with $398m of repurchase capacity still available.
- Shares outstanding fell 1.5% over six months to 26,579,168 and the diluted share count fell 2.5% year over year.
- Adjusted gross margin of 33.3% was flat against reported gross margin, so the margin decline is not being masked by add-backs; share-based compensation in cost of sales is only $0.3m.
- Adjusted S&A as a percentage of net revenue rose only 10 basis points to 18.9% despite the revenue mix shift toward the lower-revenue-per-branch Other segment.
- The effective tax rate fell to 23.7% from 26.1%, and six-month cash taxes of $36.5m were flat year over year while including $7.0m paid for federal tax credits.
- Accounts payable provided $30.4m of six-month operating cash against $4.5m a year earlier.
Key bearish aspects
- Every profit line fell: gross profit −0.4%, operating income −6.3%, pretax income −8.9%, net income −5.9%, EBITDA −3.3% and adjusted EBITDA −2.3%, on revenue that rose 2.3%.
- Gross margin fell 90 basis points to 33.3% and adjusted EBITDA margin fell 70 basis points to 16.9%; the six-month adjusted EBITDA margin fell 90 basis points to 15.5%.
- The underlying business shrank: consolidated same-branch sales fell 0.6% and Installation same-branch sales fell 2.3%, so the entire $17.5m revenue increase - and $4.5m more - came from acquisitions.
- Same-branch adjusted EBITDA contribution was $(6.3)m on a $(4.5)m same-branch revenue decline, a 140% decremental margin, and $(18.6)m on $(44.6)m over six months, a 41.7% decremental margin.
- Residential is deteriorating faster than the market: Installation residential same-branch sales fell 6.1% against a 5.8% decline in U.S. single-family completions, and residential new construction revenue fell 4.8% to $522.6m while dropping to 67% of revenue from 72%.
- Job volumes fell 5.2% excluding heavy commercial and 4.9% including it; the revenue defense is price/mix and acquisitions, not activity.
- Six-month results are worse than the quarter: revenue −0.5%, gross profit −2.6%, operating income −10.9%, pretax income −14.5%, net income −12.8% and diluted EPS −10.6%.
- Acquired revenue is coming in at a lower margin than the base: the acquired adjusted EBITDA contribution was 14.5% of acquired revenue in the quarter and 13.8% over six months, below the 16.9% consolidated adjusted EBITDA margin, so the acquisition mix itself dilutes margin.
- Interest expense, net rose 26.5% to $10.5m in the quarter and 25.3% to $20.8m over six months following the $500m Senior Notes issuance; long-term debt rose 20.9% over six months to $1,027.5m.
- Net debt excluding leases rose $103.0m over six months to $667.7m while total stockholders' equity fell 9.9% to $639.5m, so net debt now exceeds book equity.
- Operating cash flow fell 6.2% to $171.1m over six months while capital returns rose: $101.7m of buybacks plus $69.8m of dividends is $171.5m, marginally more than operating cash flow, before $47.7m of acquisition spend.
- Working capital consumed cash: accounts receivable used $24.1m and inventories used $19.5m over six months, against $16.4m used and $3.0m provided a year earlier - a $34.2m swing.
- Inventories rose 10.1% over six months to $223.5m and accounts receivable rose 5.7% to $469.6m against revenue that fell 0.5%.
- Administrative expense rose 3.6% to $117.2m, faster than revenue, on higher medical insurance, and total S&A rose to 19.8% of revenue from 19.6%.
- Fuel expense is called out as a notable headwind to adjusted gross margin, an input cost the company does not control.
- Multi-family remains weak, with Installation multi-family same-branch sales down 6.2% over six months.
- The release contains no revenue, margin or earnings guidance of any kind for the third quarter or the full year.
Key uncertainties
- The 90-basis-point gross margin decline is attributed to Other-segment mix and higher fuel expense, but the release quantifies neither, so the split between mix, fuel and underlying Installation pricing cannot be determined; Installation segment gross margin itself fell 60 basis points to 36.5%, which the mix explanation does not cover.
- The Other segment's revenue before eliminations grew 59.1% to $90.2m while inter-segment eliminations grew 92.5% to $23.1m; the release does not say how much of the Other growth is external versus internal sales to the Installation branches, so the quality of the 50.4% net growth figure is not assessable.
- Acquired revenue contributed $22.0m in the quarter, but the release does not disclose which acquisitions are inside that figure, their revenue run-rate at purchase, or their margins beyond the 14.5% incremental adjusted EBITDA contribution.
- Approximately $59m of annual revenue has been acquired year to date against a target of "at least $100 million" for 2026; the release gives no pipeline detail, no price paid for the completed deals beyond $47.7m of six-month cash outflow, and no purchase-multiple disclosure.
- The $500m Senior Notes issuance and $300m repayment are shown only as cash flow lines; coupon, maturity, and the resulting weighted-average cost of debt are not disclosed in the release, so the run-rate interest expense implied by the $10.5m quarterly figure cannot be confirmed.
- The company holds $394.5m of cash after raising net $200m of Senior Notes and repurchasing $101.7m of stock; the release does not state the intended use of the cash balance between acquisitions, further buybacks and debt reduction.
- Same-branch revenue fell 0.6% consolidated while price/mix rose 0.7% and volume fell 5.2%; those figures exclude both heavy commercial and the Other segment, so no single disclosed volume or price series covers the whole company.
- The residential same-branch decline of 6.1% is steeper than the 5.8% decline in single-family completions, implying share or mix loss, but the release provides no builder-mix, geographic or backlog disclosure to test that.
- No backlog, bid activity, or forward-order metric of any kind is disclosed, so the durability of the 10.4% commercial same-branch growth into the second half cannot be assessed from this release.
- Fuel expense is named as a headwind without a dollar amount or a hedging policy statement.
- Higher medical insurance is named as the primary driver of administrative expense growth without an amount or an indication of whether the increase is expected to persist.
- Inventories rose $20.5m and receivables $25.5m over six months on flat-to-declining revenue; the release does not say whether this is acquisition-related opening balance sheet, a build ahead of tariffs or material cost increases, or slower collection.
- The forward-looking statements section names increased tariffs, the material price and supply environment and federal government shutdowns among the risk factors, but the release does not quantify any tariff or material cost impact in the quarter.
- The tax rate fell to 23.7% from 26.1% with no explanation; the non-GAAP reconciliation uses a normalized 26.0% rate, so the gap between the reported and normalized rates is unexplained.
- $13.1m of six-month cash was used for the surrender of common stock awards by employees against $8.4m a year earlier, a 56% increase that is not discussed.
- The 10:00 a.m. Eastern call on 6 August 2026 has not occurred and no Quartr transcript exists, so management's account of the same-branch decremental margin, the fuel and mix headwinds, the acquisition pipeline and the second-half residential outlook is not assessed at this stage.
Market context
- API Ninjas snapshot: IBP $241.51 on NYSE, volume 359,365, quote timestamped 2026-08-06T11:37:50Z, retrieved 2026-08-06T11:40:00Z. The release was published pre-market on 2026-08-06 and the call is at 10:00 a.m. Eastern; this is a single pre-market quote of unstated session basis, not a measured reaction to the release.
Source limitations
- Every actual above comes from the Quartr Q2 2026 earnings release document (3674211) attached to Quartr event 662283. Quartr standardized financials for this event are not yet populated, and the quarterly report and slide deck are not attached to this event.
- API Ninjas supplied no actual or difference fields for this event, so each beat/miss is calculated locally as Quartr actual minus API Ninjas estimate. The API row carried no fiscal year or quarter and is dated 2026-08-06, matching the Quartr event date exactly, so the exact ticker-and-date match is the path used.
- The EPS scorecard row uses the company's adjusted (non-GAAP) diluted EPS of $2.91 rather than GAAP diluted EPS of $2.43. The provider's own historical actual EPS series for this ticker tracks the company's adjusted diluted figures - it records $2.95 for the quarter ended June 2025, which is the company's adjusted diluted EPS for that quarter against GAAP diluted EPS of $2.52 - so the estimate and the selected actual sit on the same basis. On GAAP diluted EPS the same $2.55 estimate would be a miss of $0.12, or 4.7%.
- Revenue is the company's consolidated net revenue as reported; the Installation and Other figures shown alongside it are segment subtotals and are not used in the scorecard.
- Adjusted gross profit, adjusted selling and administrative expense, EBITDA, adjusted EBITDA, adjusted net income and adjusted diluted EPS are non-GAAP measures as defined by the company; the adjusted net income reconciliation applies a normalized 26.0% effective tax rate to the adjusted items.
- Year-over-year percentage changes, margin-point changes and ratios above are calculated from the release's own figures unless the release prints the figure itself; where both exist they agree, with one exception noted below.
- Other revenue net of eliminations calculates to +50.1% from the rounded $67.1m and $44.7m figures against the company's stated +50.4%; the company's figure is calculated from unrounded amounts and is quoted as stated in the growth table and the narrative.
- Total debt, net debt and the six-month change in net debt in the leverage table are calculated from the release's balance sheet; the company does not present a leverage or net-debt measure in this release.
- The condensed consolidated statements in this release are unaudited.
- Balance sheet comparatives are to 31 December 2025, the fiscal year end, not to the prior-year quarter; income statement, cash flow, segment and end-market comparatives are to the prior-year quarter or prior-year six months.
- The document's text extraction places several income statement, cash flow and supplementary values away from their labels; every figure reproduced above was placed by an arithmetic check. Total current assets, total assets, total current liabilities, total liabilities, total equity and total liabilities and equity all foot in both periods; every per-share figure equals net income divided by the stated share count; the segment reconciliations foot to consolidated revenue, gross profit and income before income taxes in all four periods; the adjusted net income, adjusted gross profit, adjusted S&A and EBITDA reconciliations all foot in all four periods; the operating, investing and financing sections each foot to their stated subtotals and to the net change in cash in both periods; and the incremental revenue and adjusted EBITDA contribution tables foot to the total revenue and adjusted EBITDA changes with every stated percentage reproducing. Three cash flow placements were resolved by that footing check alone and are stated here for transparency: the $3.4m income taxes receivable/payable line belongs to 2026 and not 2025; the $6.9m of interest rate swap settlements belongs to 2025 and not 2026; and the $18.1m of vehicle and equipment note proceeds belongs to 2025 and not 2026.
- The prior-year columns of the supplementary growth table's consolidated sales growth and consolidated same branch sales growth rows could not be placed reliably by extraction and are omitted. The Q2 2026 values reported for those two rows are anchored independently: consolidated sales growth of +2.3% reproduces from the income statement, and consolidated same branch sales growth of −0.6% is stated verbatim in the release narrative. The remaining growth rows reported above were confirmed row-major against three independent anchors in the narrative (residential same branch −6.1%, commercial same branch +10.4%, and volume −4.9% and price/mix +2.5% including heavy commercial) and against the statements (commercial revenue +14.1% and installation revenue −0.7%).
- The U.S. housing market completion growth figures are U.S. Census Bureau data as revised, reproduced from the company's supplementary table, not independently verified.
- The acquisition table's approximate annual sales figures are the company's own estimates of acquired run-rate revenue, not reported revenue.
Source links
- Quartr Q2 2026 earnings release
- Quartr release highlights and management commentary page
- Quartr release acquisitions, dividend, buyback and results overview page
- Quartr release income statement page
- Quartr release balance sheet page
- Quartr release cash flow statement page
- Quartr release segment information page
- Quartr release revenue by end market page
- Quartr release adjusted net income reconciliation page
- Quartr release adjusted EBITDA reconciliation page
- Quartr release supplementary growth table page
- Quartr release incremental revenue and margin page