Installed Building Products, Inc.

Greetings and welcome to the Install Building Products First Quarter 2025 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Darren Hicks, Vice President of Investor Relations. Please go ahead.

Good morning and welcome to Install Building Products first quarter 2025 earnings conference call. Earlier today, we issued a press release on our financial results for the first 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 federal securities laws. These forward-looking statements are based on management's current beliefs and expectations and are subject to factors that could cause actual results to differ materially from those described today. Please refer to our SEC filings for cautionary statements and risk factors. We undertake no duty or obligation to update any forward-looking statement as a result of new information or future events, except as required by federal securities laws. In addition, management refers to certain non-GAAP and adjusted financial measures on this call. You can find a reconciliation of such non-GAAP measures to the nearest GAAP equivalent in the company's earnings release and investor presentation, both of which are available in the investor relations section of our website. This morning's conference call is hosted by Jeff Edwards, our chairman and chief executive officer, and Michael Miller, our chief financial officer, and we are also joined by Jason Neiswanger, our chief administrative and sustainability officer. Jeff, I will now turn the call over to you.

Thanks, Darren, and good morning to everyone joining us on today's call. As usual, I will start the call with some highlights and then turn the call over to Michael, who will discuss our financial results and capital position in more detail before we take your questions. IVP delivered solid first quarter financial results, reflecting our focus on maintaining a high level of installation service for our customers across the U.S. Our core home building customers continued to navigate industry-wide housing affordability challenges in a slower than expected spring selling season. Still, we continue to play our integral role in making homes and buildings as energy efficient and efficiently constructed as possible. We expect housing demand to remain connected to changes in affordability and the macroeconomic backdrop this year. In the current environment, we are competing from a strong financial position and our home building customers are operating from a position of health as well, which helps in navigating market uncertainty. Longer term, our view on demand for our installed service is unchanged. We believe long-term trends across our residential and commercial end markets are favorable as builders work to meet demand through the increased supply of houses, apartments, and commercial structures. IBP's business model remains consistent and centered around geographic end product and end market growth with a disciplined approach to capital allocation. Throughout our business, we believe that less than 10% of the diverse products we buy and install are sourced outside of the U.S., We are working with our suppliers to reduce any potential tariff impacts. At present, we do not anticipate meaningful disruptions to our business. Our business continues to generate strong operating cash flow, and we remain committed to investing in growth and prudently returning capital to shareholders throughout economic cycles. During the first quarter, we continued to grow through acquisition, paid nearly $57 million in cash dividends, or $2.07 per diluted share, and repurchased approximately $34 million of our common stock. As we pursue initiatives focused on achieving profitable growth and maximizing returns for our shareholders, we remain committed to doing the right thing for our employees, customers, and communities. Looking at our first quarter sales performance, consolidated sales decreased 1% and same branch growth was down 4%. In our largest end market, new single family installation sales, were down relative to the same period last year, partially due to one less selling day and unusually difficult weather, which impacted our ability to complete jobs during the quarter. On a same branch basis, multi-family sales in our installation segment decreased 5%, following a strong year-over-year comparison of a 13% increase in the first quarter of last year. We continue to see strategic growth opportunities as our centralized, service-oriented model continues to partner with our existing branch network to broaden our geographic footprint and product offering in the Malta family and market. On a same-branch basis, first-quarter commercial sales in our installation segment declined modestly from the prior year. Strong same-branch sales growth within our heavy commercial business was offset by a decrease in sales from our light commercial markets. The strength in our heavy commercial end market was driven in part by successfully winning jobs in the rapidly growing data center construction industry. Based on our current backlog, we expect growth in heavy commercial sales to continue throughout this year. During the first quarter, cash flow from operating activities increased 9% to $92 million, which primarily reflected effective management of working capital. Acquisitions continue to be our top priority as we consider all of our options for capital allocations. Despite our growth over the years, we believe a meaningful opportunity still exists for us to expand our geographic presence and diversify the mix of building products we install across our national branch network. During the 2025 first quarter and in May of 2025, we completed the following acquisitions. A South Carolina-based installer of a diverse mix of after-paint products, including closet shelving, shower doors, mirrors, primarily in the new residential and market with annual revenue of nearly $6 million, and a Wisconsin-based installer of spray foam and air barrier products in the commercial end market with annual revenue of nearly $4 million. To date, we have acquired over $10 million of annual revenue, and although deal time is hard to predict, we expect to acquire over $100 million in annual revenue in 2025. Based on the U.S. Census Bureau, single-family starts year-to-date through March 2025 have decreased by 6%. We continue to believe that our business is supported by a fundamental undersupply of residential housing and gradual building code adoption for the purpose of improved energy efficiency across the U.S. Our strong customer relationships, experienced leadership team, national scale, and diverse product categories across multiple end markets are advantages when navigating the ebbs and flows of demand related to the U.S. construction market. Although the uncertainty around tariffs, inflation, and consumer sentiment is influences prevailing market conditions in our industry and many others, we remain focused on profitability and effective capital allocation to drive earnings growth and value for our shareholders. I'm proud of our team's continued success and commitment to doing an excellent job for our customers. To everyone at IBP, thank you. I remain encouraged by our competitive positioning and optimistic about the prospects ahead for IBP and the broader insulation and other building product installation business. So with this overview, I'd like to turn the call over to Michael to provide more detail on our first quarter financial results.