Shares of Installed Building Products (IBP) surged 9.26% in pre-market trading on Wednesday following the release of its impressive third-quarter earnings report. The company, which specializes in the installation of insulation and other building products, demonstrated strong financial performance that exceeded analyst expectations.

IBP reported a third-quarter adjusted net income of $3.18 per diluted share, significantly beating the FactSet analyst consensus of $2.74. This represents a substantial increase from $2.85 per share in the same period last year. Revenue for the quarter ended September 30 reached $778.2 million, up 2.3% from $760.6 million a year earlier and surpassing the analyst estimates of $750.9 million.

The company's strong performance was driven by growth across various segments. While residential same branch sales within the Installation segment declined by 2.8%, commercial same branch sales increased by an impressive 11.7%. Notably, other revenue, including manufacturing and distribution operations, saw a substantial 21.7% increase to $57.1 million. Additionally, IBP's recent acquisitions contributed to a 1.0% increase in installation revenue, reaching $721.1 million. The company's adjusted EBITDA for Q3 increased 5.7% to a record $139.9 million, further highlighting its operational efficiency.

Despite anticipating that certain acquisition targets may be delayed to 2026, potentially impacting the company's 2025 revenue goal, IBP continues to prioritize growth through acquisitions. This forward-looking strategy, combined with the strong Q3 results, appears to have bolstered investor confidence, leading to the significant stock price increase.