Installed Building Products, Inc.IBP
Installed Building Products, Inc. Goodwill & Intangibles Disclosure
GOODWILL AND INTANGIBLES
Goodwill
The change in carrying amount of goodwill by reporting segment for the year ended December 31, 2024 was as follows (in millions):
| Installation | Other | Consolidated | |||||||||||||||
| Goodwill (gross) - January 1, 2024 | $ | 375.2 | $ | 93.6 | $ | 468.8 | |||||||||||
| Business combinations | 26.0 | 7.1 | 33.1 | ||||||||||||||
| Other adjustments | 0.7 | — | 0.7 | ||||||||||||||
| Goodwill (gross) - December 31, 2024 | 401.9 | 100.7 | 502.6 | ||||||||||||||
| Accumulated impairment losses | (70.0) | — | (70.0) | ||||||||||||||
| Goodwill (net) - December 31, 2024 | $ | 331.9 | $ | 100.7 | $ | 432.6 | |||||||||||
Other adjustments presented in the above table primarily include goodwill derived from two insignificant bolt-on acquisitions merged into an existing operation during the year ended December 31, 2024.
The change in carrying amount of goodwill by reporting segment for the year ended December 31, 2025 was as follows (in millions):
| Installation | Other | Consolidated | |||||||||||||||
| Goodwill (gross) - January 1, 2025 | $ | 401.9 | $ | 100.7 | $ | 502.6 | |||||||||||
| Business combinations | 6.4 | 10.0 | 16.4 | ||||||||||||||
| Other adjustments | 1.4 | 0.0 | 1.4 | ||||||||||||||
| Goodwill (gross) - December 31, 2025 | 409.7 | 110.7 | 520.4 | ||||||||||||||
| Accumulated impairment losses | (70.0) | — | (70.0) | ||||||||||||||
| Goodwill (net) - December 31, 2025 | $ | 339.7 | $ | 110.7 | $ | 450.4 | |||||||||||
Other adjustments presented in the above table primarily include goodwill derived from four insignificant bolt-on acquisitions merged into existing operations during the year ended December 31, 2025. For additional information regarding changes to goodwill resulting from acquisitions, see Note 18, Business Combinations.
On October 1, 2025, our measurement date, we tested goodwill for impairment by reporting unit. We have the option to either assess goodwill for impairment by performing a qualitative assessment to determine whether it is more likely than not that the fair value is less than its carrying value, or to bypass the qualitative evaluation and perform a quantitative assessment. For the Installation and Manufacturing reporting unit, we performed a qualitative assessment in conformity with generally accepted accounting principles and determined that no impairment of goodwill was required. For our Distribution reporting unit, we elected to perform an individual quantitative assessment. The assessment approximated the fair value of the Distribution reporting unit by weighting a discounted cash flow model and a market-related model in consultation with an external valuation expert. Based on this assessment, we determined that no impairment of goodwill was required for our Distribution reporting unit.
We had no material impairment of goodwill for the years ended December 31, 2025, 2024 or 2023. Accumulated impairment losses included within the above table were incurred over multiple periods, with the latest material impairment charge being recorded during the year ended December 31, 2010. These accumulated losses were assigned to our Installation reporting unit.
Intangibles, net
The following table provides the gross carrying amount, accumulated amortization and net book value for each major class of intangibles (in millions):
| As of December 31, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||
| Gross Carrying Amount | Accumulated Amortization | Net Book Value | Gross Carrying Amount | Accumulated Amortization | Net Book Value | ||||||||||||||||||||||||||||||
| Amortized intangibles: | |||||||||||||||||||||||||||||||||||
| Customer relationships | $ | 407.8 | $ | 235.6 | $ | 172.2 | $ | 386.4 | $ | 207.6 | $ | 178.8 | |||||||||||||||||||||||
| Covenants not-to-compete | 36.0 | 30.5 | 5.5 | 34.6 | 27.1 | 7.5 | |||||||||||||||||||||||||||||
| Trademarks, tradenames and other | 148.0 | 64.7 | 83.3 | 139.5 | 55.3 | 84.2 | |||||||||||||||||||||||||||||
| Backlog | 22.4 | 21.9 | 0.5 | 21.6 | 21.6 | — | |||||||||||||||||||||||||||||
| Total intangibles | $ | 614.2 | $ | 352.7 | $ | 261.5 | $ | 582.1 | $ | 311.6 | $ | 270.5 | |||||||||||||||||||||||
The gross carrying amount of intangibles increased approximately $32.1 million and $43.0 million during the years ended December 31, 2025 and 2024, respectively. Intangibles associated with business combinations accounted for approximately $28.0 million and $49.0 million of the increases during the years ended December 31, 2025 and 2024, respectively. For the year ended December 31, 2024, we recorded a $4.6 million intangible impairment charge related to the wind down of a single branch. During each of the years ended December 31, 2025 and 2023, we did not record any impairments on intangible assets. For more information on business combinations and asset impairments, see Note 18, Business Combinations and Note 10, Fair Value Measurements, respectively. Amortization expense on intangible assets totaled approximately $41.1 million, $42.5
million, and $44.5 million during the years ended December 31, 2025, 2024 and 2023, respectively. Remaining estimated aggregate annual amortization expense is as follows (in millions):
| 2026 | $ | 38.5 | |||
| 2027 | 33.6 | ||||
| 2028 | 30.0 | ||||
| 2029 | 27.2 | ||||
| 2030 | 25.9 | ||||
| Thereafter | 106.3 | ||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 22, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 24, 2021 | |
| 2019 | Feb 27, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Feb 28, 2018 | |
| 2016 | Feb 28, 2017 | |
| 2015 | Mar 9, 2016 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.