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Information on Segments | 6 Months Ended
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Jun. 30, 2025
Segment Reporting [Abstract] |
Information on Segments | INFORMATION ON SEGMENTS Our Chief Executive Officer is our Chief Operating Decision Maker ("CODM") who reviews financial information for each of our three operating segments, consisting of Installation, Distribution and Manufacturing, for the purpose of assessing business performance, managing the business and allocating resources. Our Installation operating segment represents the majority of our net revenue and gross profit and forms our one reportable segment. This operating segment represents the service-based installation of insulation and complementary building products in the residential new construction, repair and remodel and commercial construction end markets from our national network of branch locations. These branch locations have similar economic and operating characteristics including the nature of products and services offered, operating procedures and risks, customer bases, employee incentives, material procurement and shared corporate resources which led us to conclude that they combine to form one operating segment. The Other category reported below reflects the operations of our two remaining operating segments, Distribution and Manufacturing, which do not meet the quantitative thresholds for separate reporting. Our Distribution operating segment includes our distribution businesses that sell insulation, gutters and accessories primarily to installers of these products who operate in multiple end markets. Our Manufacturing operating segment consists of our manufacturing operation which produces cellulose insulation and asphalt and industrial fibers to sell to distributors and installers of these products. The Installation reportable segment includes substantially all of our net revenue from services while net revenue included in the Other category includes substantially all of our net revenue from sales of products. The intercompany sales from the Other category to the Installation reportable segment include a profit margin while our Installation segment records these transactions at cost. These transactions are shown in the reconciliation of revenue and segment gross profit below. The key metrics used by our CODM to assess performance, review results and allocate resources of our operating segments are revenue and segment gross profit. Our CODM reviews segment gross profit for each of our segments separately and uses this metric to guide operating decisions and business strategy. We define segment gross profit as revenue less cost of sales, excluding depreciation and amortization. We do not report depreciation and amortization expenses included in reported cost of sales, operating expenses or other expense, net, or total assets by segment because our CODM does not regularly receive or use this information. The following tables represent our segment information for the three and six months ended June 30, 2025 and 2024 (in millions):
| Three months ended June 30, |  | Six months ended June 30,
Installation Segment | 2025 |  | 2024 |  | 2025 |  | 2024
Revenue | $ | 715.6 |  |  | $ | 697.3 |  |  | $ | 1,362.8 |  |  | $ | 1,353.2 |
Cost of sales (1) | 450.1 |  |  | 443.1 |  |  | 867.8 |  |  | 862.4 |
Segment gross profit | $ | 265.5 |  |  | $ | 254.2 |  |  | $ | 495.0 |  |  | $ | 490.8 |
Segment gross profit percentage | 37.1 | % |  | 36.5 | % |  | 36.3 | % |  | 36.3 | %
(1)Cost of sales included in the Installation segment gross profit is exclusive of depreciation and amortization for the three and six months ended June 30, 2025 and 2024. The reconciliation of Installation revenue and segment gross profit for each period as shown in the table above to consolidated net revenue and income before income taxes is as follows (in millions):
| Three months ended June 30, |  | Six months ended June 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Reconciliation of revenue: |  |  |  |  |  |  |
Installation segment revenue | $ | 715.6 |  |  | $ | 697.3 |  |  | $ | 1,362.8 |  |  | $ | 1,353.2 |
Other revenue (1) | 56.7 |  |  | 44.0 |  |  | 100.6 |  |  | 84.3 |
Elimination of inter-segment revenue | (12.0) |  |  | (3.7) |  |  | (18.3) |  |  | (7.0) |
Total consolidated net revenue | $ | 760.3 |  |  | $ | 737.6 |  |  | $ | 1,445.1 |  |  | $ | 1,430.5 |
Reconciliation of segment gross profit: |  |  |  |  |  |  |
Installation segment gross profit | $ | 265.5 |  |  | $ | 254.2 |  |  | $ | 495.0 |  |  | $ | 490.8 |
Other gross profit (1) | 13.0 |  |  | 11.5 |  |  | 24.3 |  |  | 23.3 |
Elimination of inter-segment gross profit | (3.4) |  |  | (0.9) |  |  | (5.3) |  |  | (1.9) |
Less: |  |  |  |  |  |  |
Depreciation and amortization | 15.2 |  |  | 13.4 |  |  | 30.4 |  |  | 26.3 |
Total consolidated gross profit, as reported | 259.9 |  |  | 251.4 |  |  | 483.6 |  |  | 485.9 |
Operating expenses | 158.9 |  |  | 156.6 |  |  | 312.8 |  |  | 303.2 |
Operating income | 101.0 |  |  | 94.8 |  |  | 170.8 |  |  | 182.7 |
Other expense, net | 7.6 |  |  | 8.1 |  |  | 16.1 |  |  | 19.6 |
Income before income taxes | $ | 93.4 |  |  | $ | 86.7 |  |  | $ | 154.7 |  |  | $ | 163.1 |
(1)Other revenue and other gross profit include the remaining two operating segments, Distribution and Manufacturing before inter-segment eliminations. These operating segments are each below the quantitative thresholds for being reported as a reportable segment for the three and six months ended June 30, 2025 and 2024.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name 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