How to get .app file of a xcode application
You can find the .app file here:
~/Library/Developer/Xcode/DerivedData/{app name}/Build/Products/Deployment/
Credit for the path location goes to this answer
SIDENOTE: I had a lot of fun trying to get this into my iPad after that. It worked however. Using Snow Leopard + Xcode 4.2 + iPad with IOS 5.1.1 :) - I used the iPhone configuration utility to get the app into the ipad (you have to add the app, then click on the device, then click "install" behind the app you just added in the "application library" of iphone configuration utility) and had to create a Distribution Provisioning Profile and get the WWDR certificate and finally change the build settings in Xcode after all the certificates were in place. See here
But after much fun I am now looking at my first app on my iPad :) - btw, for getting apps into the app store you need to create a app store Distribution Provisioning Profile, while for ad hoc installs like these you create an ad hoc one. There is a bit more to it, but I think these are the most important and tricky steps. Enjoy.
PS. Just remembered that you also have to set the build type (top left of Xcode) to "iOS device", otherwise it will never sign your application. So the path name above only has limited value: yes, it will have the .app file in it, but no you can't upload it (at least not using the iPhone configuration utility) since it is not code signed - you will get an "Could not copy validate signature" error. So change it to "iOS device" and build (remember to select the right certificates in the build section of Xcode as per the url info above). In that same build section, you can also set the "Installation Build Products Location" to a different path, so that you can determine where the .app (the one that is properly code signed) ends up.
Xcode 12.5
Can be found in the following directory ->
~/Library/Developer/Xcode/DerivedData/{app name}/Build/Products/{scheme}-iphonesimulator/{app name}.app
Build a release version, and the .app file is under build/Release folder of your project. Just copy it to Applications folder of your friend's machine. I don't think you need to build a installer.