Company Performance - Gibraltar Industries reported quarterly earnings of $1.27 per share, exceeding the Zacks Consensus Estimate of $1.26 per share, but down from $1.38 per share a year ago, indicating a 7.99% year-over-year decline [1] - The company posted revenues of $361.2 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 0.25% and down from $390.74 million year-over-year [2] - Over the last four quarters, Gibraltar Industries has surpassed consensus EPS estimates two times but has not beaten consensus revenue estimates [2] Stock Performance - Shares of Gibraltar Industries have declined approximately 17.7% since the beginning of the year, contrasting with the S&P 500's gain of 22.3% [3] - The current Zacks Rank for Gibraltar Industries is 4 (Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.94 on revenues of $314.8 million, and for the current fiscal year, it is $4.18 on revenues of $1.32 billion [7] - The trend for estimate revisions ahead of the earnings release was unfavorable, which may impact future stock performance [6] Industry Context - The Building Products - Miscellaneous industry, to which Gibraltar Industries belongs, is currently ranked in the bottom 29% of over 250 Zacks industries, suggesting a challenging environment [8]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Presents unaudited consolidated financial statements for Q3 and 9M 2024 and 2023, including income, balance sheet, cash flow, and equity statements Consolidated Statements of Income (Unaudited, $ thousands) | Metric | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $361,196 | $390,744 | $1,006,707 | $1,048,925 | | **Gross profit** | $93,526 | $105,384 | $273,787 | $279,052 | | **Income from operations** | $43,998 | $53,190 | $118,203 | $125,637 | | **Net income** | $34,039 | $39,277 | $91,183 | $91,099 | | **Diluted EPS** | $1.11 | $1.28 | $2.96 | $2.96 | Consolidated Balance Sheet Highlights ($ thousands) | Asset/Liability | Sep 30, 2024 (unaudited) | Dec 31, 2023 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $228,879 | $99,426 | | **Total current assets** | $642,291 | $462,251 | | **Total assets** | $1,424,590 | $1,256,451 | | **Total current liabilities** | $306,593 | $225,578 | | **Total stockholders' equity** | $1,003,233 | $914,998 | Consolidated Statements of Cash Flows (Unaudited, $ thousands) | Cash Flow Activity | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $154,335 | $206,656 | | **Net cash used in investing activities** | ($13,976) | ($17,839) | | **Net cash used in financing activities** | ($10,940) | ($120,182) | | **Net increase in cash and cash equivalents** | $129,453 | $67,857 | - A **$10.4 million** acquisition of a Utah-based roof flashing manufacturer occurred on July 5, 2023, integrated into the Residential segment[32](index=32&type=chunk) Exit Activity and Asset Impairment Charges ($ thousands) | Period | 2024 | 2023 | | :--- | :--- | :--- | | **Three Months Ended Sep 30** | $5,106 | $4,978 | | **Nine Months Ended Sep 30** | $10,050 | $8,695 | Segment Net Sales ($ thousands) | Segment | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 | | :--- | :--- | :--- | :--- | :--- | | **Residential** | $212,363 | $227,747 | $611,790 | $635,476 | | **Renewables** | $84,064 | $106,362 | $214,941 | $243,026 | | **Agtech** | $41,527 | $31,666 | $110,062 | $102,546 | | **Infrastructure** | $23,242 | $24,969 | $69,914 | $67,877 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a consolidated net sales decrease of 7.6% for Q3 and 4.0% for 9M, driven by volume declines in Residential and Renewables, alongside margin, liquidity, and cash flow analysis [Overview and Business Strategy](index=19&type=section&id=Overview%20and%20Business%20Strategy) The company operates in Residential, Renewables, Agtech, and Infrastructure segments, guided by a three-pillar strategy, with Renewables facing regulatory and trade policy uncertainties - The company's strategy is built on three core pillars: **Business System**, **Portfolio Management**, and **Organization Development**[82](index=82&type=chunk)[83](index=83&type=chunk)[84](index=84&type=chunk) - The Renewables business faces ongoing uncertainty from AD/CVD investigations, the 2024 tariff moratorium expiration, and lack of Inflation Reduction Act guidance[81](index=81&type=chunk) [Results of Operations](index=21&type=section&id=Results%20of%20Operations) Q3 net sales decreased 7.6% YoY, primarily due to declines in Renewables and Residential, while 9M net sales fell 4.0%, with Renewables' operating margins significantly declining Q3 2024 vs Q3 2023 Net Sales Change by Segment ($ thousands) | Segment | 2024 Net Sales | 2023 Net Sales | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Residential** | $212,363 | $227,747 | ($15,384) | -6.7% | | **Renewables** | $84,064 | $106,362 | ($22,298) | -21.0% | | **Agtech** | $41,527 | $31,666 | $9,861 | +31.1% | | **Infrastructure** | $23,242 | $24,969 | ($1,727) | -6.9% | | **Consolidated** | $361,196 | $390,744 | ($29,548) | -7.6% | Q3 2024 vs Q3 2023 Operating Margin by Segment (Percentage) | Segment | 2024 Operating Margin | 2023 Operating Margin | | :--- | :--- | :--- | | **Residential** | 19.8% | 18.5% | | **Renewables** | 1.0% | 12.1% | | **Agtech** | 9.3% | 6.7% | | **Infrastructure** | 27.9% | 25.6% | 9M 2024 vs 9M 2023 Net Sales Change by Segment ($ thousands) | Segment | 2024 Net Sales | 2023 Net Sales | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Residential** | $611,790 | $635,476 | ($23,686) | -3.7% | | **Renewables** | $214,941 | $243,026 | ($28,085) | -11.6% | | **Agtech** | $110,062 | $102,546 | $7,516 | +7.3% | | **Infrastructure** | $69,914 | $67,877 | $2,037 | +3.0% | | **Consolidated** | $1,006,707 | $1,048,925 | ($42,218) | -4.0% | 9M 2024 vs 9M 2023 Operating Margin by Segment (Percentage) | Segment | 2024 Operating Margin | 2023 Operating Margin | | :--- | :--- | :--- | | **Residential** | 19.6% | 18.2% | | **Renewables** | 1.9% | 8.7% | | **Agtech** | 7.9% | 3.3% | | **Infrastructure** | 25.2% | 22.0% | [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity of **$623.9 million** as of September 30, 2024, primarily from cash and a revolving credit facility, allocating capital to working capital, improvements, acquisitions, and share repurchases Liquidity Position ($ thousands) | Component | Sep 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $228,879 | $99,426 | | **Availability on revolving credit facility** | $395,055 | $396,056 | | **Total Liquidity** | **$623,934** | **$495,482** | - Primary liquidity sources include cash on hand and a **$400 million** revolving credit facility expiring December 2027[123](index=123&type=chunk) [Cash Flows](index=26&type=section&id=Cash%20Flows) Net cash from operating activities for 9M 2024 was **$154.3 million**, a decrease from the prior year, primarily due to working capital changes, with investing and financing activities using **$14.0 million** and **$10.9 million** respectively Cash Flow Summary for Nine Months Ended Sep 30 ($ thousands) | Activity | 2024 | 2023 | | :--- | :--- | :--- | | **Operating Activities** | $154,335 | $206,656 | | **Investing Activities** | ($13,976) | ($17,839) | | **Financing Activities** | ($10,940) | ($120,182) | - The decrease in operating cash flow in 2024 was largely due to less favorable changes in working capital, specifically accounts payable and inventory[131](index=131&type=chunk)[132](index=132&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=26&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risk exposure, including interest rates, foreign exchange, and raw material pricing, have occurred since the December 31, 2023, 10-K filing - No material changes in the company's market risk factors were reported during the current year[140](index=140&type=chunk) [Item 4. Controls and Procedures](index=26&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of September 30, 2024, with a new ERP system implemented in the Residential segment representing a change in internal control - The CEO and CFO concluded that disclosure controls and procedures were effective at the end of the reporting period[141](index=141&type=chunk) - A new ERP system was implemented for a Residential segment operating unit in Q3 2024, aiming to enhance security and automate accounting[143](index=143&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=27&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course litigation, but management does not anticipate any material impact on its financial condition, results, or liquidity - Management does not believe any pending litigation will materially affect the company's consolidated financial condition[144](index=144&type=chunk) [Item 1A. Risk Factors](index=27&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors have been reported since the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023 - No material changes to risk factors were reported for the quarter ended September 30, 2024[146](index=146&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=28&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q3 2024, the company repurchased **139,427** shares at an average price of **$64.45**, with approximately **$80.0 million** remaining under the share repurchase program Share Repurchases for the Quarter Ended September 30, 2024 | Month | Total Shares Purchased (Shares) | Average Price Paid per Share (US dollars per share) | | :--- | :--- | :--- | | July 2024 | — | — | | August 2024 | 122,534 | $64.39 | | September 2024 | 16,893 | $64.89 | | **Total** | **139,427** | **$64.45** | - The company's **$200 million** share repurchase program is authorized for three years, concluding May 2, 2025[148](index=148&type=chunk) [Item 6. Exhibits](index=29&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO/CFO certifications and Inline XBRL documents SIGNATURES [Signatures](index=30&type=section&id=Signatures) The report is signed on October 30, 2024, by William T. Bosway, Chairman, President, and CEO, and Joseph A. Lovechio, VP and CFO

Gibraltar Industries, Inc. (ROCK) recently announced the revision of its 2024 net sales and earnings per share (EPS) guidance. The revision showcases a downgrade from its previously stated guidance primarily due to the ongoing softness in the housing market and risks encompassing the solar industry. ROCK's Revised 2024 Guidance During the second quarter of 2024 earnings, the company lowered its net sales expectations, for the year, to the range of $1.38-$1.42 billion compared with the previous expectations ...

Core Insights - Gibraltar Industries Inc. is positioned to leverage its Three-Pillar growth strategy, which focuses on Business Systems, Portfolio Management, and Organizational Development, to enhance operational and financial performance [1][3] - The company is experiencing positive momentum in its Infrastructure segment and solar module supply, alongside ongoing supply chain optimization efforts [1] - Despite facing challenges in its Residential and Renewables segments, Gibraltar remains optimistic about long-term growth opportunities, particularly in the U.S. solar market [5] Group 1: Growth Strategy and Market Position - The Three-Pillar strategy is driving operational improvements and positioning the company for long-term growth by optimizing processes and strengthening its organizational structure [3] - Gibraltar is benefiting from global trends in infrastructure modernization and energy transition, supported by U.S. government initiatives to rebuild infrastructure and promote climate resilience [4] Group 2: Segment Performance - The Residential segment, despite a 6.1% year-over-year decline in net sales, has shown strong growth potential, with revenues increasing from $350 million in 2019 to over $800 million in 2023 [6] - The Renewables segment is facing headwinds due to trade policies and regulatory issues, with a 10% decline in order backlog, although there is a growing pipeline of new projects [10] Group 3: Financial Outlook - The company has adjusted its 2024 net sales outlook to a range of $1.38 billion to $1.42 billion, down from a previous forecast of $1.43 billion to $1.48 billion, reflecting slower market conditions [7] - In the second quarter, the Residential segment's decline was attributed to slower market activity and inventory reductions, while the Agtech segment also experienced a 1.4% decline [8]

Financial Data and Key Metrics Changes - Adjusted net sales decreased by 2%, primarily due to market headwinds affecting growth in residential and renewables businesses [3][4] - Adjusted net income increased by 2.8% and adjusted EPS rose by 2.6%, with operating cash flow of $36 million generated [5][19] - Backlog decreased by 4%, influenced by project booking timing in renewables and a challenging year-over-year comparison [5] Business Line Data and Key Metrics Changes Residential - Sales decreased by 6.1% year-over-year, driven by a slowing market and channel destocking [6] - Adjusted operating and EBITDA margins improved to 20.3% and 21.7%, respectively, due to effective price cost management [6][7] Renewables - Adjusted net sales increased by 8.2% year-over-year and 54% sequentially, driven by demand for the new 1P tracker product [9] - Adjusted operating and EBITDA margins decreased by 270 and 290 basis points, respectively, due to a mix shift to the new product [9] Agtech - Adjusted net sales increased by 0.6%, with backlog up 32% year-over-year and 95% sequentially [16] - Strong bookings of over $90 million in the quarter, supporting revenue growth in the second half [17] Infrastructure - Sales increased by 2.5%, with backlog down 12% due to a large project reaching completion [18] Market Data and Key Metrics Changes - The residential market saw a 10% decline in point-of-sale results in both retail and distribution channels [7] - Renewables faced project delays due to ongoing trade and regulatory issues, impacting customer contract timing [9][10] - Agtech experienced a significant ramp-up in sales towards the end of the quarter, with June sales up over 30% from May [16] Company Strategy and Development Direction - The company aims to drive growth, improve quality of earnings, and focus on M&A opportunities [21] - Continued execution of 80/20 initiatives and digital transformation plans are prioritized [21] - The company is expanding participation in key markets, with plans to enter eight new markets in the next two to three quarters [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving growth in the residential segment despite recent market challenges [25] - The outlook for renewables remains cautious, with expectations for improvement in 2025 as regulatory issues are resolved [26] - Agtech is expected to deliver revenue and margin growth in 2024, supported by a healthy pipeline of projects [17][28] Other Important Information - The company maintains a strong balance sheet with $179 million in cash and $395 million available on its revolver [19] - Free cash flow generation for the quarter was 9.1% of sales, with an unchanged objective of approximately 10% for the year [19][20] Q&A Session Summary Question: Has the destocking in residential run its course? - Management believes destocking has settled and expects positive growth in the residential market for the remainder of the year [25] Question: What is the outlook for renewables revenue ramping in 2025? - Management anticipates that complexities will reduce over time, leading to improved conditions for revenue growth in 2025 [26] Question: What are the keys to generating consistent double-digit margins in Agtech and renewables? - Management highlighted that improved volume and quality of projects will contribute to margin uplift in the second half of the year [28] Question: How much revenue is expected to ramp in Agtech in the second half? - Management indicated a significant upshot in revenue based on active projects and a strong backlog [34] Question: What is the impact of regulatory issues on renewables orders? - Approximately 20% of the business is impacted by regulatory challenges, affecting order timing and bookings [37]

Core Viewpoint - Gibraltar Industries, Inc. (ROCK) reported strong second-quarter 2024 earnings despite missing top-line expectations, with adjusted earnings per share (EPS) increasing year-over-year [1][3]. Financial Performance - Adjusted EPS was $1.18, missing the Zacks Consensus Estimate of $1.26 by 6.4%, but increased by 2.6% year-over-year [3]. - Net sales totaled $353 million, falling short of the consensus mark of $370 million by 4.7% and decreasing 3.3% from the prior year's $364.9 million due to a slowdown in the Residential market [3]. Segmental Performance - **Renewable Energy**: Net sales increased by 2.5% year-over-year to $79.4 million, driven by demand for the new 1P tracker product, although order backlog fell by 10% [4]. - **Residential Products**: Net sales decreased by 6.1% year-over-year to $214.3 million, impacted by market slowdown and channel destocking, but adjusted operating margin expanded by 100 basis points to 20.3% [6][7]. - **Agtech**: Sales declined by 1.4% year-over-year, but adjusted sales increased by 0.6% to $34.5 million, with backlogs up 32% year-over-year [8]. - **Infrastructure**: Sales rose by 2.5% year-over-year to $24.8 million, with an adjusted operating margin expanding by 100 basis points to 25.1% [10][11]. Operating Highlights - Adjusted operating income declined by 4% to $47 million, with an adjusted operating margin contracting by 30 basis points to 13.4% [12]. - Adjusted EBITDA fell by 3% to $58 million, with the adjusted EBITDA margin decreasing by 10 basis points to 16.4% [12]. Balance Sheet & Cash Flow - As of June 30, 2024, the company had liquidity of $574 million, including cash and cash equivalents of $179 million, compared to $99.4 million at the end of 2023 [13]. - Net cash provided by operating activities in the first half of 2024 totaled $89.7 million, down from $114.1 million in the prior-year period [13]. 2024 Guidance - The company updated its net sales outlook for 2024 to $1.38-$1.42 billion, down from previous expectations of $1.43-$1.48 billion [14]. - GAAP EPS is expected to be in the range of $4.04-$4.29, while adjusted EPS is projected to be $4.57-$4.82 [14]. Market Outlook - The company anticipates strong revenue growth in the second half of 2024, particularly in Agtech and Infrastructure segments, with expectations for increased order flow [15].

This quarterly report represents an earnings surprise of -6.35%. A quarter ago, it was expected that this building-products company would post earnings of $0.76 per share when it actually produced earnings of $0.80, delivering a surprise of 5.26%. Gibraltar Industries, which belongs to the Zacks Building Products - Miscellaneous industry, posted revenues of $353.01 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 4.65%. This compares to year-ago revenues of $364.91 million. T ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR Commission File Number: 000-22462 GIBRALTAR INDUSTRIES, INC. (Exact name of registrant as specified in its charter) Delaware 16-1445150 (State or Other Jurisdiction of Incorporation or Organization) (I.R.S. Employer Identification No.) 3556 Lake Shore Road P.O. Box 2028 Bu ...

[Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) This section provides an overview of the company's consolidated financial performance for the second quarter of 2024 [Second Quarter 2024 Consolidated Results](index=1&type=section&id=Second%20Quarter%202024%20Consolidated%20Results) In Q2 2024, Gibraltar reported a slight decrease in net sales, with GAAP sales down 3.3% and adjusted sales down 2.0% year-over-year. However, the company achieved growth in profitability, with GAAP net income increasing by 4.9% and diluted EPS growing by 5.0%. The company also generated strong operating cash flow of $36 million Second Quarter 2024 Consolidated Results Summary (in millions, except per share amounts) | Metric | 2024 | 2023 | Change | | :--- | :--- | :--- | :--- | | **GAAP Net Sales** | $353.0M | $364.9M | (3.3)% | | **Adjusted Net Sales** | $353.0M | $360.1M | (2.0)% | | **GAAP Net Income** | $32.2M | $30.7M | 4.9% | | **Adjusted Net Income** | $36.4M | $35.4M | 2.8% | | **GAAP Diluted EPS** | $1.05 | $1.00 | 5.0% | | **Adjusted Diluted EPS** | $1.18 | $1.15 | 2.6% | - Generated strong operating cash flow of **$36 million** during the quarter[3](index=3&type=chunk) - The company faced market headwinds from unexpected channel destocking in the Residential segment and customer project delays in the Renewables business[3](index=3&type=chunk) [Second Quarter Segment Results](index=2&type=section&id=Second%20Quarter%20Segment%20Results) This section details the financial performance of Gibraltar's Residential, Renewables, Agtech, and Infrastructure segments [Residential](index=2&type=section&id=Residential) The Residential segment's net sales decreased by 6.1% to $214.3 million due to a slowing market and channel destocking. Despite the sales decline, operating margin expanded by 100 basis points on an adjusted basis, driven by solid execution and effective price/cost management Residential Segment Performance (in millions, except percentages) | Metric | Q2 2024 | Q2 2023 | Change | | :--- | :--- | :--- | :--- | | **Net Sales** | $214.3M | $228.2M | (6.1)% | | **Adjusted Operating Income** | $43.5M | $44.0M | (1.1)% | | **Adjusted Operating Margin** | 20.3% | 19.3% | +100 bps | - The sales decrease was driven by a slowing market and unexpected channel destocking, partially offset by participation gains and growth in ventilation product lines[75](index=75&type=chunk) [Renewables](index=2&type=section&id=Renewables) The Renewables segment saw an 8.2% increase in adjusted net sales to $79.4 million, driven by strong demand for its new 1P tracker product. However, both GAAP and adjusted operating margins declined significantly due to product mix and learning curve inefficiencies associated with the new product launch. Order backlog decreased by 10% as some customers paused new contracts due to trade and regulatory issues Renewables Segment Performance (in millions, except percentages) | Metric | Q2 2024 | Q2 2023 | Change | | :--- | :--- | :--- | :--- | | **Adjusted Net Sales** | $79.4M | $73.4M | 8.2% | | **Adjusted Operating Income** | $6.2M | $7.7M | (19.5)% | | **Adjusted Operating Margin** | 7.8% | 10.5% | (270) bps | - Net sales were driven by strong demand for the new 1P tracker product[7](index=7&type=chunk) - Operating margins were negatively impacted by product mix and the learning curve of the new 1P tracker product launch[8](index=8&type=chunk)[9](index=9&type=chunk) [Agtech](index=3&type=section&id=Agtech) The Agtech segment's adjusted net sales were flat, increasing by 0.6% to $34.5 million. The segment achieved a record-breaking $90 million in new bookings, a nearly 400% increase over Q1, leading to a 32% year-over-year rise in backlog. This strong order flow supports expectations for significant revenue growth in the second half of the year Agtech Segment Performance (in millions, except percentages) | Metric | Q2 2024 | Q2 2023 | Change | | :--- | :--- | :--- | :--- | | **Adjusted Net Sales** | $34.5M | $34.3M | 0.6% | | **Adjusted Operating Income** | $2.3M | $3.3M | (30.3)% | | **Adjusted Operating Margin** | 6.6% | 9.5% | (290) bps | - Achieved a record **$90 million** in new bookings during the quarter, an increase of nearly **400%** from Q1[31](index=31&type=chunk) - The strong bookings resulted in a **32%** increase in backlog compared to the prior year, supporting strong revenue growth expectations for the second half[3](index=3&type=chunk)[31](index=31&type=chunk) [Infrastructure](index=3&type=section&id=Infrastructure) The Infrastructure segment reported a 2.5% increase in net sales to $24.8 million. Operating income grew by 6.9%, and operating margin expanded by 100 basis points to 25.1%, attributed to effective price/cost alignment, strong execution, and favorable product mix Infrastructure Segment Performance (in millions, except percentages) | Metric | Q2 2024 | Q2 2023 | Change | | :--- | :--- | :--- | :--- | | **Net Sales** | $24.8M | $24.2M | 2.5% | | **Operating Income** | $6.2M | $5.8M | 6.9% | | **Operating Margin** | 25.1% | 24.1% | +100 bps | - Margin expansion was driven by price/cost alignment, strong execution, **80/20** productivity initiatives, and improving product mix[32](index=32&type=chunk) [Business Outlook](index=4&type=section&id=Business%20Outlook) This section outlines the company's financial projections and strategic expectations for the full year 2024 [Full Year 2024 Guidance](index=4&type=section&id=Full%20Year%202024%20Guidance) Gibraltar has slightly adjusted its full-year 2024 net sales forecast to a range of $1.38 billion to $1.42 billion, reflecting slower conditions in Residential and Renewables markets, offset by strength in Agtech and Infrastructure. The company reaffirmed its EPS guidance, with GAAP EPS expected to be between $4.04 and $4.29, and adjusted EPS between $4.57 and $4.82 Full Year 2024 Guidance (in billions, except per share amounts) | Metric | 2024 Outlook | 2023 Actual | | :--- | :--- | :--- | | **Consolidated Net Sales** | $1.38B - $1.42B | $1.38B | | **GAAP EPS** | $4.04 - $4.29 | $3.59 | | **Adjusted EPS** | $4.57 - $4.82 | $4.09 | - The net sales outlook was adjusted to reflect slower market conditions in Residential and Renewables, offset by strength in Agtech and Infrastructure[33](index=33&type=chunk) - The outlook for both GAAP and adjusted EPS remains unchanged[12](index=12&type=chunk) [Financial Statements](index=7&type=section&id=Financial%20Statements) This section presents the company's core financial statements, including consolidated statements of income, balance sheets, and cash flows [Consolidated Statements of Income](index=7&type=section&id=Consolidated%20Statements%20of%20Income) For the second quarter ended June 30, 2024, net sales were $353.0 million, a decrease from $364.9 million in the prior year. Despite lower sales, net income increased to $32.2 million from $30.7 million, driven by a lower provision for income taxes and a shift from interest expense to interest income Consolidated Statements of Income (in thousands, except per share amounts) | (In thousands) | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | **Net sales** | $353,005 | $364,914 | | **Gross profit** | $95,873 | $96,739 | | **Income from operations** | $42,469 | $43,077 | | **Net income** | $32,198 | $30,723 | | **Diluted EPS** | $1.05 | $1.00 | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2024, Gibraltar's total assets increased to $1.38 billion from $1.26 billion at the end of 2023. The increase was primarily driven by higher cash and cash equivalents and accounts receivable. Total stockholders' equity also grew to $975.7 million from $915.0 million over the same period Consolidated Balance Sheets (in thousands) | (In thousands) | June 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $179,102 | $99,426 | | **Total current assets** | $591,865 | $462,251 | | **Total assets** | $1,376,941 | $1,256,451 | | **Total current liabilities** | $285,485 | $225,578 | | **Total stockholders' equity** | $975,671 | $914,998 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2024, net cash provided by operating activities was $89.7 million, compared to $114.1 million in the prior-year period. The decrease was mainly due to changes in working capital, particularly a larger increase in accounts receivable. The company's cash and cash equivalents increased by $79.7 million during the period, ending at $179.1 million Consolidated Statements of Cash Flows (in thousands) | (In thousands) | Six Months 2024 | Six Months 2023 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $89,653 | $114,094 | | **Net cash used in investing activities** | ($8,357) | ($4,730) | | **Net cash used in financing activities** | ($1,447) | ($107,970) | | **Net increase in cash** | $79,676 | $1,013 | | **Cash at end of period** | $179,102 | $18,621 | [Non-GAAP Financial Measures](index=5&type=section&id=Non-GAAP%20Financial%20Measures) This section explains and reconciles the company's non-GAAP financial measures to their most directly comparable GAAP counterparts [Explanation of Adjusted Measures](index=5&type=section&id=Explanation%20of%20Adjusted%20Measures) The company uses non-GAAP financial measures such as adjusted net sales, adjusted operating income, and adjusted EPS to supplement its GAAP results. These measures exclude special charges like restructuring costs, acquisition-related items, senior leadership transition costs, and the results of divested or liquidated businesses. Management believes these adjusted figures provide a clearer view of core operating performance and facilitate comparisons across periods - Adjusted financial measures exclude special charges not considered directly related to ongoing business operations[35](index=35&type=chunk) - Specific exclusions include: restructuring costs, senior leadership transition costs, acquisition-related costs, and portfolio management actions (e.g., liquidated Processing business and sold Japan renewables business)[35](index=35&type=chunk) [Reconciliation of GAAP to Non-GAAP Measures](index=10&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) This section provides detailed tables reconciling GAAP financial results to the company's non-GAAP adjusted measures for various periods, including the second quarter, first six months, and full year. The reconciliations cover key metrics such as net sales, operating income, net income, EPS, and EBITDA, broken down by business segment where applicable Q2 2024 Income from Operations Reconciliation (in thousands) | Q2 2024 Income from Operations (In thousands) | GAAP | Adjustments | Adjusted | | :--- | :--- | :--- | :--- | | **Residential** | $43,313 | $145 | $43,458 | | **Renewables** | $1,647 | $4,562 | $6,209 | | **Agtech** | $2,282 | $11 | $2,293 | | **Infrastructure** | $6,215 | $0 | $6,215 | | **Unallocated corporate** | ($10,988) | $100 | ($10,888) | | **Consolidated** | **$42,469** | **$4,818** | **$47,287** | - The report includes detailed reconciliation tables for Q2 2024, Q2 2023, the six months ended June 30 for both years, and the full year 2023[23](index=23&type=chunk)[25](index=25&type=chunk)[62](index=62&type=chunk)

Highlights Black Rock South Results Project Soil sampling was completed across the property in a grid style to ensure complete coverage of the property. A total of 38 samples were completed at intervals of 300 meters. Soil samples were collected using shovel at a depth of ~20-30 cm. Top portion of the sample was included for a complete soil profile of any evaporite on surface within the property. Caution must be exercised in interpreting the results due to capillary action from evaporation and brine movemen ...