Gibraltar Industries(ROCK) - 2025 Q2 - Quarterly Results

Second Quarter 2025 Financial Highlights Overview of Performance Gibraltar reported strong Q2 2025 with adjusted net sales up 14% and EPS up 11%, affirming full-year outlook - Adjusted Net Sales increased by 14% and Adjusted EPS increased by 11% in Q2 2025[3] - Generated $44 million of operating cash flow[3] - Backlog increased 43% year-over-year in project-based businesses across Agtech and Infrastructure segments[3] - Gibraltar announced a plan to sell its Renewables business to focus on residential, agtech, and infrastructure segments[4] Consolidated Results from Continuing Operations Q2 2025 continuing operations reported GAAP net sales up 13.1% to $309.5 million and adjusted diluted EPS up 10.8% to $1.13 | Metric | 2025 ($Millions) | 2024 ($Millions) | Change | | :--- | :--- | :--- | :--- | | Net Sales (GAAP) | $309.5 | $273.6 | 13.1% | | Adjusted Net Sales | $309.5 | $270.8 | 14.3% | | Net Income (GAAP) | $29.4 | $31.0 | (5.2)% | | Adjusted Net Income | $33.6 | $31.4 | 7.0% | | Diluted EPS (GAAP) | $0.99 | $1.01 | (2.0)% | | Adjusted Diluted EPS | $1.13 | $1.02 | 10.8% | - GAAP net income decreased 5.2% primarily due to acquisition integration-related costs[8] Second Quarter Segment Results Residential Segment Residential adjusted net sales increased 8.9% to $230.3 million, driven by acquisitions and organic growth, boosting operating income | Metric | 2025 ($Millions) | 2024 ($Millions) | Change | | :--- | :--- | :--- | :--- | | Net Sales (GAAP) | $230.3 | $214.3 | 7.5% | | Adjusted Net Sales | $230.3 | $211.5 | 8.9% | | Operating Income (GAAP) | $43.6 | $43.3 | 0.7% | | Adjusted Operating Income | $45.0 | $43.1 | 4.4% | | Operating Margin (GAAP) | 18.9% | 20.2% | (130) bps | | Adjusted Operating Margin | 19.5% | 20.4% | (90) bps | - Organic growth in the building accessories business was 2.3% in a market estimated to be down approximately 4% - 5%[9] - Growth in metal roofing acquisitions and building accessories offset a slowing market for the mail and package business[9] Agtech Segment Agtech adjusted net sales surged 56.8% to $54.1 million due to acquisition, with backlog up 71% despite project delays | Metric | 2025 ($Millions) | 2024 ($Millions) | Change | | :--- | :--- | :--- | :--- | | Net Sales (GAAP) | $54.1 | $34.5 | 56.8% | | Adjusted Net Sales | $54.1 | $34.5 | 56.8% | | Operating (Loss) / Income (GAAP) | $(0.5) | $2.3 | NMF | | Adjusted Operating Income | $3.0 | $2.3 | 30.4% | | Operating Margin (GAAP) | (0.9)% | 6.6% | (750) bps | | Adjusted Operating Margin | 5.6% | 6.6% | (100) bps | - Sales growth benefited from the acquisition of Lane Supply, offsetting delays in three larger controlled environment agriculture (CEA) projects[13] - Backlog increased 71% year-over-year, with organic backlog increasing 33% excluding Lane Supply[13] - GAAP operating loss was driven by acquisition integration-related costs associated with Lane Supply[14] Infrastructure Segment Infrastructure net sales increased 1.6% to $25.2 million, with operating margins up 300 bps to 28.1% due to strong execution | Metric | 2025 ($Millions) | 2024 ($Millions) | Change | | :--- | :--- | :--- | :--- | | Net Sales (GAAP) | $25.2 | $24.8 | 1.6% | | Adjusted Net Sales | $25.2 | $24.8 | 1.6% | | Operating Income (GAAP) | $7.1 | $6.2 | 14.5% | | Adjusted Operating Income | $7.1 | $6.2 | 14.5% | | Operating Margin (GAAP) | 28.1% | 25.1% | 300 bps | | Adjusted Operating Margin | 28.1% | 25.1% | 300 bps | - Net sales and backlog increased 1.6% and 3.0% respectively, driven by strong execution, demand, and new project quoting activity[15] - Operating margins increased 300 basis points due to strong execution, supply chain management, and product line mix[16] Business Outlook 2025 Full Year Guidance Gibraltar's 2025 full-year guidance projects consolidated net sales of $1.15-$1.20 billion and adjusted EPS of $4.20-$4.45 - 2025 full year outlook for continuing operations remains on track for solid revenue, margin, and cash flow performance[17] | Metric | 2025 Guidance | 2024 Actual (Recast) | | :--- | :--- | :--- | | Consolidated Net Sales | $1.15 billion - $1.20 billion | $1.02 billion (GAAP), $1.01 billion (Adjusted) | | GAAP EPS | $3.67 - $3.91 | $4.58 (included gain on sale) | | Adjusted EPS | $4.20 - $4.45 | $3.82 | - Company plans to deploy resources for organic growth and M&A opportunities, and opportunistically execute its share repurchase program[17] Company Information & Disclosures Conference Call Details A conference call for Q2 2025 results is scheduled for August 6, 2025, at 9:00 a.m. ET, accessible via webcast or dial-in - Conference call to review Q2 2025 results on August 6, 2025, at 9:00 a.m. ET[20] - Webcast accessible through the Investors section of www.gibraltar1.com; call also accessible by dialing (888) 396-8049 or (416) 764-8646[20] About Gibraltar Gibraltar is a leading manufacturer for residential, agtech, and infrastructure markets, aiming to improve life through engineering and technology - Gibraltar is a leading manufacturer and provider of products and services for the residential, agtech, and infrastructure markets[21] - Mission: to make life better for people and the planet, fueled by advancing engineering, science, and technology[21] Forward-Looking Statements Forward-looking statements are subject to risks and uncertainties, including economic conditions and supply chain issues, investors advised to review Form 10-K - Statements are forward-looking and subject to risks, uncertainties, and assumptions that could cause actual results to differ materially[23] - Risk factors include tariffs, economic conditions, raw material availability and pricing, supply chain challenges, loss of key customers, inflation, competitive factors, and the ability to realize synergies from newly acquired businesses[23] - Investors are strongly advised to read the "Risk Factors" section in the most recent annual report on Form 10-K[23] Adjusted Financial Measures Explanation Gibraltar uses non-GAAP adjusted financial measures to supplement GAAP results, excluding special charges and discontinued operations, to show core performance - Non-GAAP financial measures include adjusted net sales, adjusted operating income and margin, adjusted net income, adjusted EPS, free cash flow, and Adjusted EBITDA[24] - Adjustments exclude special charges such as restructuring costs, senior leadership transition costs, acquisition-related costs, and portfolio management items, and include the impact of classifying the Renewables segment as a discontinued operation[24][26] - These adjusted measures provide meaningful supplemental data to investors and management, indicative of core operating results, and facilitate comparison across periods and with other companies[26] Consolidated Financial Statements Consolidated Statements of Income Consolidated statements of income detail revenues, costs, and profits for Q2 and H1 2025 and 2024, distinguishing continuing and discontinued operations | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net sales | $309,517 | $273,624 | $555,874 | $514,634 | | Gross profit | $87,835 | $83,328 | $157,688 | $155,415 | | Operating income | $39,506 | $40,822 | $68,161 | $70,914 | | Income from continuing operations | $29,438 | $30,984 | $52,553 | $53,938 | | (Loss) income from discontinued operations | $(3,434) | $1,214 | $(5,430) | $3,206 | | Net income | $26,004 | $32,198 | $47,123 | $57,144 | | Diluted EPS from continuing operations | $0.99 | $1.01 | $1.74 | $1.75 | | Diluted Net income per share | $0.87 | $1.05 | $1.56 | $1.86 | Consolidated Balance Sheets Consolidated balance sheets present assets, liabilities, and equity as of June 30, 2025, and December 31, 2024, highlighting changes in cash and discontinued operations | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $43,291 | $269,480 | | Total current assets | $753,509 | $651,332 | | Property, plant, and equipment, net | $121,053 | $87,079 | | Goodwill | $410,777 | $323,189 | | Acquired intangibles | $135,754 | $55,420 | | Total Assets | $1,482,752 | $1,419,410 | | Total current liabilities | $296,278 | $254,862 | | Total stockholders' equity | $1,041,180 | $1,048,034 | Consolidated Statements of Cash Flows Consolidated statements of cash flows detail cash from operating, investing, and financing activities for H1 2025 and 2024, showing decreased operating cash and increased investing outflows | Metric (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities of continuing operations | $48,630 | $90,411 | | Net cash provided by (used in) operating activities of discontinued operations | $9,928 | $(758) | | Net cash provided by operating activities | $58,558 | $89,653 | | Net cash used in investing activities of continuing operations | $(221,554) | $(7,326) | | Net cash used in investing activities of discontinued operations | $(974) | $(1,031) | | Net cash used in investing activities | $(222,528) | $(8,357) | | Net cash used in financing activities | $(62,499) | $(1,447) | | Net (decrease) increase in cash and cash equivalents | $(226,189) | $79,676 | | Cash and cash equivalents at end of period | $43,291 | $179,102 | - Acquisitions, net of cash acquired, resulted in a cash outflow of $192,946 thousand in the first six months of 2025[38] - Purchase of common stock at market prices increased significantly to $62,499 thousand in the first six months of 2025[38] Reconciliation of GAAP and Adjusted Financial Measures Three Months Ended June 30, 2025 This section reconciles GAAP to adjusted financial measures for Q2 2025, detailing adjustments for restructuring and acquisition costs across consolidated and segment income and margins Income and EPS Reconciliation | Metric | GAAP (in thousands) | Adjustments (in thousands) | Adjusted (in thousands) | | :--- | :--- | :--- | :--- | | Income before taxes | $39,257 | $1,582 (Restructuring) + $3,849 (Acquisition Costs) | $44,688 | | Provision for income taxes | $9,819 | $337 (Restructuring) + $893 (Acquisition Costs) | $11,049 | | Net income from continuing operations | $29,438 | $1,245 (Restructuring) + $2,956 (Acquisition Costs) | $33,639 | | Net income from continuing operations per share - diluted | $0.99 | $0.04 (Restructuring) + $0.10 (Acquisition Costs) | $1.13 | Operating Income and Margin Reconciliation | Metric | GAAP Operating Margin | Restructuring Charges | Acquisition Related Costs | Adjusted Operating Margin | | :--- | :--- | :--- | :--- | :--- | | Consolidated | 12.8 % | 0.5 % | 1.2 % | 14.5 % | | Residential | 18.9 % | 0.5 % | — % | 19.5 % | | Agtech | (0.9)% | 0.7 % | 5.9 % | 5.6 % | | Infrastructure | 28.1 % | — % | — % | 28.1 % | | Metric (in thousands) | GAAP Income from Operations | Restructuring Charges | Acquisition Related Costs | Adjusted Income from Operations | | :--- | :--- | :--- | :--- | :--- | | Consolidated | $39,506 | $1,582 | $3,849 | $44,937 | | Residential | $43,611 | $1,218 | $132 | $44,961 | | Agtech | $(494) | $364 | $3,170 | $3,040 | | Infrastructure | $7,083 | — | — | $7,083 | Detailed Adjusted Measures | Metric (in thousands) | Consolidated | Residential | Agtech | Infrastructure | | :--- | :--- | :--- | :--- | :--- | | Adjusted Operating Profit | $44,937 | $44,961 | $3,040 | $7,083 | | Adjusted Operating Margin | 14.5 % | 19.5 % | 5.6 % | 28.1 % | | Adjusted EBITDA | $55,063 | $48,821 | $5,116 | $7,858 | | Adjusted EBITDA Margin | 17.8 % | 21.2 % | 9.5 % | 31.2 % | | Free Cash Flow | $25,342 | | | | | Free Cash Flow - % of Adjusted Net Sales | 8.2 % | | | | Three Months Ended June 30, 2024 This section reconciles GAAP to adjusted financial measures for Q2 2024, including adjustments for discontinued operations, restructuring, and portfolio management Income and EPS Reconciliation | Metric | GAAP (in thousands) | Adjustments (in thousands) | Adjusted (in thousands) | | :--- | :--- | :--- | :--- | | Income before taxes | $42,131 | $580 (Restructuring) - $370 (Portfolio Mgmt) | $42,341 | | Provision for income taxes | $11,147 | $(79) (Restructuring) - $89 (Portfolio Mgmt) | $10,979 | | Net income from continuing operations | $30,984 | $659 (Restructuring) - $281 (Portfolio Mgmt) | $31,362 | | Net income from continuing operations per share - diluted | $1.01 | $0.02 (Restructuring) - $0.01 (Portfolio Mgmt) | $1.02 | Operating Income and Margin Reconciliation | Metric | GAAP Operating Margin | Restructuring & Other Charges | Portfolio Management | Adjusted Operating Margin Recast | | :--- | :--- | :--- | :--- | :--- | | Consolidated | 14.9 % | 0.1 % | (0.1)% | 15.0 % | | Residential | 20.2 % | 0.1 % | (0.2)% | 20.4 % | | Agtech | 6.6 % | — % | — % | 6.6 % | | Infrastructure | 25.1 % | — % | — % | 25.1 % | | Metric (in thousands) | GAAP Income from Operations | Restructuring & Other Charges | Portfolio Management | Adjusted Income from Operations Recast | | :--- | :--- | :--- | :--- | :--- | | Consolidated | $40,822 | $256 | $(370) | $40,708 | | Residential | $43,313 | $145 | $(370) | $43,088 | | Agtech | $2,282 | $11 | — | $2,293 | | Infrastructure | $6,215 | — | — | $6,215 | Detailed Adjusted Measures | Metric (in thousands) | Consolidated | Residential | Agtech | Infrastructure | | :--- | :--- | :--- | :--- | :--- | | Adjusted Net Sales Recast | $270,816 | $211,508 | $34,508 | $24,800 | | Adjusted Operating Profit | $40,708 | $43,088 | $2,293 | $6,215 | | Adjusted Operating Margin | 15.0 % | 20.4 % | 6.6 % | 25.1 % | | Adjusted EBITDA Recast | $48,985 | $46,010 | $3,195 | $7,026 | | Adjusted EBITDA Margin Recast | 18.1 % | 21.8 % | 9.3 % | 28.3 % | | Free Cash Flow | $43,138 | | | | | Free Cash Flow - % of Adjusted Net Sales | 15.9 % | | | | Six Months Ended June 30, 2025 This section reconciles GAAP to adjusted financial measures for H1 2025, detailing adjustments for restructuring and acquisition costs across consolidated and segment income and margins Income and EPS Reconciliation | Metric | GAAP (in thousands) | Adjustments (in thousands) | Adjusted (in thousands) | | :--- | :--- | :--- | :--- | | Income before taxes | $69,473 | $2,818 (Restructuring) + $8,104 (Acquisition Costs) | $80,395 | | Provision for income taxes | $16,920 | $637 (Restructuring) + $1,891 (Acquisition Costs) | $19,448 | | Net income from continuing operations | $52,553 | $2,181 (Restructuring) + $6,213 (Acquisition Costs) | $60,947 | | Net income from continuing operations per share - diluted | $1.74 | $0.07 (Restructuring) + $0.21 (Acquisition Costs) | $2.02 | Operating Income and Margin Reconciliation | Metric | GAAP Operating Margin | Restructuring Charges | Acquisition Related Costs | Adjusted Operating Margin | | :--- | :--- | :--- | :--- | :--- | | Consolidated | 12.3 % | 0.5 % | 1.4 % | 14.2 % | | Residential | 18.3 % | 0.6 % | — % | 18.9 % | | Agtech | 2.9 % | 0.4 % | 4.6 % | 8.0 % | | Infrastructure | 26.5 % | — % | — % | 26.5 % | | Metric (in thousands) | GAAP Income from Operations | Restructuring Charges | Acquisition Related Costs | Adjusted Income from Operations | | :--- | :--- | :--- | :--- | :--- | | Consolidated | $68,161 | $2,818 | $8,115 | $79,094 | | Residential | $74,871 | $2,355 | $132 | $77,358 | | Agtech | $2,891 | $432 | $4,589 | $7,912 | | Infrastructure | $12,341 | — | — | $12,341 | Detailed Adjusted Measures | Metric (in thousands) | Consolidated | Residential | Agtech | Infrastructure | | :--- | :--- | :--- | :--- | :--- | | Adjusted Operating Profit | $79,094 | $77,358 | $7,912 | $12,341 | | Adjusted Operating Margin | 14.2 % | 18.9 % | 8.0 % | 26.5 % | | Adjusted EBITDA | $97,298 | $84,197 | $11,464 | $13,880 | | Adjusted EBITDA Margin | 17.5 % | 20.5 % | 11.6 % | 29.9 % | | Free Cash Flow | $19,670 | | | | | Free Cash Flow - % of Adjusted Net Sales | 3.5 % | | | | Six Months Ended June 30, 2024 This section reconciles GAAP to adjusted financial measures for H1 2024, including adjustments for discontinued operations, restructuring, and portfolio management Income and EPS Reconciliation | Metric | GAAP (in thousands) | Adjustments (in thousands) | Adjusted (in thousands) | | :--- | :--- | :--- | :--- | | Income before taxes | $73,325 | $674 (Restructuring) - $298 (Portfolio Mgmt) | $73,701 | | Provision for income taxes | $19,387 | $(306) (Restructuring) - $72 (Portfolio Mgmt) | $19,009 | | Net income from continuing operations | $53,938 | $980 (Restructuring) - $226 (Portfolio Mgmt) | $54,692 | | Net income from continuing operations per share - diluted | $1.75 | $0.04 (Restructuring) - $0.01 (Portfolio Mgmt) | $1.78 | Operating Income and Margin Reconciliation | Metric | GAAP Operating Margin | Restructuring & Other Charges | Portfolio Management | Adjusted Operating Margin Recast | | :--- | :--- | :--- | :--- | :--- | | Consolidated | 13.8 % | — % | (0.1)% | 14.0 % | | Residential | 19.4 % | — % | (0.1)% | 19.7 % | | Agtech | 7.1 % | 0.2 % | — % | 7.4 % | | Infrastructure | 23.8 % | — % | — % | 23.8 % | | Metric (in thousands) | GAAP Income from Operations | Restructuring & Other Charges | Portfolio Management | Adjusted Income from Operations Recast | | :--- | :--- | :--- | :--- | :--- | | Consolidated | $70,914 | $453 | $(298) | $71,069 | | Residential | $77,659 | $73 | $(298) | $77,434 | | Agtech | $4,890 | $149 | — | $5,039 | | Infrastructure | $11,111 | — | — | $11,111 | Detailed Adjusted Measures | Metric (in thousands) | Consolidated | Residential | Agtech | Infrastructure | | :--- | :--- | :--- | :--- | :--- | | Adjusted Net Sales Recast | $509,081 | $393,874 | $68,535 | $46,672 | | Adjusted Operating Profit | $71,069 | $77,434 | $5,039 | $11,111 | | Adjusted Operating Margin | 14.0 % | 19.7 % | 7.4 % | 23.8 % | | Adjusted EBITDA Recast | $86,674 | $83,252 | $6,865 | $12,721 | | Adjusted EBITDA Margin Recast | 17.0 % | 21.1 % | 10.0 % | 27.3 % | | Free Cash Flow | $83,085 | | | | | Free Cash Flow - % of Adjusted Net Sales | 16.3 % | | | | Year Ended December 31, 2024 This section reconciles GAAP to adjusted financial measures for FY 2024, including adjustments for discontinued operations, restructuring, and portfolio management Income and EPS Reconciliation | Metric | GAAP (in thousands) | Adjustments (in thousands) | Adjusted (in thousands) | | :--- | :--- | :--- | :--- | | Income before taxes | $178,556 | $2,350 (Restructuring) - $26,005 (Portfolio Mgmt) | $154,901 | | Provision for income taxes | $37,770 | $138 (Restructuring) - $421 (Portfolio Mgmt) | $37,487 | | Net income from continuing operations | $140,786 | $2,212 (Restructuring) - $25,584 (Portfolio Mgmt) | $117,414 | | Net income from continuing operations per share - diluted | $4.58 | $0.07 (Restructuring) - $0.83 (Portfolio Mgmt) | $3.82 | Operating Income and Margin Reconciliation | Metric | GAAP Operating Margin | Restructuring & Other Charges | Portfolio Management | Adjusted Operating Margin Recast | | :--- | :--- | :--- | :--- | :--- | | Consolidated | 13.6 % | 0.9 % | (0.1)% | 14.7 % | | Residential | 19.0 % | 0.1 % | (0.1)% | 19.3 % | | Agtech | 7.2 % | 4.2 % | — % | 11.5 % | | Infrastructure | 24.2 % | — % | — % | 24.2 % | | Metric (in thousands) | GAAP Income from Operations | Restructuring & Other Charges | Portfolio Management | Adjusted Income from Operations Recast | | :--- | :--- | :--- | :--- | :--- | | Consolidated | $139,674 | $9,568 | $(740) | $148,502 | | Residential | $148,784 | $801 | $(740) | $148,845 | | Agtech | $11,040 | $6,477 | — | $17,517 | | Infrastructure | $21,295 | — | — | $21,295 |