Gibraltar Industries(US:ROCK)2025-10-30 11:55Financial Performance - Consolidated net sales increased by $33.8 million, or 12.2%, to $310.9 million for the three months ended September 30, 2025, compared to the same period in 2024 [93]. - Consolidated net sales increased by $75.0 million, or 9.5%, to $866.8 million for the nine months ended September 30, 2025, compared to the same period in 2024 [108]. - The Company recorded a net loss of $41.9 million for the nine months ended September 30, 2025, compared to a net income of $91.2 million in the prior year [108]. Segment Performance - Net sales in the Residential segment rose by $17.9 million, or 8.4%, to $230.3 million, driven by $22.9 million from recent acquisitions [94]. - Net sales in the Agtech segment increased by 38.8%, or $16.0 million, to $57.6 million, largely due to $33.4 million from the acquisition of Lane Supply [95]. - The Residential segment's net sales rose by $28.7 million, or 4.7%, to $640.5 million for the nine months ended September 30, 2025, driven by acquisitions and local market expansion [109]. - The Agtech segment's net sales increased by 42.3%, or $46.6 million, to $156.7 million for the nine months ended September 30, 2025, largely due to the acquisition of Lane Supply [110]. - The Infrastructure segment's net sales remained flat at $69.6 million for the nine months ended September 30, 2025, with a 2% decrease in backlog [111]. Expenses and Margins - Consolidated gross margin decreased to 26.6% for the three months ended September 30, 2025, down from 29.4% in the prior year [97]. - Consolidated gross margin decreased to 27.7% for the nine months ended September 30, 2025, down from 29.9% in the prior year, attributed to product line mix [112]. - Selling, general, and administrative expenses increased by $4.6 million, or 12.0%, to $42.8 million, primarily due to expenses from recent acquisitions [98]. - Selling, general, and administrative expenses increased by $9.6 million, or 7.8%, to $132.3 million for the nine months ended September 30, 2025, primarily due to recent acquisitions [113]. Acquisitions and Investments - The Company acquired three businesses for a total of $90 million in cash transactions, enhancing its Residential segment [88]. - Net cash used in investing activities for the nine months ended September 30, 2025 was $247.3 million, primarily due to acquisitions totaling $210.4 million and capital expenditures of $37.2 million [132]. - The company expects future investments, including strategic business acquisitions, to be financed through various sources such as internally available cash and new debt financing [126]. Cash Flow and Financial Position - The Company had cash and cash equivalents of $89.4 million as of September 30, 2025, down from $269.5 million at the end of 2024 [120]. - For the nine months ended September 30, 2025, net cash provided by operating activities of continuing operations was $105.4 million, a decrease from $131.6 million in the same period of 2024 [130][131]. - The company reported a net decrease in cash and cash equivalents of $180.1 million for the nine months ended September 30, 2025 [129]. - The net cash used in financing activities for the nine months ended September 30, 2025 totaled $63.5 million, compared to $10.9 million in the same period of 2024 [134][135]. Share Repurchase Program - A new share repurchase program was authorized for up to $200 million, with a duration of three years ending April 30, 2028 [87]. - The company repurchased 914,679 shares for $60.0 million under its share repurchase program for the nine months ended September 30, 2025 [134]. Other Financial Information - Unallocated corporate expenses decreased by $1.6 million to $30.3 million during the nine months ended September 30, 2025, due to lower performance-based compensation [116]. - Non-cash net charges for the nine months ended September 30, 2025 totaled $31.7 million, including depreciation and stock-based compensation [130]. - There have been no material changes in the company's cash requirements since December 31, 2024 [128]. - The company is exposed to various market risk factors, including changes in economic conditions and foreign exchange rates, with no material changes reported in the current year [138].