GIBRALTAR TO ACQUIRE OMNIMAX INTERNATIONAL November 17, 2025 DISCLAIMER Forward-Looking Statements Certain information set forth in this presentation, other than historical statements, contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that are based, in whole or in part, on current expectations, estimates, forecasts, and projections about Gibraltar Industries, Inc.'s (the "Company" or "Gibraltar") business, and management's beliefs about future ...

Core Insights - Gibraltar Industries, Inc. (ROCK) reported lower-than-expected second-quarter 2025 results, with earnings and net sales missing the Zacks Consensus Estimate, although both metrics grew year over year [1][4]. Financial Performance - Adjusted earnings per share (EPS) of $1.13 missed the Zacks Consensus Estimate of $1.16 by 2.6%, but increased 10.8% from the prior year's adjusted EPS of $1.02 [4]. - Net sales of $309.5 million lagged the consensus mark of $375 million by 17.6%, but rose 13.1% from the previous year's $273.6 million [4]. - Adjusted operating profit increased 10.3% year over year to $44.9 million, while adjusted operating margin declined 50 basis points to 14.5% [10]. Segment Performance - Residential segment net sales rose 7.5% year over year to $230.3 million, driven by local market expansion and new products, despite declines in the mail and package business [5]. - Agtech segment net sales surged 56.8% year over year to $54.1 million, aided by $29.4 million from the Lane Supply acquisition, although organic sales decreased by 28.3% [6]. - Infrastructure segment net sales increased 1.6% year over year to $25.2 million, supported by strong execution and new project quoting activity [7]. Operational Highlights - Adjusted EBITDA margin decreased 30 basis points to 17.8%, while adjusted EBITDA rose to $55.1 million from $49 million in the prior year [10]. - The company had liquidity of $438 million as of June 30, 2025, including cash and cash equivalents of $43.3 million, compared to $269.5 million at the end of 2024 [11]. Guidance and Strategic Moves - Gibraltar revised its full-year guidance, expecting net sales between $1.15 and $1.20 billion, indicating about 16% growth from $1.01 billion in 2024 [12]. - Adjusted EPS is projected to be in the range of $4.20-$4.45, reflecting approximately 13% growth compared to $3.82 in 2024 [13]. - The company plans to divest its Renewables segment to focus on building products and structures businesses [3].

Core Insights - Gibraltar Industries reported a 13% growth in GAAP revenue, reaching $309.5 million, but fell short of analyst expectations of $379.9 million [1][5] - Adjusted EPS increased by 10.8% to $1.13, missing the expected non-GAAP EPS of $1.18 [1][2] - The company experienced significant growth in backlog, particularly in project-driven segments, but faced challenges with lower margins and integration costs from recent acquisitions [1][6] Financial Performance - GAAP revenue for Q2 2025 was $309.5 million, a 13.1% increase year-over-year, but missed estimates by $70.4 million [2][5] - Adjusted EPS was $1.13, up from $1.02 in Q2 2024, but below the estimate of $1.18 [2][6] - Free cash flow was reported at $25.3 million, with a margin of 8.2%, down from 15.9% in Q2 2024 [2][6] Business Segments Overview - Residential segment adjusted net sales reached $230.3 million, an 8.9% increase, but operating margin decreased by 90 basis points to 19.5% [7][13] - Agtech segment revenue grew by 56.8%, driven by the acquisition of Lane Supply, although organic sales were lower [8][14] - Infrastructure segment saw a 1.6% increase in GAAP net sales and a 300 basis-point improvement in operating margin to 28.1% [10][15] Strategic Focus and Acquisitions - The company is diversifying through acquisitions and expanding into new geographies and product lines, with a focus on operational execution and financial management [4][12] - Recent acquisitions in metal roofing have broadened geographic reach and contributed to sales growth [13] - The company is divesting its renewables business to concentrate on residential, agtech, and infrastructure sectors [10][15] Backlog and Future Outlook - Backlog grew by 43% year-over-year, with agtech backlog increasing by 71% [11] - Management reaffirmed guidance for GAAP net sales between $1.15 to $1.20 billion for the full year, indicating growth of approximately 13.9%–18.8% [16] - Adjusted EPS is projected between $4.20 and $4.45, representing a 10% to 16% increase over the prior year [16][17]

Financial Data and Key Metrics Changes - Adjusted sales were flat while adjusted operating income and EBITDA improved by 110 basis points and 160 basis points respectively [6] - EPS improved by 19% with solid margin performance in residential AgTech and infrastructure businesses [6] - Operating cash flow generated was $14 million and free cash flow was $2 million [6] Business Line Data and Key Metrics Changes Residential Segment - Net sales decreased by $2.4 million or 1.3% due to lower retail store traffic and soft end market activity [13] - Adjusted operating EBITDA margins decreased by 80 and 70 basis points respectively, remaining at strong levels [14] AgTech Segment - Net sales increased by 32.4% driven primarily by the Lane Supply acquisition [21] - Organic net sales decreased by 12.6% due to permit approval delays [21] Renewables Segment - Adjusted net sales decreased by $7.8 million or 15.1% while bookings were up 3% [27] - Backlog decreased by 23% [27] Infrastructure Segment - Net sales decreased by $600,000 or 2.7% due to project delays [35] - Demand remains strong with backlog increasing by 11% [35] Market Data and Key Metrics Changes - Year-over-year AgTech bookings increased by 226% [7] - Infrastructure bookings increased by 11% [7] - Renewables bookings and backlog were up sequentially by 90% and 30% respectively [27] Company Strategy and Development Direction - The company plans to continue investing in organic growth and explore inorganic growth opportunities through M&A [38] - A new three-year $200 million stock repurchase program was approved to return value to shareholders [39] - The company is focused on expanding its presence in the residential and light commercial metal roofing market [19] Management's Comments on Operating Environment and Future Outlook - Management reaffirmed the full-year outlook and guidance for earnings for 2025, considering key business drivers such as tariffs and order input rates [11][40] - The company expects a solid second half of the year based on current backlog and project schedules [26][40] - Management acknowledged the uncertainty in the renewables market due to ongoing industry challenges and tariff impacts [66][67] Other Important Information - The company generated approximately $14 million in cash from operations, funding a working capital investment of $20 million [36] - The company has a strong balance sheet with $25 million in cash on hand and $395 million available on its revolver [36] Q&A Session Summary Question: Can you discuss the cadence of demand and participation gains in the residential segment? - Management noted that real-time demand continues to flow in as expected, with participation gains starting to materialize [48] Question: What is the expected revenue and EPS contribution from the recent acquisitions? - The expected accretion benefit is about $0.15 EPS with revenue around $50 million [57] Question: Can you provide more details on the adjustments made to the renewables outlook? - Management indicated a 15% to 20% adjustment in revenue and profit outlook for renewables due to timing issues and market uncertainties [65] Question: How is the supply chain currently structured, particularly regarding components from China? - Management stated that they have been redesigning their supply chain to reduce dependency on China and have local suppliers in place [70][72] Question: How does the direct-to-contractor model add value and impact margins? - The direct-to-contractor model enhances speed and responsiveness, which is critical for maintaining competitive margins [73]