Gibraltar Industries (NasdaqGS:ROCK) M&A Announcement November 17, 2025 08:30 AM ET Speaker5Greetings and welcome to the Gibraltar Industries acquisition of OmniMax International Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn ...

Core Insights - Carrier Global Corporation (CARR) is a leading provider of heating, ventilation, air conditioning, refrigeration, fire protection, security, and building automation technologies, with a market cap of $47.9 billion [1] Performance Overview - CARR shares have underperformed the broader market, declining 23.1% over the past year, while the S&P 500 Index has increased by 17.5% [2] - Year-to-date, CARR stock is down 16.7%, compared to a 15.6% rise in the S&P 500 [2] - Compared to the SPDR S&P Homebuilders ETF, which has declined about 12.2% over the past year, CARR's performance is notably weaker [3] Financial Results - In Q3, CARR reported revenue of $5.58 billion, exceeding analyst estimates of $5.56 billion [4] - The adjusted EPS of $0.67 surpassed analyst expectations by 17.7% [4] - For the current fiscal year ending in December, analysts project a 3.1% growth in EPS to $2.64 on a diluted basis [4] - CARR has consistently beaten consensus estimates in the last four quarters [4] Analyst Ratings - Among 24 analysts covering CARR, the consensus rating is a "Moderate Buy," consisting of 12 "Strong Buy" ratings, one "Moderate Buy," 10 "Holds," and one "Strong Sell" [5] - The consensus rating has become less bullish compared to the previous month, with 13 analysts previously suggesting a "Strong Buy" [6] - JPMorgan Chase & Co. maintained a "Neutral" rating on CARR and lowered the price target to $60, indicating a potential upside of 5.5% from current levels [6] - The mean price target of $74.65 suggests a 31.3% premium to CARR's current price, while the highest price target of $90 indicates an upside potential of 58.3% [6]

Core Insights - Comfort Systems USA (FIX) reported a record backlog of $9.38 billion for Q3 2025, reflecting year-over-year increases of 65.1% [1] - The company is benefiting from elevated public infrastructure spending and a thriving market for technology advancements and sustainable alternatives [1] - FIX's strategic acquisitions are expected to generate over $200 million in incremental annual revenues and $15-$20 million in incremental annual EBITDA [3] Financial Performance - The Technology sector contributed 42% of total revenues in 2025, up from 32% a year ago, driven by increased demand for data center-related activities [2] - FIX's earnings estimates for 2025 and 2026 have trended upward to $26.31 and $30.61 per share, implying year-over-year growth of 80.2% and 16.4%, respectively [13] Competitive Landscape - FIX holds a tactical edge in the data-center market due to its concentrated technology and industrial work backlog [5] - Competitors include EMCOR Group, which is larger and more diversified, and AECOM, which has a significant backlog and full-service design capabilities [6][7] - FIX's advantages include its modular capacity and execution model, allowing for faster onsite starts and strong margin capture compared to competitors [8] Market Outlook - Despite challenges such as a tight labor market and potential normalization in project margins, management projects same-store revenue growth in the low to mid-teens for 2026 [4] - FIX's stock has trended upward by 38.5% over the past three months, outperforming industry peers and major indices [9][10] - The current trading premium is reflected in a forward 12-month price-to-earnings (P/E) ratio of 31.92 [12]

Core Insights - Linde plc (LIN) is scheduled to report its third-quarter 2025 results on October 31, before the market opens [1][9] - The Zacks Consensus Estimate for third-quarter earnings per share is $4.18, reflecting a 6.09% increase year-over-year, while revenue is estimated at $8.6 billion, indicating a 2.93% year-over-year improvement [2][3][9] Q2 Earnings Highlights - In the previous quarter, Linde reported earnings of $4.09 per share, surpassing the Zacks Consensus Estimate of $4.03, driven by higher pricing and increased volumes from the Americas and EMEA segments [2] - Linde has consistently beaten earnings estimates over the past four quarters, with an average surprise of 1.08% [2] Performance Factors - Linde is a leader in industrial gas production, serving various end markets including healthcare, manufacturing, and chemicals [4] - The company is expected to maintain stable performance due to long-term contracts with major on-site clients and operations in resilient markets like healthcare and food and beverages [5] - However, macroeconomic challenges, particularly in Europe, may have weakened demand, affecting performance in cyclical markets such as metals, manufacturing, and energy [6] Segment Performance Estimates - The Zacks Consensus Estimate for operating profit in the Americas segment is $1.22 billion, an increase from $1.15 billion in Q3 2024 [7] - The Engineering business unit's operating profit estimate is $91 million, down from $108 million a year ago, which may impact demand and pricing dynamics [7] Earnings Prediction Insights - Linde's Earnings ESP is -1.30%, indicating that the model does not predict an earnings beat for this quarter [10]

Core Insights - Comfort Systems USA reported strong financial results for the third quarter of 2025, with net income of $291.6 million, or $8.25 per diluted share, compared to $146.2 million, or $4.09 per diluted share, in the same quarter of 2024 [2][3] - Revenue for the third quarter of 2025 was $2.45 billion, up from $1.81 billion in 2024, indicating significant growth [2][3] - The company achieved operating cash flow of $553.3 million in the current quarter, compared to $302.2 million in 2024, reflecting improved cash generation [2][3] Financial Performance - For the nine months ended September 30, 2025, net income was $691.8 million, or $19.52 per diluted share, compared to $376.6 million, or $10.52 per diluted share, in 2024 [4] - Revenue for the nine months ended September 30, 2025, was $6.46 billion, up from $5.16 billion in 2024 [4] - Operating cash flow for the nine months ended September 30, 2025, was $717.8 million, compared to $638.6 million in 2024 [4] Backlog and Acquisitions - The backlog as of September 30, 2025, was $9.38 billion, an increase from $8.12 billion as of June 30, 2025, and $5.68 billion as of September 30, 2024 [3][4] - The company completed acquisitions of two electrical companies on October 1, 2025, expected to generate over $200 million in incremental annual revenue and $15 to $20 million in incremental annual EBITDA [3][4] Market Outlook - The company expressed optimism for the fourth quarter and 2026, driven by unprecedented demand for its services and a strong backlog [4] - The backlog has increased by $3.4 billion since the beginning of the year, indicating robust growth prospects [4]

Core Thesis - The Middleby Corporation (MIDD) is viewed positively due to its potential for growth driven by replacement cycles, strategic spin-offs, and operational improvements, with an intrinsic value estimated at $160, potentially rising to $220 in a bullish scenario [4]. Company Overview - Middleby Corporation is a global leader in food equipment, operating in Commercial Foodservice (CFS), Food Processing (FP), and Residential Kitchen (RK) segments [2]. - The company achieved a 39.7% CAGR from 2001 to 2016 under previous leadership, but growth has slowed since then, with an 11.8% total return over the past 8.5 years [2]. Segment Analysis - The CFS segment includes ovens, fryers, and refrigeration, serving major clients like McDonald's and Burger King, with demand driven by replacement cycles and new builds [3]. - The FP segment, which is set for a spin-off in 2026, focuses on processing for protein and bakery products, while the RK segment targets premium residential products [3]. Management Initiatives - Recent management strategies include revamping go-to-market approaches, aligning sales incentives, and focusing on technology-driven acquisitions [4]. - Long-term projections suggest organic growth of approximately 2-2.5% and EBIT CAGR of around 4.8% through 2035, with an anticipated $7 billion in free cash flow for shareholder returns [4]. Market Valuation - At a share price of $132, the market is perceived to undervalue the company’s upcoming replacement cycles and operational improvements, with a significant upside potential [4].

Company Overview - Johnson Controls International plc (JCI) is an Ireland-based multinational conglomerate specializing in smart, healthy, and sustainable building solutions with a market cap of $70.1 billion [1] - The company engineers, manufactures, and services high-performance systems including HVAC, industrial refrigeration, integrated fire detection and suppression, security systems, and building management platforms [1] Market Position - JCI is classified as a "large-cap stock" due to its market cap exceeding $10 billion, highlighting its size, influence, and dominance in the building products and equipment industry [2] - The company has a highly diversified customer base across sectors such as healthcare, education, data centers, airports, and government facilities, showcasing its scale and technological expertise [2] Stock Performance - JCI reached a 52-week high of $112.63 on June 28 and is currently trading 4.9% below this peak, having rallied 3.3% over the past three months, underperforming the S&P 500 Index which returned 8.3% in the same period [3] - Over the past 52 weeks, JCI has surged 58%, significantly outperforming the S&P 500's 20.1% gain, and on a year-to-date basis, shares are up 35.8% compared to the S&P 500's 10.4% rally [4] Recent Financial Performance - On July 29, JCI reported Q3 2025 earnings, with adjusted EPS of $1.05 and total revenue of $6.1 billion, both surpassing consensus estimates [5] - The company's backlog increased to $14.6 billion due to healthy demand, with regional strength in EMEA and APAC offsetting softer performance in the Americas [5] - Free cash flow reached $693 million, and despite raising full-year EPS guidance to $3.65–$3.68, shares fell 7.4% as investors focused on margin pressures and near-term growth uncertainties [5]

Core Insights - Comfort Systems USA, Inc. (FIX) reported strong Q1 2025 results with a 75% year-over-year increase in earnings per share to $4.75 and a 19.1% rise in revenues to $1.83 billion, surpassing expectations [1][7] - Despite positive momentum, management maintained a cautious full-year revenue growth forecast of high-single-digit percentages due to challenging year-over-year comparisons in the latter half of the year [2][5] - The company's backlog grew 16.5% year-over-year to $6.89 billion, driven by the acquisition of Century Contractors and increased project bookings in technology and healthcare sectors [4][7] Financial Performance - Q1 2025 earnings per share increased by 75% year-over-year to $4.75, while revenues rose by 19.1% to $1.83 billion, exceeding market expectations [1][7] - Operating income saw a significant increase of 54% year-over-year, contributing to historic high margins [1] - The company's earnings estimates for 2025 and 2026 have trended upward, with 2025 estimates rising to $19.28, reflecting a 32.1% year-over-year growth [11] Market Position and Valuation - FIX's stock has outperformed peers, with a 51.4% increase over the past three months, compared to 40.5% and 15% gains for Quanta Services and Jacobs Solutions, respectively [6][8] - The stock is currently trading at a forward P/E ratio of 27.13, which is lower than Quanta Services at 34.66 and Jacobs Solutions at 20.14, indicating a potential attractive entry point for investors [9][10] - The company's strategic initiatives and strong backlog position it favorably in the market, despite maintaining a conservative outlook [5][9] Industry Dynamics - The end-market dynamics are favorable, with strong demand in technology and industrial sectors, which now account for 62% of total volume [2] - Modular construction is emerging as a significant contributor to margin sustainability, further supporting the company's growth prospects [2] - Comfort Systems' ability to manage costs and secure favorable pricing through long-term supplier relationships enhances its resilience against tariff and cost inflation risks [3]

Core Viewpoint - Several companies are significantly increasing their share buyback programs, collectively adding over $10 billion in repurchase capacity to the stock market, signaling a commitment to reward shareholders and potentially reduce outstanding shares [1]. Company Summaries Trump Media and Technology Group (DJT) - Announced a $400 million share buyback program, representing approximately 8.3% of its $4.8 billion market capitalization [2]. - The company raised $2.5 billion to create a large Bitcoin treasury, increasing its liquid assets to over $3 billion, despite generating under $4 million in revenues and having operating expenses exceeding $127 million [3]. Johnson Controls International (JCI) - Increased its share buyback authorization to $9 billion, totaling $10.1 billion in repurchase capacity, which is about 14.6% of its $69 billion market capitalization [6][7]. - Plans to return $5 billion in capital in the fourth quarter of fiscal 2025, potentially reducing its share count by around 7% and enhancing earnings per share [7]. Darden Restaurants (DRI) - Announced a $1 billion share buyback program, equating to just under 4% of its over $25 billion market capitalization, following a total return of approximately 17% in 2025 [9][10]. - Increased its quarterly dividend by 7.1%, with a solid indicated dividend yield of around 2.8%, one of the highest among U.S. restaurant stocks [10]. Broader Corporate Trend - The substantial buyback announcements from DJT, JCI, and DRI reflect a broader trend of companies returning capital to shareholders, whether to offset stock declines, reinforce confidence, or enhance earnings metrics [11]. - The end result of these buybacks is expected to be reduced share counts and potentially stronger shareholder returns, emphasizing the importance of execution speed and effectiveness in the coming quarters [12].

Core Insights - Limbach Holdings, Inc. (LMB) is a strong buy stock with a significant earnings beat of 273.3% in Q1 2025, with expectations for double-digit earnings growth this year [1][3][8] - The company operates in six vertical markets and has a workforce of 1,400 across 20 offices in the eastern United States [2] Financial Performance - In Q1 2025, Limbach reported earnings of $1.12, surpassing the Zacks Consensus Estimate of $0.30, marking the tenth consecutive earnings surprise [3] - Revenue increased by 11.9% to $133.1 million from $119 million year-over-year [3] - The gross profit percentage rose to 27.6% from 26.1%, driven by higher-margin Owner Direct Relationships (ODR) work [5] Business Strategy - Limbach's strategy focuses on growing its ODR business, which saw a revenue increase of 21.7% to $90.4 million, accounting for 67.9% of total revenue [4] - The company anticipates an ODR mix shift to be between 70% and 80% for the year, with ODR revenue growth projected between 23% and 46% [7] Market Position - Limbach's shares have increased by 66% year-to-date, reaching new all-time highs, reflecting strong market confidence [8][10] - The company is positioned in the mission-critical building systems solutions industry, particularly benefiting from the demand in data centers [10] Analyst Outlook - Analysts have raised earnings estimates for Limbach, with the Zacks Consensus Estimate increasing to $4.39 from $3.45, indicating a 21.9% growth compared to last year's earnings of $3.60 [7] - Earnings growth is forecasted at 12% over the next 3 to 5 years, making Limbach a notable growth and momentum stock in its industry [14]