Gibraltar Announces Second Quarter 2025 Financial Results

Continuing Operations: Net Sales: GAAP +13%, Adjusted +14%; EPS: GAAP -2%, Adjusted +11%

Generated Operating Cash Flow of $44 Million

2025 Full Year Outlook on Track for a Solid Year of Improved Performance

Gibraltar Industries, Inc. (Nasdaq: ROCK), a leading manufacturer and provider of products and services for the residential, agtech, and infrastructure markets, today reported its financial results for the three- and six-month period ended June 30, 2025.

“We executed well in the second quarter with adjusted net sales up 14% and adjusted EPS up 11%, and we generated $44 million of operating cash flow as we had strong performance from our recently acquired metal roofing and structures businesses and we delivered market participation gains in building accessories,” stated Chairman and CEO Bill Bosway. “End market trends and demand remained consistent in Residential, and we were able to increase backlog 43% in our project-based businesses across our Agtech and Infrastructure segments. Based on our first half results, the current macro environment, and today’s outlook across our end markets, we expect to deliver growth, solid margins, and strong cash flow in 2025 from continuing operations.”

Second Quarter 2025 Consolidated Results from Continuing Operations

As reminder, on June 30, 2025, Gibraltar announced that its Board of Directors approved a plan to sell the Renewables business to focus Gibraltar’s asset portfolio and resources on its building products and structures businesses – namely the residential, agtech and infrastructure segments.

Net sales were driven by strong performance from the metal roofing acquisitions and participation gains in the building accessories business, which offset market softness in the mail and package business related to lower single and multi-family new construction starts in the Residential segment. The Agtech segment was driven by the Lane Supply acquisition, offset by delays on three large project start dates pushing revenue from the first half of the year. Overall, bookings were strong in the quarter with backlog increasing 43% year-over-year.

GAAP net income decreased 5.2% to $29.4 million primarily related to acquisition integration-related costs. Adjusted net income increased 7.0% to $33.6 million, or $1.13 per share.

Adjusted measures are further described in the appended reconciliation of adjusted financial measures.

Second Quarter Segment Results

Residential

Local market and customer expansion along with new products resulted in organic growth of 2.3% in the building accessories business in a market estimated to be down approximately 4% - 5%. The metal roofing business performed as expected during the quarter with acquisitions on track to plan. Growth in these two businesses offset a slowing market for the mail and package business, which is driven mainly by single home and multi-family new construction starts from the previous year. Adjusted net sales increased 8.9% with organic revenue down less than 1.0% in the quarter.

Operating margin remained strong with solid improvement and contribution from the building accessories and metal roofing businesses offset by lower volume and product mix in the mail and package business.

Agtech

Sales growth benefitted from the acquisition of Lane Supply, which helped offset the effect of delays in start dates on three larger controlled environment agriculture (CEA) projects. Despite these CEA project delays, demand continued to accelerate with backlog increasing 71%. On an organic basis, excluding Lane Supply, backlog increased 33%.

GAAP operating loss was driven by acquisition integration-related costs associated with Lane Supply; however, adjusted operating income increased 30.4%. Adjusted operating margin was down 100 basis points in the quarter related to CEA project volume shifting from the first half of 2025.

Infrastructure

Net sales and backlog increased 1.6% and 3.0%, respectively, driven by continued strong execution, demand, and new project quoting activity.

Operating margins increased 300 basis points, driven by strong execution, supply chain management, and product line mix.

Business Outlook

Mr. Bosway concluded, “Our 2025 full year outlook for continuing operations remains on track for solid revenue, margin, and cash flow performance. We will continue to manage through the current macroenvironment and deploy resources for organic growth and M&A opportunities as we expand our presence and leadership across our end markets. We will also opportunistically execute our share repurchase program.”

Gibraltar is establishing its guidance for continuing operations for the full year 2025. Consolidated net sales are expected to range between $1.15 billion and $1.20 billion. This compares to GAAP net sales of $1.02 billion and adjusted net sales of $1.01 billion in 2024. GAAP EPS is expected to range between $3.67 and $3.91, compared to $4.58 in 2024 which included the gain on the sale of the electronic locker business, and adjusted EPS is expected to range between $4.20 and $4.45, compared to $3.82 in 2024.

Gibraltar has provided complete recast historical results for continuing operations which excludes the Renewables segment and can be accessed in the Investors section of the Company’s website.

Second Quarter 2025 Conference Call Details

Gibraltar will host a conference call today starting at 9:00 a.m. ET to review its results for the second quarter of 2025. Interested parties may access the webcast through the Investors section of the Company’s website at www.gibraltar1.com, where related presentation materials will also be posted prior to the conference call. The call also may be accessed by dialing (888) 396-8049 or (416) 764-8646. For interested individuals unable to join the live conference call, a webcast replay will be available on the Company’s website for one year.

About Gibraltar

Gibraltar is a leading manufacturer and provider of products and services for the residential, agtech, and infrastructure markets. Gibraltar’s mission, to make life better for people and the planet, is fueled by advancing the disciplines of engineering, science, and technology. Gibraltar is innovating to reshape critical markets in comfortable living and productive growing throughout North America. For more please visit www.gibraltar1.com.

Forward-Looking Statements

Certain information set forth in this news release, 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 the Company’s business, and management’s beliefs about future operations, results, and financial position. These statements are not guarantees of future performance and are subject to a number of risk factors, uncertainties, and assumptions. Actual events, performance, or results could differ materially from the anticipated events, performance, or results expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from current expectations include, among other things, tariffs and retaliatory tariffs imposed by the United States or other countries on imported goods, including raw materials used in the manufacturing of the Company’s products; changes to economic conditions and customer demand for the Company’s products; the availability and pricing of principal raw materials and component parts, supply chain challenges causing project delays and field operations inefficiencies and disruptions, the loss of any key customers, adverse effects of inflation, the ability to continue to improve operating margins, the ability to generate order flow and sales and increase backlog; the ability to translate backlog into net sales, other general economic conditions and conditions in the particular markets in which we operate, changes in spending due to laws and government incentives, such as the Infrastructure Investment and Jobs Act, changes in customer demand and capital spending, competitive factors and pricing pressures, the ability to develop and launch new products in a cost-effective manner, the ability to realize synergies from newly acquired businesses, disruptions to IT systems, the impact of trade and regulation, rebates, credits and incentives and variations in government spending and ability to derive expected benefits from restructuring, productivity initiatives, liquidity enhancing actions, and other cost reduction actions. Before making any investment decisions regarding the company, we strongly advise you to read the section entitled “Risk Factors” in the most recent annual report on Form 10-K which can be accessed under the “SEC Filings” link of the “Investor Info” page of the website at www.Gibraltar1.com. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable law or regulation.

Adjusted Financial Measures

To supplement Gibraltar’s consolidated financial statements presented on a GAAP basis, Gibraltar also presented certain adjusted financial measures in this news release and its quarterly conference call, including adjusted net sales, adjusted operating income and margin, adjusted net income, adjusted earnings per share (EPS), free cash flow and adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA), each a non-GAAP financial measure. Adjusted net sales reflects the removal of net sales associated with the residential electronic locker business, which was sold on December 17, 2024. Adjusted net income, operating income and margin exclude special charges consisting of restructuring costs (primarily comprised of exit activities costs and impairment of both tangible and intangible assets associated with 80/20 simplification, lean initiatives and / or discontinued products), senior leadership transition costs (associated with new and / or terminated senior executive roles), acquisition related costs (legal and consulting fees for recent business acquisitions), and portfolio management (which includes the gain on sale of and operating results generated by the residential electronic locker business which was sold in 2024). These special charges are excluded since they may not be considered directly related to the Company’s ongoing business operations. The aforementioned exclusions along with other adjustments to other income below operating profit are excluded from adjusted EPS. Furthermore, the above metrics include the impact of the classification of the Renewables segment as a discontinued operation. Adjusted EBITDA further excludes interest, taxes, depreciation, amortization and stock compensation expense. In evaluating its business, the Company considers and uses these non-GAAP financial measures as supplemental measures of its operating performance. Free cash flow is operating cash flow less capital expenditures and the related margin is free cash flow divided by net sales. The Company believes that the presentation of adjusted measures and free cash flow provides meaningful supplemental data to investors, as well as management, that are indicative of the Company’s core operating results and facilitates comparison of operating results across reporting periods as well as comparison with other companies. Adjusted EBITDA and free cash flow are also useful measures of the Company’s ability to service debt and adjusted EBITDA is one of the measures used for determining the Company’s debt covenant compliance.

Adjustments to the most directly comparable financial measures presented on a GAAP basis are quantified in the reconciliation of adjusted financial measures provided in the supplemental financial schedules that accompany this news release. These adjusted measures should not be viewed as a substitute for the Company’s GAAP results and may be different than adjusted measures used by other companies and the Company’s presentation of non-GAAP financial measures should not be construed as an inference that the Company’s future results will be unaffected by unusual or non-recurring items.

Reconciliations of non-GAAP measures related to full-year 2025 guidance have not been provided due to the unreasonable efforts it would take to provide such reconciliations due to the high variability, complexity and uncertainty with respect to forecasting and quantifying certain amounts that are necessary for such reconciliations.