Gibraltar Announces Second Quarter 2024 Financial Results

Rhea-AI Summary

Gibraltar Industries (Nasdaq: ROCK) reported its Q2 2024 financial results, showing a 3.3% decrease in GAAP net sales and a 2.0% decrease in adjusted net sales. Despite market headwinds, the company achieved solid execution and strong operating cash flow of $36 million. GAAP EPS increased by 5.0% to $1.05, while adjusted EPS rose 2.6% to $1.18. The Residential segment faced unexpected channel destocking, while Renewables experienced project delays. Agtech bookings reached a record $90 million, supporting strong revenue growth expectations for H2 2024. The company slightly adjusted its 2024 net sales outlook but maintained its EPS guidance, with GAAP EPS projected between $4.04 and $4.29, and adjusted EPS between $4.57 and $4.82.

Positive

• Operating cash flow generation of $36 million in Q2 2024
• GAAP EPS increased 5.0% to $1.05, adjusted EPS up 2.6% to $1.18
• Record Agtech bookings of $90 million, supporting strong H2 revenue growth
• Residential segment operating margins expanded through solid execution and 80/20 initiatives
• Infrastructure segment net sales increased 2.5% with 100 bps operating margin improvement

Negative

• GAAP net sales decreased 3.3%, adjusted net sales down 2.0% in Q2 2024
• Residential segment net sales declined 6.1% due to market slowdown and channel destocking
• Renewables segment experienced project delays and a 10% decrease in order backlog
• Company adjusted 2024 net sales outlook downward due to slower market conditions in Residential and Renewables

Financial Analyst

Gibraltar Industries' Q2 2024 results present a mixed picture. While the company faced headwinds in its Residential and Renewables segments, it managed to deliver solid execution and strong operating cash flow. Here are the key takeaways:

• GAAP net sales decreased by 3.3%, while adjusted net sales fell by 2.0%.
• GAAP net income increased by 4.9% to $32.2 million, or $1.05 per share.
• Adjusted net income rose by 2.8% to $36.4 million, or $1.18 per share.
• Operating cash flow generation was strong at $36 million.

The Residential segment, which accounts for about 60% of total sales, saw a 6.1% decrease due to unexpected channel destocking. However, the company partially offset this through participation gains and growth in ventilation product lines.

The Renewables segment showed growth, with adjusted net sales up 8.2%, driven by demand for the new 1P tracker product. However, margins were impacted by product mix and launch process learning curve.

Notably, the Agtech segment saw record bookings of over $90 million, supporting strong revenue growth expectations for the second half of the year. The Infrastructure segment continued to perform well with a 2.5% increase in net sales and improved margins.

Looking ahead, Gibraltar has slightly adjusted its net sales outlook for the year but maintained its EPS guidance. This suggests confidence in the company's ability to manage costs and drive operational improvements despite market challenges.

Market Research Analyst

Gibraltar's Q2 results reflect broader market trends and challenges in the construction and renewable energy sectors. Here's a deeper dive into the market dynamics at play:

• The unexpected channel destocking in the Residential segment suggests inventory adjustments in the housing market, possibly due to rising interest rates and economic uncertainty.
• The Renewables segment's growth, despite customer project delays, indicates the ongoing transition to clean energy. However, trade and regulatory issues are creating short-term hurdles.
• The record bookings in the Agtech segment ($90 million) point to increasing investment in agricultural technology and controlled environment agriculture.
• The Infrastructure segment's steady performance aligns with continued government spending on infrastructure projects.

Gibraltar's ability to partially offset market headwinds through participation gains and new product introductions demonstrates its adaptability. The company's focus on operational improvements and cash flow generation is prudent in the face of market uncertainties.

The slight downward adjustment in the net sales outlook, while maintaining EPS guidance, suggests Gibraltar is confident in its ability to manage costs and improve efficiency. This approach could position the company well if market conditions improve in the second half of the year.

Investors should monitor macroeconomic factors, such as interest rates and government policies, which could impact Gibraltar's end markets. Additionally, the company's ability to execute on its growth initiatives in Agtech and maintain momentum in Infrastructure will be important for its performance in the coming quarters.

Net Sales: GAAP -3.3%, Adjusted -2.0%; EPS: GAAP +5.0%, Adjusted +2.6%

Strong Operating Cash Flow Generation, $36 Million

2024 Outlook: Moderating Revenue Growth, EPS Unchanged

BUFFALO, N.Y.--(BUSINESS WIRE)-- Gibraltar Industries, Inc. (Nasdaq: ROCK), a leading manufacturer and provider of products and services for the residential, renewable energy, agtech and infrastructure markets, today reported its financial results for the three- and six-month period ended June 30, 2024.

“We delivered solid execution and strong operating cash flow performance across Gibraltar, generating $36 million, while overcoming two market headwinds that impacted growth in our Residential and Renewables businesses in the quarter. The residential market experienced unexpected channel destocking which started in late May / early June. We offset some of this impact through participation gains, which will support our residential growth plan in the second half. Although net sales for Renewables were up versus prior year, it was less than expected as some customers continued to have project delays related to ongoing trade and regulatory issues. Agtech bookings surpassed $90 million in the quarter, a record for the business, and support strong revenue growth in the second half. We continue to work toward achieving growth in all four segments in 2024 while expanding margin and driving cash flow, and we feel positive about our full year outlook,” stated Chairman and CEO Bill Bosway.

Second Quarter 2024 Consolidated Results

($Millions, except EPS)
Three Months Ended June 30,
	2024		2023		Change				2024		2023		Change
Net Sales	$353.0		$364.9		(3.3)%		Adjusted Net Sales		$353.0		$360.1		(2.0)%
Net Income	$32.2		$30.7		4.9%		Adjusted Net Income		$36.4		$35.4		2.8%
Diluted EPS	$1.05		$1.00		5.0%		Adjusted Diluted EPS		$1.18		$1.15		2.6%

GAAP net sales were down 3.3% while adjusted net sales were down 2.0% driven by a slowing market in Residential. Agtech bookings are up significantly and support strong revenue growth in the second half, and Infrastructure performance is expected to remain positive going forward.

GAAP net income increased 4.9% to $32.2 million, or $1.05 per share, and adjusted net income increased 2.8% to $36.4 million, or $1.18 per share.

Adjusted measures exclude charges for restructuring initiatives, acquisition-related items, senior leadership transition costs, and portfolio management actions, as further described in the appended reconciliation of adjusted financial measures.

Second Quarter Segment Results

Residential

($Millions)
Three Months Ended June 30,
	2024		2023		Change				2024		2023		Change
Net Sales	$214.3		$228.2		(6.1)%		Adjusted Net Sales		$214.3		$228.2		(6.1)%
Operating Income	$43.3		$44.0		(1.6)%		Adjusted Operating Income		$43.5		$44.0		(1.1)%
Operating Margin	20.2%		19.3%		90 bps		Adjusted Operating Margin		20.3%		19.3%		100 bps

Net sales decreased 6.1% driven by a slowing market and unexpected channel destocking in the second half of the quarter, partially offset by participation gains with new and existing customers, growth in ventilation product lines, and expansion initiatives in the Rocky Mountain region.

Operating margins expanded through solid execution, 80/20 initiatives, and effective price/cost management.

Renewables

($Millions)
Three Months Ended June 30,
	2024		2023		Change				2024		2023		Change
Net Sales	$79.4		$77.5		2.5%		Adjusted Net Sales		$79.4		$73.4		8.2%
Operating Income	$1.6		$5.9		(72.9)%		Adjusted Operating Income		$6.2		$7.7		(19.5)%
Operating Margin	2.1%		7.6%		(550) bps		Adjusted Operating Margin		7.8%		10.5%		(270) bps

GAAP net sales increased 2.5% and adjusted net sales increased 8.2%, which excludes the Japan renewables business divested in 2023. Net sales were driven by strong demand from new and existing customers for the new 1P tracker product. Despite a growing pipeline of new projects across all product lines, order backlog decreased 10% during the quarter as some customers paused signing new contracts as they work through trade and/or regulatory items specific to their projects.

Both GAAP and adjusted operating margins were impacted by product mix as the 1P tracker product moves through its launch process learning curve to permanently tooled production for suppliers and an efficient field installation process. GAAP margins were further impacted by restructuring activities and prior year portfolio management actions.

Agtech

($Millions)
Three Months Ended June 30,
	2024		2023		Change				2024		2023		Change
Net Sales	$34.5		$35.0		(1.4)%		Adjusted Net Sales		$34.5		$34.3		0.6%
Operating Income	$2.3		$(1.1)		309.1%		Adjusted Operating Income		$2.3		$3.3		(30.3)%
Operating Margin	6.6%		(3.2)%		980 bps		Adjusted Operating Margin		6.6%		9.5%		(290) bps

GAAP net sales decreased 1.4% and adjusted net sales increased 0.6%, which excludes the Processing business liquidated in 2023. Revenue was impacted by new projects starting later in the quarter, with June revenue up significantly over May. New bookings reached $90 million in the quarter increasing nearly 400% over Q1 resulting in backlog up 32% over prior year.

Both GAAP and adjusted operating margins were impacted by project timing and mix, while GAAP was more than offset by the liquidation of the processing business in 2023.

Infrastructure

($Millions)
Three Months Ended June 30,
	2024		2023		Change				2024		2023		Change
Net Sales	$24.8		$24.2		2.5%		Adjusted Net Sales		$24.8		$24.2		2.5%
Operating Income	$6.2		$5.8		6.9%		Adjusted Operating Income		$6.2		$5.8		6.9%
Operating Margin	25.1%		24.1%		100 bps		Adjusted Operating Margin		25.1%		24.1%		100 bps

Net sales increased 2.5%, driven by continued strong execution and market participation gains. Backlog decreased 12% as expected due to a large project booked in 2023 reaching its final stages; bookings increased 3% on a sequential basis reflecting consistent customer activity. Demand and quoting remain strong, and management expects order flow to increase in the second half of the year.

Operating margins increased 100 basis points driven by price / cost alignment, ongoing strong execution, 80/20 productivity, and improving product mix.

Business Outlook

Mr. Bosway continued, “We are making a slight adjustment to our net sales outlook for the year to reflect recent slower market conditions in both Residential and Renewables end markets offset by strength in both Agtech and Infrastructure. We remain focused on driving participation gains as we work toward achieving growth in all four segments, with operational improvements to support solid second half and full year margin expansion and cash flow growth.”

Consolidated net sales are now expected to range between $1.38 billion and $1.42 billion, compared to $1.38 billion in 2023, or $1.36 billion on an adjusted basis. The outlook for both GAAP and adjusted EPS is unchanged, with GAAP EPS continuing to range between $4.04 and $4.29, compared to $3.59 in 2023, and adjusted EPS continuing to range between $4.57 and $4.82, compared to $4.09 in 2023.

Second Quarter 2024 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 2024. 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 (877) 407-3088 or (201) 389-0927. 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, renewable energy, 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, sustainable power, 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, the availability and pricing of our 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, our ability to continue to improve operating margins, our ability to generate order flow and sales and increase backlog; our ability to translate our 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, our ability to develop and launch new products in a cost-effective manner, our ability to realize synergies from newly acquired businesses, disruptions to IT systems, the impact of trade and regulation (including the latest Department of Commerce’s solar panel anti-circumvention investigation, the bifacial exemption revocation, the Auxin Solar challenge to the Presidential waiver of tariffs, deadline to install certain modules under the waiver, and the Uyghur Forced Labor Prevention Act (UFLPA)), rebates, credits and incentives and variations in government spending and our ability to derive expected benefits from restructuring, productivity initiatives, liquidity enhancing actions, and other cost reduction actions. Before making any investment decisions regarding our company, we strongly advise you to read the section entitled “Risk Factors” in our most recent annual report on Form 10-K which can be accessed under the “SEC Filings” link of the “Investor Info” page of our 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 our Processing business, which has been liquidated and our Japan renewables business which was sold on December 1, 2023. 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 represents the operating results generated by our processing business which was liquidated in 2023 and our Japan renewables business which was sold in 2023). 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. 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 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 2024 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.

GIBRALTAR INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
	Three Months Ended June 30,								Six Months Ended June 30,
		2024				2023				2024				2023
Net sales	$	353,005			$	364,914			$	645,511			$	658,181
Cost of sales		257,132				268,175				465,250				484,513
Gross profit		95,873				96,739				180,261				173,668
Selling, general, and administrative expense		53,404				53,662				106,056				101,221
Income from operations		42,469				43,077				74,205				72,447
Interest (income) expense		(1,495	)			1,308				(2,245	)			2,799
Other expense (income)		347				(509	)			(674	)			(906	)
Income before taxes		43,617				42,278				77,124				70,554
Provision for income taxes		11,419				11,555				19,980				18,732
Net income	$	32,198			$	30,723			$	57,144			$	51,822
Net earnings per share:
Basic	$	1.05			$	1.01			$	1.87			$	1.69
Diluted	$	1.05			$	1.00			$	1.86			$	1.68
Weighted average shares outstanding:
Basic		30,588				30,554				30,580				30,725
Diluted		30,791				30,684				30,801				30,846

GIBRALTAR INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
	June 30, 2024				December 31, 2023
	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	179,102			$	99,426
Accounts receivable, net of allowance of $5,563 and $5,572, respectively		259,358				224,550
Inventories, net		134,493				120,503
Prepaid expenses and other current assets		18,912				17,772
Total current assets		591,865				462,251
Property, plant, and equipment, net		108,314				107,603
Operating lease assets		41,134				44,918
Goodwill		511,590				513,383
Acquired intangibles		121,567				125,980
Other assets		2,471				2,316
	$	1,376,941			$	1,256,451
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	140,888			$	92,124
Accrued expenses		85,099				88,719
Billings in excess of cost		59,498				44,735
Total current liabilities		285,485				225,578
Deferred income taxes		57,110				57,103
Non-current operating lease liabilities		32,601				35,989
Other non-current liabilities		26,074				22,783
Stockholders’ equity:
Preferred stock, $0.01 par value; authorized 10,000 shares; none outstanding		—				—
Common stock, $0.01 par value; authorized 100,000 shares; 34,274 and 34,219 shares issued and outstanding in 2024 and 2023		343				342
Additional paid-in capital		338,978				332,621
Retained earnings		795,655				738,511
Accumulated other comprehensive loss		(3,496	)			(2,114	)
Cost of 3,797 and 3,778 common shares held in treasury in 2024 and 2023		(155,809	)			(154,362	)
Total stockholders’ equity		975,671				914,998
	$	1,376,941			$	1,256,451

GIBRALTAR INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
	Six Months Ended June 30,
		2024				2023
Cash Flows from Operating Activities
Net income	$	57,144			$	51,822
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		13,416				13,665
Stock compensation expense		6,358				5,056
Exit activity costs (recoveries), non-cash		163				(23	)
Provision for deferred income taxes		—				179
Other, net		2,347				2,680
Changes in operating assets and liabilities net of effects from acquisitions:
Accounts receivable		(33,828	)			(54,979	)
Inventories		(13,794	)			12,130
Other current assets and other assets		(3,791	)			4,069
Accounts payable		48,518				48,327
Accrued expenses and other non-current liabilities		13,120				31,168
Net cash provided by operating activities		89,653				114,094
Cash Flows from Investing Activities
Acquisitions, net of cash acquired		—				554
Purchases of property, plant, and equipment, net		(8,707	)			(5,284	)
Net proceeds from sale of business		350				—
Net cash used in investing activities		(8,357	)			(4,730	)
Cash Flows from Financing Activities
Proceeds from long-term debt		—				40,800
Long-term debt payments		—				(120,000	)
Purchase of common stock at market prices		(1,447	)			(28,770	)
Net cash used in financing activities		(1,447	)			(107,970	)
Effect of exchange rate changes on cash		(173	)			(381	)
Net increase in cash and cash equivalents		79,676				1,013
Cash and cash equivalents at beginning of year		99,426				17,608
Cash and cash equivalents at end of period	$	179,102			$	18,621

GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
Three Months Ended June 30, 2024
		As Reported In GAAP Statements				Restructuring Charges				Acquisition & Senior Leadership Transition Costs				Portfolio Management				Adjusted Financial Measures
Net Sales
Residential		$	214,316			$	—			$	—			$	—			$	214,316
Renewables			79,381				—				—				—				79,381
Agtech			34,508				—				—				—				34,508
Infrastructure			24,800				—				—				—				24,800
Consolidated sales			353,005				—				—				—				353,005
Income from operations
Residential			43,313				145				—				—				43,458
Renewables			1,647				4,449				113				—				6,209
Agtech			2,282				11				—				—				2,293
Infrastructure			6,215				—				—				—				6,215
Segments Income			53,457				4,605				113				—				58,175
Unallocated corporate expense			(10,988	)			4				96				—				(10,888	)
Consolidated income from operations			42,469				4,609				209				—				47,287
Interest income			(1,495	)			—				—				—				(1,495	)
Other expense			347				—				—				(324	)			23
Income before income taxes			43,617				4,609				209				324				48,759
Provision for income taxes			11,419				1,170				(274	)			72				12,387
Net income		$	32,198			$	3,439			$	483			$	252			$	36,372
Net income per share - diluted		$	1.05			$	0.11			$	0.01			$	0.01			$	1.18
Operating margin
Residential			20.2	%			0.1	%			—	%			—	%			20.3	%
Renewables			2.1	%			5.6	%			0.1	%			—	%			7.8	%
Agtech			6.6	%			—	%			—	%			—	%			6.6	%
Infrastructure			25.1	%			—	%			—	%			—	%			25.1	%
Segments Margin			15.1	%			1.3	%			—	%			—	%			16.5	%
Consolidated			12.0	%			1.3	%			—	%			—	%			13.4	%

GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
Three Months Ended June 30, 2023
		As Reported In GAAP Statements				Restructuring & Senior Leadership Transition				Portfolio Management & Acquisition Costs				Adjusted Financial Measures				Portfolio Management *				Adjusted Financial Measures *
Net Sales
Residential		$	228,234			$	—			$	—			$	228,234			$	—			$	228,234
Renewables			77,459				—				—				77,459				(4,081	)			73,378
Agtech			35,028				—				(765	)			34,263				—				34,263
Infrastructure			24,193				—				—				24,193				—				24,193
Consolidated sales			364,914				—				(765	)			364,149				(4,081	)			360,068
Income from operations
Residential			43,959				—				—				43,959				—				43,959
Renewables			5,908				2,997				148				9,053				(1,358	)			7,695
Agtech			(1,117	)			156				4,233				3,272				—				3,272
Infrastructure			5,828				—				—				5,828				—				5,828
Segments Income			54,578				3,153				4,381				62,112				(1,358	)			60,754
Unallocated corporate expense			(11,501	)			—				66				(11,435	)			—				(11,435	)
Consolidated income from operations			43,077				3,153				4,447				50,677				(1,358	)			49,319
Interest expense			1,308				—				—				1,308				—				1,308
Other income			(509	)			—				559				50				(57	)			(7	)
Income before income taxes			42,278				3,153				3,888				49,319				(1,301	)			48,018
Provision for income taxes			11,555				857				622				13,034				(420	)			12,614
Net income		$	30,723			$	2,296			$	3,266			$	36,285			$	(881	)		$	35,404
Net income per share - diluted		$	1.00			$	0.08			$	0.10			$	1.18			$	(0.03	)		$	1.15
Operating margin
Residential			19.3	%			—	%			—	%			19.3	%			—	%			19.3	%
Renewables			7.6	%			3.9	%			0.2	%			11.7	%			(1.2	)%			10.5	%
Agtech			(3.2	)%			0.4	%			12.1	%			9.5	%			—	%			9.5	%
Infrastructure			24.1	%			—	%			—	%			24.1	%			—	%			24.1	%
Segments Margin			15.0	%			0.9	%			1.2	%			17.1	%			(0.2	)%			16.9	%
Consolidated			11.8	%			0.9	%			1.3	%			13.9	%			(0.2	)%			13.7	%
* Recast to exclude sale of Japan-based solar racking business within the Renewables segment.

GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
Six Months Ended June 30, 2024
		As Reported In GAAP Statements				Restructuring Charges				Acquisition & Senior Leadership Transition Costs				Portfolio Management				Adjusted Financial Measures
Net Sales
Residential		$	399,427			$	—			$	—			$	—			$	399,427
Renewables			130,877				—				—				—				130,877
Agtech			68,535				—				—				—				68,535
Infrastructure			46,672				—				—				—				46,672
Consolidated sales			645,511				—				—				—				645,511
Income from operations
Residential			77,659				73				—				—				77,732
Renewables			3,291				4,718				233				—				8,242
Agtech			4,890				149				—				—				5,039
Infrastructure			11,111				—				—				—				11,111
Segments Income			96,951				4,940				233				—				102,124
Unallocated corporate expense			(22,746	)			4				219				8				(22,515	)
Consolidated income from operations			74,205				4,944				452				8				79,609
Interest income			(2,245	)			—				—				—				(2,245	)
Other (income) expense			(674	)			—				—				829				155
Income before income taxes			77,124				4,944				452				(821	)			81,699
Provision for income taxes			19,980				1,228				(460	)			51				20,799
Net income		$	57,144			$	3,716			$	912			$	(872	)		$	60,900
Net income per share - diluted		$	1.86			$	0.12			$	0.03			$	(0.03	)		$	1.98
Operating margin
Residential			19.4	%			—	%			—	%			—	%			19.5	%
Renewables			2.5	%			3.6	%			0.2	%			—	%			6.3	%
Agtech			7.1	%			0.2	%			—	%			—	%			7.4	%
Infrastructure			23.8	%			—	%			—	%			—	%			23.8	%
Segments Margin			15.0	%			0.8	%			—	%			—	%			15.8	%
Consolidated			11.5	%			0.8	%			—	%			—	%			12.3	%

GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
Six Months Ended June 30, 2023
		As Reported In GAAP Statements				Restructuring & Senior Leadership Transition				Portfolio Management & Acquisition Costs				Adjusted Financial Measures				Portfolio Management *				Adjusted Financial Measures *
Net Sales
Residential		$	407,729			$	—			$	—			$	407,729			$	—			$	407,729
Renewables			136,664				—				—				136,664				(6,031	)			130,633
Agtech			70,880				—				(3,279	)			67,601				—				67,601
Infrastructure			42,908				—				—				42,908				—				42,908
Consolidated sales			658,181				—				(3,279	)			654,902				(6,031	)			648,871
Income from operations
Residential			73,468				114				—				73,582				—				73,582
Renewables			8,177				2,934				180				11,291				(908	)			10,383
Agtech			1,213				717				4,894				6,824				—				6,824
Infrastructure			8,542				—				—				8,542				—				8,542
Segments Income			91,400				3,765				5,074				100,239				(908	)			99,331
Unallocated corporate expense			(18,953	)			(19	)			87				(18,885	)			—				(18,885	)
Consolidated income from operations			72,447				3,746				5,161				81,354				(908	)			80,446
Interest expense			2,799				—				—				2,799				—				2,799
Other (income) expense			(906	)			—				1,027				121				(99	)			22
Income before income taxes			70,554				3,746				4,134				78,434				(809	)			77,625
Provision for income taxes			18,732				997				663				20,392				(160	)			20,232
Net income		$	51,822			$	2,749			$	3,471			$	58,042			$	(649	)		$	57,393
Net income per share - diluted		$	1.68			$	0.09			$	0.11			$	1.88			$	(0.02	)		$	1.86
Operating margin
Residential			18.0	%			—	%			—	%			18.0	%			—	%			18.0	%
Renewables			6.0	%			2.1	%			0.1	%			8.3	%			(0.4	)%			7.9	%
Agtech			1.7	%			1.0	%			7.0	%			10.1	%			—	%			10.1	%
Infrastructure			19.9	%			—	%			—	%			19.9	%			—	%			19.9	%
Segments Margin			13.9	%			0.6	%			0.7	%			15.3	%			—	%			15.3	%
Consolidated			11.0	%			0.6	%			0.7	%			12.4	%			—	%			12.4	%
* Recast to exclude sale of Japan-based solar racking business within the Renewables segment.

GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
Twelve Month Ended December 31, 2023
		As Reported In GAAP Statements				Restructuring Charges				Portfolio Management & Acquisition Costs				Adjusted Financial Measures				Portfolio Management *				Adjusted Financial Measures *
Net Sales
Residential		$	814,803			$	—			$	—			$	814,803			$	—			$	814,803
Renewables			330,738				—				—				330,738				(11,724	)			319,014
Agtech			144,967				—				(4,059	)			140,908				—				140,908
Infrastructure			87,228				—				—				87,228				—				87,228
Consolidated sales			1,377,736				—				(4,059	)			1,373,677				(11,724	)			1,361,953
Income from operations
Residential			143,068				4,811				12				147,891				—				147,891
Renewables			30,160				9,394				968				40,522				(1,252	)			39,270
Agtech			(928	)			3,918				4,156				7,146				—				7,146
Infrastructure			18,529				—				—				18,529				—				18,529
Segments Income			190,829				18,123				5,136				214,088				(1,252	)			212,836
Unallocated corporate expense			(40,100	)			(51	)			389				(39,762	)			—				(39,762	)
Consolidated income from operations			150,729				18,072				5,525				174,326				(1,252	)			173,074
Interest expense			3,002				—				—				3,002				—				3,002
Other (income) expense			(1,265	)			—				1,625				360				(183	)			177
Income before income taxes			148,992				18,072				3,900				170,964				(1,069	)			169,895
Provision for income taxes			38,459				4,583				1,382				44,424				(322	)			44,102
Net income		$	110,533			$	13,489			$	2,518			$	126,540			$	(747	)		$	125,793
Net income per share - diluted		$	3.59			$	0.43			$	0.09			$	4.11			$	(0.02	)		$	4.09
Operating margin
Residential			17.6	%			0.6	%			—	%			18.2	%			—	%			18.2	%
Renewables			9.1	%			2.8	%			0.3	%			12.3	%			—	%			12.3	%
Agtech			(0.6	)%			2.7	%			2.8	%			5.1	%			—	%			5.1	%
Infrastructure			21.2	%			—	%			—	%			21.2	%			—	%			21.2	%
Segments Margin			13.9	%			1.3	%			0.4	%			15.6	%			—	%			15.6	%
Consolidated			10.9	%			1.3	%			0.4	%			12.7	%			—	%			12.7	%
* Recast to exclude sale of Japan-based solar racking business within the Renewables segment.

GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands)
(unaudited)
Three Months Ended June 30, 2024
		Consolidated				Residential				Renewables				Agtech				Infrastructure
Adjusted Net Sales		$	353,005			$	214,316			$	79,381			$	34,508			$	24,800
Net Income			32,198
Provision for Income Taxes			11,419
Interest Income			(1,495	)
Other Expense			347
Operating Profit			42,469				43,313				1,647				2,282				6,215
Adjusted Measures*			4,818				145				4,562				11				—
Adjusted Operating Profit			47,287				43,458				6,209				2,293				6,215
Adjusted Operating Margin			13.4	%			20.3	%			7.8	%			6.6	%			25.1	%
Adjusted Other Expense			23				—				—				—				—
Depreciation & Amortization			6,753				2,507				2,050				808				747
Stock Compensation Expense			3,719				464				234				94				64
Adjusted EBITDA		$	57,736			$	46,429			$	8,493			$	3,195			$	7,026
Adjusted EBITDA Margin			16.4	%			21.7	%			10.7	%			9.3	%			28.3	%
Cash Flow - Operating Activities			36,472
Purchase of PPE, Net			(4,341	)
Free Cash Flow			32,131
Free Cash Flow - % of Adjusted Net Sales			9.1	%
*Adjusted Measures details are presented on the corresponding Reconciliation of Adjusted Financial Measures

GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands)
(unaudited)
Three Months Ended June 30, 2023
		Consolidated				Residential				Renewables				Agtech				Infrastructure
Adjusted Net Sales*		$	360,068			$	228,234			$	73,378			$	34,263			$	24,193
Net Income			30,723
Provision for Income Taxes			11,555
Interest Expense			1,308
Other Income			(509	)
Operating Profit			43,077				43,959				5,908				(1,117	)			5,828
Adjusted Measures*			6,242				—				1,787				4,389				—
Adjusted Operating Profit			49,319				43,959				7,695				3,272				5,828
Adjusted Operating Margin			13.7	%			19.3	%			10.5	%			9.5	%			24.1	%
Adjusted Other Income**			(57	)			—				—				—				—
Depreciation & Amortization**			6,831				2,463				2,211				953				786
Less: Japan Depreciation & Amortization			(188	)			—				(188	)			—				—
Adjusted Depreciation & Amortization			6,643				2,463				2,023				953				786
Stock Compensation Expense			3,462				309				233				181				56
Adjusted EBITDA Recast**		$	59,481			$	46,731			$	9,951			$	4,406			$	6,670
Adjusted EBITDA Margin Recast**			16.5	%			20.5	%			13.6	%			12.9	%			27.6	%
Adjusted EBITDA Previously Reported		$	60,970			$	46,731			$	11,497			$	4,406			$	6,670
Adjusted EBITDA Margin Previously Reported			16.7	%			20.5	%			14.8	%			12.9	%			27.6	%
Cash Flow - Operating Activities			76,049
Purchase of PPE, Net			(3,094	)
Free Cash Flow			72,955
Free Cash Flow - % of Adjusted Net Sales			20.0	%
*Details of recast amounts for the sale of the Japan based solar racking business within the Renewables segment are presented on corresponding Reconciliation of Adjusted Financial Measures
**Recast to exclude sale of Japan based solar racking business within the Renewables segment

GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands)
(unaudited)
Six Months Ended June 30, 2024
		Consolidated				Residential				Renewables				Agtech				Infrastructure
Adjusted Net Sales		$	645,511			$	399,427			$	130,877			$	68,535			$	46,672
Net Income			57,144
Provision for Income Taxes			19,980
Interest Income			(2,245	)
Other Income			(674	)
Operating Profit			74,205				77,659				3,291				4,890				11,111
Adjusted Measures*			5,404				73				4,951				149				—
Adjusted Operating Profit			79,609				77,732				8,242				5,039				11,111
Adjusted Operating Margin			12.3	%			19.5	%			6.3	%			7.4	%			23.8	%
Adjusted Other Expense			155				—				—				—				—
Depreciation & Amortization			13,416				5,098				3,950				1,638				1,492
Stock Compensation Expense			6,358				877				449				188				118
Adjusted EBITDA		$	99,228			$	83,707			$	12,641			$	6,865			$	12,721
Adjusted EBITDA Margin			15.4	%			21.0	%			9.7	%			10.0	%			27.3	%
Cash Flow - Operating Activities			89,653
Purchase of PPE, Net			(8,707	)
Free Cash Flow			80,946
Free Cash Flow - % of Adjusted Net Sales			12.5	%
*Adjusted Measures details are presented on the corresponding Reconciliation of Adjusted Financial Measures

GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands)
(unaudited)
Six Months Ended June 30, 2023
		Consolidated				Residential				Renewables				Agtech				Infrastructure
Adjusted Net Sales*		$	648,871			$	407,729			$	130,633			$	67,601			$	42,908
Net Income			51,822
Provision for Income Taxes			18,732
Interest Expense			2,799
Other Income			(906	)
Operating Profit			72,447				73,468				8,177				1,213				8,542
Adjusted Measures*			7,999				114				2,206				5,611				—
Adjusted Operating Profit			80,446				73,582				10,383				6,824				8,542
Adjusted Operating Margin			12.4	%			18.0	%			7.9	%			10.1	%			19.9	%
Adjusted Other Income**			(22	)			—				—				—				—
Depreciation & Amortization**			13,665				4,956				4,390				1,907				1,566
Less: Japan Depreciation & Amortization			(383	)			—				(383	)			—				—
Adjusted Depreciation & Amortization			13,282				4,956				4,007				1,907				1,566
Stock Compensation Expense			5,056				607				447				334				103
Adjusted EBITDA Recast**		$	98,806			$	79,145			$	14,837			$	9,065			$	10,211
Adjusted EBITDA Margin Recast**			15.2	%			19.4	%			11.4	%			13.4	%			23.8	%
Adjusted EBITDA Previously Reported		$	99,998			$	79,145			$	16,128			$	9,065			$	10,211
Adjusted EBITDA Margin Previously Reported			15.3	%			19.4	%			11.8	%			13.4	%			23.8	%
Cash Flow - Operating Activities			114,094
Purchase of PPE, Net			(5,284	)
Free Cash Flow			108,810
Free Cash Flow - % of Adjusted Net Sales			16.6	%
*Details of recast amounts for the sale of the Japan based solar racking business within the Renewables segment are presented on corresponding Reconciliation of Adjusted Financial Measures
**Recast to exclude sale of Japan based solar racking business within the Renewables segment

GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands)
(unaudited)
		Twelve Month Ended December 31, 2023
		Consolidated				Residential				Renewables				Agtech				Infrastructure
Adjusted Net Sales*		$	1,361,953			$	814,803			$	319,014			$	140,908			$	87,228
Net Income			110,533
Provision for Income Taxes			38,459
Interest Expense			3,002
Other Income			(1,265	)
Operating Profit			150,729				143,068				30,160				(928	)			18,529
Adjusted Measures*			22,345				4,823				9,110				8,074				—
Adjusted Operating Profit			173,074				147,891				39,270				7,146				18,529
Adjusted Operating Margin			12.7	%			18.2	%			12.3	%			5.1	%			21.2	%
Adjusted Other Expense**			228				—				—				—				—
Depreciation & Amortization**			27,378				10,079				8,670				3,790				3,137
Less: Japan Depreciation & Amortization			(676	)			—				(676	)			—				—
Adjusted Depreciation & Amortization			26,702				10,079				7,994				3,790				3,137
Stock Compensation Expense			9,750				1,633				881				197				289
Adjusted EBITDA Recast**		$	209,298			$	159,603			$	48,145			$	11,133			$	21,955
Adjusted EBITDA Margin Recast**			15.4	%			19.6	%			15.1	%			7.9	%			25.2	%
Adjusted EBITDA Previously Reported		$	211,043			$	159,603			$	50,073			$	11,133			$	21,955
Adjusted EBITDA Margin Previously Reported			15.4	%			19.6	%			15.1	%			7.9	%			25.2	%
Cash Flow - Operating Activities			218,476
Purchase of PPE, Net			(13,906	)
Free Cash Flow			204,570
Free Cash Flow - % of Adjusted Net Sales			14.9	%
*Details of recast amounts for the sale of the Japan based solar racking business within the Renewables segment are presented on corresponding Reconciliation of Adjusted Financial Measures
**Recast to exclude sale of Japan based solar racking business within the Renewables segment

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240731430258/en/

LHA Investor Relations

Jody Burfening/Carolyn Capaccio

(212) 838-3777

rock@lhai.com

Source: Gibraltar Industries, Inc.

FAQ

What were Gibraltar's Q2 2024 financial results for ROCK stock?

Gibraltar (ROCK) reported Q2 2024 GAAP net sales down 3.3% to $353.0 million, GAAP EPS up 5.0% to $1.05, and adjusted EPS up 2.6% to $1.18. The company generated $36 million in operating cash flow.

How did Gibraltar's Residential segment perform in Q2 2024?

Gibraltar's Residential segment net sales decreased 6.1% to $214.3 million in Q2 2024 due to a slowing market and unexpected channel destocking. However, operating margins expanded through solid execution and 80/20 initiatives.

What was the performance of Gibraltar's Agtech segment in Q2 2024?

Gibraltar's Agtech segment achieved record bookings of $90 million in Q2 2024, nearly 400% higher than Q1. While GAAP net sales decreased 1.4% to $34.5 million, the segment's backlog increased 32% year-over-year.

Has Gibraltar (ROCK) updated its financial outlook for 2024?

Yes, Gibraltar (ROCK) adjusted its 2024 net sales outlook to $1.38-$1.42 billion due to slower market conditions in Residential and Renewables. However, the company maintained its EPS guidance, with GAAP EPS projected at $4.04-$4.29 and adjusted EPS at $4.57-$4.82.