2024 EPS: GAAP up 24%, Adjusted up 4% on 5% Net Sales Decrease

Strong 2024 Cash Generation of $174 Million

Expands Agtech’s Structures Business with Acquisition of Lane Supply

2025 Guidance: Net Sales $1.40B – $1.45B, GAAP EPS $4.25 - $4.50, Adjusted EPS $4.80 - $5.05

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 twelve-month periods ended December 31, 2024.

“Fourth quarter results were roughly in line with expectations for each segment with adjusted EPS reaching the top end of the range at $4.25, and net sales reaching $1.31 billion, just under the range. We also generated strong operating cash flow of $174 million for the year. We executed well in Residential, Agtech and Infrastructure, and our Renewables business continued to accelerate through the launch learning curve of its new tracker product line.”

Fourth Quarter 2024 Consolidated Results

GAAP and adjusted net sales decreased 8.1% and 7.9% respectively, driven primarily by ongoing industry headwinds impacting the Renewables business, and continued slowness in the Residential market.

GAAP net income more than doubled to $46.2 million, or $1.50 per share, and adjusted net income increased 17.9% to $31.0 million, or $1.01 per share. During the quarter, Gibraltar divested its residential electronic locker business.

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

Fourth Quarter Segment Results

Residential

Net sales decreased 4.8% driven by ongoing market softness reflected in customer point-of-sale results being down 3%-4% across product categories sold in various local / regional markets. Sales were also impacted by 80/20 PLS initiatives on safety harness and drywall metals product lines. Delays in the transition of new business awarded in 2024 also impacted net sales in the quarter, but order activity for our building accessories products has been accelerating since the beginning of the year. New products launched in the second half of 2024 are also gaining momentum and will contribute to growth in 2025.

Operating margin decreased slightly primarily related to volume and product mix, but overall execution, price/cost management, and 80/20 initiatives delivered solid results.

Renewables

As expected, net sales and new bookings were suppressed as experienced in the third quarter as customers focused on completing panel installations ahead of the December 3, 2024 deadline related to the June 2024 expiration of the Presidential Proclamation. New contract signings were pushed into January which impacted backlog in the 4^th quarter, down 32%, however, since the start of 2025, new bookings have accelerated and are up 33% versus prior year.

GAAP and adjusted operating margins were impacted by the ramp of and product mix shift toward the recently launched 1P tracker product along with lower volumes while navigating through the abovementioned deadline. GAAP results were further impacted by a $5.3 million non-cash charge for the discontinuation of legacy RBI tradenames in this segment. Although net sales were down 16.2% from the third quarter, adjusted operating margins improved sequentially by 70 basis points from improved operating efficiencies associated with the new tracker product launch.

Agtech

Net sales increased 1% despite project start dates moving from the fourth quarter into first and second quarters of 2025. Demand continues to grow with over $45 million of new orders booked since January 1^st with a strong pipeline of opportunities in process. The move of new project signings from the fourth quarter into 2025 resulted in fourth quarter backlog being down 23%.

GAAP and adjusted operating income were driven by strong execution and business mix as well as a benefit from a customer payment received that was written off in the prior year’s quarter. Excluding this payment, operating margins expanded 1,000 basis points to approximately 15%. GAAP results were further impacted by a $6.0 million non-cash charge for the discontinuation of legacy RBI tradenames in this segment.

Infrastructure

Net sales decreased by 6.7%, impacted by the timing on a large project in the prior year. Backlog increased 10% on strong conversion of bid volume. Demand and quoting remain robust, supported by ongoing investment at the federal and state levels.

Operating margins increased 180 basis points, driven by a favorable mix shift and continued strong operating execution.

Gibraltar Adds Lane Supply Inc to Agtech’s Structures Business

On February 11, 2024, Gibraltar acquired Lane Supply, Inc., an industry leader in the design, manufacture, and installation of structural canopies serving the convenience store, travel center, food retail, EV charging stations, and quick serve restaurant markets for $120 million in cash, subject to customary working capital and other adjustments. During 2024, Lane recorded revenue and adjusted EBITDA of approximately $112.2 million and $16.7 million, respectively. The transaction is expected to be immediately accretive to earnings.

Business Outlook

Mr. Bosway concluded, “For 2025, we expect to deliver growth, solid margin expansion, and strong cash flow generation across the business. We expect participation gains to support growth in our existing businesses, our renewables business to improve execution, and solid growth and margin contribution from the addition of Lane Supply in the Agtech segment.”

Gibraltar is providing its guidance for earnings for the full year 2025. Consolidated net sales are expected to range between $1.40 billion and $1.45 billion, compared to $1.31 billion in 2024. GAAP EPS is expected to range between $4.25 and $4.50, compared to $4.46 in 2024, and adjusted EPS is expected to range between $4.80 and $5.05, compared to $4.25 in 2024.

Fourth 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 fourth 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 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 (including the latest Department of Commerce’s solar panel anti-circumvention investigation, 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 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 Processing business, which has been liquidated and the 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 includes the recent gain on sale of the electronic locker business and operating results generated by the processing business which was liquidated in 2023 and the 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, 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.