Gibraltar Announces Second Quarter 2022 Financial Results

Gibraltar Industries, Inc., a leading manufacturer and provider of products and services for the renewable energy, residential, agtech and infrastructure markets, today reported its financial results for the three-month period ended June 30, 2022.

“Gibraltar generated solid performance in the quarter, with adjusted revenue up 7% and adjusted EPS up 19%. Our Renewables, Agtech, and Infrastructure margins improved sequentially according to our expectations and our Residential business delivered both strong revenue and margin performance,” Chairman and CEO Bill Bosway stated. “Part of our ongoing strategy is to further simplify and digitize our businesses, and we completed two additional ERP implementations during the quarter; these systems are designed to enable us to better connect with and provide seamless value to our customers while increasing speed, flexibility, and efficiency of our operations. Demand drivers remain solid for the overall business despite our Renewables’ customers waiting for clarity on panel availability to execute orders and finalize projects.”

Revenue from continuing operations increased 5.3% to $366.9 million. Adjusted revenue increased 6.8% to $364.2 million driven primarily by participation gains and price management in the Residential segment, partially offset by continued supply chain challenges and project delays in the Agtech and Renewables segments.

GAAP earnings increased 11.0% to $29.3 million, or $0.90 per share, and adjusted earnings increased 18.0% to $31.5 million, or $0.96 per share. Profitability in the quarter was driven by participation gains, price management, business mix, and 80/20 initiatives.

Adjusted measures exclude charges for restructuring initiatives, acquisition-related items, senior leadership transition costs, and the results of the Processing business, which was classified as held for sale in the first quarter of 2022, as further described in the appended reconciliation of adjusted financial measures.

Second Quarter Segment Results

As expected, solar project schedules remained dynamic as customers continued to understand the impact of the Department of Commerce investigation, the implementation of the Uyghur Forced Labor Prevention Act by the U.S. Custom and Border Protection Agency, and the Executive Order issued by the administration with respect to solar panel tariff enforcement. As a result, revenue was down 5.8%. Backlog was down 2.1% as new bookings slowed pending visibility on these key trade issues. Backlog is expected to improve once these trade issues are resolved.

Adjusted operating income improved $11.4 million, for a margin increase of over 1,200 basis points sequentially and reached double-digit performance in both May and June. Gibraltar expects sequential margin improvement to continue in the second half of the year. Acquisition integration efforts are on track with a common ERP system now live and in-sourcing initiatives on schedule for implementation in the second half of the year.

Revenue increased 21.9%, marking the eighth consecutive quarter of double-digit growth. Revenue was driven by price management and participation gains.

Adjusted operating income grew 36.0% and adjusted operating margin improved 190 basis points to 18.5% through price / cost management, supply chain initiatives, labor management, and additional 80/20 initiatives. Gibraltar also implemented a new ERP system in the mail and package business.

GAAP revenue decreased 18.6%, with adjusted revenue down 11.9% due to Produce and Cannabis project movement into the third and fourth quarters of 2022. Quote activity and new order bookings were robust in the quarter, resulting in backlog increasing 30%.

Adjusted operating margin improved 80 basis points over last year through business mix, price / cost management, supply chain improvement, 80/20 initiatives, and integration activities.

Revenue decreased 5.3% versus a very strong Q2 2021, which benefitted from the scheduling of customer projects. Order backlog was flat during the quarter, but bidding activity is very strong and new bookings have accelerated early in the third quarter. Management continues to expect a positive impact from the infrastructure bill later in the second half of 2022.

Adjusted operating margin improved 690 basis points sequentially as the business overcomes steel inflation impacting fixed-price projects with state departments of transportation booked in 2020 and early 2021. Unfavorable product mix resulted in margins being down versus last year. Management continues to expect margins to improve through 2022 with lower margin projects subsiding, business mix improving, and volume leverage.

Business Outlook

Gibraltar is reaffirming guidance for revenue and earnings for the full year 2022, with consolidated revenue expected to range between $1.38 billion and $1.43 billion. GAAP EPS is expected to be between $2.80 and $3.00, and adjusted EPS expected to be between $3.20 and $3.40.

“Our first half results, current demand profile, and ongoing 80/20 initiatives support our confidence in delivering our full-year performance commitments. We remain focused on execution, including supply chain optimization, price / cost alignment, labor management, 80/20, and further simplifying our businesses,” said Mr. Bosway.

For the complete press release, click here.

About Gibraltar

Gibraltar is a leading manufacturer and provider of products and services for the renewable energy, 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, sustainable power, and productive growing throughout North America. For more please visit www.gibraltar1.com.

Contact:

Jody Burfening/Carolyn Capaccio – LHA Investor Relations – rock@lhai.com – (212) 838-3777

Source: Gibraltar Industries, Inc.