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Gibraltar Announces Fourth Quarter and Full Year 2022 Financial Results

General News
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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- and twelve- month periods ended December 31, 2022.

“We executed well in the fourth quarter and remained focused on our key initiatives while adapting to the ongoing fluid external environment. Our adjusted net income improved 20.4% and adjusted EPS improved 28.6% on a sales reduction of 5.2%. We also generated free cash flow of 19% of revenue as we improved margin and working capital performance during the quarter. For the full year, we delivered revenue growth, adjusted EPS and free cash flow within our stated outlook, and GAAP EPS within our recently announced outlook,” stated Chairman and CEO Bill Bosway.

Fourth Quarter 2022 Consolidated Results from Continuing Operations

Below are fourth quarter 2022 consolidated results from continuing operations:

 Three Months Ended December 31,
$Millions, except EPSGAAP Adjusted
 2022 2021 % Change 2022 2021 % Change
Net Sales$313.9 $334.4 -6.1% $312.9 $330.2 -5.2%
Net Income$3.3 $9.8 -66.3% $22.4 $18.6 20.4%
Diluted EPS$0.11 $0.30 -63.3% $0.72 $0.56 28.6%

Revenue decreased 6.1% to $313.9 million and adjusted revenue decreased 5.2% to $312.9 million. Adjusted revenue was down 9.8% organically, with reductions in the Residential, Renewables, and Agtech businesses. In Residential, volume was impacted as the market returned to historically lower seasonal demand patterns as supply chain reliability improved. Also, market prices began to align with changes in commodity indexes. The acquisition of Quality Aluminum Products (“QAP”) partially offset the impact of Residential market dynamics. Project rescoping and rescheduling impacted the Renewables and Agtech segments. Demand in the Infrastructure segment remained solid.

GAAP earnings decreased to $3.3 million, or $.0.11 per share, which included a previously disclosed one-time non-cash charge for the write-down of $14.0 million, or $0.35 per share, for the held-for-sale processing equipment business in the Agtech segment. Adjusted net income increased 20.4% to $22.4 million, or $0.72 per share, and adjusted EPS increased 28.6%. Performance was driven by profitability improvement in the Renewables and Infrastructure segments through material cost alignment, field operations efficiency, price management, business mix, 80/20 initiatives and the share repurchase program.

Adjusted measures exclude charges for restructuring initiatives, acquisition-related items and the results of the processing business which included a write down in the fourth quarter of 2022, as further described in the appended reconciliation of adjusted financial measures.

Fourth Quarter Segment Results


For the fourth quarter, the Renewables segment reported:

 Three Months Ended December 31,
$MillionsGAAP Adjusted
 2022 2021 % Change 2022 2021 % Change
Net Sales$86.1 $108.7 (20.8)% $86.1 $108.7 (20.8)%
Operating Income$11.2 $(1.0) NMF $13.1 $1.4 NMF
Operating Margin13.0% (1.0)% 1400 bps 15.2% 1.3% 1390 bps

Customer demand remained strong for products and services but both Segment revenue and backlog were down 20.8% and 17% respectively as the U.S. solar industry continued to contend with panel importation guidelines governed by the Uyghur Forced Labor Prevention Act (UFLPA), which has impacted scoping and scheduling of projects.

Despite importation issues impacting revenue, adjusted operating margin improved as expected, increasing 1,390 basis points year-over-year and 230 basis points sequentially, driven by field operations productivity, 80/20 project management, business mix, and materials productivity.


For the fourth quarter, the Residential segment reported:

 Three Months Ended December 31,
$MillionsGAAP Adjusted
 2022 2021 % Change 2022 2021 % Change
Net Sales$171.9 $159.5 7.8% $171.9 $159.5 7.8%
Operating Income$21.6 $26.3 (17.9)% $23.0 $26.5 (13.2)%
Operating Margin12.5% 16.5% (400) bps 13.4% 16.6% (320) bps

Revenue increased 7.8%; the acquisition of QAP contributed 9.4% of growth for the segment. Organic revenue was impacted as the market returned to its typical lower seasonal demand patterns in the quarter as supply chain reliability improved and market prices began to align with changes in commodity indexes. QAP results, included for a full quarter, were as expected.

Adjusted operating income decreased 13.2% and adjusted operating margin decreased 320 basis points. The alignment of price and material cost, and the timing of changes in commodity indexes, impacted organic margin in the quarter. The acquisition of QAP, finalized in the third quarter, contributed 110 basis points of the decrease. Margins are expected to recover as price/cost alignment improves and QAP integration benefits are realized.


For the fourth quarter, the Agtech segment reported:

 Three Months Ended December 31,
$MillionsGAAP Adjusted
 2022 2021 % Change 2022 2021 % Change
Net Sales$38.5 $49.8 (22.7)% $37.6 $45.5 (17.4)%
Operating Income$(2.4) $(5.1) 52.9% $1.7 $4.0 (57.5)%
Operating Margin(6.3)% (10.2)% 390 bps 4.6% 8.8% (420) bps

GAAP revenue decreased 22.7%, with adjusted revenue down 17.4% due to project rescoping and rescheduling of produce growing projects into 2023. While quote activity remains robust, backlog decreased 13%.

Adjusted operating margin decreased 420 basis points as project rescheduling delayed project revenue recognition, partially offset by better project execution.

As previously disclosed, Gibraltar recorded a fourth quarter 2022 charge to write down the value of its processing equipment business.


For the fourth quarter, the Infrastructure segment reported:

 Three Months Ended December 31,
$MillionsGAAP Adjusted
 2022 2021 % Change 2022 2021 % Change
Net Sales$17.3 $16.5 4.8% $17.3 $16.5 4.8%
Operating Income$2.4 $1.0 140.0% $2.4 $1.1 118.2%
Operating Margin13.7% 6.4% 730 bps 13.7% 6.5% 720 bps

Revenue increased 4.8% and backlog increased 23% as bidding activity remained very strong. Management expects continued positive impact in 2023 from increased infrastructure spending related to the Infrastructure Investment and Jobs Act.

Adjusted operating income more than doubled and adjusted operating margins improved 720 basis points driven by improved price material cost alignment, improved operating execution, product mix, and volume leverage.

Business Outlook

“We enter 2023 with good operating momentum and a plan to deliver full year growth, margin expansion, and strong cash performance for the year. We are well prepared for what will continue to be a fluid external environment and we expect that the Residential market will return to normal demand seasonality, panel supply for the solar industry will improve in the second half of the year, and Agtech projects for produce growing will get finalized.” Mr. Bosway concluded, “The long-term fundamentals of our end markets remain strong, and given the progress we made the last 12 months in our market positioning, systems, processes, and organization, we expect to drive solid performance in 2023 as we continue to execute toward our 2025 objectives.”

Gibraltar is providing guidance for revenue and earnings for the full year 2023. Consolidated revenue is expected to range between $1.36 billion and $1.41 billion, compared to $1.38 billion in 2022. GAAP EPS is expected to range between $3.04 and $3.24, compared to $2.56 in 2022, and adjusted EPS is expected to range between $3.46 and $3.66, compared to $3.40 in 2022.

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About Gibraltar

Gibraltar (Nasdaq: ROCK) 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


Jody Burfening/Carolyn Capaccio – LHA Investor Relations – – (212) 838-3777

Source: Gibraltar Industries, Inc.