Gibraltar Announces First Quarter 2025 Financial Results

Net Sales: GAAP Down Slightly, Adjusted Flat; EPS: GAAP -14.8%, Adjusted +18.8%

Backlog reached $434M, up 30% to Record Level

Generated Operating Cash Flow of $14 Million

Invested $90M in Two Strategic Metal Roofing Acquisitions

Reiterating 2025 Outlook

Board Approves New $200M, 3-Year Repurchase Program

Gibraltar Industries, Inc., a leading manufacturer and provider of products and services for the residential, agtech, renewable energy and infrastructure markets, reported its financial results for the three-month period ended March 31, 2025.

“Our first quarter performance reflects a solid start to the year with our businesses executing close to plan and end market demand remaining consistent with expectations going into the quarter. Adjusted net sales were flat and adjusted EPS increased 18.8%. Backlog reached a record level $434 million, up 30%. During the quarter, the Lane Supply acquisition also delivered solid performance, we executed restructuring initiatives, and we invested in two additional acquisitions which further expands our presence in the metal roofing market in our Residential segment.”

“Although the current macro environment remains dynamic, we are reiterating our guidance for earnings for the full year 2025. We developed a tariff playbook for each business in January and continue to closely monitor end market and customer demand dynamics. In reaffirming our outlook, we have factored in our current order input rates across each business, order backlog strength in our project-based businesses, the impact of tariffs and mitigating actions, and incremental revenue and margin from our recent acquisitions. We have also lowered our Renewables plan as the industry awaits clarity of potential modifications to existing benefits provided by the IRA bill.”

First Quarter 2025 Consolidated Results

Net sales were positively impacted by the Lane acquisition which helped offset market softness in the Renewables segment. Order activity in the quarter remained positive and versus last year, backlog increased 30% to $434 million, a record level for Gibraltar.

GAAP net income decreased 15.3% to $21.1 million, primarily impacted by costs for both recent acquisitions and restructuring initiatives to optimize our operations. Adjusted net income, which excludes the aforementioned costs, increased 17.1% to $28.8 million, or $0.95 per share.

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

First Quarter Segment Results

Residential

The Residential market remained soft with total retail end market point-of-sale sales as well as mail and package product sales, which are driven mainly by new construction starts from the previous year and sold through our dealer channel, down in the quarter. However, building accessories product sales increased solidly driven by participation gains and new product penetration.

Operating margin remained strong but impacted by product line mix and volume in our mail and package business during the quarter.

Agtech

Sales were driven by the contribution of new revenue from the acquisition of Lane Supply. Organic sales were down 12.6% related to project start delays for two Produce projects waiting on permit approval. Both projects are expected to have permits finalized and start construction around the end of the second quarter. Organic bookings were very strong in the quarter, and with the addition of Lane Supply order uptake, overall backlog increased 226% over last year.

GAAP and adjusted operating income increased 30.8% and 81.5% respectively, and while GAAP margin was slightly down, adjusted operating margin improved 270 basis points to 10.8% driven by productivity, project mix, and project execution.

Renewables

Sales were impacted by slower second half 2024 bookings impacted by the December 2024 panel installation deadline. While order backlog is down as expected year over year by 23%, bookings accelerated as anticipated in the first quarter, increasing backlog 30% sequentially.

Operating margins were impacted by lower volume and field inefficiencies related to the introduction and ramp of the 1P tracker technology. GAAP margins were further impacted by the aforementioned restructuring initiatives including costs related to the discontinuation of the Company’s legacy tracker solution.

Infrastructure

Sales were driven by project delays that pushed some shipments into the second quarter. Demand remains strong with backlog increasing 11% as more design bids were awarded and converted into new bookings and backlog. Quoting activity remains robust and is supported by ongoing investment and funding at both federal and state levels.

Operating margins increased 230 basis points driven by strong execution, supply chain management, and product line mix.

Gibraltar Expands Presence in Residential’s Metal Roofing Business

On March 31, 2025, Gibraltar completed the acquisition of two businesses in the Residential segment that primarily specialize in the manufacturing of metal roofing systems, along with metal wall panels, siding and trim products serving both Southeast and Rocky Mountain regions.

The considerations paid for these two businesses totaled approximately $90 million in cash. During 2024, these acquired businesses recorded combined revenue of $73 million and adjusted EBITDA of approximately $13 million, and these transactions are expected to be immediately accretive to earnings.

Business Outlook

Mr. Bosway concluded, “For the year, we continue to expect overall growth, solid margin expansion, and strong cash flow generation with our organic forecast somewhat tempered and contributions from newly acquired businesses helping to drive results. We will continue to monitor the macro environment and make adjustments to our outlook should this be warranted.”

Gibraltar is reiterating 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.

Board of Directors Approves New Stock Repurchase Program

Gibraltar’s Board of Directors has approved a new repurchase program of up to an additional $200 million of common stock. This program succeeds the current program, which will end on May 2, 2025, and has a duration of an additional three years, ending April 30, 2028.

Common stock repurchases will be funded with available cash generated from operations opportunistically supplemented by borrowing under the existing credit facility. Gibraltar may repurchase shares from time to time through open market purchases, in privately negotiated transactions or by other means, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. The method, timing and amount of future repurchases are subject to business and market conditions, corporate and regulatory requirements, stock price, acquisition opportunities and other factors. The share repurchase program does not obligate the Company to purchase any particular amount of common stock, and the program may be suspended or terminated by Gibraltar at any time at its discretion without prior notice.

For the full first quarter results, click here.

About Gibraltar

Gibraltar is a leading manufacturer and provider of products and services for the residential, agtech, renewable energy 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 – Investor Relations – (212) 838-3777 – rock@allianceadvisors.com

Source: Gibraltar Industries, Inc.