Gibraltar Announces Fourth Quarter and Full Year 2023 Financial Results

2023 EPS: GAAP up 40%, Adjusted up 21% on Flat Net Sales

Strong 2023 Cash Generation on Higher Margins, Working Capital Management

2024 Growth: Revenue 4-9%, EPS 12-20%

Gibraltar Industries, Inc. (“Gibraltar”), a leading manufacturer and provider of products and services for the renewable energy, residential, agtech and infrastructure markets, reported its financial results for the three-and twelve-month period ended December 31, 2023.

“Fourth quarter results reflected a strong finish to a very good year for Gibraltar. We delivered 5% revenue growth, 50 basis points of adjusted operating margin expansion and adjusted EPS growth of 18%. For 2023, we outperformed what we set out to achieve at the beginning of the year, improving our quality of earnings and operating execution, generating $218 million of operating cash flow. As a result, with solid end market fundamentals, improving business conditions in Renewables and Agtech markets and our more efficient operating engine, we expect a strong 2024,” stated Chairman and CEO Bill Bosway.

Fourth Quarter 2023 Consolidated Results

Net sales increased 5.1% with all segments contributing to growth and order backlog increasing more than 10% versus last year.

GAAP earnings increased to $19.4 million, or $0.63 per share. Adjusted net income increased 16.1% to $26.0 million, or $0.85 per share, and adjusted EPS increased 18.1%. For the full year, revenue was essentially flat, GAAP and adjusted EPS and free cash flow all increased within the higher outlook included in third quarter 2023 reporting.

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.

Fourth Quarter Segment Results

Renewables

Net sales increased 1.9%, driven by backlog converting to sales as customers continued to work through scheduling challenges related to permitting delays and awaited final tax credit guidance from the Inflation Reduction Act. New bookings continued to be robust, driving backlog up 20.9% versus last year.

Adjusted operating margin decreased 210 basis points versus the prior year as strong execution across the business was offset by warranty cost incurred during the quarter for a project completed in 2022.

Residential

Net sales increased 4.3% with organic sales up 3.1% driven by participation gains and volume, partially offset by pricing adjustments related to commodity deflation.

Adjusted operating margin expanded 410 basis points, driven by improved price/cost alignment versus the prior year’s quarter, volume and 80/20 initiatives.

Agtech

Net sales on an adjusted basis increased 12.8% as the team executed on new orders in backlog.

Included in 2023 operating results is a $3.5 million charge to write down a receivable associated with a distressed cannabis customer. Before the charge, adjusted operating margin was approximately 5%, an increase of 40 basis points driven by volume, customer and product mix, and 80/20 initiatives.

Infrastructure

Net sales and order backlog increased 12.1% and 3.0%, respectively, driven by continued solid end market demand and market participation gains.

Operating margin increased 490 basis points driven by ongoing strong execution, 80/20 productivity, and improving product and customer mix.

Business Outlook

Mr. Bosway concluded, “For 2024, we expect strong performances for all four segments, with Renewables and Agtech returning to top-line growth and Residential and Infrastructure positioned for continued performance. We will continue to work our proven playbook, leveraging our operating engine for scale and driving revenue growth, continued margin expansion and strong cash flow generation.”

Gibraltar is providing its guidance for earnings for the full year 2024. Consolidated revenue is expected to range between $1.43 billion and $1.48 billion, compared to $1.37 billion in 2023. GAAP EPS is expected to range between $4.04 and $4.29, compared to $3.59 in 2023, and adjusted EPS is expected to range between $4.57 and $4.82, compared to $4.11 in 2023.

To view the full fourth quarter results, 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.