Gibraltar Announces Third Quarter 2024 Financial Results

Net Sales: $361 Million; EPS: GAAP $1.11, Adjusted $1.27

Strong Operating Cash Flow Generation of $65 Million

Confirms Updated 2024 Outlook for Revenue: $1.31-$1.33B, GAAP, Adjusted EPS: $3.57-$3.71, $4.11-$4.25, Respectively

Gibraltar Industries, Inc., a leading manufacturer and provider of products and services for the residential, renewable energy, agtech and infrastructure markets, reported its financial results for the three- and nine-month period ended September 30, 2024.

“Third quarter results were within our previously announced range, with the Renewables and Residential businesses coming in as we anticipated, Agtech sales growing over 30%, and three of our four segments delivering margin growth translating to $65 million in cash flow generation on solid execution and working capital management. We are managing well in a challenging sales environment and are well positioned to weather current market disruptions,” stated Chairman and CEO Bill Bosway.

Third Quarter 2024 Consolidated Results

GAAP and adjusted net sales were down 7.6% and 6.2%, respectively, driven by solar industry headwinds impacting the Renewables business and a slowdown in the Residential market, partially offset by growth in Agtech.

GAAP net income decreased to $34.0 million, or $1.11 per share, and adjusted net income decreased to $38.9 million, or $1.27 per share.

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.

Third Quarter Segment Results

Residential

Net sales decreased 6.7% driven by a slower residential market, including the repair and remodel sector, which is impeding the timing and benefit of participation gains as customers take longer to flush inventory from incumbent suppliers.

Operating margins expanded through solid execution, effective price/cost management and 80/20 initiatives.

Renewables

Net sales and new project bookings were impacted by trade and regulatory headwinds associated with the two independent AD/CVD investigations, which are forcing the industry to put major focus on completing panel installations and the administrative reporting requirements ahead of the December 3, 2024 expiration of the tariff moratorium for panels granted through the Presidential Proclamation associated with the first investigation. Correspondingly, backlog decreased 24%.

GAAP and adjusted operating margins were impacted by lower volume and product mix associated with the launch and learning curve of the 1P tracker while dealing with the abovementioned industry challenges. GAAP margins were additionally impacted by planned operational improvements, restructuring activities and prior-year portfolio management actions

Agtech

GAAP net sales increased 30.9% and adjusted net sales increased 34.3% driven mainly by projects starting to accelerate in the Produce division including facilities to grow strawberries, lettuce, melons, and vine crops. Additional new projects in both the Produce and Commercial divisions are anticipated to be booked as design work is completed and projects are finalized for launch, the timing of which decreased backlog 3%.

GAAP and adjusted operating margin expansion was driven by volume, product mix, 80/20 initiatives, and solid field execution.

Infrastructure

Net sales decreased by 7.2%, impacted by the timing on a large project in the prior year. Backlog increased 3%. Demand and quoting remain strong, supported by ongoing investment at the federal and state levels.

Operating margins increased 230 basis points, driven by product line mix, new products, 80/20 initiatives, and strong execution.

Business Outlook

Mr. Bosway continued, “Our outlook is unchanged from our recent update, and although we are dealing with some challenging end markets, we expect to deliver earnings growth this year through operational improvement. Our operating teams continue to proactively work through their end market dynamics, and we are focused on supporting our customers while simultaneously growing our participation with them.”

Consolidated net sales are expected to range between $1.31 billion and $1.33 billion, compared to $1.38 billion in 2023, or $1.36 billion on an adjusted basis. GAAP and adjusted EPS are expected to range, respectively, between $3.57 and $3.71, compared to $3.59 in 2023, and between $4.11 and $4.25, compared to $4.09 in 2023.

For full results click here.

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.

Contact:

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

Source: Gibraltar Industries, Inc.