Gibraltar Industries Inc.'s (ROCK) stock surged 21.45% in pre-market trading on Wednesday, following the company's better-than-expected fourth-quarter earnings results, despite lower sales during the period.

The Buffalo, New York-based manufacturer of residential and renewable energy products reported a significant year-over-year increase in net income for the fourth quarter of 2024. Gibraltar's net income rose to $46.2 million, or $1.50 per diluted share, from $19.4 million, or $0.63 per diluted share, in the same period last year. After adjusting for one-time items, the company's adjusted earnings per share (EPS) came in at $1.01, surpassing the consensus estimate of $0.91 from analysts polled by FactSet.

However, Gibraltar's net sales for the quarter declined 8.1% year-over-year to $302.1 million, missing the FactSet consensus estimate of $307.9 million. The company attributed the drop in sales to ongoing challenges in its renewables business and continued weakness in the residential market. Despite the sales decline, Gibraltar managed to improve its profitability through better execution, cost management, and streamlining initiatives.

Looking ahead, Gibraltar provided a positive outlook for the full year 2025. The company expects to deliver adjusted EPS in the range of $4.80 to $5.05, higher than the FactSet consensus estimate of $4.74. Net sales for 2025 are anticipated to range between $1.40 billion and $1.45 billion, compared to $1.31 billion in 2024.

The strong fourth-quarter earnings performance and optimistic guidance for 2025 appear to have fueled investors' enthusiasm, leading to the significant surge in Gibraltar's stock price in pre-market trading.