• Net Sales (Q4 2024): Decreased 7.9% due to market issues in the renewables business.
• Operating Income (Q4 2024): Improved by 11% or 210 basis points.
• Adjusted EPS (Q4 2024): Increased by 17.4%.
• Adjusted EBITDA Margin (Q4 2024): Improved by 220 basis points.
• Net Sales (Full Year 2024): Decreased 3.9% to $1.31 billion.
• Operating Cash Flow (2024): Generated $174 million.
• Free Cash Flow (2024): $154 million, or 12% of net sales.
• Backlog (Year End 2024): Down 24%.
• Residential Segment Net Sales (Q4 2024): Decreased by $8.6 million or 4.8%.
• Renewables Adjusted Net Sales (Q4 2024): Decreased $16.3 million or 18.8%.
• AgTech Net Sales (Q4 2024): Increased by about 1%.
• Infrastructure Net Sales (Q4 2024): Decreased by $1.3 million.
• Cash on Hand (End of 2024): $270 million.
• Free Cash Flow (2024): 11.8% of sales.
• 2025 Net Sales Guidance: $1.4 billion to $1.45 billion, growth of 8% to 12%.
• 2025 Adjusted Operating Margin Guidance: 13.9% to 14.2%.
• 2025 Adjusted EPS Guidance: $4.80 to $5.05, growth of 13% to 19%.

• Warning! GuruFocus has detected 6 Warning Signs with BKD.

Release Date: February 19, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Gibraltar Industries Inc (NASDAQ:ROCK) reported a 17.4% increase in adjusted EPS for the fourth quarter of 2024, demonstrating strong profitability despite a decline in net sales.
• The company achieved a 32% improvement in EBITDA and a 460 basis point increase in EBITDA margin in its residential, agtech, and infrastructure segments.
• Order activity has increased significantly in 2025, with renewables bookings up 33% and AgTech bookings up over 300% compared to the previous year.
• The acquisition of Lane Supply is expected to be accretive in 2025, adding $112 million in net sales and enhancing Gibraltar's AgTech structures business.
• Gibraltar Industries Inc (NASDAQ:ROCK) maintains a strong balance sheet with $270 million in cash on hand and no debt, providing flexibility for future investments and share repurchases.

Negative Points

• Net sales for the fourth quarter of 2024 were down 7.9%, primarily due to ongoing challenges in the renewables business.
• The renewables segment experienced an 18.8% decrease in adjusted net sales and a 32% decline in backlog during the quarter.
• The company incurred a $5.3 million non-cash charge related to the discontinuation of legacy trade names in the renewables segment.
• Backlog at year-end was down 24%, with new bookings for renewables and AgTech moving into the first quarter of 2025.
• The residential segment faced a 4.8% decrease in net sales due to point of sale softness and delayed transition of new business.

Q & A Highlights

Q: Can you provide insights into the expected organic revenue growth for the residential segment in 2025, considering the market conditions? A: William Bosway, CEO, stated that while the market conditions remain challenging, Gibraltar Industries anticipates low to mid-single-digit organic revenue growth for the residential segment in 2025. This expectation is based on market assumptions and participation gains that began to materialize in January.

Q: How does the acquisition of Lane Supply fit into Gibraltar's strategy, and what impact is it expected to have? A: William Bosway, CEO, explained that Lane Supply complements Gibraltar's existing structures business, which has been a part of the company for 80 years. The acquisition is expected to be immediately accretive in 2025, with Lane Supply contributing significantly to the company's growth due to its established market presence and synergies with Gibraltar's operations.

Q: What factors could influence Gibraltar's 2025 guidance, particularly in terms of revenue and EPS? A: William Bosway, CEO, noted that the guidance is influenced by several factors, including potential changes in energy policy and market conditions. The company has taken a conservative approach, considering uncertainties in the renewables market and the timing of participation gains in the residential segment. The guidance reflects a balanced plan with potential upside if market conditions improve.

Q: How is Gibraltar Industries addressing the potential impact of tariffs on aluminum and steel? A: William Bosway, CEO, stated that Gibraltar is proactively preparing for potential tariffs by developing plans tailored to each business segment. The company has experience managing similar situations and has processes in place to mitigate the impact, including supply chain adjustments and customer communication.

Q: Can you elaborate on the product line simplification initiatives and their impact on the business? A: William Bosway, CEO, highlighted that the 80/20 product line simplification initiatives are ongoing and contribute to margin improvement and growth opportunities. The company regularly reviews its product lines to ensure alignment with strategic goals, and recent actions have cleared the way for focusing on participation gains and new product introductions.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.