ROCK

Gibraltar’s second quarter saw a significant market reaction, buoyed by strong organic growth in its Residential and Agtech segments and the first full quarter of results including OmniMax. Management emphasized that despite a broadly flat or declining end market for residential building products, the company captured participation gains and delivered sequential margin expansion. CEO William Bosway credited the team’s execution of price actions and supply chain optimization, stating, “We managed relatively well through a slow residential market along with inflationary headwinds by executing price actions, generating more participation wins, and executing synergy initiatives.” Is now the time to buy ROCK? Find out in our full research report (it’s free). Revenue: $509.5 million vs analyst estimates of $472.1 million (64.6% year-on-year growth, 7.9% beat) Adjusted EPS: $1.11 vs analyst estimates of $1.02 (9.1% beat) Adjusted EBITDA: $87.99 million vs analyst estimates of $83.8 million (17.3% margin, 5% beat) The company reconfirmed its revenue guidance for the full year of $1.80 billion at the midpoint Management reiterated its full-year Adjusted EPS guidance of $3.85 at the midpoint Operating Margin: 12.3%, down from 13.4% in the same quarter last year Market Capitalization: $1.48 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Dan Moore (CJS Securities) asked about the sustainability of participation gains and cross-selling opportunities. CEO William Bosway explained that growth is being driven by team execution and local initiatives, with more opportunities for cross-selling and product harmonization ahead. Dan Moore (CJS Securities) inquired into the incremental revenue impact of the recent supply agreement expansion. Bosway confirmed that most of the impact will be felt in 2027, describing it as a “sizable” opportunity with ongoing engagement. Dan Moore (CJS Securities) questioned the drivers behind Agtech growth and the implications of a lower backlog. Bosway clarified that volume-driven project activity underpins growth and that strong quoting activity signals future demand. David S. MacGregor (Longbow Research) sought clarity on the timing and magnitude of synergy realization. Bosway indicated that new synergy opportunities are being found and implemented ahead of schedule, with potential for further upside as integration progresses. Walter Liptak (Seaport Global) probed inventory levels and channel restocking trends. Bosway noted that inventory levels vary by channel and region, with retail showing more caution; he does not expect significant changes in market demand for the rest of the year. In the coming quarters, key areas to watch are (1) the pace of synergy capture from the OmniMax integration and whether organizational and logistics efficiencies materialize as planned; (2) the execution of large customer agreements, particularly the rollout for over 1,700 locations; and (3) stabilization of margins amid ongoing price-cost alignment and inflationary pressures. Developments in capital allocation, including debt reduction and potential non-core asset sales, will also be important indicators of strategic progress. Gibraltar currently trades at $49.78, up from $48.06 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free for active Edge members). ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 9:00 a.m. ET Alliance Advisors IR - Carolyn Capaccio Chairman, President, and Chief Executive Officer - Bill Bosway Chief Financial Officer - Joe Lovechio Operator: Greetings, and welcome to the Gibraltar Industries' Second Quarter 2026 Financial Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Carolyn Capaccio of Alliance Advisors IR. Please go ahead. Carolyn Capaccio: Thank you, Operator. Good morning, everyone, and thank you for joining us today. With me on the call is Bill Bosway, Gibraltar Industries' Chairman, President, and Chief Executive Officer; and Joe Lovechio, Gibraltar's Chief Financial Officer. The earnings press release that was issued this morning, as well as the slide presentation that management will use during the call, are both available in the Investors section of the company's website, gibraltar1.com. Gibraltar's earnings press release and remarks contain non-GAAP financial measures. Tables of reconciliation of GAAP to adjusted financial measures can be found in the earnings press release that was issued today. Further, please note that continuing operations exclude net sales and operating results of the Renewables business, which was classified as held for sale and as a discontinued operation with second quarter 2025 results, the divestiture of which was subsequently completed on July 15, 2026. The acquisition of OmniMax International closed on February 2, 2026. Also, as noted on slide 2 of the presentation, the earnings press release and slide presentation contain forward-looking statements with respect to future financial results. These statements are not guarantees of future performance and the company's actual results may differ materially from the anticipated events, performance or results expressed or implied by these forward-looking statements. Gibraltar advises you to read the risk factors detailed in its SEC filings, which can also be accessed through the company's website. Now we'll turn the call over to Bill Bosway. Bill? William Bosway: Thanks, Carolyn. Good morning, everyone, and thank you for joining today's call. We're going to review our second quarter results, which include our first full quarter of OmniMax operations. Then we'll review the reporting segments, the balance sheet, and our full year 2026 guidance, which we are reiterating today. And then we'll open the call for your questions. Let's start with turning to slide 3 and we'll discuss the second quarter. It's been a very busy time for us, but we delivered solid second quarter results with our residential business delivering strong organic growth and participation gains in a flat to down market. Our Residential and Agtech segments both delivered organic growth and all segments delivered sequential margin expansion as well. Our building products business grew 12.7% organically. Now, if you assume we owned OmniMax in Q2 2025, the combined business actually grew 15.5%, showing the strength of this combination in the marketplace. In line with our long-term strategic plan for our Residential business, continues to become a larger part of overall portfolio and represented 83% of our total revenue in the quarter, with segment EBITDA margin improving 340 basis points sequentially to 19%. OmniMax integration continues to accelerate as our leadership team and integration management office drive our top 11 critical work streams and synergy capture. We're also excited to announce we were recently awarded an additional 630 locations, now making us the supplier of trims and flashings to sell to more than 1,700 locations across the country for 1 of our key customers, validating our ability to support our customers locally on a national basis with a value proposition that makes sense for them. We believe the combination of Gibraltar and OmniMax and our product portfolio was instrumental in receiving this award, and I give our team a lot of credit for staying focused on executing well while simultaneously managing through today's dynamic geopolitical situation as well as an ongoing inflationary environment. Including a full quarter of OmniMax, total Gibraltar net sales increased 64.6% to $510 million on total Gibraltar organic growth of 5%. Our Residential segment delivered organic growth of 5% and Agtech delivered organic growth of 8.7%. Adjusted operating income reached $66 million, adjusted EBITDA increased 59.7% to $88 million, and we delivered adjusted EPS of $1.11, which included a net interest impact of $20.6 million. GAAP results include $5.8 million or $0.15 per share of OmniMax acquisition, integration, and restructuring cost. Overall, we managed relatively well through a slow residential market along with inflationary headwinds by executing price actions, generating more participation wins, and executing synergy initiatives. And as a result, adjusted EBITDA margin expanded sequentially 350 basis points to 17.3%. We generated $45 million in operating cash from continuing operations, including acquisition integration and restructuring costs related to OmniMax. And we have now completed the divestiture of the renewables business, including the eBOS sale in Q1 and the Racking Business sale in July. Now let's turn our attention and we'll review the business segments and Joe will start with Residential. Joseph Lovechio: Thanks, Bill, and good morning, everyone. Let's start with residential on Slide 4. Net sales increased $195.6 million to $425.9 million, which is up 85% driven by the inclusion of a full quarter of OmniMax results of operations. OmniMax contributed $182 million. A metal roofing acquisition that we completed in July of last year contributed $2.5 million. And the Residential segment organic growth was 5%. As Bill mentioned, if you assume we owned OmniMax in Q2 2025, the combined building products business grew 15.5%, driven by price realization and participation gains in the Midwest, Northeast, and Texas, which helped to overcome a flat to down end market. Turning to margin, adjusted EBITDA margins accelerated sequentially 340 basis points to 19% as our executed price actions offset ongoing commodity and fuel inflation. On a year-over-year basis, adjusted EBITDA margin was down primarily due to price-cost alignment, business and product mix, and some inefficiencies with the integration. Our cost and commercial synergies through the OmniMax integration started contributing in Q2, and we expect those to continue to ramp going forward. So now let's move to slide 5 and let's talk a little bit about the U.S. residential roofing market. I'd say overall market demand in the quarter versus prior year, based on the ARMA data for shingle shipments to distributors and retailers, was flat. But the story varied greatly by region, with positive growth in shipments to the Northeast, Midwest, and West, while shipments to the Southeast, Southwest, Florida, and Texas were down in the quarter. Sequentially, shipments total were up 17.6% with just 2 of the 7 regions not experiencing growth, which would be the Southwest and Texas. We do believe Q2 shipments were driven by restocking in the distributive channel and customers buying ahead of shingles manufacturer price increases. For the first half of the year, ARMA shipments were down 4.7% year-over-year with similar demand patterns across the regions. In the retail channel, volume remains soft with point of sale results down anywhere between 8% to 10% in the quarter as customers remain concerned about the ongoing geopolitical situation impacting consumer sentiment, interest rates, and overall affordability. POS for the first half were also down roughly 8% to 10% versus prior year. So, based on ARMA and POS data to date, we believe the actual end market demand for the quarter and the first half was down mid-single digits and will probably remain so for the rest of the year. Now that we have a broader presence across the U.S., we have more visibility to the market in total and by region, which provides a stronger foundation to build and execute more effective local and national growth initiatives with our customers. And despite today's slower market, we were able to generate positive organic growth in the quarter. As I mentioned earlier, if you assume we owned OmniMax in Q2 in 2025, the combined building products business actually grew 15.5% organically, with price and mix accounting for 9.7% of that, participation gains, 7.1% of that, and the market being down 1.3%. Relative to channel, sales to wholesalers were up 25.1% and sales to retailers were up 8%. By region, the Northeast was up 43.6%, the Midwest was up 54.5%, the Southwest up 17.5%, and the West up 1.7%, and the Southeast down 11.1%. Effectively, we were able to outperform the market in each region and our strength in 4 of the 5 regions helped offset a slow market in the Southeast. We do believe that having more presence across the country does provide more leverage to us in managing our business. We have the ability to better align with local and regional markets, which creates an opportunity to better optimize and align customer and revenue initiatives within market demand situations. Our playbook is going to remain similar going forward as we expect the market to remain slow given the ongoing headwinds I mentioned. We will continue to identify and execute participation opportunities to help us in the second half and going into 2027. And with that, let's turn to slide 6 to talk about an exciting and big customer win for the team that happened here recently. So, if you remember, 1 of the core tenets of our strategy with the addition of OmniMax is to find a way to simplify our customer supply chain and become the easy button for them while also reducing the cost of doing business with each other. We believe we do this through great service and quality, local capability on a national basis, a harmonized and simplified product offering through 80/20 efforts for each region and location, optimizing our manufacturing and transportation logistics, and the ability to simplify and cost reduce transactions with our customers. We have work to do in each of these initiatives, but we are having some initial success just 149 days into the integration of this business. Just recently, we were awarded our first supply agreement where we will become the supplier of trims and flashings to more than 1,700 locations across the country for one of our key customers. The win adds 630 locations to our existing service footprint, effectively covering all regions of the U.S. And I will say this. I'll say we are grateful for this opportunity and appreciate the confidence our customer has in us to support them across the country. Our team did a fantastic job creating a value proposition that makes sense, which really focused on 3 things. First, finding the best way to support and assist our customers, they focus even more on the pro contractor while leveraging some of our local presence and experience with the distribution channel and contractor market. Secondly, just really trying to solve the pain point of high freight minimum requirements through better logistics optimization across our national network. And then third, creating an easy button service capability while also focusing on lowering the cost of doing business. Now we expect the business to start late in the fourth quarter as the transition of the incumbent happens accordingly. So I'd say overall a good start, but we are still in the very early innings of this type of effort and looking forward to doing more as we go forward. Now let's move to slide 7 for an update on our integration efforts. At the end of Q2, as I mentioned earlier, just 149 days post the transaction close, the business continues to evolve from organization transition to capture and driving more synergy opportunities. Our integration management office, which is a tremendous team, is executing our 11 core work streams, which will continue throughout 2026 and into 2027. During the second quarter, we completed phase 2 of our organization optimization, and we'll continue with more initiatives as we further commonize operating systems and data flow across the business. Our focus going into the third quarter is driving additional performance lift with bringing service reliability to benchmark levels. And for us, that's 95% plus on-time delivery. It's making sure that we're operating in the most safe way possible and obviously driving a lot of our lean and 80/20 initiatives, but also focused on upgrading commercial excellence, expanding and expanding margins. We are also starting 80/20 initiatives in 2 regions focused on product and SKU harmonization, operations optimization, and transaction reduction. These initiatives will begin late in Q4 and early next year. Let's now turn to Slide 8. I'll talk a little bit about our work streams and I will touch on a few accomplishments for the team and then we'll review progress on our cost and commercial savings. The 11 work streams that are listed on the left side of the slide and the rest of the slide really provides a brief summary of some key wins to date. I mentioned we have implemented phase 1 and 2 of our organizational realignment, probably the most important initiative related to creating the right foundation for all our other initiatives. Today, about 65% to 70% of our targeted 2026 projects exit rate organization savings has been implemented. In general, the other 12 wins span across initiatives in production, supply chain, commercial team development, commercial participation gains, corporate synergies, and the beginning of 80/20 efforts. We will continue to execute across the entire organization as we strengthen our foundation for the business. Now let's move to Slide 9 for an update on the 2026 synergy saving targets and realization. So during the quarter we identified additional synergies to be implemented this year. First, we executed a logistics freight initiative worth $1.2 million annually, of which $600,000 will flow into this year. And secondly, as mentioned earlier, we executed large participation gain was to generate approximately $2 million in annual margin improvement, with $100,000 flowing into this year. And all that's based on timing. As a result, we are again raising our synergy commitment, now expecting $29.4 million executed in 2026 with $17 million to be realized in 2026. As well, $7 million of synergy commitment has been realized to date, which will ramp further in Q3. Now let's move to Agtech on slide 10. Our Agtech segment net sales grew $4.7 million or 8.7%, all of which was organic. This growth was driven by strength in structures and our commercial greenhouse applications. The backlog for this segment stands at a solid $66.2 million, but reflects a 34% decrease from last year with timing of projects in the second half compared to last year. We are seeing strong quoting activity across end markets and demand at Lane Supply is strong. And remember, our Lane Supply structures business, we have those orders turn much more quickly and are therefore of shorter duration. Adjusted operating margin and EBITDA margin improved 450 and 430 points year-over-year respectively, driven by stronger volumes, favorable business mix, and 80/20 operating initiatives. We are also excited to bring online our powder coating painting capability, which is expected to drive additional cost productivity for future controlled environment agriculture projects, particularly for berries and lettuce. Let's quickly move to infrastructure on Slide 11. Segment sales decreased slightly due to the timing of projects. Our backlog grew 2% and our quoting activity remains very strong. Segment adjusted operating and EBITDA margins were impacted by lower volume and product mix. Let's move to Slide 12 to touch on our balance sheet and cash flow. Gibraltar's policy with respect to cash allocation during the debt pay down period will be to keep a minimum amount of cash on hand, use the revolver as needed to fund seasonal needs, and pay down debt with excess cash flow. During the quarter, Gibraltar generated $44.5 million in operating cash flow from continuing operations and used $40.8 million from discontinued operations. The discontinued operations cash use includes the payment of a settlement agreement regarding warranty claims as we discussed last quarter. We generated free cash flow from continuing operations of $39 million, or approximately 8% of sales. We used $8 million for working capital, primarily due to accounts receivable. Capital expenditures were $5 million, or 1% of sales in the quarter. And at quarter end, we had borrowing on our revolver of $21 million, and our cash on hand was $15 million. At quarter end, our net debt on the balance sheet was $1.2 billion and our net leverage, which includes anticipated synergies as allowed in our credit agreement in the pro forma adjusted EBITDA was 3.9x. The availability on a revolving credit facility was $470 million, and total available liquidity was $485 million. Let's review our deleveraging roadmap on Slide 13. Over the next 12 to 18 months, our priority and focus is to deleverage as quickly as possible. The left side of this slide shows a plan of strong EBITDA delivery and synergy realization, working capital optimization and utilization of cash tax benefits. Our planned uses of cash include capital expenditures at 2% to 3% of sales, interest payments on our debt, and special charges related to acquisition, transaction, integration, and restructuring related costs. The special charges we reported today for the second quarter were $6 million. Year-to-date we have recorded $41 million of special charges, which is approximately 80% of the expected amount in 2026. During the second year post-transaction close, we continue to expect strong EBITDA margin, the realization of additional synergies, benefits from continued working capital optimization, and cash taxes, lower interest payments as our debt level is reduced, and a reduced amount of special charges. These factors are expected to increase our free cash flow year-over-year and facilitate continued reduction in our net debt level. Also in line with our long-term strategic plan, we are also evaluating other non-core asset divestitures that could create additional liquidity for debt reduction. Our deleverage path targets the net leverage ratio of approximately 2.5x adjusted EBITDA in 24 months ended first quarter of 2028. Again, during this 2-year period, our capital allocation will be focused on funding the growth of our business through capital expenditures and on debt reduction. Let's move to Slide 14, where we are reiterating our 2026 guidance. For continuing operations, our guidance remains consolidated net sales between $1.76 billion and $1.83 billion compared to $1.14 billion in 2025. Adjusted operating income between $222 million and $238 million compared to $151 million. Adjusted EBITDA between $310 million and $326 million compared to $185 million for 2025. GAAP EPS between $2.40 and $2.80 compared to $3.25 in 2025, which the 2026 number includes the expected impact of special charges related to the acquisition, transaction integration and restructuring related costs. Adjusted EPS between $3.65 and $4.05 compared to $3.92 in 2025, and free cash flow of approximately 8% of sales for continuing operations. Some key assumptions in our 2026 plan include total depreciation, amortization, and stock compensation expense of approximately $90 million for the year, which includes an approximately $40 million annual assumption for non-cash amortization related to intangibles due to the OmniMax acquisition. We anticipate approximately $50 million in special charges related to acquisition, transaction integration and restructuring costs, of which approximately 80% has already occurred in the first half. We would expect the remaining to occur throughout Q3 and Q4 this year. We expect over $70 million in interest expense financing and commitment fees, which will be dependent on the timing of our debt repayments and interest rates, capex of approximately 2% of sales, and finally, a 26% tax rate. Now let me turn it over to Bill. William Bosway: Thanks, Joe. We delivered solid first half 2026 results and made good progress in execution, integration initiatives, synergy capture, and further simplifying the portfolio. We expect the current macro environment to remain dynamic and the residential market to remain unchanged relative to the first half of the year. And our playbook for residential remain focused on execution, integration, synergy capture, and participation gains as we drive towards residential representing an even larger part of our portfolio. Our Agtech and Infrastructure businesses are focused on building backlog and executing existing contracts. And finally, our capital allocation strategy is to remain laser focused on cash performance and debt reduction. So with that, now let's open the call up and we'll take your questions. Operator: [Operator Instructions] Our first question comes from the line of Daniel Moore with CJS Securities. Please proceed with your question. Dan Moore: I'll start with just the participation gains. Just talk to the sustainability of the gains that you achieved in Q1, particularly in building products, where you're seeing the greatest impact from cross-selling, be it, you know, product, geography, obviously, increased penetration within the existing customer account as well. But any additional color of where that's coming from and how we kind of thinking about the back half of the year? William Bosway: Yes, so we mentioned that if you looked at where our sales growth was, you saw the Northeast, Midwest, which reflected not just participation gains, which were good in those areas, but also that's where a lot of storm activity occurred, but good participation gains there also in Texas. The flip side of that is you have some really down regions, particularly the Southeast, and that's driven by Florida still, which hasn't had the storm activity the last 2 or 3 years. But I'd say in general the participation gains have been around team doing a great job, knocking on doors, explaining our value proposition, everything we had talked about. And we're going to continue down that path. There's more work to be done. There's more opportunity out there for us to go after over time. It's hard work. The market's not robust right now, so your value proposition has to be of value for a customer, and they're unique to each customer, as you might expect, and they're somewhat unique by region and locale as well. So the ground game doesn't change. We're going to continue to fight for more of those things. And then as you think about what are the types of things, so yes, it's geographic. It's also potential cross-selling opportunities. We've done a little bit of that. There's potentially more to come. There's other things around 80/20 and rationalization and harmonization of product lines that can matter relative to the value proposition. So a lot of levers to pull as we think about how to go win more business. And we're going to continue to do so. Dan Moore: And then just maybe talk to the incremental revenue opportunity from the 600 plus store expansion beyond fiscal '26 and conversations you're having with other national retailers, in kind of how we're thinking about that opportunity continuing to grow? William Bosway: Yes, so it's a big one for the team. And we have 6 really large customers and we have a host of others that are also very important to us. And so whether it's distribution or on a national level or regional or if it's retail on a national level or regional, I think there's going to be more an opportunity for us to engage. And again, every value proposition is going to be a little bit different in terms of where the starting point is and what their pain points are, what they're trying to realize. But it's a big win for us. The majority of that, if not all of that, I said it's going to start late this year, but it really is a 2027 impactful thing, but it's sizable and we're excited about it. Dan Moore: Maybe 1 more and I'll jump back. But just in terms of what you're seeing in Agtech, 9% growth, certainly impressive. Just break it down between volume and price. And then with the backlog declining to some degree, can you talk to order rates and your expectations for backlog as we move through the back of the year? William Bosway: Yes, I think on the Agtech side it's as much volume as anything else. These are actual projects that are flowing through. Lane, as Joe mentioned, is a much quicker turn in a lot of projects. And then on the CEA side, we're growing fruits and vegetables. Those are larger projects that don't turn near as quickly. So it's really 2 different types of businesses, but they're effectively volume associated with projects that people are starting to construct on. There's a lot of activity out there right now that we're working through engineering and design and bidding with both businesses. And so we're excited about those opportunities. And on the larger projects, those are projects that may help you this year, but also setting up for 2027. And then on the Lane side, it's really just a lot of activity across our core customer base as they expand and invest more in their different retail sites. Operator: Our next question comes from the line of David MacGregor with Longbow Research. Please proceed with your question. David S. MacGregor: Congratulations on the progress to date. I guess I wanted to ask about the synergies, $29.4 million, just to clarify, that's a 2026 year-end run rate. And are we pulling forward from a timing standpoint or are we finding new opportunities? William Bosway: Yes, I would characterize it more as finding new opportunities. So, it's 1 of those things where you get into this, the team has really done a nice job finding across every functional area or every aspect of the business, just more opportunities. Some of them were coming sooner than we thought, but on top of that, we're identifying more at the same time. I had said early on that you tend not to go to the street with a number, assuming that's all you had, and we thought there might be more out there, and I think some of that is happening as we had expected, and probably maybe a little bit sooner than we had expected. So, yes, it's really finding more and some of it just happening a little bit sooner. But to your original question, yes, the $29.4 million is what we think will get implemented this year. And then you'll start to see a run rate of that impact next year. David S. MacGregor: So, should we be adding to the $35 million, which was the articulated target in total, or how should we be thinking about the total? William Bosway: I think, like I said, there's potential to find more than that. And we're going to work hard to do so. And as we go in time here, we'll talk more about some of those other potential opportunities and make those adjustments to the plan accordingly. But right now we're running pretty strong ahead, maybe close to a year ahead of where we thought we would be and hopefully we'll continue to accelerate on that as we go forward and that would result in identifying more. But yes, I'd say in general there's more out there and as we quantify more we'll share more of that with you as we get a little bit closer. David S. MacGregor: Okay. And then just again on the synergies, Bill, you made passing reference to commercial opportunities or revenue synergies. Can you dig in a little further on that and just give us a sense of what you're seeing so far and maybe what you've learned from this big win and just how to dimension that opportunity? William Bosway: Yes, you know, I think we talked a little bit about the value proposition of the team kind of brought to the table. Every customer has a little different scenario that they're dealing with and so the starting point obviously is different. And I think ultimately at the end of the day, the fundamentals around what we're trying to do are really trying to lower the cost of doing business with us and the rest of the supply chain that our customers have had to grow up with. And so, again, the starting point is different for everybody, but that's everything from things like are you local enough to where you can really optimize on behalf of your customer, things like minimum -- freight minimums, logistics costs, transportation costs. But there's also transaction costs and things of that nature when we simplify the product portfolio. Is it making it that much easier for our customers to order from us, and therefore, does it make it easier for us to serve them that much better? So it's a combination of things, and I think whether it's distribution or retail or national or local, it still comes down to the fundamentals of you have to have great service. The table stakes are great service quality, as I mentioned earlier, but bringing these other things to the table I think will matter over time. Just having the opportunity to prove ourselves to folks on a broader basis is a good first step. And now we have to go out and execute accordingly and do it really well, but yes, we're going into this with the combination of business, we said early on, we're not a combined business, we're not 90% market participation. There's a lot of runway in our swim lanes that we can actually go build the business organically if we just execute well and differentiate ourselves whether the market's robust or not, there's opportunity for us to go win a bigger piece of the pie. But there are certain things that we have to do better than everybody else and those are things we're focused on. And I think they resonate pretty well regardless of the type of customer or what channel you're talking about, but everyone has a little different starting point and pain point that we're trying to go resolve. But fundamentally, we are actually trying to become that easy button, trying to lower the cost of doing business with the supply chain on behalf of our customers. And there's a lot of ways to attack that. And that's where our focus is going to remain going forward. David S. MacGregor: Yes, very encouraging. Last question for me is just on price-cost and how you're seeing that play out, how we should be thinking about that in the second half of the year? William Bosway: Yes, well, if someone can tell me what's going to happen in the Middle East and guarantee it, I would give them a better picture, but in all seriousness, it's been a little bit of a roller coaster. We still are dealing with things like fuel surcharges and we'll see how things play out, but it has been quite a bit of an up and down environment to manage through. Same with on commodities swinging a little bit up and down. So right now there's still work to be done to overcome some of those incremental costs that are out there. And as we've talked in the past, when we see inflation, we have a pretty good track record of executing price with our customers and working with them through that and vice versa. But as long as things continue to go up, you're always chasing because of the price process that you have to go through, right? So it's hard to balance until that commodity, whatever that you're trying to overcome, stabilizes. So we'll see how the second half works with some of these commodities and what happens with things like fuel, fuel surcharges, overall transportation costs, aluminum, steel, etc. It's a handful of things that we have to deal with, but we're continuously focused on that, but there's still work to be done to address some of the inflationary pressures that are out there. And that's baked into our plan. Operator: Our next question comes from the line of Julio Romero with Sidoti. Please proceed with your question. Julio Romero: You mentioned the OmniMax synergies began to contribute in the second quarter. That's obviously a big step. Congratulations on that $7 million realized, I believe. And then you broke out $17 million realization for the full year. Can you help us understand the cadence of the remaining $10 million and realization expected over the course of 3Q and 4Q? William Bosway: Yes, I think they're going to be split somewhat evenly based on the type of synergies they actually are. So it may vary 60-40, but you'll see a chunk of that flow through in Q3 and then Q4, but I think of them maybe splitting that $10 million in that way, whether it be 50-50 or 60-40, somewhere in that range. Julio Romero: Okay, that's helpful. And then, you know, staying on Residential, the operating margins and the EBITDA margins were impressive. Definitely growth sequentially. I guess just given that this is the first full quarter of OmniMax contribution, is there any way to kind of bracket out how much legacy Rock's residential operating margin and EBITDA margin performed or maybe asked another way, did legacy Rock Residential margins expand on a year-over-year basis? William Bosway: Yes, I would say -- I want to say yes. It's getting harder for us to carve that out, to be honest, because we're starting to share facilities and materials and the organization is one, so we're not necessarily tracking it that way, Julio, if you think about it. But it is getting a little bit more gray in terms of how to do that because the way that we're supporting customers, the way we're running the business, we're not doing it. John Krause is running this business. He's got a team and they're operating as one. And so we're starting to do things in that light, if you will. So I would say both are contributing accordingly and that's an important thing to see, but if you think about it, it's really down to each business in each location relative to how the market's doing in each region, etc. But in general, both are contributing towards the improvement we had in Q2. Julio Romero: Excellent. That's helpful. I appreciate the thought exercise, Bill. Operator: [Operator Instructions] Our next question comes from the line of Walt Liptak with Seaport Global. Please proceed with your question. Walter Liptak: I wanted to ask about the channel inventories. I think last time we did an earnings call, you guys talked about how there was some channel fill that was starting to happen with Residential distributors. I wonder if you could talk about how inventory levels are now in the channel. William Bosway: Yes, good question, Walt. I think it differs a little bit by channel. Retail may be -- as I was talking, the POS results for retail were down 8% to 10%. That's sales out, right? So we get a chance to see that and therefore we see the inventory because we know what we sell in. So I would say that probably feels a little different than maybe distribution because they've probably turned a little bit more. But we don't get data on that. It's really got to drill into every customer, have a conversation, and so we have a directional view, I think, on channel inventory. But I would say it's -- It was restocked, I think it varied by channel. And I think there's, as I mentioned in my comments, there's probably more caution with the retail channel and probably the distribution channel as it relates to how the market is moving and I think it also depends on where you are in the region. If you're sitting in Florida, the market is still down significantly so those stores and those locations probably are managing inventory a little differently than maybe where there's growth, where we had more storm activity, say the Midwest and parts of the Northeast. So it's, I wouldn't give a blanket statement about how it's looking, but I would say in general, inventory was built up accordingly for the season and I think people are managing through that now as they go into Q3, which is partly why we say we don't think the market's going to really change a whole lot from Q2 to Q3. It's going to remain kind of paced at the same level that we've been seeing, but you're just not going to have the restocking going on like you did in Q2, and we'll see how end demand kind of flushes that out as we go, and then you go into Q4, and that's the slower part of the year. So more to come on that, but I think decent shape, but I think it varies a little bit by channel and it varies a lot by region. Walter Liptak: Okay, great. And yes, and thinking about the third quarter, so are you saying that you think that the growth rate should be similar in the third quarter, or are you saying that the absolute dollars of revenue for residential would be about the same? William Bosway: No, what I'm saying is the market itself -- the end market demand itself, we think is going to be very similar to what we've been seeing in the second quarter, which was down mid-single digits. We don't think that's going to change. The only thing that would probably drive that to be different in a short period of time is some major weather events that occur. Outside of that, I think you're going to see a consistent market in the second half of what you saw in Q2, which isn't necessarily reflective of ARMA. It's more reflective of a combination of ARMA and POS results, which we would say the market is probably down mid-single digits, which we expect that to continue. And so we have the performance, as we have tried in Q2, we're going to continue the same playbook as we go forward. Walter Liptak: Okay, maybe just one more on this. You mentioned that there was some pre-buy that might be in the ARMA data. I wonder, do you think that you had a pre-buy in the quarter? William Bosway: Well, anytime you have price increases, so we executed price increases, and I'd say for any component or product in this space, when you announce a price increase, there's always a pre-buy, if you will, to get ahead of that, right? So as it relates to ARMA, same thing there, you have shingle manufacturers that were putting out price increase just like all of us to offset the inflationary pressures and there's a pre-buy associated with that. That probably pulled some sales into Q2 as it relates to ARMA data showing flat year-over-year and sequentially up the way it was up, it probably doesn't necessarily reflect a pure end-demand or out-sale to the same degree as it shows up in the data. And the reason we think that is because the POS data, which is reflective out sales as well at the retail level, was down 8% to 10%. So you kind of -- again, there's no industry data published across the board, if you will, outside of ARMA, but when you think of all that, across the various product lines that are sold into this roofing space, we think the market was down mid-single digits. Not flat, not down 10%, somewhere in between. Walter Liptak: Okay, great. Yes, very impressive for your Residential business. And maybe just the last one for me, and just thinking about also the improvement in the integration benefits, and you called out some regional work doing 80/20. I wonder if you could just unpack that for us a little bit. It's great to see that you've got plans that are coming together for that, but I wonder if you can help us understand what the plan might look like. William Bosway: Yes, so good question. There's a couple different aspects to this. One, there's a product line that we are looking to get out of, so we'll 80/20 out of that, that we don't think makes sense to have in a portfolio. That's something smaller, but it's important. It's part of -- it's actually a subset of what we're doing in one of the regions I mentioned. And then the other aspect of what we're doing in that region is really attacking our SKUs that we're selling to that region from a couple different facilities that exist today. And so we're looking to actually reduce our SKUs by a significant amount, whether that's 20%, 30%, 40%. And the idea behind that, obviously, it simplifies a lot of things that we do, but we think it's an opportunity to simplify, from our customer's perspective, transactions and everything they have to buy. So, we're doing that through product harmonization. So we have -- if you guys recall, I don't know if it was last call or one before, but we have a VP of Engineering and Innovation that is part of the organization. We've never had that before, either OmniMax or Gibraltar, and now we do, and she's an incredibly bright lady that is attacking this in a very positive way and I think as we do more of this, you're not going to do this across the board day 1, you're going to find places where you have unique situations where you want to go in and do that and use that as your pilot which then becomes a proxy for maybe how to do it in other regions but because you're starting with a different bucket of SKUs in every region, you have to do it that way. And so we're going to start that way and she and her team are doing a great job of quantifying what the opportunities are, and when you think about that, you've got to drill into, from a bottoms up, every design that we have for every component that is being produced and sold in that area and then you start this harmonization process around codes and specs and how do we bring colors and widths and material and all that into a consideration as we think about simplifying the business. And then there's a customer aspect to that. Obviously you have to work closely with your customers to make sure that you're supporting them and it fits their needs at the same time. So it's a good first step for us. And we're excited about that. And more to come as we get into that. But a lot of prep work has been started in earnest and very strong cross-functional team that will be attacking this over the next few months for sure and then we'll see implementation towards the end of this year, early next year. Operator: We have no further questions at this time. Mr. Bosway, I'd like to turn the floor back over to you for closing comments. William Bosway: Okay, thank you. I just want to thank everyone for joining us today and obviously your support for us. We are going to be at the Seaport Annual Summer Investor Conference on August 18 and the Sidoti Small Cap Conference in September. We'll speak to you again after the third quarter. So have a great rest of your summer. I appreciate you guys calling in today and appreciate your support. Thank you. Operator: Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation and have a wonderful day. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Gibraltar (ROCK) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Delivered 5% organic growth in the Residential segment by leveraging participation gains and price realization to offset a flat to down end market. Achieved sequential margin expansion across all segments, driven by the first full quarter of OmniMax operations and accelerated synergy capture. Secured a significant supply agreement for trims and flashings covering over 1,700 locations, validating the combined Gibraltar-OmniMax national value proposition. Attributed Residential outperformance to a 'ground game' strategy focused on local execution and solving customer logistics pain points like high freight minimums. Noted that Agtech organic growth of 8.7% was driven by volume in structures and commercial greenhouse applications, despite a decrease in total backlog due to project timing. Managed inflationary headwinds in fuel and commodities through disciplined price actions and the implementation of phase 1 and 2 of organizational realignment. Reiterated full-year 2026 guidance, assuming the residential end market remains down mid-single digits for the remainder of the year. Raised 2026 synergy execution target to $29.4 million, with $17 million expected to be realized within the current fiscal year. Prioritizing rapid deleveraging with a target net leverage ratio of approximately 2.5x adjusted EBITDA by the first quarter of 2028. Planned 80/20 initiatives for late Q4 and early 2027 will focus on SKU harmonization and product rationalization to simplify customer transactions. Expects the recent 630-location retail win to become a significant revenue driver starting in 2027 as the transition from the incumbent supplier concludes. Completed the divestiture of the Renewables business in July 2026, successfully exiting non-core operations to focus on Residential and Agtech. Recorded $41 million in special charges year-to-date related to OmniMax integration, representing approximately 80% of the total expected 2026 impact. Identified ongoing geopolitical uncertainty and high interest rates as primary drivers of soft consumer sentiment and 8% to 10% declines in retail point-of-sale volume. Evaluating additional non-core asset divestitures to create further liquidity for debt reduction beyond the current deleveraging roadmap. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Gains are driven by localized value propositions and cross-selling rather than broad market recovery. Management emphasized that while the market is not robust, their national footprint allows them to capture share from competitors by reducing customer supply chain costs. The increase in synergy targets reflects both accelerated timing and the discovery of new cost-saving opportunities in logistics and freight. Management indicated they are currently running nearly a year ahead of the original integration timeline. Inventory restocking in the distribution channel likely inflated Q2 ARMA data, masking a mid-single-digit decline in actual end-user demand. Retailers remain cautious with inventory due to soft point-of-sale results, leading to an expectation that the market will remain down mid-single digits for the rest of the year. Efforts are led by a new VP of Engineering focused on harmonizing codes, specs, and materials across regions. The goal is to reduce SKUs by 20% to 40% in pilot regions to lower transaction costs and improve manufacturing efficiency.

Continuing Operations Net Sales +65%; with Organic Growth +5% Driven By Residential Continuing Operations EPS: GAAP $0.92, Adjusted $1.11 OmniMax integration on track; Reiterating full year 2026 guidance BUFFALO, N.Y., August 05, 2026--(BUSINESS WIRE)--Gibraltar Industries, Inc. (Nasdaq: ROCK), a leading manufacturer and provider of products and services for the residential, agtech, and infrastructure markets, today reported its financial results for the three-month and six-month period ended June 30, 2026. As a reminder, Gibraltar reclassified its Renewables business as discontinued operations on June 30, 2025. Subsequently, the electrical balance-of-systems (eBOS) and racking and foundations businesses were sold on February 20, and July 15, 2026, respectively, completing Gibraltar’s divestiture of Renewables. "We delivered solid second quarter results with our Residential business driving good organic growth and participation gains in a flat-to-down market. Our building products business grew 12.7% organically - if you assume we owned OmniMax in Q2 2025, the combined business actually grew 15.5%, showing the strength of this combination in the marketplace. In line with our long-term strategic plan, our Residential business overall continues to become a larger part of our portfolio and represented 83% of total revenue in the quarter, with segment EBITDA margin improving sequentially 340 basis points to 19.0%. OmniMax integration continues to accelerate as our leadership team and integration management office drive our top 11 critical workstreams and synergy capture. We are also excited to announce we were recently awarded an additional 630 locations now making us the supplier of trims and flashings to more than 1,700 locations across the country for one of our customers – validating our ability to support our customers locally on a national basis with a value proposition that makes sense for them. We believe the addition of OmniMax to our product portfolio was instrumental in receiving this award," stated Chairman and CEO Bill Bosway. "Including a full quarter of OmniMax, total Gibraltar net sales increased 64.6% on organic growth of 5%, adjusted EBITDA increased 59.7%, and we delivered adjusted EPS of $1.11. As expected, we generated cash in our continuing operations during the quarter." Second Quarter 2026 Results from Continuing Operations Net Sales Driven primarily by the OmniMax acquisition as well as by organic growth in Residential and Agtech segments GAAP Income / EPS Includes pretax expenses of $5.8 million, or $0.15 per share, related to OmniMax acquisition integration and restructuring costs Adjusted Net Income / EPS $33.0 million, or $1.11 per share, including the interest expense impact of $20.6 million Price management actions and participation gains offset ongoing commodity and fuel inflation primarily related to ongoing geopolitical issues Adjusted measures are further described in the appended reconciliation of adjusted financial measures. Second Quarter Segment Results Residential Net Sales OmniMax and metal roofing acquisitions contributed $184 million offset by slowness in mail and package Building Products organic revenue increased 12.7% - if assumed OmniMax was owned in Q2 2025, the combined business grew 15.5% Driven by price/mix and participation gains that more than offset a flat-to-down market with new business in the Midwest, Northeast and Texas. Operating Income / EBITDA Adjusted EBITDA margin expanded 340 basis points sequentially Executed price actions to offset ongoing commodity and fuel inflation OmniMax Integration Integration management office executing 11 critical workstreams to drive integration and synergies Completed Phase 2 of organization optimization Raised synergy commitment an additional $3.2 million to $29.4 million with $17.0 million anticipated to be realized in full-year 2026 Awarded national agreement to supply trims and flashings to over 600 locations – starting in Q4 – additional participation gains in Midwest, Northeast and Texas – demonstrating the power of a combined Gibraltar and OmniMax Agtech Net sales were driven by strength in structures and commercial greenhouse applications. Solid backlog of $66.2 million is down 34% with timing of projects later in the year compared to prior year. Strong quoting activity continues across end markets. Adjusted operating and EBITDA margin driven by volume, business mix, and 80/20 operating initiatives. Infrastructure Sales decreased $0.3 million related to customer project timing. Order backlog increased 2% with strong engineering bid / quoting activity. Margin was impacted by lower volume and product mix. Balance Sheet and Cash Flow Gibraltar’s policy with respect to cash allocation will be to keep a minimum amount of cash on hand, use the revolver as needed to fund seasonal working capital and pay down debt with excess cash flow. During the quarter, Gibraltar generated $44.5 million from continuing operations; discontinued operations used $40.8 million in cash. Net debt on the balance sheet was $1.2 billion and revolving credit facility availability was $470 million at quarter-end. Reiterating 2026 Outlook Range for Continuing Operations Mr. Bosway added, "Despite the impact of the current macroeconomic and geopolitical environment and a slow Residential end market, we reiterate our full year 2026 outlook. We will continue to execute our 11 integration workstreams, implement synergy initiatives, and focus on participation gains with customers in our Residential business as we drive towards Residential representing an even larger part of the portfolio. The additional business we were recently awarded in our Residential segment demonstrates the power of a combined Gibraltar and OmniMax in the marketplace. We also expect Agtech and Infrastructure to deliver their respective plans for the second half of the year." Second Quarter 2026 Conference Call Details Gibraltar will host a conference call today starting at 9:00 a.m. ET to review its results for the second quarter of 2026. Interested parties may access the webcast through the Investors section of the Company’s website at www.gibraltar1.com, where related presentation materials will also be posted prior to the conference call. The call also may be accessed by dialing (877) 407-3088 or (201) 389-0927. For interested individuals unable to join the live conference call, a webcast replay will be available on the Company’s website for one year. About Gibraltar Gibraltar is a leading manufacturer and provider of products and services for the 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 and productive growing throughout North America. For more please visit www.gibraltar1.com. Forward-Looking Statements Certain information set forth in this news release, other than historical statements, contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that are based, in whole or in part, on current expectations, estimates, forecasts, and projections about the Company’s business, and management’s beliefs about future operations, results, and financial position. These statements are not guarantees of future performance and are subject to a number of risk factors, uncertainties, and assumptions. Actual events, performance, or results could differ materially from the anticipated events, performance, or results expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from current expectations include, among other things, the ability of Gibraltar to successfully integrate OmniMax and/or to achieve expected cost and operational synergies from the OmniMax transaction; tariffs and retaliatory tariffs imposed by the United States or other countries on imported goods, including raw materials used in the manufacturing of the Company’s products; changes to economic conditions and customer demand for the Company’s products; the availability and pricing of principal raw materials and component parts, supply chain challenges causing project delays and field operations inefficiencies and disruptions, the loss of any key customers, adverse effects of inflation, the ability to continue to improve operating margins, the ability to generate order flow and sales and increase backlog; the ability to translate backlog into net sales, other general economic conditions and conditions in the particular markets in which we operate, changes in spending due to laws and government incentives, such as the Infrastructure Investment and Jobs Act, changes in customer demand and capital spending, competitive factors and pricing pressures, the ability to develop and launch new products in a cost-effective manner, the ability to realize synergies from newly acquired businesses, disruptions to IT systems, the impact of trade and regulation, rebates, credits and incentives and variations in government spending and ability to derive expected benefits from restructuring, productivity initiatives, liquidity enhancing actions, and other cost reduction actions. Before making any investment decisions regarding the company, we strongly advise you to read the section entitled "Risk Factors" in the most recent annual report on Form 10-K which can be accessed under the "SEC Filings" link of the "Investor Info" page of the website at www.Gibraltar1.com. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable law or regulation. Adjusted Financial Measures To supplement Gibraltar’s consolidated financial statements presented on a GAAP basis, Gibraltar also presented certain adjusted financial measures in this news release and its quarterly conference call, including adjusted net sales, adjusted operating income and margin, adjusted net income, adjusted earnings per share (EPS), free cash flow and adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) and Adjusted EBITDA margin, each a non-GAAP financial measure. Unless otherwise indicated, the consolidated financial statements, disclosures and related information disclosed herein relate to the Company's continuing operations, which exclude its Renewables business which was classified as a discontinued operation as of June 30, 2025. The Company has recast prior period amounts to reflect discontinued operations. Adjusted net income, operating income and margin exclude special charges consisting of restructuring costs (primarily comprised of exit activities costs and impairment of assets associated with 80/20 simplification, lean initiatives and / or discontinued products), acquisition related costs (legal and consulting fees, and integration costs for recent business acquisitions), and portfolio management. These special charges are excluded since they may not be considered directly related to the Company’s ongoing business operations. The aforementioned exclusions along with other adjustments to other income below operating profit are excluded from adjusted EPS. Adjusted EBITDA and Adjusted EBITDA margin further excludes interest, taxes, depreciation, amortization and stock compensation expense. In evaluating its business, the Company considers and uses these non-GAAP financial measures as supplemental measures of its operating performance. Free cash flow is operating cash flow less capital expenditures and the related margin is free cash flow divided by net sales. The Company believes that the presentation of adjusted measures and free cash flow provides meaningful supplemental data to investors, as well as management, that are indicative of the Company’s core operating results and facilitates comparison of operating results across reporting periods as well as comparison with other companies. Adjusted EBITDA and free cash flow are also useful measures of the Company’s ability to service debt and adjusted EBITDA is one of the measures used for determining the Company’s debt covenant compliance. Adjustments to the most directly comparable financial measures presented on a GAAP basis are quantified in the reconciliation of adjusted financial measures provided in the supplemental financial schedules that accompany this news release. These adjusted measures should not be viewed as a substitute for the Company’s GAAP results and may be different than adjusted measures used by other companies and the Company’s presentation of non-GAAP financial measures should not be construed as an inference that the Company’s future results will be unaffected by unusual or non-recurring items. Reconciliations of non-GAAP measures related to full-year 2026 guidance have not been provided due to the unreasonable efforts it would take to provide such reconciliations due to the high variability, complexity and uncertainty with respect to forecasting and quantifying certain amounts that are necessary for such reconciliations. View source version on businesswire.com: https://www.businesswire.com/news/home/20260805038893/en/ Contacts Alliance Advisors Investor RelationsJody Burfening/Carolyn Capaccio(212) [email protected]

Gibraltar Industries (ROCK) came out with quarterly earnings of $1.11 per share, beating the Zacks Consensus Estimate of $1.02 per share. This compares to earnings of $1.13 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +8.82%. A quarter ago, it was expected that this building-products company would post earnings of $0.49 per share when it actually produced earnings of $0.45, delivering a surprise of -8.16%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Gibraltar Industries, which belongs to the Zacks Building Products - Miscellaneous industry, posted revenues of $509.55 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 7.55%. This compares to year-ago revenues of $309.52 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Gibraltar Industries shares have lost about 2.8% since the beginning of the year versus the S&P 500's gain of 13%. While Gibraltar Industries has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Gibraltar Industries was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.28 on $493.43 million in revenues for the coming quarter and $3.80 on $1.76 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Miscellaneous is currently in the top 44% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Construction Partners (ROAD), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 7. This road and highway construction company is expected to post quarterly earnings of $1.06 per share in its upcoming report, which represents a year-over-year change of +30.9%. The consensus EPS estimate for the quarter has been revised 1.1% higher over the last 30 days to the current level. Construction Partners' revenues are expected to be $955.5 million, up 22.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Gibraltar Industries, Inc. (ROCK) : Free Stock Analysis Report Construction Partners, Inc. (ROAD) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Total Net Sales: Increased 64.6% to $510 million, with total Gibraltar organic growth of 5%. Residential Segment Net Sales: Increased $195.6 million to $425.9 million, up 85%, driven by the inclusion of a full quarter of Omnimax operations; organic growth was 5%. Building Products Organic Growth: Grew 12.7% organically; combined business grew 15.5% assuming Omnimax ownership in Q2 2025. AgTech Segment Net Sales: Grew $4.7 million or 8.7%, all organic. Adjusted Operating Income: Reached $66 million. Adjusted EBITDA: Increased 59.7% to $88 million, with adjusted EBITDA margin expanding sequentially 350 basis points to 17.3%. Adjusted EPS: Delivered $1.11, including a net interest impact of $20.6 million. Operating Cash Flow: Generated $45 million from continuing operations. Free Cash Flow: Generated $39 million from continuing operations, approximately 8% of sales. Residential Segment EBITDA Margin: Improved 340 basis points sequentially to 19%. AgTech Backlog: Stands at $66.2 million, a 34% decrease from last year. Net Debt: $1.2 billion at quarter end, with net leverage at 3.9 times. Warning! GuruFocus has detected 3 Warning Signs with ROCK. Is ROCK fairly valued? Test your thesis with our free DCF calculator. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Gibraltar Industries Inc (NASDAQ:ROCK) delivered solid Q2 results with residential and AgTech segments posting organic growth of 5% and 8.7%, respectively, despite a flat-to-down market. The company secured a major customer win, expanding its service footprint to over 1,700 locations nationwide, which is expected to drive significant revenue growth in 2027. Omnimax integration is progressing well, with synergies being realized ahead of schedule, leading to an increased 2026 synergy commitment of $29.4 million. All segments reported sequential margin expansion, with residential EBITDA margin improving 340 basis points to 19%. The divestiture of the renewables business was completed, simplifying the portfolio and allowing management to focus on core operations and debt reduction. The U.S. residential roofing market remains weak, with end-market demand estimated to be down mid-single-digits, and retail point-of-sale volumes down 8-10%. Inflationary pressures from commodities, fuel, and transportation costs continue to impact margins, requiring ongoing price actions to offset. AgTech backlog declined 34% year-over-year due to project timing, which could impact future revenue stability. The company's net leverage is high at 3.9 times, and the focus on deleveraging limits capital allocation flexibility. Special charges related to the Omnimax acquisition and integration are expected to total $50 million in 2026, impacting GAAP earnings. Q: Can you provide more color on the sustainability of the participation gains achieved in Q2, particularly in building products, and where the greatest impact from cross-selling is coming from?A: Bill Bosway (CEO) stated that participation gains were strong in the Northeast, Midwest, and Texas, driven by the team's efforts in explaining the value proposition. He noted that while the market is not robust, the company will continue its "ground game" to win more business. He highlighted that opportunities exist in geographic expansion, cross-selling, and 80/20 initiatives related to product rationalization, providing multiple levers for future growth. Q: What is the incremental revenue opportunity from the 630 additional store locations, and are you having conversations with other national retailers about similar expansions?A: Bill Bosway (CEO) confirmed that the new award, which brings the total to over 1,700 locations, is a significant win. He noted that the majority of the impact will be felt in 2027, as the transition begins late in Q4 2026. He also indicated that there are six large customers and many other important regional and national accounts, suggesting more opportunities for similar engagements in the future. Q: Can you break down the AgTech segment's 8.7% organic growth between volume and price, and discuss the backlog decline and expectations for the rest of the year?A: Bill Bosway (CEO) explained that the growth is primarily volume-driven, tied to specific projects. He distinguished between the Lane supply business, which turns quickly, and the larger CEA projects, which take longer. He noted strong quoting activity and that while some projects will benefit 2026, others are setting up for 2027, indicating a healthy pipeline despite the current backlog decrease. Q: Regarding the increased synergy commitment of $29.4 million, is this a pull-forward of previously identified synergies or are these new opportunities?A: Bill Bosway (CEO) clarified that the increase is primarily due to finding new opportunities across various functional areas of the business. He noted that the team has been successful in identifying more synergies than originally planned, and some are being realized sooner than expected. He confirmed that the $29.4 million represents what will be implemented this year, with the full run-rate impact expected next year. Q: Can you elaborate on the commercial or revenue synergies you are seeing, and what you have learned from the recent large customer win?A: Bill Bosway (CEO) explained that the value proposition varies by customer but fundamentally focuses on lowering the cost of doing business. This includes optimizing logistics, reducing freight minimums, and simplifying transactions through product portfolio harmonization. He emphasized that while service and quality are table stakes, the company aims to become the "easy button" for customers, and there is significant runway for organic growth by executing well and differentiating the combined business. Q: How is the price-cost environment playing out, and how should we think about it in the second half of the year?A: Bill Bosway (CEO) described the environment as a "roller coaster," with ongoing challenges from fuel surcharges and commodity price swings. He noted that while the company has a good track record of executing price increases to offset inflation, it is always chasing costs until commodities stabilize. He indicated that there is still work to be done to address inflationary pressures in the second half. Q: Can you help us understand the cadence of the remaining $10 million in synergy realization expected in Q3 and Q4?A: Bill Bosway (CEO) stated that the realization will be split somewhat evenly between Q3 and Q4, possibly in a 60/40 or 50/50 range, depending on the type of synergies. He confirmed that a significant portion will flow through in the third quarter, with the remainder in the fourth. Q: Given the strong sequential margin improvement in residential, did the legacy Gibraltar residential margins expand on a year-over-year basis?A: Bill Bosway (CEO) noted that it is becoming increasingly difficult to separate legacy Gibraltar and Omnimax results as the business is now operating as one integrated unit. He confirmed that both businesses are contributing to the success and margin improvement seen in Q2, but declined to provide a specific breakdown due to the integrated nature of operations. Q: How are channel inventories looking now, and do you expect the market growth rate to be similar in Q3?A: Bill Bosway (CEO) stated that inventory levels vary by channel and region. Retail POS was down 8-10%, indicating caution, while distribution may have turned inventory more. He expects the end market demand to remain down mid-single-digits in the second half, similar to Q2, barring any major weather events. He noted that Q2 shipments were partly driven by restocking and pre-buying ahead of price increases, which will not repeat in Q3. Q: Can you unpack the 80/20 initiatives you are starting in two regions, and what the plan looks like?A: Bill Bosway (CEO) explained that the initiatives involve exiting certain product lines and significantly reducing SKUs in specific regions, potentially by 20-40%. The goal is to simplify operations and transactions for customers through product harmonization. He highlighted the new role of VP of Engineering Innovation, who is leading these efforts, and noted that these pilots will serve as a proxy for future initiatives in other regions, with implementation expected late this year or early next year. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Gibraltar Industries, Inc.? Here are five stocks we like better. Gibraltar Industries reported strong Q2 results, with sales up 64.6% to $510 million and adjusted EBITDA up 59.7% to $88 million, including the first full quarter of OmniMax operations. Organic growth reached 5% overall, led by 8.7% growth in AgTech and 5% in Residential. The OmniMax integration is progressing ahead of plan, with $7 million in synergies realized through the first half and the 2026 synergy target raised to $29.4 million. Gibraltar also secured a supply agreement covering more than 1,700 locations, though most revenue benefits are expected in 2027. Despite subdued roofing demand and $1.2 billion of net debt, the company reaffirmed its 2026 outlook for $1.76 billion–$1.83 billion in sales and adjusted EPS of $3.65–$4.05. Management is prioritizing debt reduction and aims to lower net leverage from 3.9 times to about 2.5 times adjusted EBITDA by early 2028. These 3 Small-Cap Stocks Are Built to Weather a Slowdown Gibraltar Industries (NASDAQ:ROCK) reported second-quarter 2026 results that included the first full quarter of operations from OmniMax International, while reiterating its full-year guidance. The company said residential and AgTech delivered organic growth, all segments posted sequential margin expansion, and integration work following the OmniMax acquisition continued to advance. Total net sales increased 64.6% to $510 million, including a full quarter of OmniMax. Gibraltar reported total organic growth of 5%, with residential organic growth of 5% and AgTech organic growth of 8.7%. Adjusted operating income was $66 million, adjusted EBITDA rose 59.7% to $88 million, and adjusted earnings per share were $1.11. The quarter included a $20.6 million net interest impact, while GAAP results included $5.8 million, or $0.15 per share, in OmniMax acquisition, integration and restructuring costs. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control “We delivered solid second quarter results with our residential business delivering strong organic growth and participation gains in a flat to down market,” Chairman, President and Chief Executive Officer Bill Bosway said. Residential segment sales rose 85% to $425.9 million. OmniMax contributed $182 million of segment sales, while a metal roofing acquisition completed in July 2025 added $2.5 million. Gibraltar said residential organic growth was driven by price realization and participation gains in the Midwest, Northeast and Texas. → 3 Drone Stocks That Should Soar After the Summer Slump On a pro forma basis, assuming Gibraltar owned OmniMax during the second quarter of 2025, the combined building-products business grew 15.5%. The company attributed 9.7% of that growth to price and mix and 7.1% to participation gains, partly offset by a 1.3% market decline. Residential adjusted EBITDA margin improved 340 basis points sequentially to 19%, as price actions offset commodity and fuel inflation. However, the margin declined from the prior-year period because of price-cost alignment, business and product mix, and integration-related inefficiencies, according to Chief Financial Officer Joe Lovecchio. → The Bitcoin Comeback May Already Be Underway—2 ETFs for Exposure Management said the U.S. roofing market remained subdued. Based on ARMA shingle shipment data and retail point-of-sale data, Gibraltar estimated underlying end-market demand declined by a mid-single-digit percentage in the second quarter and first half, and said it expects a similar environment for the remainder of 2026. Retail point-of-sale results were down roughly 8% to 10% in the quarter, while ARMA shipment data was flat year over year. The company said distributor restocking and purchases ahead of manufacturer price increases supported second-quarter shipment levels. Bosway said the company expects the market in the second half to remain similar to the second quarter absent significant weather events. Gibraltar acquired OmniMax on Feb. 2 and said its integration management office is overseeing 11 core work streams. The company completed the second phase of organizational optimization during the quarter and said 65% to 70% of its targeted 2026 exit-rate organizational savings had been implemented as of quarter-end. The company increased its 2026 synergy commitment to $29.4 million of initiatives to be executed during the year, with $17 million expected to be realized in 2026. Gibraltar said it had realized $7 million of synergies through the second quarter and expects the benefit to increase in the third quarter. Newly identified initiatives include a logistics freight program expected to generate $1.2 million in annual savings and a participation gain expected to produce about $2 million in annual margin improvement. Gibraltar also said it won a supply agreement to provide trims and flashings to more than 1,700 locations for a key customer, expanding its service footprint by 630 locations. The business is expected to begin late in the fourth quarter, with management describing the revenue impact as primarily a 2027 opportunity. Bosway said the company intends to pursue further participation gains, cross-selling opportunities and product-line harmonization. Gibraltar plans to begin 80/20 initiatives in two regions late in the fourth quarter and early next year, focused on product and SKU harmonization, operations optimization and transaction reduction. AgTech sales increased $4.7 million, or 8.7%, entirely through organic growth, supported by structures and commercial greenhouse applications. Segment adjusted operating margin and EBITDA margin improved 450 basis points and 430 basis points, respectively, from a year earlier, driven by volume, favorable business mix and 80/20 operating initiatives. AgTech backlog stood at $66.2 million, down 34% from the prior year due to the timing of projects, Gibraltar said. The company cited strong quoting activity and demand at its Lean Supply business, where orders turn more quickly than larger controlled-environment agriculture projects. Gibraltar also brought online a powder-coating painting capability that it expects will improve future cost productivity for certain agriculture projects. Infrastructure sales declined slightly due to project timing, while backlog grew 2%. The segment’s adjusted operating and EBITDA margins were affected by lower volume and product mix, although quoting activity remained strong. Gibraltar generated $44.5 million in operating cash flow from continuing operations and $39 million in free cash flow from continuing operations, equal to about 8% of sales. The company used $40.8 million of cash in discontinued operations, including a settlement payment related to warranty claims. Capital expenditures were $5 million during the quarter. At quarter-end, Gibraltar had $1.2 billion in net debt and net leverage of 3.9 times, including anticipated synergies permitted under its credit agreement. The company had $485 million of total available liquidity. Management said capital allocation over the next 12 to 18 months will focus on debt reduction and funding business growth through capital expenditures, targeting net leverage of about 2.5 times adjusted EBITDA by the first quarter of 2028. The company also completed the divestiture of its renewables business, including the eBOS sale in the first quarter and the racking business sale in July. For 2026 continuing operations, Gibraltar reaffirmed its outlook for net sales of $1.76 billion to $1.83 billion, adjusted operating income of $222 million to $238 million, adjusted EBITDA of $310 million to $326 million, and adjusted EPS of $3.65 to $4.05. It continues to expect free cash flow of approximately 8% of sales. Gibraltar Industries, Inc (NASDAQ: ROCK) is a leading manufacturer of building products and infrastructure solutions for the residential, commercial, industrial and utility markets. The company designs, engineers and markets a broad portfolio of highly engineered products to reinforce structures, improve energy efficiency and enhance safety and durability. Gibraltar's Building Products segment includes metal roofing, siding, ventilation and structural support systems for homes and light commercial facilities, while its Infrastructure Solutions segment supplies transmission and distribution hardware, storm response equipment and renewable energy supports to utility and civil markets. In the Building Products segment, Gibraltar offers metal and composite solutions such as roof and siding panels, deck and solar shading supports, chimney and venting systems, railings and fencing. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Gibraltar Industries Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Interested in Gibraltar Industries, Inc.? Here are five stocks we like better. Gibraltar Industries reaffirmed its full-year 2026 outlook despite a challenging first quarter marked by the Omnimax acquisition, commodity inflation, and weak residential demand. Management said the business is still on track with its guidance and transformation plans. The Omnimax deal drove a big jump in reported sales, with first-quarter adjusted net sales up 44.6% to $356 million, but adjusted EPS fell 50% because of higher interest expense and unfavorable price-material economics. Gibraltar also raised its 2026 synergy target to $26 million. Residential demand remained soft, though the company saw some early second-quarter improvement and expects pricing actions to turn inflation into positive price-material economics by Q2. Gibraltar is also continuing to reduce debt, targeting leverage of about 2.5x adjusted EBITDA within 24 months. These 3 Small-Cap Stocks Are Built to Weather a Slowdown Gibraltar Industries (NASDAQ:ROCK) reaffirmed its full-year 2026 guidance after reporting a first quarter shaped by the February acquisition of Omnimax International, inflation in aluminum and other commodities, and continued softness in residential markets. Chairman, President and Chief Executive Officer Bill Bosway said the quarter was “very dynamic and busy,” citing the close of the Omnimax acquisition on Feb. 2, the launch of integration work, additional aluminum inflation in February and March, and further commodity inflation following the start of the Middle East conflict. → Insider Sales: Top AST SpaceMobile Insider Cuts Postion Over 30% For the quarter, Gibraltar reported adjusted net sales of $356 million, up 44.6%, driven primarily by two months of Omnimax results and contributions from metal roofing and structures acquisitions. Adjusted EBITDA rose 16.1%, while adjusted earnings per share declined 50%, reflecting a $14.6 million net interest impact and unfavorable price-material economics, particularly in residential. Continuing operations exclude Gibraltar’s renewables business, which was classified as held for sale and as a discontinued operation beginning with second-quarter 2025 results. The eBOS portion of that business was sold on Feb. 20, 2026. Gibraltar said it continues to target completion of the sale of the remaining renewables racking business in the second quarter. → Light Speed Returns: Corning Cashes In on NVIDIA Growth Chief Financial Officer Joe Lovechio said residential segment net sales increased just over $100 million to $281 million, up 56%, with Omnimax contributing $89 million and metal roofing acquisitions contributing $18 million. Organic sales in the segment fell 3%, including a 3.8% decline in building products and a 1.5% decline in mail and package, as the residential market remained soft. Lovechio said adjusted operating EBITDA margin in residential declined because of lower volume and inflation. Aluminum prices increased 16% during the quarter, and Gibraltar also saw inflation in steel, resin and fuel in March. → Years in the Making, AMD’s Upside Movement Has Just Begun The company implemented price increases early in the quarter to offset aluminum inflation from late 2025 and followed with additional increases in March and April across 14 brands and operating units. Lovechio said the company was not able to offset the full inflation impact during the first quarter because its price approval process typically takes 30 to 60 days, but he said price-material economics are expected to be positive in the second quarter. Bosway said Omnimax brought a more centralized pricing process that has helped Gibraltar act more quickly. In response to an analyst question, he said the company used price increases rather than surcharges, including for aluminum, steel, resin, vinyl and fuel. Gibraltar said the U.S. residential roofing market remained soft in the first quarter, with ARMA reporting shingle shipments down 10% year over year. Lovechio said Gibraltar believes it outperformed the market, with retail sales units down 6% to 8%, while sales dollars were down 1% to flat and sales to distribution were down by roughly the same amount. The company noted that first-quarter shipments were up 41% sequentially from the fourth quarter. Management attributed that improvement to a possible correction after inventory reductions in late 2025, pull-forward activity related to upcoming OEM shingle price increases, and some better end-market demand in select regions. Bosway said April shipments and bookings were on plan and ahead of 2025 levels, with the first several days of May showing similar consistency. He also said customer inventories appear better aligned with demand than in recent years, though retail customers remain more cautious than distributors. Management said the company’s broader footprint after the Omnimax acquisition is helping it participate in more markets. Bosway said the combined company now has 39 locations serving most of the United States and is pursuing geographic expansion, cross-selling and private-label opportunities. Bosway said Gibraltar’s integration management office and 22 integration teams have delivered more than 500 milestones since the Omnimax close. The company has completed the first phase of organizational structure work, with a second phase expected in May and June. Gibraltar increased its 2026 synergy commitment by $2 million to $26 million, with $16.3 million expected to be realized in full-year 2026 adjusted EBITDA. Bosway said more than half of the 2026 synergy commitment has been executed, with savings expected to ramp in the second quarter and accelerate in the second half. The company highlighted several integration priorities, including procurement, SG&A reduction, commercial synergies, logistics, facility optimization and product-line simplification. Bosway said one of the company’s largest 80/20 initiatives will be harmonizing and simplifying SKUs and product lines across the combined footprint. Commercially, Gibraltar said it has established new business in more than 40 branch locations across nine customers and more than 60 locations where existing customers are buying a new product category from the combined business. Bosway said those initiatives are expected to contribute $4.3 million to 2026 EBITDA. In AgTech, net sales increased $10 million, or 23.6%, driven by the Lane Supply acquisition, which Bosway said continues to perform as expected. Organic volume declined about 3% because of project movement during the year. Segment backlog was $84 million, supporting the full-year plan, but was down 13% in the quarter after removal of an Arizona controlled-environment agriculture project. Infrastructure net sales fell $2.1 million, or 10%. Bosway said two separate March weather events caused the company’s facility to lose power, disrupting production schedules and pushing some shipments into April. In response to an analyst question, he said the business lost about seven days of production, but the team made up the shipments in April and is back on track. Gibraltar used $35 million of operating cash flow in the quarter, including payments related to the Omnimax transaction, and used $41 million of free cash flow. The company applied $70 million of eBOS divestiture proceeds to debt reduction and ended the quarter with net debt of $1.2 billion. Its net leverage ratio, as defined by its credit agreement, was 3.9 times. Lovechio said the company’s capital allocation priorities are to maintain $20 million to $25 million of cash on hand, use its revolver as needed for seasonal needs and pay down debt with excess cash flow. Gibraltar is targeting a leverage ratio of about 2.5 times adjusted EBITDA within 24 months, ending in the first quarter of 2028. The company reaffirmed full-year 2026 guidance for continuing operations, including: Consolidated net sales of $1.76 billion to $1.83 billion. Adjusted operating income of $222 million to $238 million. Adjusted EBITDA of $310 million to $326 million. GAAP EPS of $2.40 to $2.80, including expected special charges. Adjusted EPS of $3.65 to $4.05. Lovechio said Gibraltar expects Omnimax to contribute approximately $570 million to adjusted net sales, $70 million to adjusted operating income and $120 million to adjusted EBITDA in 2026, reflecting 11 months of ownership and expected synergy realization. Bosway said Gibraltar is focused on executing integration, pricing and commercial initiatives even if residential market conditions remain soft. “We are transforming the business,” he said, adding that the company’s work is intended to position Gibraltar to serve the industry over the next several years. Gibraltar Industries, Inc (NASDAQ: ROCK) is a leading manufacturer of building products and infrastructure solutions for the residential, commercial, industrial and utility markets. The company designs, engineers and markets a broad portfolio of highly engineered products to reinforce structures, improve energy efficiency and enhance safety and durability. Gibraltar's Building Products segment includes metal roofing, siding, ventilation and structural support systems for homes and light commercial facilities, while its Infrastructure Solutions segment supplies transmission and distribution hardware, storm response equipment and renewable energy supports to utility and civil markets. In the Building Products segment, Gibraltar offers metal and composite solutions such as roof and siding panels, deck and solar shading supports, chimney and venting systems, railings and fencing. The article "Gibraltar Industries Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.