Gibraltar Industries, Inc. · NASDAQ:ROCK
Gibraltar Industries — Investor Presentation (May 2024)
36 slides from Gibraltar Industries's investor presentation, May 2024
Slide 1: Gibraltar Industries Investor Presentation May 2024
GIBRALTAR INDUSTRIES Investor Presentation May 2024 www.Gibraltar1.com
Slide 2: Safe Harbor Statements
SAFE HARBOR STATEMENTS Forward-Looking Statements Certain information set forth in this presentation, 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 exp
Slide 3: $1.3B+ Manufacturer Reshaping Critical Markets in North America
$1.3B+ MANUFACTURER RESHAPING CRITICAL MARKETS IN NORTH AMERICA 2023 Revenue Strong foundation with leadership positions gaining momentum in attractive end markets ~ 40% sustainable • Renewables • Residential Agtech Renewables • Agtech Strategy to accelerate execution and scale across 4 Infrastructu
Slide 4: Significant Progress in Transforming the Business
SIGNIFICANT PROGRESS IN TRANSFORMING THE BUSINESS PORTFOLIO OPTIMIZATION 3 PILLAR FOUNDATION 1 2 3 2014 2023 Portfolio Business Organization Management System AgTech Renewables Higher Growth 80/20 Excellence Design Talent, Markets Structure Industrial & Business Models Residential Infrastructure Pro
Slide 5: Strong Positioning in Markets
STRONG POSITIONING IN MARKETS Industry Technology / Project Mgmt & Leadership Brand Operations “The Sauce” Portfolio - breadth & depth Renewable Field operations - 700+ projects/yr Energy Scale - speed - agility for customers National presence in major regions Residential Portfolio - breadth for reg
Slide 6: Renewables – Fast Growing Addressable Market
RENEWABLES – FAST GROWING ADDRESSABLE MARKET Segment 2020 2025 CAGR % ’20 – ’25 Design Software $0.1 $0.2 8% to 12% Racking & Field Installation $2.9 $4.1 6% to 9% Electrical Balance of $0.7 $1.0 6% to 9% System (eBOS) Operations & Maintenance $1.1 $2.7 15% to 20% $4.8B $8.0B $14B $22B $4.8B $8.0B 2
Slide 7: Gibraltar's Comprehensive Solar Growth Engine
GIBRALTAR’S COMPREHENSIVE SOLAR GROWTH ENGINE Field O&M Design Infrastructure Operations Services Design (SIFT) Electrical Electrical Balance of Systems Project Tracker Optimization Systems (eBOS) Management Management Geo Racking 1. Fixed Tilt Canopy & Roof Assessment Development Remote Services Sy
Slide 8: Renewables – TerraSmart TerraTrak: Strengthening Market Position
RENEWABLES – TERRASMART™ TERRATRAK: STRENGTHENING MARKET POSITION SOLITUDE II TERRASMART™ TerraTrak TerraTrak 1P in Lostant, Illinois § Signed contracts and design engagement continues to accelerate with customers § Helping C&I customers expand into new geographies where tracker is the optimal solut
Slide 9: Solar Industry – Q1 2024 Update
SOLAR INDUSTRY – Q1 2024 UPDATE Inflation 10% domestic content credit is significant for Reduction Act Awaiting final Department of Treasury guidance for customer project returns 10% domestic content tax incentive Tax Credits Helps offset other costs – duties, inflation, etc. Project slippage is red
Slide 10: Renewables Growth Plan
RENEWABLES GROWTH PLAN Revenue & Adjusted Operating Margin* Revenue Growth 2020 2025P D / CAGR TRACKER Revenue $238 ~ $700 ~ 24% ~ $700 Grow 4X on penetration, portfolio expansion $700 Adj. OM* 12.6% ~ 15% ~ 240bps Adj. EBITDA%* 14.1% ~ 16.5% ~ 630bps eBOS $600 Grow 2X in core utility space, innovat
Slide 11: Residential – Market Segment Dynamics
RESIDENTIAL – MARKET SEGMENT DYNAMICS Building Products Home Improvement Mail & Package New Construction DEMAND DRIVERS 16% Weather 56% 28% Age Related USPS MAIL DELIVERY COMPELLING DEMOGRAPHICS Replacement Cycles Weather New Construction AGING POPULATION 141 million USPS delivery points Growth in n
Slide 12: Residential – Description of Products and Services
RESIDENTIAL – DESCRIPTION OF PRODUCTS AND SERVICES Building Products Home Improvement Mail & Package ESSENTIAL PRODUCTS ON AND AROUND YOUR ROOF PRODUCTS HOME IMPROVEMENT USPS REQUIREMENTS Licensing Gutter protection and outdoor living products for residential and commercial Quality program applicati
Slide 13: Residential Growth Plan
RESIDENTIAL GROWTH PLAN Revenue & Adjusted Operating Margin* Strategic Imperatives 2020 2025P ∆ / CAGR EFFICIENCY Revenue $523 ~ $700 ~ 6% Execution – 80/20 Productivity, Automation, Supply Chain Adj. OM* 18.2% ~ 20% ~ 180bps Initiatives, Systems platform Adj. EBITDA%* 19.9% ~21.5% ~160bps CHANNEL E
Slide 14: Residential – Market Expansion and New Product Development
RESIDENTIAL – MARKET EXPANSION AND NEW PRODUCT DEVELOPMENT Geographic Expansion Shingle Vent Roll Through Local Velocity Launch Q3 2024 § Serving only 40% of top 32 markets § Patent pending – design, utility, § 2023 expansions into Salt Lake City and process and Denver § Installs faster than 4-foot
Slide 15: Agtech Market and Drivers
AGTECH MARKET AND DRIVERS CONSUMER SHIFT SUSTAINABILITY Fresh and plant-based foods are ~70% of vine crops in 2018 were driving demand for year-round, locally- imported – susceptible to border, grown, pesticide free produce transportation, and sustainability challenges LEGALIZATION OF CANNABIS THE F
Slide 16: Gibraltar's Established Agtech Growth Engine
GIBRALTAR’S ESTABLISHED AGTECH GROWTH ENGINE Install / Design Build Operate Integrate Concept / 12 Structure “Families” & Service Buildings Project Maintenance Design Serving Each Unique Segment Need Management Services Structural / MEP Category SMEs 3rd Party Partners Construction Greenhouse Engine
Slide 17: Agtech Growth Plan
AGTECH GROWTH PLAN Revenue & Adjusted Operating Margin* Strategic Imperatives 2020 2025P D / CAGR Revenue $209 ~ $320 ~ 9% ACCELERATE VALUE CREATION $325 Adj. OM* 6.8% ~ 15% ~ 820bps ~$320 Drive ~ $141M of growth and ~ 800 bps of Adj. EBITDA%* 9.7% ~ 16.5% ~ 680bps margin expansion EXPAND SHARE OF W
Slide 18: Agtech – High-Tech Controlled Environment Agriculture (CEA)
AGTECH – HIGH-TECH CONTROLLED ENVIRONMENT AGRICULTURE (CEA) BOEM BERRY FARM § Largest high-tech strawberry farm in N. America § 4 phases completed – 80 acres § Current phase in process - +40 acres, final phase planned for 2025/2026 – +55 acres § Annual production: >100,000 lbs. per acre or 17.5M pou
Slide 19: Our Commitment: Our People, Our Communities, The World
OUR COMMITMENT Our People Our Communities The World Create the best environment for our Invest in the communities where our Drive Solutions for Energy Production, people to have success people live & work Growing Food, Home Efficiency Key Tenets 1. Promote and improve sustainability 2. Do what is ri
Slide 20: Gibraltar 2020-2025 Growth Plan
GIBRALTAR 2020- 2025 GROWTH PLAN Revenue OPPORTUNITY $2,000 Accelerate execution and scale across 4 ~ $1,800 segments M & A incremental to plan $1,500 $1,373 POSITION $1,011 $1,000 $M Strong foundation with leadership positions $742 gaining momentum in good end markets $500 PLAN Revenue growth ~12%
Slide 21: Scale and Execute 2025
SCALE AND EXECUTE 2025 Performance Transformation Revenue ~12% CAGR Foundation is strong - 3 pillars Adj. Op Margin ~ 190 bps Positioned to scale Adj. EPS grows 2X+ Sustainable solid growth markets ~ $750M cash from operations M&A incremental to plan Execution The Team 80/20 acceleration + Q-T-C Str
Slide 22: Balance Sheet – Strong Free Cash Flow, Ample Liquidity
BALANCE SHEET – STRONG FREE CASH FLOW, AMPLE LIQUIDITY LIQUIDITY ($M) WORKING CAPITAL Revolver $543 GENERATED CASH OF $17M Cash $495 Q1 Benefit § AP $ 35M § Other Liabilities $ 6M $322 Q1 Offset by $396 § AR $ 7M $396 § Inventory $ 17M $304 NO Q1 SHARE REPURCHASES $147 $99 FREE CASH FLOW $18 Q124 FC
Slide 23: Share Repurchase Program
SHARE REPURCHASE PROGRAM PROGRAM - $200 million, 3 years ending May 2, 2025 §Rationale § 2022 - 2025 operating plan expects to generate significant cash for deployment and collectively drive incremental returns including 1. Supporting ongoing capital requirements for growth of existing business 2. F
Slide 24: Capital Management: Investing in the Future
CAPITAL MANAGEMENT: INVESTING IN THE FUTURE 2015 - 2020 2020 - 2025 Plan ~$600M ~$750M Cash From Cash From Operations Operations Capex M&A Capex M&A $74M $510M – 6 acquisitions <2% Rev, 20% IRR 10X EBITDA multiple 80/20 initiatives TerraSmart & Sunfig 80/20 - Lean 3X leverage or less Health & Safety
Slide 25: Investment Highlights
INVESTMENT HIGHLIGHTS Strong foundation with leadership positions gaining momentum in attractive end markets Strategy in place to drive 2020-2025 Revenue ~12% CAGR Adj. Operating margin grows ~ 190 bps Accelerating execution and scale across 4 Adj. EPS improves 2X segments to drive growth and return
Slide 26: Appendix
APPENDIX GIBRALTAR
Slide 27: First Quarter 2024 Review
FIRST QUARTER 2024 REVIEW NET SALES ADJUSTED Segment performance in line with plan for each business $293M +1% § NET SALES § Backlog down 3% as Infrastructure finished large project booked in Q1 2023 and Agtech orders (over $40 million) landing in April versus Q1 ADJUSTED § 2024 outlook unchanged OP
Slide 28: 2024 Priorities – Remain Focused on Value Creation
2024 PRIORITIES – REMAIN FOCUSED ON VALUE CREATION STRATEGIC PILLARS GIBRALTAR PLAYBOOK 1. Drive growth, quality of earnings, strong cash performance, PORTFOLIO execute M&A to expand our industry positions MANAGEMENT 2. Execute 80 / 20 – win participation, expand margin, drive service levels BUSINES
Slide 29: Adjusted Financial Measures Reconciliation – Q1 2024
ADJUSTED FINANCIAL MEASURES RECONCILIATION – Q1 2024 Three Months Ended March 31, 2024 As Reported in Adjusted GAAP Restructuring Acquisition Portfolio Financial Statements Charges Related Items Management Measures Net Sales Renewables $ 51,496 $ - $ - $ - $ 51,496 Residential 185,111 - - - 185,111
Slide 30: Adjusted Operating Profit & EBITDA Reconciliations – Q1 2024
ADJUSTED OPERATING PROFIT & EBITDA RECONCILIATIONS – Q1 2024 Three months ended March 31, 2024 Consolidated Renewables Residential Agtech Infrastructure Net Sales $ 292,506 $ 51,496 $ 185,111 $ 34,027 $ 21,872 Less: Processing Net Sales - - - - - Adjusted Net Sales $ 292,506 $ 51,496 $ 185,111 $ 34,
Slide 31: Adjusted Financial Measures Reconciliation – Q1 2023
ADJUSTED FINANCIAL MEASURES RECONCILIATION – Q1 2023 Three Months Ended March 31, 2023 Restructuring & Senior Portfolio As Reported in Leadership Management Adjusted Adjusted GAAP T ransition & Acquisition Financial Portfolio Financial Statements Cost Related Items Measures Management* Measures* Net
Slide 32: Adjusted Operating Profit & EBITDA Reconciliations – Q1 2023
ADJUSTED OPERATING PROFIT & EBITDA RECONCILIATIONS – Q1 2023 Three months ended March 31, 2023 Consolidated Renewables Residential Agtech Infrastructure Adjusted Net Sales* $ 288,803 $ 57,255 $ 179,495 $ 33,338 $ 18,715 Net Income 21,099 Provision for Income Taxes 7,177 Interest Expense 1,491 Other
Slide 33: Adjusted Financial Measures Reconciliation – YTD December 2023
ADJUSTED FINANCIAL MEASURES RECONCILIATION – YTD DECEMBER 2023 Twelve Months Ended December 31, 2023 Portfolio As Reported in Management Adjusted Adjusted GAAP Restructuring & Acquisition Financial Portfolio Financial Statements Charges Related Items Measures Management* Measures* Net Sales Renewabl
Slide 34: Adjusted Operating Profit & EBITDA Reconciliations – YTD December 2023
ADJUSTED OPERATING PROFIT & EBITDA RECONCILIATIONS – YTD DECEMBER 2023 Twelve months ended December 31, 2023 Consolidated Renewables Residential Agtech Infrastructure Adjusted Net Sales* $ 1,361,953 $ 319,014 $ 814,803 $ 140,908 $ 87,228 Net Income 110,533 Provision for Income Taxes 38,459 Interest
Slide 35: Adjusted Financial Measures Reconciliation – YTD 2020
ADJUSTED FINANCIAL MEASURES RECONCILIATION – YTD 2020 Twelve Months Ended December 31, 2020 Restructuring & Senior Acquisition As Reported in Leadership Related Items Adjusted Adjusted GAAP T ransition & Gain on Sale Financial Portfolio Financial Statements Costs of Business Measures Management* Mea
Slide 36: Adjusted Operating Profit & EBITDA Reconciliations – 2020 & 2015
ADJUSTED OPERATING PROFIT & EBITDA RECONCILIATIONS – 2020 & 2015 For the year ended December 31, 2020 For the year ended December 31, 2015 Industrial Continuing Consolidated Renewables Residential Agtech Infrastructure Consolidated Disposition Operations Net Sales 1,032,578 238,107 522,814 209,460 6
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