Gibraltar Industries, Inc. · NASDAQ:ROCK
Gibraltar Industries — Q1 2024 Earnings Presentation
15 slides from Gibraltar Industries's earnings presentation, May 1, 2024
Slide 1: First Quarter 2024 Earnings Call
FIRST QUARTER 2024 EARNINGS CALL May 1, 2024 1
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: 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 4: Renewables
RENEWABLES ADJUSTED PROFIT MEASURES* NET SALES* OPERATING MARGIN* EBITDA MARGIN* Q1 24 Q1 23 Q1 24 Q1 23 Q1 24 Q1 23 4.7% 8.5% $57.3 8.1% 3.9% $51.5 -10.1% -80 bps -40 bps NET SALES ADJUSTED OPERATING & EBITDA MARGIN § As expected, net sales down 10.1% due to rapid customer transition to § Operating
Slide 5: 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 6: 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 7: Residential
RESIDENTIAL ADJUSTED PROFIT MEASURES* NET SALES* OPERATING MARGIN* EBITDA MARGIN* Q124 Q123 Q124 Q123 Q124 Q123 $185.1 $179.5 18.5% 20.1% 16.5% 18.1% +3.1% +200 bps +200 bps NET SALES ADJUSTED OPERATING & EBITDA MARGIN § Up 3.1% on 2.4% organic growth § Margins up 200bps § Organic growth driven by:
Slide 8: 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 9: Agtech
AGTECH ADJUSTED PROFIT MEASURES* NET SALES* OPERATING MARGIN* EBITDA MARGIN* Q124 Q123 Q124 Q123 Q124 Q123 $34.0 14.0% 10.7% 10.8% $33.3 8.1% +2.1% -260 bps -320 bps NET SALES ADJUSTED OPERATING & EBITDA MARGIN § Net sales +2.1% § Adjusted margin down 260 bps § Delay of bookings from March to April
Slide 10: 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 11: Infrastructure
INFRASTRUCTURE ADJUSTED PROFIT MEASURES* NET SALES* OPERATING MARGIN* EBITDA MARGIN* Q124 Q123 Q124 Q123 Q124 Q123 $21.9 22.4% 26.0% $18.7 18.9% 14.5% +17.1% +790 bps +710 bps NET SALES ADJUSTED OPERATING & EBITDA MARGIN § Net sales +17.1% § Margin up 790 bps – Strong execution – Volume – Continued
Slide 12: Balance Sheet – Strong Free Cash Flow, Ample Liquidity
BALANCE SHEET – STRONG FREE CASH FLOW, AMPLE LIQUIDITY LIQUIDITY ($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 13: 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 14: Reiterating 2024 Guidance
REITERATING 2024 GUIDANCE 2023* 2024 Net Sales $1.37B $1.43 – $1.48B Operating Income GAAP $150.7M $173.3 – $183.8M Adjusted $173.1M $193.3 – $203.8M Adjusted EBITDA $209.3M $229.5 – $241.3M Operating Margin GAAP 10.9% ~ 12.1% – 12.4% Adjusted 12.7% ~ 13.5% – 13.7% Adjusted EBITDA % 15.4% ~ 16.0% –
Slide 15: Gibraltar
GIBRALTAR May 1, 2024 GIBRALTAR