Gibraltar Industries, Inc. · NASDAQ:ROCK
Gibraltar Industries — Q2 2024 Earnings Presentation
15 slides from Gibraltar Industries's earnings presentation, Jul 31, 2024
Slide 1: Second Quarter 2024 Earnings Call
SECOND QUARTER 2024 EARNINGS CALL July 31, 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: Second Quarter 2024 Review
SECOND QUARTER 2024 REVIEW NET SALES ADJUSTED Residential experienced slower market, Renewables growth was less than $353M -2% § NET SALES plan, Agtech orders have accelerated, and Infrastructure demand as expected § Expect growth in the 2nd half in each segment driven by participation gains ADJUSTE
Slide 4: Residential
RESIDENTIAL 2ND QUARTER RESULTS 1st HALF RESULTS ADJUSTED PROFIT MEASURES ADJUSTED PROFIT MEASURES NET SALES* OPERATING MARGIN* EBITDA MARGIN* NET SALES* OPERATING MARGIN* EBITDA MARGIN* Q2 24 Q2 23 Q2 24 Q2 23 Q2 24 Q2 23 YTD 24 YTD 23 YTD 24 YTD 23 YTD 24 YTD 23 $214.3 $228.2 $399.4 $407.7 20.3% 2
Slide 5: Residential – Market Overview and Expansion Initiatives
RESIDENTIAL – MARKET OVERVIEW AND EXPANSION INITIATIVES GEOGRAPHIC EXPANSION – SERVING RECENT MARKET DYNAMICS ONLY 40% OF TOP 32 MARKETS § Market slowed in Q2 1. Point-of-sale results down ~10% 2. ARMA industry shingle shipments down 9.6% 3. Channel destocking started in May – average reduction from
Slide 6: Renewables
RENEWABLES 2ND QUARTER RESULTS 1st HALF RESULTS ADJUSTED PROFIT MEASURES ADJUSTED PROFIT MEASURES NET SALES* OPERATING MARGIN* EBITDA MARGIN* NET SALES* OPERATING MARGIN* EBITDA MARGIN* Q2 24 Q2 23 Q2 24 Q2 23 Q2 24 Q2 23 YTD 24 YTD 23 YTD 24 YTD 23 YTD 24 YTD 23 $79.4 $130.9 13.6% $130.6 11.4% $73.
Slide 7: Renewables – 1P Tracker Continues to Accelerate in the Market
RENEWABLES – 1P TRACKER CONTINUES TO ACCELERATE IN THE MARKET WEDGE FARM TERRASMART™ TerraTrak 3.92MW § Booked 300+ MW across 58 projects with 15 different customers since launch § Actively pursuing >1.2 GW pipeline in the U.S. DG solar market space § Focused in Northeast and Midwest 70MW across 13
Slide 8: Solar Industry – Q2 2024 Update
SOLAR INDUSTRY – Q2 2024 UPDATE Module Supply Key Dates Current Situation / Status 1 UFLPA Effective June 21, 2022 Ongoing - focus on tier 2 / 3 manufacturers 2 1st AD/CVD investigation Completed August 2023 Focus shifts to 2nd AD/CVD complaint 3 Presidential Proclamation for AD/CVD Expired June 202
Slide 9: Agtech
AGTECH 2ND QUARTER RESULTS 1st HALF RESULTS ADJUSTED PROFIT MEASURES ADJUSTED PROFIT MEASURES NET SALES* OPERATING MARGIN* EBITDA MARGIN* NET SALES* OPERATING MARGIN* EBITDA MARGIN* Q2 24 Q2 23 Q2 24 Q2 23 Q2 24 Q2 23 YTD 24 YTD 23 YTD 24 YTD 23 YTD 24 YTD 23 $34.5 $34.3 $68.5 $67.6 10.1% 9.5% 12.9%
Slide 10: Agtech – Expect New Bookings to Drive Strong 2nd Half Performance
AGTECH – EXPECT NEW BOOKINGS TO DRIVE STRONG 2ND HALF PERFORMANCE § New projects in design phase support LETTUCE strong future bookings § Capacity expansion for berries, lettuce, and vine crops driven by Retail and Food Service demand TOMATOES STRAWBERRIES § $90M of new bookings secured in Q2 – reco
Slide 11: Infrastructure
INFRASTRUCTURE 2ND QUARTER RESULTS 1st HALF RESULTS ADJUSTED PROFIT MEASURES ADJUSTED PROFIT MEASURES NET SALES* OPERATING MARGIN* EBITDA MARGIN* NET SALES* OPERATING MARGIN* EBITDA MARGIN* Q2 24 Q2 23 Q2 24 Q2 23 Q2 24 Q2 23 YTD 24 YTD 23 YTD 24 YTD 23 YTD 24 YTD 23 $24.8 $46.7 $24.2 25.1% 23.8% 27
Slide 12: Balance Sheet – Free Cash Flow Remains Strong, Ample Liquidity
BALANCE SHEET – FREE CASH FLOW REMAINS STRONG, AMPLE LIQUIDITY LIQUIDITY ($M) WORKING CAPITAL Revolver INVESTED CASH OF $7M Cash $574 Q2 Investment $495 § AR $ 27M § Other Assets $ 4M $395 Q2 Offset by $322 § AP $ 13M $396 § Other Liabilities $ 8M § Inventory $ 3M $304 NO Q2 SHARE REPURCHASES $179 $
Slide 13: 2024 Priorities – Remain Focused on Value Creation
2024 PRIORITIES – REMAIN FOCUSED ON VALUE CREATION STRATEGIC PILLARS GIBRALTAR PLAYBOOK PORTFOLIO 1. Drive growth, quality of earnings, cash performance, M&A MANAGEMENT 2. Execute 80 / 20 – win participation, expand margin BUSINESS SYSTEM 3. Digitally transform to scale and optimize operating system
Slide 14: Revised 2024 Guidance
REVISED 2024 GUIDANCE REVISED 2024 VS PRIOR VS PRIOR 2023* GUIDE GUIDE YEAR Adjusted Net Sales $1.36B $1.38– $1.42B ~ (4%) ~ 3% Operating Income GAAP $150.7M $161.1 – $171.4M ~ (7%) ~ 10% Adjusted $173.1M $182.8 – $193.1M ~ (5%) ~ 9% Adjusted EBITDA $209.3M $219.9 – $230.2M ~ (4%) ~ 8% Operating Mar
Slide 15: Gibraltar
GIBRALTAR July 31, 2024 GIBRALTAR