On July 31, 2024, Gibraltar Industries Inc (ROCK, Financial) released its 8-K filing for the second quarter of 2024. Gibraltar Industries Inc manufactures and provides products and services for the Renewable energy, Residential, Agtech, and Infrastructure markets. The company reported mixed results, with earnings per share (EPS) surpassing analyst estimates but revenue falling short.
Performance Overview
Gibraltar Industries Inc (ROCK, Financial) reported net sales of $353.0 million for Q2 2024, a 3.3% decrease from $364.9 million in Q2 2023. Adjusted net sales also saw a decline of 2.0%, coming in at $353.0 million compared to $360.1 million in the previous year. The company faced challenges in its Residential and Renewables segments, which impacted overall growth.
Net income for the quarter was $32.2 million, a 4.9% increase from $30.7 million in Q2 2023. Adjusted net income rose by 2.8% to $36.4 million. Diluted EPS was $1.05, up 5.0% from $1.00 in the same period last year, while adjusted diluted EPS increased by 2.6% to $1.18.
Segment Performance
Residential: Net sales in the Residential segment decreased by 6.1% to $214.3 million, driven by a slowing market and unexpected channel destocking. However, operating margins expanded due to solid execution and effective price/cost management.
Renewables: The Renewables segment saw a 2.5% decrease in net sales to $79.4 million. Adjusted net sales rose by 8.2%, driven by strong demand for the new 1P tracker product. However, operating margins were impacted by product mix and restructuring activities.
Agtech: Net sales in the Agtech segment decreased by 1.4% to $34.5 million. Adjusted net sales increased slightly by 0.6%. The segment achieved record bookings of $90 million, supporting strong revenue growth in the second half of the year.
Infrastructure: The Infrastructure segment reported a 2.5% increase in net sales to $24.8 million. Operating margins improved by 100 basis points, driven by strong execution and market participation gains.
Financial Achievements and Metrics
Gibraltar Industries Inc (ROCK, Financial) generated $36 million in operating cash flow during the quarter. The company’s gross profit was $95.9 million, with a gross margin of 27.2%. Selling, general, and administrative expenses were $53.4 million, resulting in an operating income of $42.5 million.
| Metric | Q2 2024 | Q2 2023 | Change |
|---|---|---|---|
| Net Sales | $353.0M | $364.9M | (3.3)% |
| Net Income | $32.2M | $30.7M | 4.9% |
| Diluted EPS | $1.05 | $1.00 | 5.0% |
| Adjusted Diluted EPS | $1.18 | $1.15 | 2.6% |
Commentary and Outlook
“We delivered solid execution and strong operating cash flow performance across Gibraltar, generating $36 million, while overcoming two market headwinds that impacted growth in our Residential and Renewables businesses in the quarter,” stated Chairman and CEO Bill Bosway.
Looking ahead, Gibraltar Industries Inc (ROCK, Financial) has adjusted its net sales outlook for the year to reflect slower market conditions in the Residential and Renewables segments, offset by strength in Agtech and Infrastructure. The company expects consolidated net sales to range between $1.38 billion and $1.42 billion for the full year 2024. The outlook for both GAAP and adjusted EPS remains unchanged.
For more detailed information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Gibraltar Industries Inc for further details.
