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Gibraltar's Q4 Earnings Top Estimates While Sales Miss, Stock Up
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Gibraltar Industries, Inc.’s (ROCK - Free Report) fourth-quarter 2024 adjusted earnings topped the Zacks Consensus Estimate and grew year over year. On the other hand, net sales missed the consensus mark and tumbled year over year.
See the Zacks Earnings Calendar to stay ahead of market-making news.
The quarter’s bottom-line performance was backed by a favorable mix shift and continued strong operating execution. Although the timing on a large project last year hampered the net sales growth during the quarter, the company is optimistic about the prospects given the robust public spending trends at the federal and state levels.
ROCK stock jumped 11.7% during Wednesday’s trading hours, after the earnings announcement. Investors’ sentiments are likely to have been boosted by the company’s 2025 business outlook, indicating year-over-year growth in net sales and earnings per share (EPS).
Inside ROCK’s Headlines
The company’s adjusted EPS of $1.01 topped the Zacks Consensus Estimate of 94 cents by 7.5%. In the year-ago quarter, it reported an adjusted EPS of 85 cents (adjusted financial measures previously reported).
Gibraltar Industries, Inc. Price, Consensus and EPS Surprise
Quarterly net sales of $302.1 million lagged the consensus mark of $315 million by 4.1% and decreased 8.1% from the prior-year level of $328.8 million. On an adjusted basis, the top line fell 7.9% year over year from $327.9 million. The ongoing industry headwinds impacting the Renewables business accompanied by continued slowness in the Residential market triggered the downtrend.
Gibraltar’s Segmental Details
Residential: Net sales in the segment were down 4.8% year over year to $170.7 million. The downtick was due to the ongoing market softness, 80/20 PLS initiatives on the safety harness and drywall metals product lines and delays in the transition of new businesses awarded in 2024.
However, the adjusted operating margin of 17.3% contracted 20 basis points (bps) in the quarter due to unfavorable volume and product mix, partially offset by solid execution, 80/20 initiatives and effective price/cost management. The adjusted EBITDA margin was flat at 19.2% year over year.
Renewables: Net sales in the segment decreased 19.6% from the year-ago quarter to $70.5 million (down 18.8% on an adjusted basis). The decline was caused due to customers completing panel installations ahead of the Dec. 3, 2024 deadline related to the June 2024 expiration of the Presidential Proclamation. The new contract signings being pushed to January 2025 adversely impacted the fourth-quarter backlog, reducing it by 32% on a year-over-year basis.
The adjusted operating margin of 7.2% contracted 630 bps year over year due to an unfavorable product mix owing to the 1P tracker product coupled with lower volumes. The adjusted EBITDA margin decreased 550 bps from the prior-year quarter to 10.6%.
Agtech: This segment’s net sales inched up 0.7% year over year to $42.7 million. Backlog was down 23% year over year because of the shift of new project signings from the fourth quarter to 2025.
The adjusted operating margin expanded a whopping 2,270 bps year over year to 19.4%, attributable to strong execution, a favorable business mix and a benefit realized from a customer payment that was written off in the prior year’s quarter. The adjusted EBITDA margin also grew significantly by 2,240 bps year over year to 21.4%.
Infrastructure: Net sales in the segment tumbled 6.7% year over year to $18.1 million, due to unfavorable impacts from the timing of a large project in the prior year. However, backlog grew year over year by 10% on the strong conversion of bid volume. The continued robust investment scenario at the federal and state levels is encouraging.
The adjusted operating margin of 20.4% expanded 180 bps year over year, driven by a favorable mix shift and continued strong operating execution. The adjusted EBITDA margin also expanded 170 bps from the prior-year quarter to 24.8%.
Operating Highlights of ROCK
Adjusted operating income increased to $38.3 million from $34.4 million reported in the year-ago quarter. The adjusted operating margin expanded 220 bps year over year to 12.7% from 10.5% (adjusted operating margin previously reported).
Adjusted EBITDA of $46.7 million increased from $43.6 million (adjusted EBITDA previously reported) in the year-ago period. The adjusted EBITDA margin also expanded 220 bps from the prior year to 15.5%.
A Glimpse of Gibraltar’s 2024 Results
In the full year, Gibraltar reported net sales of $1.31 billion, down from $1.38 billion reported in 2023. Adjusted earnings during the year were $4.25 per share, up from $4.11 (adjusted financial measures previously reported) reported in 2023.
Adjusted operating margin increased year over year to 12.8% from 12.7%. The adjusted EBITDA margin of 15.7% was up 30 bps from the prior year.
ROCK’s Balance Sheet & Cash Flow
As of Dec. 31, 2024, Gibraltar had total liquidity of $665 million, including cash and cash equivalents worth $269.5 million compared with $99.4 million at 2023-end. There was no long-term debt at the end of 2024.
In 2024, net cash provided by operating activities totaled $174.3 million compared with $218.5 million in the prior-year period.
Gibraltar Unveils 2025 Outlook
The company expects net sales to be in the range of $1.40-$1.45 billion.
GAAP EPS is still expected to be in the range of $4.25-$4.50 compared with $4.46 in 2024. Adjusted EPS is expected to be in the range of $4.80-$5.05.
The company expects participation gains to support growth in its existing businesses. Furthermore, it expects the Renewables business to improve execution with solid growth and margin contribution from the addition of Lane Supply in the Agtech segment in 2025.
Leggett & Platt, Incorporated (LEG - Free Report) reported fourth-quarter 2024 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same. On a year-over-year basis, both metrics declined.
The quarterly results indicated weak demand in the company’s residential end markets due to a challenging macro environment and soft consumer spending. Softening in Automotive and Hydraulic Cylinders further impacted its performance. Although LEG carried out its restructuring and operating efficiency improvement initiatives, the headwinds mentioned above overshadowed the prospects to a great extent.
Martin Marietta Materials, Inc. (MLM - Free Report) reported mixed results for fourth-quarter 2024, with earnings beating the Zacks Consensus Estimate but revenues missing the same. Both the top and bottom lines increased on a year-over-year basis.
Despite challenges in 2024—such as bad weather, reduced construction demand and tighter monetary policies—the company still achieved earnings growth and record profits in the fourth quarter. This was driven by $6 billion in strategic acquisitions and divestitures, reshaping the portfolio to focus more on aggregates, improving margins and maintaining a strong balance sheet. Looking ahead, MLM is confident that strong infrastructure and data center demand will help it meet its 2025 adjusted EBITDA target of $2.25 billion.
Masco Corporation’s (MAS - Free Report) fourth-quarter 2024 earnings topped the Zacks Consensus Estimate and grew year over year. Earnings topped expectations in six of the trailing seven quarters. On the other hand, the net sales missed the consensus mark and tumbled year over year.
The quarter’s top-line results reflect lower sales volume for North American plumbing products, lower net selling prices of decorative architectural products and an unfavorable sales mix of plumbing products. However, the bottom line was favored by lower selling, general and administrative expenses, favorable net selling prices and strategic cost savings initiatives. Moving into 2025, the company aims to continue maintaining shareholder value through its top-tier repair and remodel-oriented product portfolio, strong balance sheet and disciplined capital allocation.
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Gibraltar's Q4 Earnings Top Estimates While Sales Miss, Stock Up
Gibraltar Industries, Inc.’s (ROCK - Free Report) fourth-quarter 2024 adjusted earnings topped the Zacks Consensus Estimate and grew year over year. On the other hand, net sales missed the consensus mark and tumbled year over year.
See the Zacks Earnings Calendar to stay ahead of market-making news.
The quarter’s bottom-line performance was backed by a favorable mix shift and continued strong operating execution. Although the timing on a large project last year hampered the net sales growth during the quarter, the company is optimistic about the prospects given the robust public spending trends at the federal and state levels.
ROCK stock jumped 11.7% during Wednesday’s trading hours, after the earnings announcement. Investors’ sentiments are likely to have been boosted by the company’s 2025 business outlook, indicating year-over-year growth in net sales and earnings per share (EPS).
Inside ROCK’s Headlines
The company’s adjusted EPS of $1.01 topped the Zacks Consensus Estimate of 94 cents by 7.5%. In the year-ago quarter, it reported an adjusted EPS of 85 cents (adjusted financial measures previously reported).
Gibraltar Industries, Inc. Price, Consensus and EPS Surprise
Gibraltar Industries, Inc. price-consensus-eps-surprise-chart | Gibraltar Industries, Inc. Quote
Quarterly net sales of $302.1 million lagged the consensus mark of $315 million by 4.1% and decreased 8.1% from the prior-year level of $328.8 million. On an adjusted basis, the top line fell 7.9% year over year from $327.9 million. The ongoing industry headwinds impacting the Renewables business accompanied by continued slowness in the Residential market triggered the downtrend.
Gibraltar’s Segmental Details
Residential: Net sales in the segment were down 4.8% year over year to $170.7 million. The downtick was due to the ongoing market softness, 80/20 PLS initiatives on the safety harness and drywall metals product lines and delays in the transition of new businesses awarded in 2024.
However, the adjusted operating margin of 17.3% contracted 20 basis points (bps) in the quarter due to unfavorable volume and product mix, partially offset by solid execution, 80/20 initiatives and effective price/cost management. The adjusted EBITDA margin was flat at 19.2% year over year.
Renewables: Net sales in the segment decreased 19.6% from the year-ago quarter to $70.5 million (down 18.8% on an adjusted basis). The decline was caused due to customers completing panel installations ahead of the Dec. 3, 2024 deadline related to the June 2024 expiration of the Presidential Proclamation. The new contract signings being pushed to January 2025 adversely impacted the fourth-quarter backlog, reducing it by 32% on a year-over-year basis.
The adjusted operating margin of 7.2% contracted 630 bps year over year due to an unfavorable product mix owing to the 1P tracker product coupled with lower volumes. The adjusted EBITDA margin decreased 550 bps from the prior-year quarter to 10.6%.
Agtech: This segment’s net sales inched up 0.7% year over year to $42.7 million. Backlog was down 23% year over year because of the shift of new project signings from the fourth quarter to 2025.
The adjusted operating margin expanded a whopping 2,270 bps year over year to 19.4%, attributable to strong execution, a favorable business mix and a benefit realized from a customer payment that was written off in the prior year’s quarter. The adjusted EBITDA margin also grew significantly by 2,240 bps year over year to 21.4%.
Infrastructure: Net sales in the segment tumbled 6.7% year over year to $18.1 million, due to unfavorable impacts from the timing of a large project in the prior year. However, backlog grew year over year by 10% on the strong conversion of bid volume. The continued robust investment scenario at the federal and state levels is encouraging.
The adjusted operating margin of 20.4% expanded 180 bps year over year, driven by a favorable mix shift and continued strong operating execution. The adjusted EBITDA margin also expanded 170 bps from the prior-year quarter to 24.8%.
Operating Highlights of ROCK
Adjusted operating income increased to $38.3 million from $34.4 million reported in the year-ago quarter. The adjusted operating margin expanded 220 bps year over year to 12.7% from 10.5% (adjusted operating margin previously reported).
Adjusted EBITDA of $46.7 million increased from $43.6 million (adjusted EBITDA previously reported) in the year-ago period. The adjusted EBITDA margin also expanded 220 bps from the prior year to 15.5%.
A Glimpse of Gibraltar’s 2024 Results
In the full year, Gibraltar reported net sales of $1.31 billion, down from $1.38 billion reported in 2023. Adjusted earnings during the year were $4.25 per share, up from $4.11 (adjusted financial measures previously reported) reported in 2023.
Adjusted operating margin increased year over year to 12.8% from 12.7%. The adjusted EBITDA margin of 15.7% was up 30 bps from the prior year.
ROCK’s Balance Sheet & Cash Flow
As of Dec. 31, 2024, Gibraltar had total liquidity of $665 million, including cash and cash equivalents worth $269.5 million compared with $99.4 million at 2023-end. There was no long-term debt at the end of 2024.
In 2024, net cash provided by operating activities totaled $174.3 million compared with $218.5 million in the prior-year period.
Gibraltar Unveils 2025 Outlook
The company expects net sales to be in the range of $1.40-$1.45 billion.
GAAP EPS is still expected to be in the range of $4.25-$4.50 compared with $4.46 in 2024. Adjusted EPS is expected to be in the range of $4.80-$5.05.
The company expects participation gains to support growth in its existing businesses. Furthermore, it expects the Renewables business to improve execution with solid growth and margin contribution from the addition of Lane Supply in the Agtech segment in 2025.
ROCK’s Zacks Rank & Recent Construction Releases
Gibraltar currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Leggett & Platt, Incorporated (LEG - Free Report) reported fourth-quarter 2024 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same. On a year-over-year basis, both metrics declined.
The quarterly results indicated weak demand in the company’s residential end markets due to a challenging macro environment and soft consumer spending. Softening in Automotive and Hydraulic Cylinders further impacted its performance. Although LEG carried out its restructuring and operating efficiency improvement initiatives, the headwinds mentioned above overshadowed the prospects to a great extent.
Martin Marietta Materials, Inc. (MLM - Free Report) reported mixed results for fourth-quarter 2024, with earnings beating the Zacks Consensus Estimate but revenues missing the same. Both the top and bottom lines increased on a year-over-year basis.
Despite challenges in 2024—such as bad weather, reduced construction demand and tighter monetary policies—the company still achieved earnings growth and record profits in the fourth quarter. This was driven by $6 billion in strategic acquisitions and divestitures, reshaping the portfolio to focus more on aggregates, improving margins and maintaining a strong balance sheet. Looking ahead, MLM is confident that strong infrastructure and data center demand will help it meet its 2025 adjusted EBITDA target of $2.25 billion.
Masco Corporation’s (MAS - Free Report) fourth-quarter 2024 earnings topped the Zacks Consensus Estimate and grew year over year. Earnings topped expectations in six of the trailing seven quarters. On the other hand, the net sales missed the consensus mark and tumbled year over year.
The quarter’s top-line results reflect lower sales volume for North American plumbing products, lower net selling prices of decorative architectural products and an unfavorable sales mix of plumbing products. However, the bottom line was favored by lower selling, general and administrative expenses, favorable net selling prices and strategic cost savings initiatives. Moving into 2025, the company aims to continue maintaining shareholder value through its top-tier repair and remodel-oriented product portfolio, strong balance sheet and disciplined capital allocation.