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1. Company Snapshot

1.a. Company Description

Gibraltar Industries, Inc.manufactures and distributes building products for the renewable energy, residential, agtech, and infrastructure markets in North America and Asia.It operates through four segments: Renewables, Residential, Agtech, and Infrastructure.


The Renewables segment designs, engineers, manufactures, and installs solar racking and electrical balance of systems.The Residential segment offers roof and foundation ventilation products and accessories, such as solar powered units; mail and electronic package solutions, including single mailboxes, cluster style mail and parcel boxes for single and multi-family housing, and electronic package locker systems; roof edgings and flashings; soffits and trims; drywall corner beads; metal roofing products and accessories; rain dispersion products comprising gutters and accessories; and exterior retractable awnings.This segment also provides electronic parcel lockers, rooftop safety kits, chimney caps, heat trace coils and exterior products, remote-controlled deck awnings for sun protection, and solar-powered ventilation products.


The Agtech segment offers growing and processing solutions, including the designing, engineering, manufacturing, and installation of greenhouses; and botanical extraction systems.The Infrastructure segment offers expansion joints, structural bearings, rubber pre-formed seals and other sealants, elastomeric concrete, and bridge cable protection systems.It serves solar developers, institutional and commercial growers of food and plants, home improvement retailers, wholesalers, distributors, and contractors.


Gibraltar Industries, Inc.was founded in 1972 and is headquartered in Buffalo, New York.

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1.b. Last Insights on ROCK

Gibraltar Industries' recent performance was negatively impacted by declining earnings and revenue growth. The company's Q3 earnings missed estimates, with earnings per share of $1.14, down from $1.27 a year ago. Weakness in the housing market and margin pressures pose challenges. Despite a strong backlog and focused strategy, the company's Q2 earnings also lagged estimates. The divestiture of its Renewable segment is a net neutral move, but its core businesses face headwinds.

1.c. Company Highlights

2. Gibraltar Industries' Q3 2025 Earnings: A Mixed Bag

Gibraltar Industries reported its third-quarter 2025 financial results, with adjusted net sales growth of 13%, although revenue came in below plan due to delays in a large CEA project in Arizona and lower demand in the Mail and Package business. The company's adjusted EPS was $1.14, missing estimates of $1.22. Adjusted operating income decreased less than 1%, while adjusted EBITDA was flat to the prior year. The company generated $57 million in cash from operations, a 39% increase, and $49 million in free cash flow, achieving 16% of sales.

Publication Date: Nov -29

📋 Highlights
  • Strong Cash Flow Growth:: Generated $57M in cash from operations (39% increase) and $49M free cash flow (16% of sales), exceeding prior targets.
  • Agtech Segment Surge:: 38.8% revenue growth driven by Lane Supply acquisition, though margins fell 440 bps due to integration challenges and lower volume.
  • Guidance Update:: 2025 sales projected to rise 15% to $1.15B–$1.175B, with adjusted EPS guidance of $4.20–$4.30 (10–12% increase) and EBITDA margin guidance of 17.1–17.2%.
  • Residential Margin Pressures:: Adjusted operating and EBITDA margins declined due to lower-than-expected revenue, inventory rightsizing, and acquisition-related noise, but growth in Metal Roofing and Building Accessories offset Mail/Package declines.
  • Agtech Backlog Expansion:: Backlog surged 50% YoY (70% organic growth), with 90% revenue driven by backlog, signaling robust future project pipeline and 44% organic bookings growth.

Segment Performance

The Residential segment saw adjusted net sales increase 9.8%, driven by Metal Roofing businesses and growth in Building Accessories, but experienced lower demand in Mail and Package, down 8% in the quarter. The Agtech segment grew 38.8%, driven by the acquisition of Lane Supply, but saw adjusted operating margin decrease 440 basis points due to lower volume and integration activities.

Guidance and Outlook

The company updated its guidance for 2025, expecting net sales between $1.15 billion and $1.175 billion, up approximately 15%, with adjusted operating margin between 14.1% and 14.2%. Analysts estimate next year's revenue growth at 5.4%, indicating a slowdown in growth momentum. The company's Agtech backlog grew 50% year-over-year, with organic growth of 70% in Agtech, providing a strong foundation for future growth.

Valuation and Metrics

Gibraltar Industries' current valuation metrics are mixed, with a P/E Ratio of 352.21, P/B Ratio of 1.56, and P/S Ratio of 1.22. The EV/EBITDA ratio is 8.28, indicating a relatively reasonable valuation. The company's ROIC is 10.08%, and ROE is 0.42%, suggesting room for improvement in capital allocation. The Free Cash Flow Yield is 5.59%, providing a relatively attractive return for investors.

Operational Highlights

The company is investing in systems integration, which will inherently reduce frictional costs and improve scalability. By the end of 2026, the entire residential business will be on one system, allowing for leveraging of technology and cost structure. The M&A pipeline for residential is robust, with a focus on staying in core areas, such as building accessories and metal roofing.

3. NewsRoom

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AXQ Capital LP Acquires New Stake in Gibraltar Industries, Inc. $ROCK

Nov -25

Source: defenseworld.net

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Graviton Bioscience to Present Selective ROCK2 Obesity Data at 8th Annual Evercore HealthCONx Conference

Nov -20

Source: prnewswire.com

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Will Gibraltar's $1.3B OmniMax Buyout Reinvent Its Growth Story?

Nov -18

Source: zacks.com

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Campbell & CO Investment Adviser LLC Buys Shares of 4,262 Gibraltar Industries, Inc. $ROCK

Nov -18

Source: defenseworld.net

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Gibraltar Industries, Inc. (ROCK) M&A Call Transcript

Nov -17

Source: seekingalpha.com

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Gibraltar Industries, Inc. (ROCK) Q3 2025 Earnings Call Transcript

Oct -30

Source: seekingalpha.com

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Gibraltar Industries (ROCK) Q3 Earnings and Revenues Lag Estimates

Oct -30

Source: zacks.com

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Renewable Energy Stocks To Follow Today – October 22nd

Oct -24

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.73%)

6. Segments

Residential

Expected Growth: 5%

Gibraltar Industries' Residential segment growth is driven by increasing demand for outdoor living products, repair and remodel activities, and new construction projects. The company's focus on innovative products, strategic acquisitions, and operational efficiencies also contribute to its growth. Additionally, the rising trend of outdoor living and home improvement, fueled by consumer preferences for experiential living, supports the segment's 5% growth.

Renewables

Expected Growth: 7%

Gibraltar Industries' Renewables segment growth is driven by increasing demand for solar and wind energy solutions, government incentives and tax credits, declining renewable energy costs, and rising corporate investments in sustainability. Additionally, the company's strategic acquisitions and partnerships have expanded its product offerings and geographic reach, contributing to the 7% growth rate.

Agtech

Expected Growth: 8%

Agtech's 8% growth is driven by increasing adoption of precision farming, rising demand for sustainable agriculture practices, and government initiatives promoting agricultural technology. Additionally, Gibraltar Industries' focus on innovative products and strategic acquisitions has expanded its market share, further fueling growth.

Infrastructure

Expected Growth: 4%

Gibraltar Industries, Inc.'s Infrastructure segment growth is driven by increasing demand for renewable energy solutions, government investments in infrastructure development, and rising adoption of energy-efficient products. Additionally, the company's strategic acquisitions and expansion into new markets have contributed to its growth.

7. Detailed Products

Residential Solar Mounting Solutions

Gibraltar Industries offers a range of solar mounting solutions for residential customers, providing a secure and efficient way to install solar panels on rooftops.

Commercial Solar Mounting Solutions

Gibraltar Industries provides commercial solar mounting solutions for large-scale solar installations, offering a durable and efficient way to harness solar energy.

Post Frame Building Solutions

Gibraltar Industries offers post frame building solutions for agricultural, commercial, and residential applications, providing a durable and cost-effective way to build structures.

Rooftop Support Systems

Gibraltar Industries provides rooftop support systems for HVAC, skylights, and other rooftop equipment, ensuring safe and secure installation.

Toll Processing and Metal Processing

Gibraltar Industries offers toll processing and metal processing services, providing customized metal fabrication and processing solutions.

8. Gibraltar Industries, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Gibraltar Industries, Inc. is moderate due to the availability of alternative products and services in the market.

Bargaining Power Of Customers

The bargaining power of customers is low due to the company's strong brand reputation and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate due to the company's dependence on a few key suppliers for raw materials.

Threat Of New Entrants

The threat of new entrants is high due to the relatively low barriers to entry in the industry and the attractiveness of the market.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established competitors in the market, leading to a highly competitive environment.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 4.81%
Debt Cost 8.75%
Equity Weight 95.19%
Equity Cost 9.94%
WACC 9.88%
Leverage 5.06%

11. Quality Control: Gibraltar Industries, Inc. passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Gibraltar Industries

A-Score: 4.2/10

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Quality: 5.1

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A-Score: 3.4/10

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Quality: 3.2

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

49.32$

Current Price

49.32$

Potential

-0.00%

Expected Cash-Flows