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Gibraltar Industries, Inc.’s ROCK first-quarter 2025 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.
The company’s quarterly results reflect stable demand and performance in line with internal plans. Backlog increased 30% year over year to $434 million, reaching a record high. The company reported solid contributions from the Lane Supply acquisition. ROCK also carried out restructuring actions and completed two additional acquisitions in the Residential segment to expand its presence in the metal roofing market.
Despite a dynamic macro environment, the company reaffirmed its full-year 2025 earnings guidance. The company created a tariff playbook for each business earlier in the year and continues to monitor end-market and customer-demand trends. The reaffirmed guidance reflects current order rates, strong backlog in project-based businesses, expected impact of tariffs, along with planned actions, and added revenues and margin from recent acquisitions. The company also lowered its Renewables plan as the industry awaits clarity on potential changes to the benefits provided by the IRA bill.
The company’s adjusted EPS of 95 cents topped the Zacks Consensus Estimate of 86 cents by 10.5%. In the year-ago quarter, it reported an adjusted EPS of 80 cents. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Gibraltar Industries, Inc. price-consensus-eps-surprise-chart | Gibraltar Industries, Inc. Quote
Quarterly net sales of $290 million lagged the consensus mark of $292.5 million by 0.9%. The consensus mark for the metric was the same as the prior-year level. On an adjusted basis, the top line slightly increased 0.1% year over year from $289.8 million. The ongoing industry headwinds, impacting the Renewables business, were partially offset by the Lane acquisition.
Residential: Net sales in the segment were down 2.8% year over year to $180 million (down 1.3% on an adjusted basis). This downtick was due to softness in the Residential market, with retail and mail/package product sales lower in the quarter. This was largely driven by new construction from the previous year. However, building accessories sales increased due to higher participation and new product adoption.
The adjusted operating margin of 18% contracted 80 basis points (bps) in the quarter due to unfavorable volume and product mix in its mail and package business. The adjusted EBITDA margin decreased 40 bps from the prior-year quarter to 19.7%.
Renewables: Net sales in the segment decreased 15.1% from the year-ago quarter to $43.7 million. This decline was due to slower bookings in the second half of 2024, impacted by the December panel installation deadline. The order backlog was down 23% year over year. However, bookings accelerated in the first quarter, resulting in a 30% sequential increase in the backlog.
The adjusted operating margin of 3.4% contracted 50 bps year over year due to lower volume and field inefficiencies tied to the introduction and ramp-up of the 1P tracker technology. Restructuring costs, including those related to discontinuing the company's legacy tracker solution, also contributed to the margin decline. The adjusted EBITDA margin expanded 100 bps from the prior-year quarter to 9.1%.
Agtech: This segment’s net sales inched up 32.4% year over year to $45 million. The upside was backed by the contribution from the acquisition of Lane Supply. Organic sales declined 12.6% due to project delays for two Produce projects awaiting permit approval. Both projects are expected to begin construction by the end of the second quarter. Organic bookings were strong and with the addition of Lane Supply, the overall backlog increased 226% compared with the last year.
The adjusted operating margin expanded 270 bps year over year to 10.8%, attributable to productivity, project mix and project execution. The adjusted EBITDA margin also grew 330 bps year over year to 14.1%.
Infrastructure: Net sales in the segment tumbled 2.7% year over year to $21.3 million, due to project delays that pushed some shipments into the second quarter. Despite this, demand remains strong, with the backlog increasing 11%. This growth was driven by more design bids being awarded and converted into new bookings. Quoting activity continues to be solid, supported by ongoing investment and funding at both the federal and state levels.
The adjusted operating margin of 24.7% expanded 230 bps year over year, driven by strong execution, supply-chain management and product-line mix. The adjusted EBITDA margin also expanded 220 bps from the prior-year quarter to 28.2%.
Adjusted operating income increased to $35.6 million from $32.3 million reported in the year-ago quarter. The adjusted operating margin expanded 120 bps year over year to 12.3% from 11.1% (previously reported).
Adjusted EBITDA of $46.2 million increased from $41.5 million in the year-ago period. The adjusted EBITDA margin also expanded 170 bps from the prior year to 15.9%.
As of March 31, 2025, Gibraltar had liquidity of $420 million, including cash and cash equivalents worth $25.1 million compared with $269.5 million at 2024-end. There was no long-term debt at the end of first-quarter 2025.
In the first quarter, net cash provided by operating activities totaled $13.7 million compared with $53.2 million in the prior year.
The company expects net sales to be in the range of $1.40-$1.45 billion, up from $1.31 billion in 2024.
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, up from $4.25 in 2024.
For 2025, the company continues to expect overall growth with solid margins and strong cash flow. The outlook includes support from recent acquisitions, while organic growth remains moderate. The company will monitor the macro environment and adjust its outlook if required.
Gibraltar currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Masco Corporation MAS posted weaker-than-expected results for the first quarter of 2025, with both earnings and revenues falling short of the Zacks Consensus Estimate. The company reported adjusted EPS of 87 cents, down from 93 cents a year ago. Net sales of $1.8 billion declined 6% from the prior-year period. Excluding divestitures, net sales of Masco declined 3% year over year in local currency.
Citing ongoing uncertainty around how these external developments will affect industry-wide demand, pricing dynamics and input costs, Masco management has refrained from providing full-year 2025 financial guidance.
Leggett & Platt, Incorporated LEG reported first-quarter 2025 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. Leggett reported adjusted EPS of 24 cents, an increase from the year-ago adjusted EPS of 23 cents. Net trade sales of $1.022 billion declined 7% from the prior-year quarter’s $1.097 billion (all organic).
Leggett has largely maintained its full-year guidance, with a few updates to volume and pricing expectations. The company still expects sales of $4-$4.3 billion, indicating a 2-9% decline year over year.
UFP Industries, Inc. UFPI reported tepid results for the first quarter of 2025. Both earnings and net sales missed the Zacks Consensus Estimate and declined year over year.
The quarterly results of UFP Industries were affected by softer demand and broad-based pricing pressures. While economic challenges are expected to persist in 2025, UFP Industries noted sequential improvement in business activity throughout the quarter, which continued into April.
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This article originally published on Zacks Investment Research (zacks.com).
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