Gibraltar to Divest Renewables Segment in Strategic Realignment

Gibraltar Industries, Inc. ROCK has approved the divestiture of its Renewables business as part of a strategic portfolio realignment. The decision reflects the company’s intent to sharpen its operational focus and streamline resource allocation.

The company will now focus on strengthening its core businesses, which include the residential, agtech and infrastructure segments.

ROCK’s Focus on Strategic Realignment Reshapes Portfolio

Gibraltar is reviewing its portfolio as part of a broader strategic assessment. The company is evaluating the long-term potential of each market and focusing capital on areas with better growth and return prospects. As part of this approach, Gibraltar plans to simplify its portfolio by concentrating on building products and structures. This is expected to support stronger growth, margin improvement and better cash flow.

As part of this strategic move, the company has reclassified the Renewables segment as discontinued operations. Management intends to update the 2025 guidance and release restated historical results, excluding the segment from the second-quarter report.

ROCK Shifts Focus Amid Renewables Slowdown

The divestiture of the Renewables segment is expected to reduce ROCK’s exposure to ongoing policy and trade-related challenges that have affected performance. In the first quarter of 2025, net sales in the segment dropped 15.1% to $43.7 million, while the order backlog fell 23%, reflecting weaker demand and slower bookings in late 2024.

By exiting this segment, ROCK can shift focus to more stable and profitable areas. The move is likely to support better capital allocation and help the company strengthen its core businesses, which show stronger demand visibility and fewer external disruptions.

Shares of Gibraltar have gained 1% in the past six months against the Zacks Building Products - Miscellaneous industry’s 6.8% fall. ROCK is well-positioned to navigate through the ongoing market uncertainties with support from its in-house capabilities, especially focusing on margin expansion and portfolio management.

ROCK’s Zacks Rank

Gibraltar currently carries a Zacks Rank #3 (Hold).

Stocks to Consider

Some better-ranked stocks from the Construction sector are AECOM ACM, Comfort Systems USA, Inc. FIX and Sterling Infrastructure, Inc. STRL 

AECOM presently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The company delivered a trailing four-quarter earnings surprise of 8.9%, on average. The stock has gained 25% in the past year. The Zacks Consensus Estimate for AECOM’s fiscal 2025 sales and EPS implies an increase of 13.9% and 5.6%, respectively, from a year ago.

Comfort Systems currently holds a Zacks Rank of 2. The company delivered a trailing four-quarter earnings surprise of 17.6%, on average. The stock has gained 81.8% in the past year.

The consensus estimate for Comfort Systems’ 2025 sales and EPS implies an increase of 9.9% and 32.1%, respectively, from a year ago.

Sterling presently has a Zacks Rank of 2. The company delivered a trailing four-quarter earnings surprise of 11.5%, on average. The stock has gained 104.2% in the past year. 

The Zacks Consensus Estimate for Sterling’s 2025 sales indicates a decrease of 1.2% and the same for earnings implies an increase of 41.2% year over year.

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This article originally published on Zacks Investment Research (zacks.com).

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