Gibraltar Industries, Inc.

Greetings and welcome to the Gibraltar Industries Second Quarter 2024 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Carolyn Capaccio of LHA. Thank you, Carolyn. You may begin.

Thank you very much. Good morning, everyone, and thank you for joining us today. With me on the call is Bill Bosway, Gibraltar Industries Chairman, President, and Chief Executive Officer, and Tim Murphy, Gibraltar's Chief Financial Officer. The earnings press release that was issued this morning, as well as the slide presentation that management will use during the call, are both available in the investor section of the company's website, GibraltarOne.com. Gibraltar's earnings press release and remarks contain non-GAAP financial measures, Tables of reconciliation of GAAP to adjusted financial measures can be found in the earnings press release that was issued today. Further, please note that adjusted results exclude the net sales and operating results of the Japan Renewables business that was sold on December 1, 2023. Also, as noted on slide 2 of the presentation, the earnings press release and slide presentation contain forward-looking statements with respect to future financial results. These statements are not guarantees of future performance, and the company's actual results may differ materially from the anticipated events, performance, or results expressed or implied by these forward-looking statements. DeBralter advised you to read the risk factors detailed in its SEC filings, which can also be accessed through the company's website. Now I'll turn it over the call to Bill Bosway. Bill?

Thanks, Carolyn. Good morning, everyone, and thank you for joining today's call. I'll start with an overview of second quarter results, and then Tim and I will take you through each of the segments, and we'll give you a financial and operating update and a closer look at what's happening now in each. Then I'll walk you through our 2024 outlook, and we'll open the call for questions. So let's turn to slide three, titled Second Quarter 2024 Review. Our adjusted net sales were down 2%, driven mainly by market headwinds impacting growth in our residential and renewables businesses in the quarter. The residential market experienced a slower end market and an unexpected channel of destocking, which started really in late May and early June. We offset some of this impact through some participation gains, and these gains actually are going to support us in our residential growth plan in the second half. Although adjusted net sales for renewables were up over 8% versus prior year, it was less than expected as some customers continued to have project delays related to ongoing trade and regulatory issues in the market. Backlog for the quarter was down 4%, impacted mainly by the timing of project bookings and renewables and a challenging year-over-year comparison related to a large infrastructure project signed in early 23 that was completed in the quarter. Infrastructure bookings improved during the quarter, and backlog was up 3% sequentially, and our design and quoting activity remains very strong as well. Our ag tech booking surpassed $90 million in the quarter, driving backlog up 32%, and this supports strong revenue growth in the second half. We increased adjusted net income 2.8% and adjusted EPS 2.6% while generating $36 million in operating cash flow. We continue to work toward achieving growth for the year in all four segments, as well as drive additional 80-20 and productivity initiatives, continue to execute our digital transformation plan and strengthen the organization. Now, let's dig into the segments. Tim?