Gibraltar Industries, Inc.

Good morning, ladies and gentlemen, and welcome to the Gibraltar Industries Second Quarter 2025 Financial Results Conference Call. At this time, our lines are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you need assistance, please press star zero for the operator. This call is being recorded on Wednesday, August 6, 2025. I would now like to turn the conference over to Carolyn Capaccio of Alliance Advisors IR. Please go ahead.

Thank you, Joanna. 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 Joe Lavecchio, Gibraltar's Chief Financial Officer. The earnings press release was issued this morning, as well as the slide presentation that management will use during the call, are both available in the Investors 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 continuing operations exclude net sales and operating results of the renewables business, which has been classified as held for sale and as a discontinued operation, and that adjusted results exclude the net sales and operating results of the residential electronics locker business, which was sold on December 17, 2024. Also, as noted on slide two of the presentation, the earnings press release and slide presentation contain forward-looking statements with respect to future financial results. These statements are not guaranteed the 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. Gibraltar advises 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 the call over to Bill Bosway. Bill?

Thanks, Carolyn. Good morning, everyone, and thank you for joining today's call. We're going to take you through our second quarter results, and we're going to review our guidance for continuing operations, which we are establishing today, and then we'll open the call for questions. Before we review second quarter results, I would like to discuss a recent announcement to strategically shift more focus to our building products and structures businesses. So let's turn to slide three. You know, as part of our ongoing strategic assessment and portfolio evaluation process, we continuously assess the overall attractiveness and key drivers of the end markets we are participating in, as well as our ability to extract value and generate returns in each of these end markets. As in previous years, our business units kicked off their annual market assessments, and in parallel, we asked two separate advisory firms to also conduct assessments of each of our end markets and our respective businesses. We reviewed our findings and recommendations with the board in early 2025 and received approval to move forward with our next overall plan. So on June 30th, we announced our plan to simplify the portfolio and focus on building products, which really covers our residential business, and focus on structures markets, which really covers our both ag tech and infrastructure businesses. And as part of the overall plan, the renewable segment has been classified as discontinued operations and held for sale. We do anticipate a simpler portfolio with the right resources and capital focused on these markets will yield stronger growth, margin expansion, and cash flow performance, which will drive higher returns for our shareholders. For example, since 2023, when excluding renewables, our continued operations have delivered solid and steady adjusted operating and even a margin improvement, despite a slower residential building products and market, which now represents just over 70% of Gibraltar's total revenue. That being said, we are very excited to focus more on the building products and structures and markets. Markets we find attractive where we can build a leading position and participate across the broader value chain. Markets which also have attractive revenue and profit pools with multiple avenues for growth. And markets driven by core fundamental demand drivers with opportunity to satisfy basic needs and solve big problems. And finally, markets that have long runways for value creation. We are making this transition. And we are currently outpacing our end markets via participation gains through localized expansion initiatives and new products serving both existing and new customers. To date, in 2025, we have invested $208 million in selective M&A to build presence and scale our core competencies in these end markets, with more to come. Now let's turn to slide four, and we'll talk about our second quarter results. We executed well in the second quarter and delivered 14% adjusted sales growth which reflects strong contributions from our acquired metal roofing and structures businesses, additional participation gains in building accessories, and growth in infrastructure. These gains collectively offset project start delays in ag tech and ongoing market softness impacting our residential mail and package business. Overall, in-market trends and demand remain consistent and residential, and we continue to gain participation in both retail and wholesaler channels. As well, in our project-based businesses, ag tech and infrastructure backlog increased 43% to $278 million. Adjusted operating income and EBITDA margin were 14.5% and 17.8% respectively, and adjusted EPS increased 11% over last year. We generated $44 million in operating cash flow and $25 million in free cash flow as we funded key capital initiatives in each of our businesses. With respect to portfolio management, we announced in June that our board of directors approved our plan to sell the renewables business. The sale process is active, and discussions are ongoing with various potential buyers, and we are targeting to complete the sale by year end. As previously mentioned, we invested $208 million in selective M&A since January, and our pipeline of additional M&A opportunities is very active, particularly in the building product segment. Now let's review the business segments, and Joe will start with residential.