Gibraltar Industries, Inc.

Greetings and welcome to the Gibraltar industry's third quarter 2025 financial results conference call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. If anyone requires operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Carolyn Capaccio of Alliance Advisors IR. You may begin.

Thanks, Kate. 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 Lovecchio, Gibraltar's Chief Financial Officer. The earnings press release that was issued this morning, as well as a slide presentation that management will use during the call, are both available in the Investors section of the company's website, 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 was classified as held for sale and as a discontinued operation with second quarter 2025 results. and that adjusted results exclude net sales and operating results of the residential electronic 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 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. Gibraltar advises you to read the risk factors, details, and its SEC filings, which can also be accessed through the company's website. Now I'll turn the call over to Bill Bosway. Bill?

Good morning, everyone, and thanks for joining our call today. We're going to take a few third-quarter results, and then we'll review our guidance for continuing ops and then we'll open the call for questions. So let's turn to slide three, titled Third Quarter 2025 Review. I'd say in a relatively dynamic business environment, we've continued to deliver solid performance and stay on track to deliver good revenue, margin, and cash flow performance from continuing ops for the full year. In the quarter, we delivered 13% adjusted net sales growth. First and foremost, with our building accessories business delivering 2% growth in a soft residential roofing market, which is down between five and 10% depending on the channel. And secondly, from our required metal roofing and structures businesses delivering revenue per their plan. That being said, the ongoing delay of a large CEA project in Arizona and lower demand in our mail and package business caused revenue for the third quarter to come in below plan. And we'll discuss each of these in more detail as we review the results for each of the segments. The impact of lower sales in ag tech and mail and package created a bit of a business and product mix effect during the quarter And as a result, adjusted EPS and operating income came in slightly below prior year, down less than 1%, and adjusted EBITDA was flat to prior year. We did deliver strong cash performance, generating $57 million in cash from operations, an increase of 39%, and $49 million in free cash flow, achieving 16% of sales. With respect to portfolio management, the sale process for our renewables business is progressing, and we continue to target its completion by year-end. And our newer acquisitions and structures and metal roofing are performing as planned and accelerating through their integration initiatives. And finally, our pipeline of potential additional M&A remains very active, particularly in the building product segment. So let's jump into business segments, and Joe will get us started with residential.