Gibraltar Industries, Inc.

Greetings, and welcome to the Gibraltar Industries 4th Quarter 2025 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 Alliance Advisors IR.

Thank you. You may begin. Thanks, Christine. 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 Lubecchio, 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 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 a second quarter 2025 results. The EVOS portion of which was subsequently sold on February 20th, 2026. Adjusted results also exclude the net sales and operating results of the residential electronic business, sorry, electronic locker business, which was sold on December 17th, 2024. The acquisition of OmniMax International closed subsequent to quarter end on February 2nd, 2026. 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 filing, which can also be accessed through the company's website. Now I'll turn the call over to Bill Bosway. Bill?

Thanks, Bill, and good morning, everyone, and thank you for joining us today. We have a lot to discuss today. First, we're going to take you through our fourth quarter results, which are in line with our previously announced range, and then we're going to spend quite a bit of time on the OmniMax acquisition, which closed on February 2nd, how we're actually executing our integration plan, our core assumptions that we have built into our 2026 plan, and then we'll take you through our 2026 guidance. I think you'll hear me say – this more than once today, how excited we are about the acquisition, as it really does accelerate our strategy to be a strong leader serving the building products market. In fact, with OmniMax, our residential segment will represent over 80% of Gibraltar's total business in 2026. So the segment, and hence the acquisition, play an important role in our 2026 guidance. So we'll get through that, and then we'll open up the call for questions and discussion. So let's get started with slide three, and we'll talk a little bit about 2025. Fourth quarter results were in line with our previously announced top and bottom line ranges. We delivered 17% adjusted net sales growth driven by our metal roofing and structured acquisitions, offset by a soft residential and market, significant channel inventory right sizing, and timing of price-cost alignment actions in the building accessories business. Lower new construction starts impacted the mail-in package business, and we had ag tech project volume shift into 2026. Consolidated bookings continue to be strong in the quarter with backlog up over 102% over prior year. We delivered operating – I'm sorry, we delivered adjusted operating margin of 10.8% and EBITDA margin of 13.6%, resulting in adjusted EPS of 76 cents. We generated $32 million in operating cash flow and free cash flow as a rate to sales of 9%. For the year, we delivered 12% adjusted growth to $1.14 billion. dollars operating in EBITDA margins of 13.3% and 16.3% respectively, resulting in adjusted EPS of $3.92. We generated $137 million of operating cash flow, ending with $116 million in cash for the full year and free cash flow of 8%. As I mentioned, we closed on the OmniMax international acquisition, and just last week we completed the sale of TerraceMark's eBoss business for $79 million. The failed process of our renewables racking and foundations business is ongoing, and we anticipate completing the process in early Q2. Proceeds from both transactions will be applied to debt reduction. So for 2025, to summarize, it was a year of solid growth despite some persistent in-market challenges, particularly in our residential market. We remain focused on evolving our portfolio with investments in metal roofing and building accessories, as well as the recent divestiture of our renewables eBoss business. Now, we'll go into each of the business segments, and Joe's going to start with residential.