Gibraltar Industries, Inc.

Greetings, and welcome to the Gibraltar Industries Second Quarter 2026 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. Please go ahead.

Thank you, Operator. 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 Lovechio, 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 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 was classified as held for sale and as a discontinued operation with second quarter 2025 results, the divestiture of which was subsequently completed on July 15th, 2026. The acquisition of OmniMax International closed 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 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 detailed in its SEC filings, which can also be accessed through the company's website. Now we'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 review our second quarter results, which include our first full quarter of OmniMax operations, Then we'll review the reporting segments, the balance sheet, and our full year 2026 guidance, which we are reiterating today. And then we'll open the call for your questions. Let's start with turning to slide three and we'll discuss the second quarter. It's been a very busy time for us, but we delivered solid second quarter results with our residential business delivering strong organic growth and participation gains in a flat to down market. Our residential and agtech segments both delivered organic growth, and all segments delivered sequential margin expansion as well. Our building products business grew 12.7% organically. Now, if you assume we owned OmniMax in Q2 2025, the combined business actually grew 15.5%, showing the strength of this combination in the marketplace. In line with our long-term strategic plan for our residential business, it continues to become a larger part of overall portfolio and represented 83% of our total revenue in the quarter with segment EBITDA margin improving 340 basis points sequentially to 19%. OmniMax integration continues to accelerate as our leadership team and integration management office drive our top 11 critical work streams and synergy capture. We are also excited to announce we were recently awarded an additional 630 locations now making us the supplier of trims and flashings to sell to more than 1,700 locations across the country for one of our key customers, validating our ability to support our customers locally on a national basis with a value proposition that makes sense for them. We believe the combination of Gibraltar and Omnimax in our product portfolio was instrumental in receiving this award, and I give our team a lot of credit for staying focused on executing well while simultaneously managing through today's dynamic geopolitical situation as well as an ongoing inflationary environment. Including a full quarter of OmniMax, total Gibraltar net sales increased 64.6% to 510 million on total Gibraltar organic growth of 5%. A residential segment delivered organic growth of 5% and AgTech delivered organic growth of 8.7%. Adjusted operating income reached 66 million. Adjusted EBITDA increased 59.7% to 88 million. and we delivered adjusted EPS of $1.11 which included a net interest impact of $20.6 million. GAAP results include $5.8 million or $0.15 per share of OmniMax acquisition, integration and restructuring cost. Overall, we managed relatively well through a slow residential market along with inflationary headwinds by executing price actions, generating more participation wins and executing synergy initiatives. and as a result adjusted EBITDA margin expanded sequentially 350 basis points to 17.3%. We generated $45 million in operating cash from continuing operations including acquisition integration and restructuring costs related to OmniMax. And we have now completed the divestiture of the renewables business including the EBOS sale in Q1 and the racking business sale in July. Now let's turn our attention and we'll review the business segments and Joe will start with residential.