Gibraltar Industries — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net sales for the three months ended September 30, 2026, reached $479.6 million, a 54.3% increase from $310.9 million in the prior year period.
• GAAP net income from continuing operations was $20.6 million, down 38.0% from $33.2 million in the prior year.
• Adjusted net income was $30.1 million, down 11.5% from $34.0 million in the prior year.
• Adjusted EBITDA was $83.5 million, up 62.5% from $51.4 million in the prior year.
• GAAP diluted EPS was $0.69, down 37.8% from $1.11 in the prior year.
• Adjusted diluted EPS was $1.01, down 11.4% from $1.14 in the prior year.
• GAAP income included pretax expenses of $9.9 million ($0.32 per share) related to OmniMax acquisition integration and restructuring costs.
• Adjusted net income included the impact of $21.5 million in interest expense.
• Net debt on the balance sheet was $1.2 billion at quarter-end, with $451 million available on the revolving credit facility.
• Cash generated from continuing operations during the quarter was $9.4 million; discontinued operations used $8.2 million.

Guidance and Future Outlook:

• Gibraltar revised its 2026 outlook for continuing operations to exclude the Infrastructure segment, which is being reclassified as a discontinued operation.
• Revised 2026 Net Sales guidance for continuing operations is $1.66 billion (excluding Infrastructure), down from the original $1.76–$1.83 billion range.
• Revised 2026 Adjusted EBITDA guidance for continuing operations is $249 million (excluding Infrastructure), down from the original $310–$326 million range.
• Revised 2026 Adjusted EBITDA Margin guidance for continuing operations is 15.0% (excluding Infrastructure), down from the original 17.6%–17.8% range.
• Revised 2026 Adjusted EPS guidance for continuing operations is $2.40 (excluding Infrastructure), down from the original $3.65–$4.05 range.
• Management assumes the market will not strengthen in the near term.

Business Segments and Product Lines:

• Residential: Net sales were $399.0 million (up 73.3% YoY), driven by the OmniMax acquisition. Organic growth was 3.1%. Adjusted EBITDA margin was 18.9% (down 140 bps YoY). OmniMax contributed $160.7 million; assuming ownership in Q3 2025, Building Products would have grown 4.1%.
• Agtech: Net sales were $59.3 million (up 3.0% YoY). Adjusted EBITDA margin was 13.2% (up 380 bps YoY). Revenue and margin were impacted by delays in two large controlled environmental agriculture (CEA) projects.
• Infrastructure: Net sales were $21.3 million (down 7.8% YoY). Adjusted EBITDA margin was 21.7% (down 230 bps YoY).
• OmniMax integration is underway with 11 core workstreams; $7.8 million in synergies were realized in Q3 2026, and $14.5 million year-to-date.
• The 2026 annualized synergy run rate commitment was raised by $7.3 million to $36.5 million.
• Integration efforts include consolidating two facilities, decreasing SKU complexity by 44%, and ERP consolidation.
• Gibraltar was recognized by Lowe's as a divisional Building Products Vendor Partner of the Year.

Market and Competitive Landscape:

• The residential end market declined 13% in the quarter, slowing more than 2.5 times the company's expectation.
• New construction and existing home sales weakened further, contributing to the market decline.
• Agtech backlog at the end of the quarter was $45.6 million, down 55% YoY, though it has increased post-quarter end with recent project awards.
• Infrastructure order backlog increased 10% despite sales decreases.

Risks and Challenges:

• Residential business faced a significantly weaker end market than anticipated.
• Agtech revenue and margin were negatively impacted by construction permit delays for two large CEA projects.
• Inflationary pressures on steel, logistics, and fuel were absorbed in the quarter.
• The divestiture of the Infrastructure business (D.S. Brown) is subject to customary post-closing adjustments and closing conditions.

Management Commentary and Tone:

• Chairman and CEO Bill Bosway stated the residential business delivered solid revenue and margin performance despite a weak end market.
• Management emphasized a focus on core strategic priorities: simplifying the portfolio, strengthening the balance sheet, integrating OmniMax, and optimizing the Residential business.
• Bosway noted the company is "significantly better positioned in combination with OmniMax" to execute through prolonged, tough market environments.
• Management is taking integration, lean, simplification, and pricing actions to preserve margins.

Other Key Points:

• Gibraltar entered into an agreement to divest its Infrastructure business, D.S. Brown, for $208 million in cash, expected to close in the fourth quarter of 2026.
• The Renewables business was divested on July 15, 2026.
• The company will provide complete recast historical results for continuing operations excluding the Infrastructure segment in conjunction with fourth quarter 2026 reporting.
• The balance sheet reflects significant goodwill and customer relationships increases due to the OmniMax acquisition.