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Gibraltar's (ROCK) Q1 Earnings Beat, Revenues Miss Estimates
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Gibraltar Industries, Inc. (ROCK - Free Report) reported mixed first-quarter 2024 results, with quarterly earnings surpassing the Zacks Consensus Estimate and increasing on a year-over-year basis. Net sales declined from the previous year’s levels and missed the consensus mark.
The company’s quarterly results reflect organic growth, increased volume, improving customer and product mix, accretive 80/20 initiatives, better price and cost alignment, along with supply-chain optimization initiatives and improvements in project management systems. Gibraltar is optimistic about its upcoming growth prospects with its robust end-market fundamentals, backed by increased backlog levels.
Backed by solid end market fundamentals, improving business conditions in Renewables and Agtech markets and an efficient operating engine, ROCK is well-poised to deliver strong results in 2024.
Inside the Headlines
Gibraltar reported adjusted earnings of 80 cents per share, surpassing the Zacks Consensus Estimate of 76 cents by 5.3% and increasing 12.7% year over year.
Gibraltar Industries, Inc. Price, Consensus and EPS Surprise
Net sales of $292.5 million lagged the consensus mark of $294 million by 0.5% and dropped 0.3% from the prior year’s level of $293.3 million. Benefits from solid execution in the Residential and Infrastructure segments and increasing order backlog levels were partially offset by persistent industry headwinds faced by the Renewables and Agtech segments.
On an adjusted basis, the top line inched up 1.3% year over year compared with the prior year’s adjusted net sales of $288.8 million.
Segmental Details
Renewables: Net sales in the segment declined 13% from the year-ago quarter’s figure to $51.5 million. The downside was due to the rapid customer shift to the new 1P tracker product line, resulting in longer lead times as the supply chain increases capacity. The backlog was up 8% year over year.
The adjusted operating margin of 3.9% contracted 80 basis points (bps) year over year. The adjusted EBITDA margin declined 40 bps from the year-ago quarter’s figure to 8.1%.
Residential: Net sales in the segment were up 3.1% year over year to $185.1 million. This was backed by a 2.4% increase in organic sales, driven by participation gains and volume, along with geographic expansion into the Rocky Mountain area.
The adjusted operating margin of 18.5% expanded 200 bps in the quarter. The adjusted EBITDA margin gained 200 bps from the year-ago quarter to 20.1%.
Agtech: Net sales fell 5.3% but adjusted net sales gained 2.1% year over year to $34 million. The downside was due to delayed new project construction. Backlogs were down 21% year over year due to the delay of new bookings from March to April.
The adjusted operating margin fell 260 bps year over year to 8.1%. The adjusted EBITDA margin contracted 320 bps from the year-ago quarter’s figure to 10.8%.
Infrastructure: Sales in the segment rose 17.1% year over year to $21.9 million, driven by solid end-market demand and market participation gains. Backlog fell 10% year over year due to the continued progress on a large project.
The adjusted operating margin of 22.4% expanded 790 bps year over year. The adjusted EBITDA margin also expanded 710 bps from the year-ago quarter’s levels to 26%.
Operating Highlights
Adjusted operating profit grew to $32.3 million from $31.1 million reported in the prior year. The adjusted operating margin expanded 30 bps year over year to 11.1%.
Adjusted EBITDA rose 6% to $42 million in the reported period. The adjusted EBITDA margin also increased 60 bps from the prior year to 14.2%.
Balance Sheet & Cash Flow
As of Mar 31, 2024, Gibraltar had liquidity of $543 million, including cash and cash equivalents worth $146.7 million compared with $99.4 million at the 2023-end. There was no long-term debt at the end of first-quarter 2024.
In the first quarter, net cash provided by operating activities totaled $53.1 million versus net cash compared with $38 million in the prior year.
Free cash flow was up 17% to $49 million in the reported quarter.
2024 Guidance
Gibraltar expects net sales of $1.43-$1.48 billion for 2024 compared with $1.37 billion in 2023. Adjusted earnings are expected to be $4.57-$4.82 per share compared with $4.09 in 2023.
Martin Marietta Materials, Inc. (MLM - Free Report) reported mixed results in the first quarter of 2024. Earnings surpassed the Zacks Consensus Estimate but revenues missed the same. The top and the bottom line declined on a year-over-year basis.
Going forward, MLM anticipates record federal-level and state-level infrastructure investments, large-scale heavy industrial activity, data centers and energy projects to offset softer residential and warehouse construction demand, as well as anticipated moderation in light non-residential activity.
KBR, Inc. (KBR - Free Report) reported better-than-expected results for first-quarter 2024 (ended Mar 29), with earnings and revenues surpassing the Zacks Consensus Estimate.
Both earnings and revenues grew on a year-over-year basis, particularly showcasing solid performance in adjusted EBITDA and operating cash flow. Bookings during the quarter were well-aligned with end markets across energy security, national defense, human performance and sustainability.
UFP Industries, Inc. (UFPI - Free Report) reported mixed results for the first quarter of 2024. Earnings beat the Zacks Consensus Estimate but net sales missed the same. The top and the bottom line declined on a year-over-year basis. Lower pricing and organic unit sales hurt the company’s quarterly results.
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Gibraltar's (ROCK) Q1 Earnings Beat, Revenues Miss Estimates
Gibraltar Industries, Inc. (ROCK - Free Report) reported mixed first-quarter 2024 results, with quarterly earnings surpassing the Zacks Consensus Estimate and increasing on a year-over-year basis. Net sales declined from the previous year’s levels and missed the consensus mark.
The company’s quarterly results reflect organic growth, increased volume, improving customer and product mix, accretive 80/20 initiatives, better price and cost alignment, along with supply-chain optimization initiatives and improvements in project management systems. Gibraltar is optimistic about its upcoming growth prospects with its robust end-market fundamentals, backed by increased backlog levels.
Backed by solid end market fundamentals, improving business conditions in Renewables and Agtech markets and an efficient operating engine, ROCK is well-poised to deliver strong results in 2024.
Inside the Headlines
Gibraltar reported adjusted earnings of 80 cents per share, surpassing the Zacks Consensus Estimate of 76 cents by 5.3% and increasing 12.7% year over year.
Gibraltar Industries, Inc. Price, Consensus and EPS Surprise
Gibraltar Industries, Inc. price-consensus-eps-surprise-chart | Gibraltar Industries, Inc. Quote
Net sales of $292.5 million lagged the consensus mark of $294 million by 0.5% and dropped 0.3% from the prior year’s level of $293.3 million. Benefits from solid execution in the Residential and Infrastructure segments and increasing order backlog levels were partially offset by persistent industry headwinds faced by the Renewables and Agtech segments.
On an adjusted basis, the top line inched up 1.3% year over year compared with the prior year’s adjusted net sales of $288.8 million.
Segmental Details
Renewables: Net sales in the segment declined 13% from the year-ago quarter’s figure to $51.5 million. The downside was due to the rapid customer shift to the new 1P tracker product line, resulting in longer lead times as the supply chain increases capacity. The backlog was up 8% year over year.
The adjusted operating margin of 3.9% contracted 80 basis points (bps) year over year. The adjusted EBITDA margin declined 40 bps from the year-ago quarter’s figure to 8.1%.
Residential: Net sales in the segment were up 3.1% year over year to $185.1 million. This was backed by a 2.4% increase in organic sales, driven by participation gains and volume, along with geographic expansion into the Rocky Mountain area.
The adjusted operating margin of 18.5% expanded 200 bps in the quarter. The adjusted EBITDA margin gained 200 bps from the year-ago quarter to 20.1%.
Agtech: Net sales fell 5.3% but adjusted net sales gained 2.1% year over year to $34 million. The downside was due to delayed new project construction. Backlogs were down 21% year over year due to the delay of new bookings from March to April.
The adjusted operating margin fell 260 bps year over year to 8.1%. The adjusted EBITDA margin contracted 320 bps from the year-ago quarter’s figure to 10.8%.
Infrastructure: Sales in the segment rose 17.1% year over year to $21.9 million, driven by solid end-market demand and market participation gains. Backlog fell 10% year over year due to the continued progress on a large project.
The adjusted operating margin of 22.4% expanded 790 bps year over year. The adjusted EBITDA margin also expanded 710 bps from the year-ago quarter’s levels to 26%.
Operating Highlights
Adjusted operating profit grew to $32.3 million from $31.1 million reported in the prior year. The adjusted operating margin expanded 30 bps year over year to 11.1%.
Adjusted EBITDA rose 6% to $42 million in the reported period. The adjusted EBITDA margin also increased 60 bps from the prior year to 14.2%.
Balance Sheet & Cash Flow
As of Mar 31, 2024, Gibraltar had liquidity of $543 million, including cash and cash equivalents worth $146.7 million compared with $99.4 million at the 2023-end. There was no long-term debt at the end of first-quarter 2024.
In the first quarter, net cash provided by operating activities totaled $53.1 million versus net cash compared with $38 million in the prior year.
Free cash flow was up 17% to $49 million in the reported quarter.
2024 Guidance
Gibraltar expects net sales of $1.43-$1.48 billion for 2024 compared with $1.37 billion in 2023. Adjusted earnings are expected to be $4.57-$4.82 per share compared with $4.09 in 2023.
Zacks Rank & Recent Construction Releases
Gibraltar currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Martin Marietta Materials, Inc. (MLM - Free Report) reported mixed results in the first quarter of 2024. Earnings surpassed the Zacks Consensus Estimate but revenues missed the same. The top and the bottom line declined on a year-over-year basis.
Going forward, MLM anticipates record federal-level and state-level infrastructure investments, large-scale heavy industrial activity, data centers and energy projects to offset softer residential and warehouse construction demand, as well as anticipated moderation in light non-residential activity.
KBR, Inc. (KBR - Free Report) reported better-than-expected results for first-quarter 2024 (ended Mar 29), with earnings and revenues surpassing the Zacks Consensus Estimate.
Both earnings and revenues grew on a year-over-year basis, particularly showcasing solid performance in adjusted EBITDA and operating cash flow. Bookings during the quarter were well-aligned with end markets across energy security, national defense, human performance and sustainability.
UFP Industries, Inc. (UFPI - Free Report) reported mixed results for the first quarter of 2024. Earnings beat the Zacks Consensus Estimate but net sales missed the same. The top and the bottom line declined on a year-over-year basis. Lower pricing and organic unit sales hurt the company’s quarterly results.