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Gibraltar Q2 Earnings & Sales Lag Estimates, Both Rise Y/Y, Stock Down
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Key Takeaways
ROCK's Q2 net sales rose 13.1% YOY to $309.5M, led by Agtech acquisitions and infrastructure demand.
Adjusted EPS of $1.13 missed estimates but grew 10.8% YOY; EBITDA margin dipped 30 bps to 17.8%.
ROCK's 2025 guidance sees adjusted EPS up nearly 13% YOY; the Renewables segment to be divested.
Gibraltar Industries, Inc. (ROCK - Free Report) reported lower-than-expected second-quarter 2025 results, wherein its earnings and net sales missed the Zacks Consensus Estimate. However, the top and bottom lines grew year over year.
The quarter’s performance was backed by increased contributions from the accretive acquisitions, including Lane Supply in the Agtech segment and two metal roofing manufacturers in the Residential segment. Moreover, robust project-based business across the Agtech and Infrastructure segments aided the quarter’s performance, alongside boosting backlog growth.
Although slow housing starts and other macro risks haunting the market are taking a toll on ROCK’s performance, the inorganic and restructuring efforts are expected to ensure revenues and margin scale in the upcoming period.
On June 30, 2025, the company’s board of directors approved the selling of the Renewables segment, aimed at driving ROCK’s asset portfolio and focusing on the building products and structures businesses.
ROCK stock tumbled 3.8% during yesterday’s trading hours after the earnings release.
ROCK’s Q2 Earnings & Sales Discussion
The adjusted earnings per share (EPS) of $1.13 missed the Zacks Consensus Estimate of $1.16 by 2.6%. However, the reported figure grew 10.8% from the year-ago quarter’s adjusted EPS of $1.02.
Gibraltar Industries, Inc. Price, Consensus and EPS Surprise
Net sales of $309.5 million also lagged the consensus mark of $375 million by 17.6%, but increased 13.1% from the prior-year level of $273.6 million.
Gibraltar’s Segmental Details
Residential: Net sales in the segment were up 7.5% year over year to $230.3 million. The uptrend was driven by the expansion of the local market, new products and customers, with increased contributions from the Metal Roofing business. This was partially offset by declines in the mail and package business due to the ongoing softness in housing starts.
Adjusted operating margin of 19.5% fell 90 basis points (bps) year over year. The adjusted EBITDA margin fell 60 bps from the prior-year quarter to 21.2%.
Agtech: Net sales increased 56.8% year over year to $54.1 million, thanks to $29.4 million contributions from the Lane Supply acquisition, partially offset by a 28.3% decrease in organic sales. Year over year, backlog grew 71% inorganically and 33% organically.
Adjusted operating margin fell 100 bps year over year to 5.6%, mainly due to the impact of delayed CEA projects. Adjusted EBITDA margin expanded 20 bps year over year to 9.5%.
Infrastructure: Net sales in the segment rose 1.6% year over year to $25.2 million, driven by continued strong execution and new project quoting activity. Demand continues to be solid, reflecting a 3% increase in the backlog year over year.
Adjusted operating margin of 28.1% expanded 300 bps year over year, driven by strong execution activities, effective supply chain management and favorable product mix. Adjusted EBITDA margin also expanded 290 bps from the prior-year quarter to 31.2%.
Operating Highlights of ROCK
Adjusted operating profit increased year over year by 10.3% to $44.9 million. Adjusted operating margin declined 50 bps year over year to 14.5%.
Adjusted EBITDA of $55.1 million was up from $49 million reported in the year-ago period. Adjusted EBITDA margin was down 30 bps from the prior year to 17.8%.
ROCK’s Balance Sheet & Cash Flow
As of June 30, 2025, Gibraltar had liquidity of $438 million, including cash and cash equivalents worth $43.3 million, compared with $269.5 million at 2024-end. There was no long-term debt at the end of the second quarter.
In the first half of 2025, net cash provided by operating activities (continuing operations) totaled $48.6 million compared with $90.4 million in the prior-year period.
Gibraltar Revises 2025 Guidance
Gibraltar revised its full-year guidance, which includes continuing operations after excluding the operations of the Renewables segment.
The company now expects net sales to be between $1.15 and $1.20 billion, indicating about 16% growth from the $1.01 billion reported in 2024.
Adjusted operating margin is expected to grow by about 5 bps year over year between 14.6% and 14.9%. Adjusted EBITDA is predicted to be between 17.5% and 17.7%, indicating about 10 bps uptick from 2024.
GAAP EPS is now expected in the range of $3.67-$3.91, indicating a nearly 17% decline from the $4.58 reported in 2024. Adjusted EPS is expected to be in the range of $4.20-$4.45 compared with $3.82 in 2024, reflecting approximately 13% growth.
The company notified that Agtech and Infrastructure have solid order backlogs and expect additional bookings in the second half as well. ROCK has new CEA projects, which would have an impact in the second half as well. Also, demand is expected to remain strong within the Lane Supply business to support new stores and initiatives across its core customer base.
Vulcan Materials Company (VMC - Free Report) reported lower-than-expected second-quarter 2025 results, with adjusted earnings and revenues missing the Zacks Consensus Estimate but increasing year over year.
The quarterly performance of the company improved year over year due to its continuous pricing discipline and operational execution despite lower shipments and risky weather conditions. The contributions from all three reported segments aided the top line during the quarter, positioning Vulcan favorably for the remainder of 2025. Moreover, its aggregates-driven business model and strong commercial performance bode well for the near and long term
Quanta Services, Inc. (PWR - Free Report) posted a robust second-quarter 2025 performance, highlighted by double-digit revenue growth, margin expansion, and strategic capital deployment. The results reflect strong demand for utility-scale infrastructure and energy transition projects, as well as operational execution across its diversified service portfolio.
Quanta completed the $1.35 billion acquisition of Dynamic Systems in July, adding significant turnkey mechanical and process infrastructure capabilities. Quanta raised its full-year 2025 outlook, expecting revenues between $27.4 billion and $27.9 billion, and adjusted EPS in the range of $10.28 to $10.88.
Mohawk Industries, Inc. (MHK - Free Report) reported second-quarter 2025 results, with earnings and net sales beating the Zacks Consensus Estimate. On a year-over-year basis, the top line remained flat, while the bottom line decreased.
Mohawk was supported by new premium residential and commercial product collections launched over the past two years and restructuring actions. With rising tariffs, it highlighted the advantage of its manufacturing base in North America, as it took steps such as adjusting prices and optimizing supply chains. Mohawk expects adjusted EPS in the range of $2.56-$2.66, excluding restructuring and other charges compared with the year-ago figure of $2.9.
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Gibraltar Q2 Earnings & Sales Lag Estimates, Both Rise Y/Y, Stock Down
Key Takeaways
Gibraltar Industries, Inc. (ROCK - Free Report) reported lower-than-expected second-quarter 2025 results, wherein its earnings and net sales missed the Zacks Consensus Estimate. However, the top and bottom lines grew year over year.
The quarter’s performance was backed by increased contributions from the accretive acquisitions, including Lane Supply in the Agtech segment and two metal roofing manufacturers in the Residential segment. Moreover, robust project-based business across the Agtech and Infrastructure segments aided the quarter’s performance, alongside boosting backlog growth.
Although slow housing starts and other macro risks haunting the market are taking a toll on ROCK’s performance, the inorganic and restructuring efforts are expected to ensure revenues and margin scale in the upcoming period.
On June 30, 2025, the company’s board of directors approved the selling of the Renewables segment, aimed at driving ROCK’s asset portfolio and focusing on the building products and structures businesses.
ROCK stock tumbled 3.8% during yesterday’s trading hours after the earnings release.
ROCK’s Q2 Earnings & Sales Discussion
The adjusted earnings per share (EPS) of $1.13 missed the Zacks Consensus Estimate of $1.16 by 2.6%. However, the reported figure grew 10.8% from the year-ago quarter’s adjusted EPS of $1.02.
Gibraltar Industries, Inc. Price, Consensus and EPS Surprise
Gibraltar Industries, Inc. price-consensus-eps-surprise-chart | Gibraltar Industries, Inc. Quote
Net sales of $309.5 million also lagged the consensus mark of $375 million by 17.6%, but increased 13.1% from the prior-year level of $273.6 million.
Gibraltar’s Segmental Details
Residential: Net sales in the segment were up 7.5% year over year to $230.3 million. The uptrend was driven by the expansion of the local market, new products and customers, with increased contributions from the Metal Roofing business. This was partially offset by declines in the mail and package business due to the ongoing softness in housing starts.
Adjusted operating margin of 19.5% fell 90 basis points (bps) year over year. The adjusted EBITDA margin fell 60 bps from the prior-year quarter to 21.2%.
Agtech: Net sales increased 56.8% year over year to $54.1 million, thanks to $29.4 million contributions from the Lane Supply acquisition, partially offset by a 28.3% decrease in organic sales. Year over year, backlog grew 71% inorganically and 33% organically.
Adjusted operating margin fell 100 bps year over year to 5.6%, mainly due to the impact of delayed CEA projects. Adjusted EBITDA margin expanded 20 bps year over year to 9.5%.
Infrastructure: Net sales in the segment rose 1.6% year over year to $25.2 million, driven by continued strong execution and new project quoting activity. Demand continues to be solid, reflecting a 3% increase in the backlog year over year.
Adjusted operating margin of 28.1% expanded 300 bps year over year, driven by strong execution activities, effective supply chain management and favorable product mix. Adjusted EBITDA margin also expanded 290 bps from the prior-year quarter to 31.2%.
Operating Highlights of ROCK
Adjusted operating profit increased year over year by 10.3% to $44.9 million. Adjusted operating margin declined 50 bps year over year to 14.5%.
Adjusted EBITDA of $55.1 million was up from $49 million reported in the year-ago period. Adjusted EBITDA margin was down 30 bps from the prior year to 17.8%.
ROCK’s Balance Sheet & Cash Flow
As of June 30, 2025, Gibraltar had liquidity of $438 million, including cash and cash equivalents worth $43.3 million, compared with $269.5 million at 2024-end. There was no long-term debt at the end of the second quarter.
In the first half of 2025, net cash provided by operating activities (continuing operations) totaled $48.6 million compared with $90.4 million in the prior-year period.
Gibraltar Revises 2025 Guidance
Gibraltar revised its full-year guidance, which includes continuing operations after excluding the operations of the Renewables segment.
The company now expects net sales to be between $1.15 and $1.20 billion, indicating about 16% growth from the $1.01 billion reported in 2024.
Adjusted operating margin is expected to grow by about 5 bps year over year between 14.6% and 14.9%. Adjusted EBITDA is predicted to be between 17.5% and 17.7%, indicating about 10 bps uptick from 2024.
GAAP EPS is now expected in the range of $3.67-$3.91, indicating a nearly 17% decline from the $4.58 reported in 2024. Adjusted EPS is expected to be in the range of $4.20-$4.45 compared with $3.82 in 2024, reflecting approximately 13% growth.
The company notified that Agtech and Infrastructure have solid order backlogs and expect additional bookings in the second half as well. ROCK has new CEA projects, which would have an impact in the second half as well. Also, demand is expected to remain strong within the Lane Supply business to support new stores and initiatives across its core customer base.
ROCK’s 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.
Vulcan Materials Company (VMC - Free Report) reported lower-than-expected second-quarter 2025 results, with adjusted earnings and revenues missing the Zacks Consensus Estimate but increasing year over year.
The quarterly performance of the company improved year over year due to its continuous pricing discipline and operational execution despite lower shipments and risky weather conditions. The contributions from all three reported segments aided the top line during the quarter, positioning Vulcan favorably for the remainder of 2025. Moreover, its aggregates-driven business model and strong commercial performance bode well for the near and long term
Quanta Services, Inc. (PWR - Free Report) posted a robust second-quarter 2025 performance, highlighted by double-digit revenue growth, margin expansion, and strategic capital deployment. The results reflect strong demand for utility-scale infrastructure and energy transition projects, as well as operational execution across its diversified service portfolio.
Quanta completed the $1.35 billion acquisition of Dynamic Systems in July, adding significant turnkey mechanical and process infrastructure capabilities. Quanta raised its full-year 2025 outlook, expecting revenues between $27.4 billion and $27.9 billion, and adjusted EPS in the range of $10.28 to $10.88.
Mohawk Industries, Inc. (MHK - Free Report) reported second-quarter 2025 results, with earnings and net sales beating the Zacks Consensus Estimate. On a year-over-year basis, the top line remained flat, while the bottom line decreased.
Mohawk was supported by new premium residential and commercial product collections launched over the past two years and restructuring actions. With rising tariffs, it highlighted the advantage of its manufacturing base in North America, as it took steps such as adjusting prices and optimizing supply chains. Mohawk expects adjusted EPS in the range of $2.56-$2.66, excluding restructuring and other charges compared with the year-ago figure of $2.9.