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Gibraltar Lowers 2025 Guidance on Market Softness, Stock Down
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Key Takeaways
ROCK lowered 2025 sales, operating income, EBITDA and EPS guidance after softer-than-expected end markets.
ROCK saw Agtech project timing shift out of 2025, but bookings stayed strong and backlog more than tripled.
ROCK cited price hikes and cost cuts for 2026, with infrastructure margins offsetting residential weakness.
Gibraltar Industries, Inc. (ROCK - Free Report) has announced preliminary unaudited fourth-quarter and full-year 2025 results that are below its prior guidance, reflecting softer-than-expected end-market conditions and timing issues across key segments. The update highlights performance trends across the company’s Residential, Agtech and Infrastructure businesses ahead of the release of final results.
Following the news, ROCK stock declined 11.4% during the trading session yesterday.
ROCK Cuts Guidance Across Key Metrics
Gibraltar has lowered its full-year guidance across all key metrics, primarily reflecting weaker overall demand. For 2025, net sales are now expected to be in the range of $1.13-$1.14 billion, below the company’s earlier guidance of $1.15-$1.18 billion, but still above 2024 net sales of $1.02 billion.
Operating income is projected at $121-$123 million, down from prior guidance of $141-$145 million and below the $140 million reported in 2024. Adjusted operating income is estimated at $149-$151 million, compared with earlier guidance of $163-$167 million, and broadly in line with the $149 million generated in 2024.
Adjusted EBITDA is expected to reach $184-$186 million, trailing prior guidance of $197-$202 million but exceeding the $177 million recorded last year.
Adjusted EPS is now projected to be $3.88-$3.93, below the prior guidance range of $4.20-$4.30, yet modestly higher than adjusted EPS of $3.82 in 2024.
However, management expressed confidence across all segments despite fourth-quarter challenges. The company implemented price increases and cost-reduction initiatives during the quarter that are expected to support improved financial results in 2026.
Segment-wise, in the Residential segment, Gibraltar continued to gain market participation in building accessories, partially offsetting slower industry demand caused by channel inventory rightsizing and delayed price realization. Mail and Package volumes were pressured by weak single- and multi-family construction starts, though order trends improved late in December. Metal roofing delivered a solid performance during the quarter.
The Agtech segment saw large project volumes shift out of 2025, weighing on reported revenues, but bookings remained strong and the backlog more than tripled year over year, positioning the segment for a stronger 2026. Lane Supply posted solid quarterly results, reinforcing underlying demand momentum.
The Infrastructure segment delivered quarterly revenue growth with strong margins, providing stability amid broader end-market softness.
Looking ahead, management emphasized improving fundamentals heading into 2026, including better-aligned residential channel inventories, a total backlog up more than 100% year over year and a cash balance exceeding $115 million. Price increases and cost-reduction actions implemented late in 2025 are expected to support profitability in 2026. The planned OmniMax acquisition remains on track to close in the first quarter of 2026, further strengthening Gibraltar’s building-accessories platform.
ROCK’s Share Price Performance
Gibraltar stock has gained 1.3% in the past month against the Zacks Building Products - Miscellaneous industry’s 4.4% growth. Near-term visibility remains challenged by ongoing sluggishness in single- and multi-family construction, which has weighed on Mail and Package volumes, as well as delays in controlled environment agriculture projects within the Agtech segment. Nevertheless, Gibraltar’s continued emphasis on portfolio optimization, business system conversions and disciplined strategic acquisitions is expected to support growth over the coming periods.
Image Source: Zacks Investment Research
ROCK’s Zacks Rank & Key Picks
Currently, Gibraltar has a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Construction sector are:
Argan, Inc. (AGX - Free Report) flaunts a Zacks Rank of 1 (Strong Buy) at present. The company delivered a trailing four-quarter earnings surprise of 22.4%, on average. Argan stock has surged 85.7% in the past six months. You can seethe complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Argan’s fiscal 2026 sales and EPS indicates growth of 7.2% and 34.3%, respectively, from the year-ago period’s levels.
Frontdoor, Inc. (FTDR - Free Report) presently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 59.4%, on average. FTDR stock has gained 4.3% in the past six months.
The Zacks Consensus Estimate for Frontdoor’s fiscal 2026 sales and EPS indicates growth of 5.2% and 1.7%, respectively, from the year-ago period’s levels.
Quanta Services, Inc. (PWR - Free Report) has a Zacks Rank of 2 at present. The company delivered a trailing four-quarter earnings surprise of 5.8%, on average. Quanta stock has increased 16.9% in the past six months.
The Zacks Consensus Estimate for Quanta’s 2026 sales and EPS indicates growth of 11.4% and 17.2%, respectively, from the prior-year levels.
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Gibraltar Lowers 2025 Guidance on Market Softness, Stock Down
Key Takeaways
Gibraltar Industries, Inc. (ROCK - Free Report) has announced preliminary unaudited fourth-quarter and full-year 2025 results that are below its prior guidance, reflecting softer-than-expected end-market conditions and timing issues across key segments. The update highlights performance trends across the company’s Residential, Agtech and Infrastructure businesses ahead of the release of final results.
Following the news, ROCK stock declined 11.4% during the trading session yesterday.
ROCK Cuts Guidance Across Key Metrics
Gibraltar has lowered its full-year guidance across all key metrics, primarily reflecting weaker overall demand. For 2025, net sales are now expected to be in the range of $1.13-$1.14 billion, below the company’s earlier guidance of $1.15-$1.18 billion, but still above 2024 net sales of $1.02 billion.
Operating income is projected at $121-$123 million, down from prior guidance of $141-$145 million and below the $140 million reported in 2024. Adjusted operating income is estimated at $149-$151 million, compared with earlier guidance of $163-$167 million, and broadly in line with the $149 million generated in 2024.
Adjusted EBITDA is expected to reach $184-$186 million, trailing prior guidance of $197-$202 million but exceeding the $177 million recorded last year.
Adjusted EPS is now projected to be $3.88-$3.93, below the prior guidance range of $4.20-$4.30, yet modestly higher than adjusted EPS of $3.82 in 2024.
However, management expressed confidence across all segments despite fourth-quarter challenges. The company implemented price increases and cost-reduction initiatives during the quarter that are expected to support improved financial results in 2026.
Segment-wise, in the Residential segment, Gibraltar continued to gain market participation in building accessories, partially offsetting slower industry demand caused by channel inventory rightsizing and delayed price realization. Mail and Package volumes were pressured by weak single- and multi-family construction starts, though order trends improved late in December. Metal roofing delivered a solid performance during the quarter.
The Agtech segment saw large project volumes shift out of 2025, weighing on reported revenues, but bookings remained strong and the backlog more than tripled year over year, positioning the segment for a stronger 2026. Lane Supply posted solid quarterly results, reinforcing underlying demand momentum.
The Infrastructure segment delivered quarterly revenue growth with strong margins, providing stability amid broader end-market softness.
Looking ahead, management emphasized improving fundamentals heading into 2026, including better-aligned residential channel inventories, a total backlog up more than 100% year over year and a cash balance exceeding $115 million. Price increases and cost-reduction actions implemented late in 2025 are expected to support profitability in 2026. The planned OmniMax acquisition remains on track to close in the first quarter of 2026, further strengthening Gibraltar’s building-accessories platform.
ROCK’s Share Price Performance
Gibraltar stock has gained 1.3% in the past month against the Zacks Building Products - Miscellaneous industry’s 4.4% growth. Near-term visibility remains challenged by ongoing sluggishness in single- and multi-family construction, which has weighed on Mail and Package volumes, as well as delays in controlled environment agriculture projects within the Agtech segment. Nevertheless, Gibraltar’s continued emphasis on portfolio optimization, business system conversions and disciplined strategic acquisitions is expected to support growth over the coming periods.
Image Source: Zacks Investment Research
ROCK’s Zacks Rank & Key Picks
Currently, Gibraltar has a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Construction sector are:
Argan, Inc. (AGX - Free Report) flaunts a Zacks Rank of 1 (Strong Buy) at present. The company delivered a trailing four-quarter earnings surprise of 22.4%, on average. Argan stock has surged 85.7% in the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Argan’s fiscal 2026 sales and EPS indicates growth of 7.2% and 34.3%, respectively, from the year-ago period’s levels.
Frontdoor, Inc. (FTDR - Free Report) presently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 59.4%, on average. FTDR stock has gained 4.3% in the past six months.
The Zacks Consensus Estimate for Frontdoor’s fiscal 2026 sales and EPS indicates growth of 5.2% and 1.7%, respectively, from the year-ago period’s levels.
Quanta Services, Inc. (PWR - Free Report) has a Zacks Rank of 2 at present. The company delivered a trailing four-quarter earnings surprise of 5.8%, on average. Quanta stock has increased 16.9% in the past six months.
The Zacks Consensus Estimate for Quanta’s 2026 sales and EPS indicates growth of 11.4% and 17.2%, respectively, from the prior-year levels.