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Gibraltar Industries (ROCK) Down 9.9% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for Gibraltar Industries (ROCK - Free Report) . Shares have lost about 9.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Gibraltar Industries due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
ROCK Q2 Earnings and Revenues Beat as OmniMax Lifts Sales
Gibraltar delivered second-quarter 2026 adjusted earnings of $1.11 per share, down 1.8% year over year. The figure beat the Zacks Consensus Estimate of $1.02 by 8.8%, as price management and participation gains offset commodity and fuel inflation.
Net sales climbed 64.6% to $509.5 million and topped the consensus mark of $474 million by 7.5%, driven mainly by the OmniMax acquisition and 5% organic growth. Agtech backlog was $66.2 million, down 34% year over year because of later project timing.
ROCK's Residential Sales Surge on Acquisitions
Residential net sales jumped 84.9% year over year to $425.9 million. OmniMax and metal roofing acquisitions contributed $184 million, partly offset by slowness in mail and package products.
Building Products organic revenues increased 12.7%. On a pro forma basis assuming Gibraltar owned OmniMax in the second quarter of 2025, the combined business grew 15.5%. Price/mix and participation gains in the Midwest, Northeast and Texas helped more than offset a flat-to-down end market.
Adjusted operating margin fell 460 basis points (bps) to 14.9%, while adjusted EBITDA margin contracted 220 bps to 19%. However, the latter improved 340 bps sequentially as price actions and early cost and commercial synergies began contributing.
ROCK's Agtech Growth Expands Margins
Agtech sales rose 8.7% to $58.8 million, supported by strength in structures and commercial greenhouse applications. Strong quoting activity continued across end markets.
Adjusted operating margin expanded 450 bps to 10.1%, while adjusted EBITDA margin improved 430 bps to 13.8%. Higher volume, favorable business mix and 80/20 operating initiatives drove the margin gains.
Gibraltar's Infrastructure Faces Project Timing
Infrastructure net sales slipped 1.2% to $24.9 million as customer project timing reduced sales by roughly $0.3 million. Order backlog increased 2%, while engineering bid and quoting activity remained strong.
Adjusted operating margin decreased 460 bps to 23.5%. Adjusted EBITDA margin fell 580 basis points to 25.4%, reflecting lower volume and product mix.
ROCK's Profitability and Cash Flow Picture
Adjusted EBITDA increased 59.7% year over year to $88 million, while the adjusted EBITDA margin slipped to 17.3% from 17.8%. The adjusted operating margin was 13%, down from 14.5% a year earlier.
Gross margin narrowed to 25.9% from 28.4%, reflecting business and product mix, unfavorable price/material cost alignment and integration activities. SG&A expenses rose 49.5% to $72.3 million, though they declined to 14.2% of sales from 15.6%.
Interest expense increased to $21 million from $0.4 million, primarily due to debt issued to fund OmniMax. Continuing operations generated $44.5 million of operating cash flow, while free cash flow was $39.4 million, or 7.7% of sales. Quarter-end net debt stood at $1.203 billion, with $470.3 million of revolver availability.
The deleveraging roadmap targets net debt-to-adjusted EBITDA of about 2.5 times within 24 months, supported by free cash flow and further synergy realization.
Gibraltar Reiterates 2026 Outlook
Gibraltar reiterated 2026 net sales guidance of $1.76-$1.83 billion and adjusted EBITDA guidance of $310-$326 million. The company expects an adjusted EBITDA margin of 17.6-17.8%. Adjusted earnings are still projected at $3.65-$4.05 per share, while earnings are expected at $2.40-$2.80. Free cash flow is targeted at roughly 8% of sales, with capital expenditures projected at 2-3% of sales.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a flat trend in estimates revision.
VGM Scores
Currently, Gibraltar Industries has a poor Growth Score of F, a score with the same score on the momentum front. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Gibraltar Industries has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
View the Zacks #1 Rank List
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Gibraltar Industries (ROCK) Down 9.9% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Gibraltar Industries (ROCK - Free Report) . Shares have lost about 9.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Gibraltar Industries due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
ROCK Q2 Earnings and Revenues Beat as OmniMax Lifts Sales
Gibraltar delivered second-quarter 2026 adjusted earnings of $1.11 per share, down 1.8% year over year. The figure beat the Zacks Consensus Estimate of $1.02 by 8.8%, as price management and participation gains offset commodity and fuel inflation.
Net sales climbed 64.6% to $509.5 million and topped the consensus mark of $474 million by 7.5%, driven mainly by the OmniMax acquisition and 5% organic growth. Agtech backlog was $66.2 million, down 34% year over year because of later project timing.
ROCK's Residential Sales Surge on Acquisitions
Residential net sales jumped 84.9% year over year to $425.9 million. OmniMax and metal roofing acquisitions contributed $184 million, partly offset by slowness in mail and package products.
Building Products organic revenues increased 12.7%. On a pro forma basis assuming Gibraltar owned OmniMax in the second quarter of 2025, the combined business grew 15.5%. Price/mix and participation gains in the Midwest, Northeast and Texas helped more than offset a flat-to-down end market.
Adjusted operating margin fell 460 basis points (bps) to 14.9%, while adjusted EBITDA margin contracted 220 bps to 19%. However, the latter improved 340 bps sequentially as price actions and early cost and commercial synergies began contributing.
ROCK's Agtech Growth Expands Margins
Agtech sales rose 8.7% to $58.8 million, supported by strength in structures and commercial greenhouse applications. Strong quoting activity continued across end markets.
Adjusted operating margin expanded 450 bps to 10.1%, while adjusted EBITDA margin improved 430 bps to 13.8%. Higher volume, favorable business mix and 80/20 operating initiatives drove the margin gains.
Gibraltar's Infrastructure Faces Project Timing
Infrastructure net sales slipped 1.2% to $24.9 million as customer project timing reduced sales by roughly $0.3 million. Order backlog increased 2%, while engineering bid and quoting activity remained strong.
Adjusted operating margin decreased 460 bps to 23.5%. Adjusted EBITDA margin fell 580 basis points to 25.4%, reflecting lower volume and product mix.
ROCK's Profitability and Cash Flow Picture
Adjusted EBITDA increased 59.7% year over year to $88 million, while the adjusted EBITDA margin slipped to 17.3% from 17.8%. The adjusted operating margin was 13%, down from 14.5% a year earlier.
Gross margin narrowed to 25.9% from 28.4%, reflecting business and product mix, unfavorable price/material cost alignment and integration activities. SG&A expenses rose 49.5% to $72.3 million, though they declined to 14.2% of sales from 15.6%.
Interest expense increased to $21 million from $0.4 million, primarily due to debt issued to fund OmniMax. Continuing operations generated $44.5 million of operating cash flow, while free cash flow was $39.4 million, or 7.7% of sales. Quarter-end net debt stood at $1.203 billion, with $470.3 million of revolver availability.
The deleveraging roadmap targets net debt-to-adjusted EBITDA of about 2.5 times within 24 months, supported by free cash flow and further synergy realization.
Gibraltar Reiterates 2026 Outlook
Gibraltar reiterated 2026 net sales guidance of $1.76-$1.83 billion and adjusted EBITDA guidance of $310-$326 million. The company expects an adjusted EBITDA margin of 17.6-17.8%. Adjusted earnings are still projected at $3.65-$4.05 per share, while earnings are expected at $2.40-$2.80. Free cash flow is targeted at roughly 8% of sales, with capital expenditures projected at 2-3% of sales.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a flat trend in estimates revision.
VGM Scores
Currently, Gibraltar Industries has a poor Growth Score of F, a score with the same score on the momentum front. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Gibraltar Industries has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.