Gibraltar Sales Accelerate as OmniMax Lifts Residential Business
Second-quarter net sales reached $509.5 million as OmniMax contributed for a full period.
Gibraltar Industries (ROCK), a manufacturer serving residential, agtech and infrastructure markets, swung to a continuing-operations profit of $0.92 a share from a $0.40-a-share loss in the first quarter as acquisition expenses declined.
The quarter marked an acceleration in Gibraltar’s growth trajectory. Sales rose 64.6% from a year earlier and 43.0% sequentially, compared with year-over-year growth of 44.6% in the first quarter and 16.0% in the fourth quarter of 2024. Organic growth also turned positive at 5% after a slight first-quarter decline.
Adjusted earnings recovered to $1.11 a share from $0.45 in the first quarter and remained below the prior-year $1.13. The quarter absorbed a $20.6 million interest-expense impact following the OmniMax acquisition. Adjusted EBITDA rose 59.7% to $88.0 million, while its margin narrowed to 17.3% from 17.8% as revenue grew faster than earnings.
Residential drove the expansion, with sales rising 84.9% to $425.9 million and accounting for 83% of company revenue. Acquisitions contributed $184 million, and organic building-products revenue increased 12.7% after declining 3.8% in the first quarter. Price actions helped the segment’s adjusted EBITDA margin improve sequentially to 19.0% from 15.6%.
Agtech sales increased 8.7% to $58.8 million, and its adjusted EBITDA margin expanded 430 basis points to 13.8% on volume, mix and operating initiatives. Its backlog declined 34% to $66.2 million as projects shifted later in the year. Infrastructure sales fell 1.2%, with lower volume and product mix reducing its adjusted EBITDA margin by 580 basis points to 25.4%.
Gibraltar raised its OmniMax synergy commitment to $29.4 million from $26 million and increased the amount expected to be realized during 2026 to $17 million from $16 million. The company also won business covering 630 additional customer locations, expanding its trims-and-flashings supply footprint to more than 1,700 locations, with shipments scheduled to begin in the fourth quarter.
The company reiterated its full-year 2026 outlook, keeping the forecast unchanged despite a slow residential market and inflation in commodities and fuel, as well as geopolitical cost pressures.
Continuing-operations cash generation rebounded to $44.5 million after Gibraltar consumed cash in the first quarter, and free cash flow totaled $39.4 million. The OmniMax transaction left the company with $1.218 billion of long-term debt at June 30, compared with none at the end of 2024, making cash generation central to reducing the acquisition-funded leverage.