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    ROCK
    Earnings call· Jun 2026(Q2 FY26)

    GIBRALTAR INDUSTRIES Q2 FY26 earnings call ROCK

    Aug 5, 2026 Source

    Executive summary

    Gibraltar Industries Q2 FY26 — Strong Residential Growth and OmniMax Integration Progress

    Gibraltar delivered solid Q2 FY26 results, marked by robust organic growth in its residential and AgTech segments, and sequential margin expansion across all businesses. The company made significant strides in integrating OmniMax, raising its synergy targets and securing a major customer win. Despite a challenging residential market and ongoing inflationary pressures, Gibraltar remains focused on execution, deleveraging, and strategic growth initiatives.

    Highlights

    5

    • Residential business delivered strong organic growth of 5% in a flat to down market.

    • All segments achieved sequential margin expansion, with Residential adjusted EBITDA margin improving 340 basis points sequentially to 19%.

    • OmniMax integration accelerated, leading to a raised synergy commitment of $29.4 million for FY26, with $7 million realized to date.

    • Secured a significant customer win, adding 630 locations and expanding trims and flashings supply to over 1,700 locations nationally.

    • AgTech segment grew 8.7% organically, driven by strength in structures and commercial greenhouse applications.

    Concerns

    4

    • Residential end market demand was down mid-single digits in Q2 and is expected to remain slow for the rest of the year.

    • Net debt stood at $1.2 billion with net leverage at 3.9x adjusted EBITDA, requiring a focused deleveraging roadmap.

    • Adjusted EPS of $1.11 included a significant net interest impact of $20.6 million.

    • AgTech backlog decreased 34% year-over-year to $66.2 million due to project timing.

    Guidance & targets

    14
    CategoryTargetConfidence
    Consolidated Net Sales
    $1.76B-$1.83B
    high materiality
    High
    Adjusted Operating Income
    $222M-$238M
    high materiality
    High
    Adjusted EBITDA
    $310M-$315M
    high materiality
    High
    GAAP EPS
    $2.40-$2.80
    medium materiality
    High
    Adjusted EPS
    $3.65-$4.05
    high materiality
    High
    Free Cash Flow
    approximately 8% of sales
    medium materiality
    High
    Net Leverage Ratio
    approximately 2.5 times adjusted EBITDA
    high materiality
    High
    Capital Expenditures as % of Sales
    2% to 3%
    medium materiality
    High
    Capital Expenditures as % of Sales
    approximately 2%
    medium materiality
    High
    Special Charges
    approximately $50M
    medium materiality
    High
    Interest Expense, Financing and Commitment Fees
    over $70M
    medium materiality
    High
    Tax Rate
    26%
    low materiality
    High
    OmniMax Synergy Commitment
    $29.4M executed
    high materiality
    High
    OmniMax Synergy Realization
    $17M realized
    high materiality
    High

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    Residential
    Strong growth driven by OmniMax acquisition and organic gains from price realization and participation wins, outperforming a flat to down end market. Sequential margin expansion due to executed price actions offsetting inflation.
    Organic growth: 5%Combined building products organic growth (assuming OmniMax owned in Q2 2025): 15.5%Adjusted EBITDA margin sequential improvement: 340 bpsRevenue contribution from OmniMax: $182MRevenue contribution from metal roofing acquisition: $2.5MSales to wholesalers growth: 25.1%Sales to retailers growth: 8%Northeast sales growth: 43.6%Midwest sales growth: 54.5%Southwest sales growth: 17.5%West sales growth: 1.7%Southeast sales decline: 11.1%
    		$425.9M85%—19%
    AgTech
    Growth driven by strength in structures and commercial greenhouse applications. Backlog decreased due to project timing, but quoting activity is strong. Margin improvement from stronger volumes, favorable business mix, and 80-20 initiatives.
    Backlog: $66.2MBacklog decrease YoY: 34%Adjusted operating margin improvement YoY: 450 bpsAdjusted EBITDA margin improvement YoY: 430 bps
    		—8.7%——
    Infrastructure
    Sales decreased slightly due to project timing. Backlog grew, and quoting activity remains strong. Margins impacted by lower volume and product mix.
    Backlog growth: 2%
    		————

    Operational metrics

    32
    Total Net Sales
    $510Mup 64.6% YoY
    Q2 FY26

    Includes a full quarter of OmniMax.

    Adjusted Operating Income
    $66M
    Q2 FY26
    Adjusted EBITDA
    $88Mup 59.7% YoY
    Q2 FY26
    Adjusted EBITDA Margin
    17.3%expanded 350 bps sequentially
    Q2 FY26

    Expanded sequentially due to price actions, participation wins, and synergy execution, despite slow residential market and inflationary headwinds.

    Adjusted EPS
    $1.11
    Q2 FY26
    OmniMax Acquisition, Integration, Restructuring Cost
    $0.15
    Q2 FY26

    Included in GAAP results.

    Cash Use from Discontinued Operations
    $40.8M
    Q2 FY26

    Includes payment of a settlement agreement regarding warranty claims.

    Working Capital Impact
    $8M
    Q2 FY26

    Used for working capital.

    Capital Expenditures
    $5M
    Q2 FY26
    Borrowing on Revolver
    $21M
    Q2 FY26

    At quarter end.

    Cash on Hand
    $15,000
    Q2 FY26

    At quarter end.

    Net Debt
    $1.2B
    Q2 FY26

    On the balance sheet at quarter end.

    Net Leverage Ratio
    3.9x
    Q2 FY26

    At quarter end.

    Availability on Revolving Credit Facility
    $470M
    Q2 FY26
    Total Available Liquidity
    $485M
    Q2 FY26
    Special Charges
    $6M
    Q2 FY26
    Special Charges
    $41M
    YTD FY26

    Related to acquisition, transaction, integration, and restructuring costs.

    Total Depreciation, Amortization, Stock Compensation Expense
    $90M
    FY26

    Key assumption in 2026 plan.

    Residential Revenue as % of Total Revenue
    83%
    Q2 FY26

    Reflects residential business becoming a larger part of the overall portfolio.

    OmniMax Synergy Logistics Freight Initiative
    $1.2M
    Annual

    Identified additional synergy.

    OmniMax Synergy Participation Gain
    $2M
    Annual

    Identified additional synergy from large participation gain.

    OmniMax Synergy Realization
    $7M
    YTD FY26

    Expected to ramp further in Q3.

    OmniMax Integration Days Post Transaction Close
    149
    Q2 FY26

    At the end of Q2.

    Targeted 2026 Projects Exit Rate Organization Savings Implemented
    65% to 70%
    Q2 FY26

    Implemented as part of organizational realignment.

    On-Time Delivery Target
    95%+
    Ongoing

    Benchmark level for service reliability.

    Residential Market Demand
    down mid-single digitsYoY
    Q2 FY26

    Expected to remain so for the rest of the year.

    ARMA Shingle Shipments
    flatYoY
    Q2 FY26

    Driven by restocking and pre-buying ahead of price increases.

    ARMA Shingle Shipments
    down 4.7%YoY
    H1 FY26
    Retail Channel Point of Sale Results
    down 8% to 10%YoY
    Q2 FY26

    Volume remains soft due to consumer sentiment, interest rates, and affordability concerns.

    Retail Channel Point of Sale Results
    down 8% to 10%YoY
    H1 FY26
    Combined Building Products Organic Growth
    15.5%
    Q2 FY26

    Assuming OmniMax was owned in Q2 2025.

    SKU Reduction Target
    20% to 40%
    Future

    Part of 80-20 initiatives to simplify product portfolio and lower cost of doing business.

    Industry KPIs

    1
    MetricValueDetails
    Price cost9.7%%

    Orderbook & backlog

    2
    AgTech Backlog$66.2MQ2 FY26

    down 34% YoY

    Reflects timing of projects in the second half compared to last year. Lane supply orders turn much more quickly and are of shorter duration.

    Infrastructure BacklognullQ2 FY26

    grew 2%

    Deals & partnerships

    3
    OmniMax InternationalAcquisition of a building products company, contributing to residential segment growth.

    Closed on February 2, 2026. Q2 FY26 is the first full quarter of operations.

    nullDivestiture of non-core renewable energy businesses.

    Completed divestiture of the renewables business, including the eBoss sale in Q1 and the Racking Business sale in July.

    one of our key customersSupply agreement for trims and flashings to over 1,700 locations across the country.

    The win was attributed to the combined Gibraltar and OmniMax product portfolio and value proposition focused on local capability, logistics optimization, and simplified transactions.

    Capital programs

    1
    Powder Coating Painting Capabilityonline

    Benefit: drive additional cost productivity controlled environment agriculture projects, particularly for berries and lettuce

    Excited to bring online.

    Risks & headwinds

    6
    Slow residential marketExpected to remain slow for the rest of the year.

    End market demand down mid-single digits in Q2 FY26.

    Mitigation: Executing price actions, generating participation wins, executing synergy initiatives, focusing on local and national growth initiatives.

    Ongoing inflationary environmentOngoing

    Ongoing commodity and fuel inflation, impacting price-cost alignment.

    Mitigation: Executing price actions with customers to offset incremental costs; continuous focus on managing commodity and fuel costs.

    Dynamic geopolitical situation impacting consumer sentimentOngoing

    Retail channel POS results down 8-10% in Q2 FY26 due to consumer concerns.

    Mitigation: Focus on execution, integration, synergy capture, and participation gains to outperform the market.

    High interest rates and overall affordability concernsOngoing

    Contributes to soft retail channel volume (POS down 8-10%).

    Mitigation: Focus on execution, integration, synergy capture, and participation gains to outperform the market.

    AgTech backlog decreaseQ2 FY26

    Backlog decreased 34% YoY to $66.2M.

    Mitigation: Strong quoting activity across end markets, focus on building backlog and executing existing contracts.

    Timing of projects impacting Infrastructure segment sales and marginsQ2 FY26

    Segment sales decreased slightly, adjusted operating and EBITDA margins impacted by lower volume and product mix.

    Mitigation: Strong quoting activity, focus on building backlog and executing existing contracts.

    What to watch in Q3 FY26

    5

    OmniMax Synergy Realization

    Q3 FY26
    Current$7M realized YTD FY26
    TargetCadence of remaining $10M of $17M FY26 target

    Why it matters

    Verifies the pace and effectiveness of OmniMax integration and synergy capture, directly impacting profitability.

    As a result, we are again raising our synergy commitment, now expecting $29.4 million executed in 2026 with $17 million to be realized in 2026. As well, $7 million of synergy commitment has been realized to date, which will ramp further in Q3.

    Q&A highlights

    8

    Where are the participation gains coming from (product, geography, cross-selling) and how sustainable are they for the back half of the year?

    Gains are driven by strong team execution, value proposition, and geographic focus (Northeast, Midwest, Texas, where storm activity occurred). Cross-selling and 80-20 product rationalization are also contributing. The 'ground game' will continue, and there's more opportunity despite a non-robust market.

    “The market's not robust right now, so your value proposition has to be of value for a customer, and they're unique to each customer, as you might expect.”

    asked by Daniel Moore · answered by William Bosway

    2 min read6 chapters

    Detailed Narrative

    01

    OmniMax Integration and Synergy Acceleration

    Gibraltar is rapidly integrating OmniMax, completing Phase 2 of organizational optimization and executing 11 core workstreams. The company has identified additional synergies, raising its 2026 commitment to $29.4 million executed and $17 million realized, with $7 million already achieved. Focus areas include service reliability, lean initiatives, and commercial excellence, with 65-70% of targeted 2026 organizational savings already implemented.

    02

    Significant Customer Win in Residential

    The company secured a major supply agreement for trims and flashings, adding 630 locations to its service footprint and covering over 1,700 locations nationally for a key customer. This win, attributed to the combined Gibraltar and OmniMax product portfolio and a value proposition focused on local capability and logistics optimization, is expected to start impacting business late in Q4 2026 and significantly in 2027.

    03

    Residential Market Dynamics and Outperformance

    The residential end market was down mid-single digits in Q2 FY26, with varied regional performance (Northeast, Midwest, West up; Southeast, Southwest, Florida, Texas down). Despite this, Gibraltar's residential segment achieved 5% organic growth, outperforming the market through price realization and participation gains. The company expects the slow market conditions to persist through the second half of the year, with a consistent playbook focused on execution and participation opportunities.

    04

    AgTech Segment Growth and Backlog

    The AgTech segment delivered 8.7% organic net sales growth, driven by strength in structures and commercial greenhouse applications. While the backlog decreased 34% year-over-year to $66.2 million due to project timing, quoting activity remains strong across end markets. The segment also brought online a new powder coating painting capability to drive cost productivity in controlled environment agriculture projects.

    05

    Deleveraging Roadmap and Capital Allocation

    Gibraltar is prioritizing debt reduction, targeting a net leverage ratio of approximately 2.5x adjusted EBITDA by Q1 2028, down from 3.9x at Q2 FY26. The deleveraging plan relies on strong EBITDA delivery, synergy realization, working capital optimization, and cash tax benefits. Capital allocation will focus on funding business growth through capex (2-3% of sales) and debt reduction, with potential non-core asset divestitures for additional liquidity.

    06

    80-20 Initiatives and Product Harmonization

    The company is initiating 80-20 efforts in two regions, focusing on product and SKU harmonization, operations optimization, and transaction reduction. These initiatives, led by a new VP of engineering innovation, aim to simplify the product portfolio, reduce SKUs by 20-40%, and lower the cost of doing business for customers. Implementation is slated to begin late Q4 2026 and early 2027, following extensive prep work.

    AI-generated summary of the company’s earnings call. Not investment advice.