Gibraltar Industries (NASDAQ:ROCK) reported fourth-quarter fiscal 2025 results that management said were in line with its previously announced ranges, while outlining an integration plan and 2026 outlook following the February close of the OmniMax International acquisition.
Fourth-quarter performance and full-year 2025 results
Chairman, President and CEO Bill Bosway said Gibraltar delivered 17% adjusted net sales growth in the fourth quarter, driven by its metal roofing operations and “structured acquisitions.” Those gains were partially offset by a soft residential end market, channel inventory rightsizing, and timing around price-cost alignment actions in the building accessories business. Bosway added that lower new construction starts weighed on the mail and package business, and that some AgTech project volume shifted into 2026.
For the full year, management reported 12% adjusted net sales growth to $1.14 billion, with adjusted operating and EBITDA margins of 13.3% and 16.3%, respectively. Adjusted EPS was $3.92. Operating cash flow was $137 million for the year, and the company ended fiscal 2025 with $116 million in cash and free cash flow of 8% of sales.
Segment detail: Residential, AgTech and Infrastructure
Chief Financial Officer Joe Lovechio said the Residential segment’s adjusted net sales increased $15 million, or 8.9%, driven by Gibraltar’s acquired metal roofing businesses. However, he noted total segment organic growth declined 4% as core end markets softened and channels reduced inventory.
Within Residential, Lovechio said the buildings ex-accessories business was down 2.7% amid a soft market and channel inventory rightsizing, while the mail and package business declined due to slower single- and multifamily construction starts. Residential profitability also fell, with adjusted operating and EBITDA margins decreasing 320 and 280 basis points, respectively, due to cost deleveraging on lower volumes, mix, timing of price-cost actions, and integration investments across the metal roofing businesses.
Lovechio said the U.S. residential roofing market was “softer than expected” in the second half of fiscal 2025 and experienced a “further downshift” in the fourth quarter, citing affordability pressures, interest rates, and fewer weather events relative to 2024. He added that customers continued to manage inventory tightly and that a late January/early February snowstorm contributed to inconsistent demand patterns early in the first quarter of 2026. Lovechio also commented that Gibraltar did not expect an incremental impact from a recent IEEPA tariff ruling because its core commodities, steel and aluminum, are governed by Section 232 and 301 tariffs.
In AgTech, Lovechio reported net sales growth of approximately $20 million, or 46.6%, driven by the Lane Supply acquisition, which he said was performing as expected. Organic volume declined, while total backlog increased 239% at quarter end, with organic backlog up 187%. AgTech margins declined year over year, which Lovechio attributed to lower organic volume and a prior-year benefit from a past-due customer payment of about $2 million.
Infrastructure net sales rose $4.4 million, or 24.3%, while backlog decreased 4% due to timing of project awards. Lovechio said quoting and bid activity remained strong, and that margin expansion reflected 80/20 initiatives, volume and mix, and the ramp-up of a new steel shape supplier.
Portfolio changes and balance sheet
Management emphasized that the company’s reporting and guidance focus on continuing operations, excluding the renewables business that was classified as held for sale and discontinued operations, as well as the previously sold residential electronic locker business.
Bosway said Gibraltar completed the sale of TerraSmart’s eBOS business for $70 million on February 20, 2026, and that the sale process for the renewables racking and foundations business was ongoing, with completion anticipated in early Q2. Proceeds from both transactions are expected to be applied to debt reduction.
As of December 31, Lovechio said Gibraltar had about $116 million of cash on hand and $394 million available on its revolver. The company did not repurchase shares in the fourth quarter.
OmniMax acquisition: integration plan and synergy targets
Bosway called the OmniMax acquisition a strategic acceleration that will make Residential more than 80% of Gibraltar’s total business in 2026. He cited four pillars supporting the deal, including OmniMax’s position in roofing accessories and rainwater management, increased scale and geographic reach, a complementary footprint and product offering, and synergy opportunities.
He said the combined company serves more than 70% of the top 80 U.S. MSAs and operates across 39 locations. Bosway described early integration actions focused on stabilizing the organization and establishing governance through OmniMax’s existing integration management office (IMO). He said the combined company has built 20 workstreams and is tracking daily order entry, shipments, and delivery performance across the network.
On synergies, Bosway said the initial 2026 run-rate target of $20 million (focused on cost synergies) was increased to $24 million, now including commercial synergies such as cross-selling that are expected to arrive earlier than anticipated. However, logistics initiatives were moved to 2027 to align with product and SKU harmonization work. Of the $24 million planned for implementation in 2026, management expects “just over” $15 million to be realized in full-year EBITDA results, with the remaining $9 million carrying into 2027 due to timing.
2026 guidance, leverage and key assumptions
Lovechio said Gibraltar financed the OmniMax transaction with two equal-sized senior secured term loans totaling $1.3 billion, plus an upsized $500 million revolving credit facility, using proceeds and cash on hand to fund the acquisition and pay transaction-related fees. He said the company received ratings of Ba3 and BB- and noted covenant limits including a total net leverage ratio that steps down over time and a minimum interest coverage ratio of 3-to-1.
Management said its deleveraging priority is to reduce leverage quickly. After applying proceeds from the eBOS sale to debt paydown, Lovechio said Gibraltar expects to be below $1.1 billion of net debt at year-end 2026 and is targeting a leverage ratio of about 2.5x adjusted EBITDA within 24 months of close, or by the first quarter of 2028.
For 2026 planning, Lovechio said OmniMax generated reported 2025 revenue of about $518 million, and, adjusting for full-year acquisition effects and excluding special charges, about $566 million in revenue and approximately $109 million of adjusted EBITDA. He said Gibraltar expects a continued soft residential market in the first half with improvement in the second half, and noted the company removed the Arizona project from its AgTech plan due to ongoing funding delays.
Management also provided quarterly cadence expectations, including that adjusted EPS in Q1 would be less than 20% of the full-year total due to soft market conditions, only two months of OmniMax results based on the closing date, synergy ramp later in the year, and interest expense from elevated initial debt levels. Lovechio said roughly two-thirds of expected special charges are anticipated in Q1, and that free cash flow generation is expected to be limited in Q1 before ramping through the year.
Gibraltar’s 2026 guidance for continuing operations included:
- Net sales: $1.76 billion to $1.83 billion (vs. $1.14 billion in 2025), including an estimated $570 million revenue contribution from OmniMax and about 5% organic growth at the midpoint
- Adjusted operating margin: 12.6% to 13.0% (vs. 13.3% in 2025)
- Adjusted EBITDA margin: 17.6% to 17.8% (vs. 16.3% in 2025)
- GAAP EPS: $2.40 to $2.80 (vs. $3.25 in 2025), including special charges related to the acquisition, integration, and restructuring
- Adjusted EPS: $3.65 to $4.05 (vs. $3.92 in 2025)
- Free cash flow: approximately 8% of sales
Lovechio said the company expects approximately $50 million in special charges, more than $70 million in interest expense and related fees, and a 26% tax rate, along with about $90 million in depreciation, amortization and stock compensation expense, including an estimated $40 million of non-cash amortization tied to intangibles from the OmniMax acquisition.
Management said OmniMax is expected to be accretive to adjusted EPS in 2027, but slightly dilutive in 2026 by about $0.09 per share due to interest expense and fees, despite synergy contributions.
About Gibraltar Industries (NASDAQ:ROCK)
Gibraltar Industries, Inc (NASDAQ: ROCK) is a leading manufacturer of building products and infrastructure solutions for the residential, commercial, industrial and utility markets. The company designs, engineers and markets a broad portfolio of highly engineered products to reinforce structures, improve energy efficiency and enhance safety and durability. Gibraltar’s Building Products segment includes metal roofing, siding, ventilation and structural support systems for homes and light commercial facilities, while its Infrastructure Solutions segment supplies transmission and distribution hardware, storm response equipment and renewable energy supports to utility and civil markets.
In the Building Products segment, Gibraltar offers metal and composite solutions such as roof and siding panels, deck and solar shading supports, chimney and venting systems, railings and fencing.
