Gibraltar Industries Reports 13.1% Sales Increase in Q2 2025, Strategic Acquisitions Drive Growth

Gibraltar Industries, Inc. reported its financial results for the second quarter of 2025, revealing a net sales increase of 13.1% to $309.5 million, compared to $273.6 million in the same period last year. The company's gross profit for the quarter was $87.8 million, resulting in a gross margin of 28.4%, down from 30.5% in the prior year. Operating income decreased slightly to $39.5 million, reflecting a decline in operating margin from 14.9% to 12.8%. Net income for the quarter was $26.0 million, or $0.87 per diluted share, compared to $32.2 million, or $1.05 per diluted share, in the previous year.

The company experienced significant changes in its financial performance compared to the previous fiscal period. While net sales increased, the gross margin decline was attributed to a less favorable product mix. Selling, general, and administrative expenses rose by 13.7% to $48.3 million, primarily due to costs associated with recent acquisitions. The company also reported a loss from discontinued operations of $3.4 million, compared to a profit of $1.2 million in the prior year, as it committed to selling its Renewables business, marking a strategic shift in focus towards its Residential, Agtech, and Infrastructure segments.

Gibraltar Industries has made strategic moves to enhance its market position, including the acquisition of three businesses in 2025, which contributed approximately $65.3 million in net sales. The company acquired Lane Supply for $118 million, which operates in the Agtech segment, and two metal roofing manufacturers for a combined $90 million, both of which are now part of the Residential segment. These acquisitions are expected to bolster the company's capabilities and market share in their respective sectors.

Operationally, Gibraltar Industries reported a consolidated backlog increase of 43% to $278 million, indicating strong future demand. The Residential segment saw a 7.5% increase in sales to $230.3 million, driven by the recent acquisitions, while the Agtech segment's sales surged by 56.8% to $54.1 million, largely due to the Lane Supply acquisition. However, organic sales in the Agtech segment decreased by 28.3%, reflecting delays in project starts. The Infrastructure segment's sales remained relatively stable at $25.2 million.

Looking ahead, Gibraltar Industries remains focused on optimizing its business portfolio and enhancing operational efficiencies. The company has authorized a new share repurchase program of up to $200 million, which will run until April 2028. Despite the challenges posed by macroeconomic conditions, including potential tariffs on raw materials, the company is committed to leveraging its acquisitions and improving its market position to drive sustainable growth and shareholder value.