Q2 2024 Gibraltar Industries Inc Earnings Call

In This Article:

Participants

William Bosway; Chairman of the Board, President, Chief Executive Officer; Gibraltar Industries Inc

Timothy Heasley; Chief Financial Officer, Senior Vice President; Gibraltar Industries Inc

Carolyn Capaccio; Analyst; LHA Investor Relations

Dan Moore; Analyst; CJS Securities Inc

Unidentified Participant

Walt Liptak; Analyst; Seaport Research Partners

Presentation

Operator

Greetings, and welcome to the Gibraltar Industries second quarter 2024 financial results conference call. (Operator Instructions) As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Carolyn Capaccio of LHA. Thank you, Carolyn, you may begin.

Carolyn Capaccio

Thank you very much. Good morning, everyone, and thank you for joining us today. With me on the call is Bill Bosway, Gibraltar Industries Chairman, President and Chief Executive Officer; and Tim Murphy, Gibraltar's Chief Financial Officer.
The earnings press release that was issued this morning as well as a slide presentation that management will use during the call are both available in the Investors section of the company's website, gibraltarone.com. Gibraltar's earnings press release and remarks contain non-GAAP financial measures. Tables of reconciliation of GAAP to adjusted financial measures can be found in the earnings press release that was issued today.
Further, please note that adjusted results exclude the sales -- exclude the net sales and operating results of the Japan renewables business that was sold on December 1, 2023. Also, as noted on slide 2 of the presentation, the earnings press release and slide presentation contain forward-looking statements with respect to future financial results.
These statements are not guarantees of future performance and the company's actual results may differ materially from the anticipated events, performance or results expressed or implied by these forward-looking statements. Gibraltar advise you to read the risk factors detailed in its SEC filings, which can also be accessed through the company's website.
Now I'll turn it over the call to Bill Bosway. Bill?

William Bosway

Thanks, Carolyn, and good morning, everyone, and thank you for joining today's call. I'll start with an overview of second quarter results, and then Tim and I will take you through each of the segments, and we'll give you a financial and operating update and a closer look at what's happening now and each. Then I'll walk you through our 2024 outlook, and we'll open the call for questions.
So let's turn to slide 3 titled second quarter 2024 review. Our adjusted net sales were down 2%, driven mainly by market headwinds, impacting growth in our residential and renewables businesses in the quarter. The residential market experienced a slower end market and an unexpected channel destocking, which started really in late May and early June.
We offset some of this impact through some participation gains. And these gains actually are going to support us in our residential growth plan in the second half. Although adjusted net sales for renewables were up over 8% versus prior year. It was less than expected as some customers continue to have project delays related to ongoing trade and regulatory issues in the market.
Backlog for the quarter was down 4%, impacted mainly by the timing of project bookings in renewables and a challenging year-over-year comparison related to a large infrastructure projects signed in early '23 that was completed in the quarter. Infrastructure bookings improved during the quarter and backlog was up 3% sequentially, and our design and quoting activity remains very strong as well.
Our AgTech bookings surpassed $90 million in the quarter, driving backlog up 32%, and this supports strong revenue growth in the second half. We increased adjusted net income 2.8% and adjusted EPS 2.6%, while generating $36 million in operating cash flow. We continue to work toward achieving growth for the year in all four segments as well as drive additional 80 20 and productivity initiatives continue to execute our digital transformation plan and strengthen organization.
Now let's dig into the segments, Tim.