Gibraltar Industries, Inc. Small-Cap Virtual Conference

Yeah, absolutely. Thanks, Julio. Thanks, everyone, for joining us. Yeah, just quickly, Julio kind of mentioned it, we're really a company focused in three markets. We are in the process of transforming the business, simplifying the business, with a lot of emphasis towards building products. That kind of led us to a recent divestiture of our renewables business, which was really two different transactions. Second one we finished up in July this year. Subsequent to the first sale of renewables, we also announced the acquisition back in November of 2025 of a company called OmniMax. That deal closed February 2nd, and we've been steadfast, working very hard on integrating the two leaders in this space since that time, and so we're about six and a half, seven months into heavy integration and structuring of the business going forward.

If you think of the portfolio today, as we exited the second quarter, a little over 80%, 83% was building products of our revenue, and then the rest was represented by agtech, and then our smaller piece is really infrastructure. We've been pretty open with the Street and transparent with folks about our transformation process, our intent to continue to simplify, which we will do. Not just think about the portfolio, which we get asked a lot about, and we've addressed many times, but also within the businesses, there's a lot of effort going on to simplify and structure the business to skate to where the puck's going to be, so to speak. So we've been very active, being our own activist, if you will, relative to getting ready for how to create even more value in the space that we're in.

We're doing that in a relatively challenging market in the building product space, I think as many of you know. As I said early on in this process, regardless of the market, we're going to do the hard work, the heavy lifting. That's what 2026 is all about, to get ourselves in a position where we're much stronger in January of 2027 than either of us were, OmniMax or Gibraltar, coming into 2026. We're doing that through accelerating a lot of our synergy opportunities. We're doing that through getting the right organization in place, the right structure, and we've got quite a bit done. We got quite a bit more to do, as we finish up the year and get ready for next year.

The other thing we get asked a lot about, I'm sure it may be on your mind as well, is our view of the market and what's going to happen not just in the second half, what's going to happen next year, and I'll just revert back to what we said at the end of Q2. We felt like the market was down 5% or 6% from an end market demand perspective. We said at that time, we expect that to continue into the second half. We didn't change our guide, kept it relatively wide because of, frankly, the unknowns of the macro basis, which has kind of proven out to be continuous from what we saw the first half of the year. But really trying to use our participation gains to offset some of that market degradation, while continuing to do our integration work and our structural work.

We'll see how things evolve going forward. I don't anticipate much change in the market for the rest of this year. You got midterms coming up. I think everyone's aware of what's happening day in, day out. As we get into 2027, the other question we get is: How do you think about the market then, and how are you preparing for that? What I'll tell you is in our philosophy, particularly even coming into this year, is when you think about challenging your paradigms around how to run this business and get ready for the future, that doesn't change for us, meaning that we'll ask our teams to plan on no market volume help, yet you have to deliver incremental margin performance.

We do that regardless whether the market's growing or not, because that's what really forces you to think differently about how you run your business. So we'll do a couple scenarios around flat market, down market, and then we'll have some incremental growth based on participation gains. But we'll focus on making sure that we're executing well in a flat or down market. Anything incremental that comes above that obviously converts at a higher rate because you're going to drive your margin off of fundamental cost structural things that you want to get done. That's really where the effort has been in 2026.

It's not about, "Boy, if I had more volume, I'd get more cost reduction." This is literally about taking costs out of how we run the business that is not volume dependent to start with, and then when the volume comes, obviously you want to convert on that. We've kicked that off. We started that process a couple weeks ago. Over the next two or three months, we'll iterate and finalize what we think is going to be the market. From that, we'll drive our plan as we did going into this year. I'm excited about how much stronger we'll be as we finish this year with all the work that's been done.

I will tell you, we are not done with how we're going to work the business, but also how we'll continue to simplify, as I said right up front, the portfolio, which we've been pretty open to everyone about our intent to get more and more focused on building products. Yeah, it's been busy and we're going to remain busy. I like where we are and like the market to be a little bit better, but I can't control that. We're going to focus on the things that we can and we're going to stick with our plan. I'll stop there, Julio, and I'm sure people want to dig in a little deeper on some of these things, but I'll let you take it from there, ask any questions you might have.

Yeah. I don't know if the market's changed dramatically. If you think about it being down versus last year, 5% or 6%, that's what we expected going in. I think, and I know you guys may not watch The Weather Channel like I do every day, but this El Niño effect is interesting in terms of what it's been doing and where some of that activity has been, and it has a twofold impact. You have things that drive damage that has to be repaired, obviously. But when you get a lot of continuous weather pattern around wet weather in particular, it keeps contractors off the roof. Someone asked me earlier today, does that change the seasonality this year, or does people buying ahead change the seasonality this year?

I would suggest, yeah, a little bit on the how do you get on the roof and get work done when you have a ton of rain. Now look at the northeast, going to have this nor'easter hit today or tomorrow, whenever. It's going to have a ton of rain and flooding and all that. People aren't going to be out working in that. But we've got unique weather patterns this year because of this El Niño thing. We're not going to see probably a hurricane hit the continental U.S. this year, and not that we hope for that, but those are things that do impact the business at some point in time. But I would say, it's similar to what we had thought. I do think there's been some interesting weather patterns. It may move some business into a later season or earlier.

If it stays warmer longer like is projected, that could create a later season than normal. So you might have a little bit of that nuance this year. We've seen that in the past, but I'd say overall in demand hasn't really changed a whole lot from what we saw, which we didn't think was overly robust in Q2. From an integration perspective, if anything, we're pushing ourselves to accelerate. If you think that what I just described in the market is what it is and it moves into 2027, then we need to pull forward some things that maybe we planned for later, and we're going to get those done a little bit sooner. So we are going to push ourselves to do some more structural things that we may have earmarked for Q1, Q2, and try to get those done sooner than later.