GIBRALTAR INDUSTRIES, INC. 10-Q

Item 1. Financial Statements GIBRALTAR INDUSTRIES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Net sales $ 310,939 $ 277,132 $ 866,813 $ 791,766 Cost of sales 228,193 195,748 626,379 554,967 Gross profit 82,746 81,384 240,434 236,799 Selling, general, and administrative expense 42,804 38,211 132,331 122,712 Operating income 39,942 43,173 108,103 114,087 Interest expense (income), net 2 ( 1,931 ) ( 1,281 ) ( 4,176 ) Other (income) expense, net ( 1,989 ) 402 ( 2,018 ) 236 Income before taxes from continuing operations 41,929 44,702 111,402 118,027 Provision for income taxes 8,724 10,890 25,644 30,277 Income from continuing operations 33,205 33,812 85,758 87,750 Discontinued operations: (Loss) income before taxes from discontinued operations ( 163,178 ) 772 ( 171,722 ) 4,571 (Benefit of) provision for income taxes ( 40,911 ) 545 ( 44,025 ) 1,138 (Loss) income from discontinued operations ( 122,267 ) 227 ( 127,697 ) 3,433 Net (loss) income $ ( 89,062 ) $ 34,039 $ ( 41,939 ) $ 91,183 Net earnings per share – Basic: Income from continuing operations $ 1.12 $ 1.11 $ 2.87 $ 2.87 (Loss) income from discontinued operations ( 4.11 ) — ( 4.27 ) 0.11 Net (loss) income $ ( 2.99 ) $ 1.11 $ ( 1.40 ) $ 2.98 Weighted average shares outstanding – Basic 29,736 30,530 29,925 30,564 Net earnings per share – Diluted: Income from continuing operations $ 1.11 $ 1.10 $ 2.85 $ 2.85 (Loss) income from discontinued operations ( 4.09 ) 0.01 ( 4.25 ) 0.11 Net (loss) income $ ( 2.98 ) $ 1.11 $ ( 1.40 ) $ 2.96 Weighted average shares outstanding – Diluted 29,863 30,750 30,038 30,788 See accompanying notes to consolidated financial statements. 3 Table of Contents GIBRALTAR INDUSTRIES, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (in thousands) (unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Net (loss) income $ ( 89,062 ) $ 34,039 $ ( 41,939 ) $ 91,183 Other comprehensive (loss) income: Foreign currency translation adjustment ( 765 ) 703 1,546 ( 679 ) Total comprehensive (loss) income $ ( 89,827 ) $ 34,742 $ ( 40,393 ) $ 90,504 See accompanying notes to consolidated financial statements. 4 Table of Contents GIBRALTAR INDUSTRIES, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except per share data) September 30, 2025 December 31, 2024 (unaudited) Assets Current assets: Cash and cash equivalents $ 89,403 $ 269,480 Trade receivables, net of allowance of $ 2,394 and $ 1,793 , respectively 166,341 114,898 Costs in excess of billings, net 21,851 18,817 Inventories, net 121,562 93,271 Prepaid expenses and other current assets 55,322 22,326 Assets of discontinued operations 240,969 132,540 Total current assets 695,448 651,332 Property, plant, and equipment, net 125,631 87,079 Operating lease assets 57,432 41,558 Goodwill 403,475 323,189 Acquired intangibles 153,907 55,420 Other assets 1,900 1,936 Non-current assets of discontinued operations — 258,896 $ 1,437,793 $ 1,419,410 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 126,839 $ 90,705 Accrued expenses 152,893 65,905 Billings in excess of costs 13,746 14,769 Liabilities of discontinued operations 94,288 83,483 Total current liabilities 387,766 254,862 Deferred income taxes 19,910 49,006 Non-current operating lease liabilities 48,179 33,391 Other non-current liabilities 30,164 24,734 Non-current liabilities of discontinued operations — 9,383 Stockholders’ equity: Preferred stock, $ 0.01 par value; authorized 10,000 shares; none outstanding — — Common stock, $ 0.01 par value; authorized 100,000 shares; 34,476 and 34,313 shares issued and outstanding, respectively 345 343 Additional paid-in capital 351,914 343,583 Retained earnings 833,912 875,851 Accumulated other comprehensive loss ( 3,780 ) ( 5,326 ) Treasury stock, at cost; 4,933 and 3,960 shares, respectively ( 230,617 ) ( 166,417 ) Total stockholders’ equity 951,774 1,048,034 $ 1,437,793 $ 1,419,410 See accompanying notes to consolidated financial statements. 5 Table of Contents GIBRALTAR INDUSTRIES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Nine Months Ended September 30, 2025 2024 Cash Flows from Operating Activities Net (loss) income $ ( 41,939 ) $ 91,183 (Loss) income from discontinued operations ( 127,697 ) 3,433 Income from continuing operations 85,758 87,750 Adjustments to reconcile income from continuing operations to net cash provided by operating activities: Depreciation and amortization 23,101 14,185 Stock compensation expense 7,465 8,002 Provision for (benefit of) deferred income taxes 7 ( 615 ) Other, net 1,154 4,156 Changes in operating assets and liabilities net of effects from acquisitions: Trade receivables and costs in excess of billings ( 28,705 ) ( 33,709 ) Inventories ( 7,907 ) ( 2,607 ) Other current assets and other assets 4,979 746 Accounts payable 25,971 49,498 Accrued expenses and other non-current liabilities ( 6,443 ) 4,145 Net cash provided by operating activities of continuing operations 105,380 131,551 Net cash provided by operating activities of discontinued operations 26,168 22,784 Net cash provided by operating activities 131,548 154,335 Cash Flows from Investing Activities Acquisitions, net of cash acquired ( 210,455 ) — Purchases of property, plant, and equipment, net ( 37,176 ) ( 11,506 ) Net proceeds from sale of business 352 — Net cash used in investing activities of continuing operations ( 247,279 ) ( 11,506 ) Net cash used in investing activities of discontinued operations ( 1,015 ) ( 2,470 ) Net cash used in investing activities ( 248,294 ) ( 13,976 ) Cash Flows from Financing Activities Purchase of common stock at market prices ( 63,740 ) ( 10,940 ) Net proceeds from issuance of common stock 198 — Net cash used in financing activities ( 63,542 ) ( 10,940 ) Effect of exchange rate changes on cash 211 34 Net (decrease) increase in cash and cash equivalents ( 180,077 ) 129,453 Cash and cash equivalents at beginning of year 269,480 99,426 Cash and cash equivalents at end of period $ 89,403 $ 228,879 See accompanying notes to consolidated financial statements. 6 Table of Contents GIBRALTAR INDUSTRIES, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (in thousands) (unaudited) Common Stock Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock Total Stockholders’ Equity Shares Amount Shares Amount Balance at June 30, 2025 34,419 $ 344 $ 350,259 $ 922,974 $ ( 3,015 ) 4,913 $ ( 229,382 ) $ 1,041,180 Net loss — — — ( 89,062 ) — — — ( 89,062 ) Foreign currency translation adjustment — — — — ( 765 ) — — ( 765 ) Stock compensation expense — — 1,458 — — — — 1,458 Net settlement of restricted stock units 52 1 ( 1 ) — — 20 ( 1,241 ) ( 1,241 ) Stock options exercised 5 — 198 — — — — 198 Excise tax on repurchase of common stock — — — — — — 6 6 Balance at September 30, 2025 34,476 $ 345 $ 351,914 $ 833,912 $ ( 3,780 ) 4,933 $ ( 230,617 ) $ 951,774 Balance at June 30, 2024 34,274 $ 343 $ 338,978 $ 795,655 $ ( 3,496 ) 3,797 $ ( 155,809 ) $ 975,671 Net income — — — 34,039 — — — 34,039 Foreign currency translation adjustment — — — — 703 — — 703 Stock compensation expense — — 2,328 — — — — 2,328 Net settlement of restricted stock units 24 — — — — 8 ( 506 ) ( 506 ) Excise tax on repurchase of common stock — — — — — — ( 15 ) ( 15 ) Common stock repurchased under stock repurchase program — — — — — 139 ( 8,987 ) ( 8,987 ) Balance at September 30, 2024 34,298 $ 343 $ 341,306 $ 829,694 $ ( 2,793 ) 3,944 $ ( 165,317 ) $ 1,003,233 See accompanying notes to consolidated financial statements. 7 Table of Contents GIBRALTAR INDUSTRIES, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (in thousands) (unaudited) Common Stock Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock Total Stockholders’ Equity Shares Amount Shares Amount Balance at December 31, 2024 34,313 $ 343 $ 343,583 $ 875,851 $ ( 5,326 ) 3,960 $ ( 166,417 ) $ 1,048,034 Net loss — — — ( 41,939 ) — — — ( 41,939 ) Foreign currency translation adjustment — — — — 1,546 — — 1,546 Stock compensation expense — — 8,135 — — — — 8,135 Net settlement of restricted stock units 145 2 ( 2 ) — — 58 ( 3,715 ) ( 3,715 ) Awards of common stock 13 — — — — — — — Stock options exercised 5 — 198 — — — — 198 Excise tax on repurchase of common stock — — — — — — ( 485 ) ( 485 ) Common stock repurchased under stock repurchase program — — — — — 915 ( 60,000 ) ( 60,000 ) Balance at September 30, 2025 34,476 $ 345 $ 351,914 $ 833,912 $ ( 3,780 ) 4,933 $ ( 230,617 ) $ 951,774 Balance at December 31, 2023 34,219 $ 342 $ 332,621 $ 738,511 $ ( 2,114 ) 3,778 $ ( 154,362 ) $ 914,998 Net income — — — 91,183 — — — 91,183 Foreign currency translation adjustment — — — — ( 679 ) — — ( 679 ) Stock compensation expense — — 8,686 — — — — 8,686 Net settlement of restricted stock units 72 1 ( 1 ) — — 27 ( 1,953 ) ( 1,953 ) Awards of common stock 7 — — — — — — — Excise tax on repurchase of common stock — — — — — — ( 15 ) ( 15 ) Common stock repurchased under stock repurchase program — — — — — 139 ( 8,987 ) ( 8,987 ) Balance at September 30, 2024 34,298 $ 343 $ 341,306 $ 829,694 $ ( 2,793 ) 3,944 $ ( 165,317 ) $ 1,003,233 See accompanying notes to consolidated financial statements. 8 Table of Contents GIBRALTAR INDUSTRIES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) (1) BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements of Gibraltar Industries, Inc. (the "Company") have been prepared by management in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for the fair presentation of results for the interim period have been included. The Company's operations are seasonal; for this and other reasons financial results for any interim period are not necessarily indicative of the results expected for any subsequent interim period or for the full year. The accompanying unaudited consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the Company's annual report on Form 10-K for the year ended December 31, 2024. The consolidated balance sheet at December 31, 2024 has been derived from the audited financial statements at that date, but does not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. Discontinued Operations In June 2025, the Company committed to a plan to sell its Renewables business, which was the sole business in the Renewables segment, and represents a strategic shift that has a significant effect on the Company's operations and financial results, and as such, qualifies for reporting as discontinued operations. The Renewables business results of operations for the periods presented are reflected in the Company's consolidated statements of operations and consolidated statements of cash flows as discontinued operations. Additionally, refer to Note 13 "Discontinued Operations" for information regarding the assets and liabilities of the Renewables business that have been classified as assets and liabilities of discontinued operations in the Company's consolidated balance sheets for the periods presented. Unless otherwise indicated, the consolidated financial statements disclosures and related information disclosed herein relate to the Company's continuing operations, which exclude its Renewables business, and the Company has recast prior period amounts to reflect discontinued operations. Recent Accounting Pronouncements The Company evaluated all recent Accounting Standard Updates, including those that are currently effective in or after 2025, and determined that the adoption of these pronouncements would not have a material effect on the financial position, results of operations or cash flows of the Company. There have been no material changes from the recent accounting pronouncements previously disclosed in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024. (2) TRADE RECEIVABLES, NET The following table provides a roll-forward of the allowance for credit losses for the nine month period ended September 30, 2025 that is deducted from the amortized cost basis of trade receivables to present the net amount expected to be collected (in thousands): Beginning balance as of January 1, 2025 $ 1,793 Bad debt expense, net of recoveries 631 Accounts written off against allowance and other adjustments ( 30 ) Ending balance as of September 30, 2025 $ 2,394 (3) REVENUE Sales includes revenue from contracts with customers for roof and foundation ventilation products, single point and centralized mail systems, trims, flashings, metal roofing, rain dispersion products and other accessories, retractable awnings and gutter guards; designing, engineering, manufacturing and installation of controlled environment 9 Table of Contents agriculture structures, custom greenhouses and structural canopies; structural bearings, expansion joints, pavement sealant, elastomeric concrete and bridge cable protection systems. Refer to Note 12 "Segment Information" for disclosures related to disaggregation of revenue. As of September 30, 2025, the Company's remaining performance obligations are part of contracts that have an original expected duration of one year or less. For the three and nine months ended September 30, 2025 and 2024, respectively, there were no changes to estimated total costs to be incurred related to any individual contract that materially impacted the Company's consolidated financial statements. Contract assets consist of net costs in excess of billings, classified as current assets in the Company's consolidated balance sheets. Contract liabilities consist of billings in excess of costs, classified as current liabilities, and unearned revenue, presented within accrued expenses, in the Company's consolidated balance sheets. Unearned revenue as of September 30, 2025 and December 31, 2024 was $ 1.0 million and $ 0.7 million, respectively. The Company recognized revenue of $ 13.4 million and $ 15.0 million during the nine months ended September 30, 2025 and 2024, respectively, that was included in the contract liabilities balance of $ 15.4 million and $ 17.3 million at December 31, 2024 and 2023, respectively. (4) INVENTORIES, NET Inventories, net of reserves, consisted of the following (in thousands): September 30, 2025 December 31, 2024 Raw material $ 73,708 $ 48,019 Work-in-process 3,495 4,195 Finished goods 44,359 41,057 Total inventories, net $ 121,562 $ 93,271 Reserve for excess, obsolete and slow moving inventory as of September 30, 2025 and December 31, 2024 was $ 3.2 million and $ 3.0 million, respectively. (5) ACQUISITIONS During the nine months ended September 30, 2025, the Company acquired four businesses in separate transactions all of which were funded with cash on hand. One acquired business is included within the Company's Agtech segment and the other three acquired businesses are included in the Company's Residential segment. On February 11, 2025, the Company purchased all the outstanding stock of Lane Supply, Inc. ("Lane Supply"), a privately held company that designs, manufactures and installs structural canopies serving the convenience store, travel center, food retail, and quick serve restaurant markets. The results of Lane Supply have been included in the Company's consolidated financial results since the date of acquisition within the Company's Agtech segment. The purchase consideration for this acquisition was $ 118.0 million, which includes a working capital adjustment and certain other adjustments provided for in the stock purchase agreement. On March 31, 2025, the Company acquired two privately held businesses within its Residential segment that primarily specialize in the manufacturing of metal roofing systems, along with metal wall panels, siding and trim products. The Company purchased all the outstanding stock of one of the businesses and substantially all of the assets of the other business for a combined preliminary purchase consideration of $ 90.5 million, which includes preliminary working capital adjustments and certain other adjustments provided for in the purchase agreements. On July 31, 2025, the Company purchased substantially all the assets of another privately held business within its Residential segment that primarily specializes in the manufacturing of metal roofing systems and roofing accessories. The preliminary purchase consideration for this acquisition was $ 16.0 million, which includes preliminary working capital adjustments and certain other adjustments provided for in the asset purchase agreement. 10 Table of Contents The purchase price for these acquisitions were preliminarily allocated to the assets acquired and liabilities assumed based upon their respective fair values estimated as of the date of acquisitions. The Company has commenced the process to confirm the existence, condition, and completeness of the assets acquired and liabilities assumed to establish fair value of such assets and liabilities and to determine the amount of goodwill to be recognized as of the date of acquisitions. Goodwill recognized in these acquisitions are primarily attributable to factors such as future economic benefits arising from other assets acquired that could not be individually identified including workforce additions, growth opportunities, and increased presence in domestic agtech structures and metal roofing markets, respectively. Due to the timing of these acquisitions, we continue to gather information supporting the acquired assets and assumed liabilities. Accordingly, all amounts recorded are provisional. These provisional amounts are subject to change if new information is obtained concerning facts and circumstances that existed as of the acquisition dates that, if known, would have affected the measurement of the amounts recognized as of that date. Since the respective acquisition dates, the Company has recorded measurement-period adjustments, including an adjustment related to the acquisition of one of the privately held businesses acquired on March 31, 2025 as a result of new information obtained about facts and circumstances that existed as of the acquisition date and included an increase of $ 26.3 million to acquired intangible assets and a corresponding decrease to goodwill. The impact of this adjustment, and other measurement-period adjustments, which would have been recognized in previous periods if the provisional amounts had been finalized as of the respective acquisition dates, have not materially impacted the Company's consolidated statements of operations. The final determination of the fair value of certain assets and liabilities will be completed within a measurement period of up to one year from the date of acquisitions. The final values may also result in changes to depreciation and amortization expense related to certain assets such as property, plant and equipment and acquired intangible assets. For the acquisition of Lane Supply, the preliminary excess consideration was recorded as goodwill and approximated $ 38.3 million, none of which is deductible for tax purposes. The final purchase price allocation will be completed no later than the first quarter of fiscal year 2026. The preliminary allocation of the purchase consideration to the estimated fair value of the assets acquired and liabilities assumed is as follows as of the date of the acquisition (in thousands): Cash $ 2,671 Working capital 19,969 Property, plant and equipment 6,707 Acquired intangible assets 66,900 Other assets 671 Other liabilities ( 17,220 ) Goodwill 38,281 Fair value of purchase consideration $ 117,979 The intangible assets acquired in this acquisition consisted of the following (in thousands): Fair Value Weighted-Average Amortization Period Trademarks $ 6,800 20 years Customer relationships 56,600 15 years Backlog 3,500 Less than 1 year Total $ 66,900 For the acquisition of the two metal roofing businesses acquired on March 31, 2025, the preliminary excess consideration was recorded as goodwill and approximated $ 28.9 million, all of which is deductible for tax purposes. The final purchase price allocation will be completed no later than the first quarter of fiscal year 2026. For the acquisition of the metal roofing business acquired on July 31, 2025, the preliminary excess consideration was recorded as goodwill and approximated $ 12.4 million, all of which is deductible for tax purposes. The final purchase price allocation will be completed no later than the third quarter of fiscal year 2026. 11 Table of Contents The preliminary allocation of the purchase consideration to the estimated fair value of the assets acquired and liabilities assumed in the acquisitions of the three metal roofing businesses is as follows as of the respective date of the acquisitions (in thousands): Cash $ 2,436 Working capital 11,777 Property, plant and equipment 5,094 Acquired intangible assets 44,160 Other assets 10,157 Other liabilities ( 8,514 ) Goodwill 41,354 Fair value of purchase consideration $ 106,464 The intangible assets acquired in the three metal roofing business acquisitions consisted of the following (in thousands): Fair Value Weighted-Average Amortization Period Trademarks $ 4,600 5 - 11 years Customer relationships 39,560 9 - 12 years Total $ 44,160 In determining the allocation of the purchase price to the assets acquired and liabilities assumed, the Company uses all available information to make fair value determinations using Level 3 unobservable inputs in which little or no market data exists, and therefore, engages independent valuation specialists to assist in the fair value determination of the acquired long-lived assets. Since their respective acquisition dates through September 30, 2025, Lane Supply and the three privately held businesses contributed approximately $ 121.6 million in net sales and $ 9.6 million in operating income. The Company recognized costs related to recent acquisitions comprised of legal and consulting fees within selling, general, and administrative expense of $ 0.8 million and $ 3.9 million for the three and nine months ended September 30, 2025, respectively. No acquisition costs were incurred in the three and nine months ended September 30, 2024, respectively. Pro Forma Information (Unaudited) As the the Company acquired the following businesses during the nine months ended September 30, 2025, the following periods are not included in the Company's consolidated statements of operations by acquisition as follows: Acquisition Date Acquired Period Not Included: From To Lane Supply February 11, 2025 January 1, 2025 February 10, 2025 Privately held metal roofing businesses March 31, 2025 January 1, 2025 March 30, 2025 Privately held metal roofing business July 31, 2025 January 1, 2025 July 30, 2025 The following unaudited pro forma financial information represents a summary of the consolidated results of continuing operations of the Company for the three and nine months ended September 30, 2025 and 2024, assuming these acquisitions had been completed on January 1, 2024 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Net sales $ 312,066 $ 333,515 $ 895,332 $ 935,903 Operating income 40,008 51,312 114,884 127,288 12 Table of Contents These pro forma amounts have been compiled by adding the historical results of these businesses to the results of the Company after applying accounting policies and pro forma adjustments primarily for amortization that would have been charged assuming the preliminary fair value adjustments to intangible assets had been applied from January 1, 2024. The pro forma financial information is not necessarily indicative of the results of continuing operations that would have been achieved if the acquisitions had been effective as of these dates, or of future results. (6) GOODWILL AND RELATED INTANGIBLE ASSETS Goodwill The changes in the carrying amount of goodwill for the nine months ended September 30, 2025 are as follows (in thousands): Residential Agtech Infrastructure Total Balance at December 31, 2024 $ 209,170 $ 82,341 $ 31,678 $ 323,189 Acquired goodwill 41,354 38,281 — 79,635 Foreign currency translation — 651 — 651 Balance at September 30, 2025 $ 250,524 $ 121,273 $ 31,678 $ 403,475 Goodwill is recognized net of accumulated impairment losses of $ 133.2 million as of September 30, 2025 and December 31, 2024. The Company is required to regularly assess whether a triggering event has occurred which would require interim impairment testing. The Company determined that no triggering event had occurred as of September 30, 2025 which would require an interim impairment test to be performed. Acquired Intangible Assets Acquired intangible assets consisted of the following (in thousands): September 30, 2025 December 31, 2024 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Indefinite-lived intangible assets: Trademarks $ 19,570 $ — $ 19,570 $ — Finite-lived intangible assets: Backlog 3,500 3,500 — — Trademarks 13,650 2,048 2,250 1,473 Unpatented technology 26,651 22,359 26,569 20,919 Customer relationships 146,863 28,420 50,650 21,302 Non-compete agreements 500 500 709 634 191,164 56,827 80,178 44,328 Total acquired intangible assets $ 210,734 $ 56,827 $ 99,748 $ 44,328 13 Table of Contents The following table summarizes the acquired intangible asset amortization expense (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Amortization expense $ 3,299 $ 1,598 $ 12,417 $ 4,796 Amortization expense related to acquired intangible assets for the remainder of fiscal 2025 and the next five years thereafter is estimated as follows (in thousands): 2025 2026 2027 2028 2029 2030 Amortization expense $ 3,587 $ 13,442 $ 12,853 $ 12,613 $ 12,551 $ 11,678 (7) LONG-TERM DEBT The Company had no outstanding debt as of September 30, 2025 and December 31, 2024. Revolving Credit Facility On December 8, 2022, the Company entered into a Credit Agreement (the "Credit Agreement") which provides for a revolving credit facility and letters of credit in an aggregate amount equal to $ 400 million. The following table sets forth the Company's availability on the revolving credit facility as of (in thousands): September 30, 2025 December 31, 2024 Total revolving credit facility $ 400,000 $ 400,000 Less: standby letters of credit issued to third parties ( 6,207 ) ( 4,931 ) Availability on revolving credit facility $ 393,793 $ 395,069 The Company can request additional financing to increase the revolving credit facility to $ 700 million or enter into a term loan of up to $ 300 million subject to conditions set forth in the Credit Agreement. The Credit Agreement contains two financial covenants. As of September 30, 2025, the Company was in compliance with all financial covenants. The Credit Agreement terminates on December 8, 2027. Borrowings under the Credit Agreement bear interest, at the Company’s option, at a rate equal to the applicable margin plus (a) a base rate, (b) a daily simple secured overnight financing rate ("SOFR") rate, (c) a term SOFR rate or (d) for certain foreign currencies, a foreign currency rate, in each case subject to a 0 % floor. The Credit Agreement includes an applicable margin which ranges from 0.125 % to 1.00 % for base rate loans and from 1.125 % to 2.00 % for SOFR and alternative currency loans based on the Company’s Total Net Leverage Ratio, as defined in the Credit Agreement. In addition, the Credit Agreement is subject to an annual commitment fee, payable quarterly, which ranges between 0.20 % and 0.25 % of the daily average undrawn balance of the revolving credit facility based on the Company’s Total Net Leverage Ratio. Borrowings under the Credit Agreement are secured by the trade receivables, inventory, personal property, equipment, and general intangibles of the Company’s significant domestic subsidiaries. Capital distributions are subject to certain Total Net Leverage Ratio requirements and capped by an annual aggregate limit under the Credit Agreement. (8) EQUITY-BASED COMPENSATION The Gibraltar Industries, Inc. Amended and Restated 2018 Equity Incentive Plan (the "Amended 2018 Plan") which includes a total of 1,631,707 shares available for issuance, allows the Company to grant equity-based incentive compensation awards in the form of non-qualified options, restricted shares, restricted stock units, performance shares, performance stock units, and stock rights to eligible participants. The Gibraltar Industries, Inc. Amended and Restated 2016 Stock Plan for Non-Employee Directors (the "Non-Employee Directors Plan") which includes 200,000 shares available for issuance, allows the Company to grant awards of shares of the Company's common stock to current non-employee directors of the Company, and permits the Directors to defer receipt of such shares pursuant to the terms of the Non-Employee Directors Plan. 14 Table of Contents Equity-Based Awards - Settled in Stock The following table provides the number of stock units granted during the nine months ended September 30, along with the weighted-average grant-date fair value of each award: 2025 2024 Awards Number of Awards Weighted- Average Grant-Date Fair Value Number of Awards Weighted- Average Grant-Date Fair Value Performance stock units (1) (2) 142,940 $ 62.06 60,765 $ 77.28 Restricted stock units 97,753 $ 62.76 75,171 $ 72.22 Deferred stock units 2,172 $ 52.95 3,340 $ 68.86 Common shares 13,032 $ 52.95 6,680 $ 68.86 (1) The Company’s performance stock units (“PSUs”) represent shares granted for which the final number of shares earned depends on financial performance. (2) The PSUs granted in 2024, based on the Company's return on invested capital ("ROIC") for the performance period ended December 31, 2024, earned 45.0 % of the targeted PSUs awarded. Therefore, 27,345 units will convert to shares and be issued in 2027. Equity-Based Awards - Settled in Cash The Company's equity-based awards that are settled in cash are the awards under the Management Stock Purchase Plan (the “MSPP”) which is authorized under the Company's equity incentive plans. The MSPP provides participants the ability to defer a portion of their compensation, convertible to unrestricted investments, restricted stock units, or a combination of both, or defer a portion of their directors’ fees, convertible to restricted stock units. Employees eligible to defer a portion of their compensation also receive a company-matching award in restricted stock units equal to a percentage of their deferred compensation. The deferrals and related company match are credited to an account that represents a share-based liability. The portion of the account deferred to unrestricted investments is measured at fair market value of the unrestricted investments, and the portion of the account deferred to restricted stock units and company-matching restricted stock units is measured at a 200 -day average of the Company’s stock price. The account will be converted to and settled in cash payable to participants upon retirement or a termination of their service to the Company. Total MSPP liabilities recorded on the consolidated balance sheet as of September 30, 2025 were $ 23.2 million, of which $ 4.3 million was included in current accrued expenses and $ 18.9 million was included in non-current liabilities. Total MSPP liabilities recorded on the consolidated balance sheet as of December 31, 2024 were $ 23.7 million, of which $ 3.2 million was included in current accrued expenses and $ 20.5 million was included in non-current liabilities. The value of the restricted stock units within the MSPP liabilities was $ 16.5 million and $ 18.1 million at September 30, 2025 and December 31, 2024, respectively. The following table provides the number of restricted stock units credited to active participant accounts and the payments made with respect to MSPP liabilities: Nine Months Ended September 30, 2025 2024 Restricted stock units credited 20,605 42,476 MSPP liabilities paid (in thousands) $ 1,928 $ 2,053 (9) EXIT ACTIVITY COSTS AND ASSET IMPAIRMENTS The Company periodically undertakes restructuring initiatives as part of its focus to improve operating performance and optimize its business portfolio. These initiatives have led to reorganizing the Company's manufacturing footprint, outsourcing or discontinuing low-volume, low margin products, or selling or exiting less profitable businesses or product lines. As a result, the Company has incurred costs related to discrete restructuring events for moving and closing facilities, severance and inventory write-downs during the nine months ended September 30, 2025 . 15 Table of Contents The following tables set forth the exit activity costs and asset impairment charges (recoveries) incurred by segment related to the restructuring activities described above (in thousands): Three Months Ended September 30, 2025 2024 Exit Activity Asset Impairment Total Exit Activity Asset Impairment Total Residential $ 1,157 $ — $ 1,157 $ 106 $ — $ 106 Agtech 140 — 140 328 — 328 Infrastructure — — — — — — Corporate — — — 31 — 31 Total $ 1,297 $ — $ 1,297 $ 465 $ — $ 465 Nine Months Ended September 30, 2025 2024 Exit Activity Asset Impairment Total Exit Activity Asset Impairment Total Residential $ 3,512 $ — $ 3,512 $ 251 $ ( 72 ) $ 179 Agtech 415 157 572 477 — 477 Infrastructure — — — — — — Corporate 31 — 31 35 — 35 Total $ 3,958 $ 157 $ 4,115 $ 763 $ ( 72 ) $ 691 The following table provides a summary of where the exit activity costs and asset impairments were recorded in the consolidated statements of operations (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Cost of sales $ 402 $ 214 $ 982 $ 153 Selling, general, and administrative expense 895 251 3,133 538 Total exit activity and asset impairment charges $ 1,297 $ 465 $ 4,115 $ 691 The following table reconciles the beginning and ending liability for exit activity costs recorded in current accrued expenses on the consolidated balance sheets relating to the Company’s restructuring efforts (in thousands): 2025 2024 Balance at January 1 $ 121 $ 23 Exit activity costs recognized 3,958 763 Cash payments ( 3,598 ) ( 474 ) Balance at September 30 $ 481 $ 312 16 Table of Contents (10) INCOME TAXES The following table summarizes the provision for income taxes for continuing operations and the applicable effective tax rates: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Provision for income taxes (in thousands) $ 8,724 $ 10,890 $ 25,644 $ 30,277 Effective tax rate 20.8 % 24.4 % 23.0 % 25.7 % The effective tax rate for the three months ended September 30, 2025 was less than the U.S. federal statutory rate of 21% due to favorable discrete items related to an excess tax benefit on stock-based compensation and the benefit of purchased tax credits that will be carried back to prior tax years. The effective tax rate for the nine months ended September 30, 2025 was greater than the U.S. federal statutory rate of 21% due to state taxes and nondeductible permanent differences partially offset by the discrete items as previously noted. The effective tax rate for the three and nine months ended September 30, 2024 was greater than the U.S. federal statutory rate of 21% due to state taxes and nondeductible permanent differences partially offset by favorable discrete items due to an excess tax benefit on stock-based compensation. (11) EARNINGS PER SHARE Weighted average shares outstanding for basic and diluted earnings were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Basic weighted average shares outstanding 29,736 30,530 29,925 30,564 Dilutive effect of common stock options and stock units 127 220 113 224 Dilutive weighted average shares outstanding 29,863 30,750 30,038 30,788 The following table provides the potential anti-dilutive common stock units not included in the diluted weighted average shares calculations (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Common stock units 38 20 46 — (12) SEGMENT INFORMATION The Company has three reportable segments: Residential, Agtech, and Infrastructure. The Company's reportable segments are each managed separately because they design, engineer, manufacture, and where applicable install, distinct products with different production processes. • Residential consists of operating segments that sell the following products and services to major retail home centers, building material wholesalers, building product distributors, roofing distributors, residential contractors, property management companies, manufactured housing dealers, postal services distributors and providers, and online direct to end consumers: roof and foundation ventilation products, single point and centralized mail systems and package solutions, outdoor living space products (sun-shading), rain dispersion systems, metal roofing job site services, and other construction accessories. • Agtech consists of an operating segment that sells the following products and services to large-scale indoor commercial growers, agricultural research, development facilities, as well as convenience store, travel centers, food retailers, and quick-serve restaurants: design, manufacture and build controlled environment agriculture structures, custom greenhouses and structural canopies. 17 Table of Contents • Infrastructure consists of an operating segment that sells the following products to commercial and transportation contractors and fabricators: expansion joints, structural bearings, rubber pre-formed seals and other sealants, elastomeric concrete, and bridge cable protection systems. The accounting policies of the Company's segments are the same as those described in Note 1 "Summary of Significant Accounting Policies" included in the Company's annual report on Form 10-K for the year ended December 31, 2024. The following tables illustrate certain measurements used by management to assess the performance of the segments described above (in thousands): Three Months Ended September 30, 2025 Residential Agtech Infrastructure Total Net sales $ 230,286 $ 57,565 $ 23,088 $ 310,939 Less (1): Operating expenses (2) 189,854 54,387 18,351 262,592 Segment profit 40,432 3,178 4,737 48,347 Reconciliation of segment profit Unallocated corporate expenses ( 8,405 ) Interest expense, net ( 2 ) Other income, net 1,989 Income before taxes from continuing operations $ 41,929 Three Months Ended September 30, 2024 Residential Agtech Infrastructure Total Net sales $ 212,363 $ 41,527 $ 23,242 $ 277,132 Less (1): Operating expenses (2) 170,308 37,674 16,748 224,730 Segment profit 42,055 3,853 6,494 52,402 Reconciliation of segment profit Unallocated corporate expenses ( 9,229 ) Interest income, net 1,931 Other expense, net ( 402 ) Income before taxes from continuing operations $ 44,702 Nine Months Ended September 30, 2025 Residential Agtech Infrastructure Total Net sales $ 640,538 $ 156,697 $ 69,578 $ 866,813 Less (1): Operating expenses (2) 525,235 150,628 52,500 728,363 Segment profit 115,303 6,069 17,078 138,450 Reconciliation of segment profit Unallocated corporate expenses ( 30,347 ) Interest income, net 1,281 Other income, net 2,018 Income before taxes from continuing operations $ 111,402 18 Table of Contents Nine Months Ended September 30, 2024 Residential Agtech Infrastructure Total Net sales $ 611,790 $ 110,062 $ 69,914 $ 791,766 Less (1): Operating expenses (2) 492,076 101,319 52,309 645,704 Segment profit 119,714 8,743 17,605 146,062 Reconciliation of segment profit Unallocated corporate expenses ( 31,975 ) Interest income, net 4,176 Other expense, net ( 236 ) Income before taxes from continuing operations $ 118,027 Footnotes: (1) The significant expense category and amounts align with the segment-level information that is regularly provided to the CODM. (2) Operating expenses for each reportable segment includes inventory and manufacturing expenses, employee compensation, depreciation and amortization, freight services, other costs of sales expenses, and other selling, general and administrative expenses. The following table is the reported segment’s and unallocated corporate reported depreciation and amortization (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Residential $ 4,097 $ 2,545 $ 9,863 $ 7,643 Agtech 1,356 782 8,655 2,420 Infrastructure 726 744 2,126 2,236 Unallocated corporate expenses 822 648 2,457 1,886 Total depreciation and amortization $ 7,001 $ 4,719 $ 23,101 $ 14,185 The following table represents the assets of the reported segments, unallocated corporate assets and assets of discontinued operations as of (in thousands): September 30, 2025 December 31, 2024 Residential $ 674,243 $ 497,317 Agtech 298,102 156,941 Infrastructure 79,110 78,366 Unallocated corporate assets 145,369 295,350 Assets of discontinued operations 240,969 391,436 Total assets $ 1,437,793 $ 1,419,410 19 Table of Contents The following presents disaggregated revenue by timing of transfer of control to customers by reported segment (in thousands): Three Months Ended September 30, 2025 Residential Agtech Infrastructure Total Point in Time $ 230,286 $ 639 $ 11,153 $ 242,078 Over Time — 56,926 11,935 68,861 Total net sales $ 230,286 $ 57,565 $ 23,088 $ 310,939 Three Months Ended September 30, 2024 Residential Agtech Infrastructure Total Point in Time $ 210,530 $ 135 $ 10,657 $ 221,322 Over Time 1,833 41,392 12,585 55,810 Total net sales $ 212,363 $ 41,527 $ 23,242 $ 277,132 Nine Months Ended September 30, 2025 Residential Agtech Infrastructure Total Point in Time $ 640,538 $ 1,059 $ 30,707 $ 672,304 Over Time — 155,638 38,871 194,509 Total net sales $ 640,538 $ 156,697 $ 69,578 $ 866,813 Nine Months Ended September 30, 2024 Residential Agtech Infrastructure Total Point in Time $ 606,386 $ 2,663 $ 27,806 $ 636,855 Over Time 5,404 107,399 42,108 154,911 Total net sales $ 611,790 $ 110,062 $ 69,914 $ 791,766 (13) DISCONTINUED OPERATIONS In June 2025, the Company committed to a plan to sell its Renewables business, which represents a strategic shift in operations. The decision was driven by a change in the Company's long-term strategy to focus its asset portfolio and resources on its Residential, Agtech and Infrastructure segments. The Renewables business was classified as held for sale as of June 30, 2025, and met the criteria for discontinued operations. The Company is currently engaged in an active program to sell the business. The sale is expected to be completed with a third-party buyer within twelve months from the date the Company committed to the plan. The Renewables business was previously reported under the Renewables segment in accordance with ASC Subtopic 280. Upon classifying the Renewables business as held for sale and as a discontinued operation at June 30, 2025, the Company conducted a fair value measurement analysis and determined that the Renewables business' fair value less cost to sell was greater that its carrying amount. Subsequently, the Company determined that the fair value of the Renewables business as of the quarter ended September 30, 2025 had declined due to various headwinds in the renewables sector and other geopolitical factors, resulting in lower credible purchase offers received from market participants during the quarter. As such, the carrying amount was written down to its fair value less the costs to sell as of September 30, 2025 resulting in the recognition of an impairment loss before income taxes of $ 162.7 million. This fair value measurement is categorized within Level 3 of the fair value hierarchy based on significant unobservable inputs in accordance with ASC Topic 820. This impairment loss is reflected in the consolidated statements of operations for the three and nine months ended September 30, 2025. 20 Table of Contents The following table provides the carrying amounts and a reconciliation of the major classes of assets and liabilities included in discontinued operations related to the Renewables business which have been segregated from the Company's continuing operations and are reported as assets and liabilities of discontinued operations held for sale, respectively, in the consolidated balance sheets at (in thousands): September 30, 2025 December 31, 2024 Assets of the discontinued operations: Trade receivables, net $ 63,288 $ 54,452 Costs in excess of billings, net 13,203 15,753 Inventories, net 33,379 44,869 Prepaid expenses and other current assets 4,188 17,466 Property, plant, and equipment, net 21,489 22,741 Operating lease assets 5,525 3,463 Goodwill 184,230 184,230 Acquired intangibles 46,303 48,462 Deferred income taxes 32,031 — Impairment loss ( 162,667 ) — Total assets classified as discontinued operations (1) $ 240,969 $ 391,436 Liabilities of the discontinued operations: Accounts payable $ 32,002 $ 26,703 Accrued expenses 29,341 29,759 Billings in excess of costs 29,073 27,021 Deferred income taxes — 7,649 Non-current operating lease liabilities 3,872 1,734 Total liabilities classified as discontinued operations (1) $ 94,288 $ 92,866 (1) Total held for sale assets and liabilities of the discontinued operations are classified as current on the September 30, 2025 consolidated balance sheet as it is probable that the sale will occur and proceeds will be collected within one year from the date the Company committed to the plan to sell. Amounts as of December 31, 2024 are classified as current and long-term respectively in the consolidated balance sheet. The following table is the components of the (loss) income from discontinued operations before taxes (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Net sales $ 72,520 $ 84,064 $ 169,766 $ 214,941 Operating expenses 73,031 83,292 178,821 210,370 Impairment loss ( 162,667 ) — ( 162,667 ) — (Loss) income before taxes $ ( 163,178 ) $ 772 $ ( 171,722 ) $ 4,571 21 Table of Contents