GIBRALTAR ANNOUNCES FOURTH QUARTER AND FULL YEAR 2022 FINANCIAL RESULTS

2022 Revenue: GAAP up 3.7%; Adjusted up 4.7%

2022 EPS: GAAP up 13.8% with Charge; Adjusted up 18.9%

2023 Outlook Calls for Further Margin Expansion and Cash Flow Growth

Buffalo, New York, February 22, 2023 - Gibraltar Industries, Inc. (Nasdaq: ROCK), a leading manufacturer and provider of products and services for the renewable energy, residential, agtech and infrastructure markets, today reported its financial results for the three- and twelve- month periods ended December 31, 2022.

“We executed well in the fourth quarter and remained focused on our key initiatives while adapting to the ongoing fluid external environment. Our adjusted net income improved 20.4% and adjusted EPS improved 28.6% on a sales reduction of 5.2%. We also generated free cash flow of 19% of revenue as we improved margin and working capital performance during the quarter. For the full year, we delivered revenue growth, adjusted EPS and free cash flow within our stated outlook, and GAAP EPS within our recently announced outlook,” stated Chairman and CEO Bill Bosway.

Fourth Quarter 2022 Consolidated Results from Continuing Operations

Below are fourth quarter 2022 consolidated results from continuing operations:

			Three Months Ended December 31,
$Millions, except EPS			GAAP												Adjusted
			2022			2021			% Change						2022			2021			% Change
Net Sales			$313.9			$334.4			-6.1%						$312.9			$330.2			-5.2%
Net Income			$3.3			$9.8			-66.3%						$22.4			$18.6			20.4%
Diluted EPS			$0.11			$0.30			-63.3%						$0.72			$0.56			28.6%

Revenue decreased 6.1% to $313.9 million and adjusted revenue decreased 5.2% to $312.9 million. Adjusted revenue was down 9.8% organically, with reductions in the Residential, Renewables, and Agtech businesses. In Residential, volume was impacted as the market returned to historically lower seasonal demand patterns as supply chain reliability improved. Also, market prices began to align with changes in commodity indexes. The acquisition of Quality Aluminum Products (“QAP”) partially offset the impact of Residential market dynamics. Project rescoping and rescheduling impacted the Renewables and Agtech segments. Demand in the Infrastructure segment remained solid.

GAAP earnings decreased to $3.3 million, or $.0.11 per share, which included a previously disclosed one-time non-cash charge for the write-down of $14.0 million, or $0.35 per share, for the held-for-sale processing equipment business in the Agtech segment. Adjusted net income increased 20.4% to $22.4 million, or $0.72 per share, and adjusted EPS increased 28.6%. Performance was driven by profitability improvement in the Renewables and Infrastructure segments through material cost alignment, field operations efficiency, price management, business mix, 80/20 initiatives and the share repurchase program.

Adjusted measures exclude charges for restructuring initiatives, acquisition-related items and the results of the processing business which included a write down in the fourth quarter of 2022, as further described in the appended reconciliation of adjusted financial measures.

Fourth Quarter Segment Results

Renewables

For the fourth quarter, the Renewables segment reported:

			Three Months Ended December 31,
$Millions			GAAP												Adjusted
			2022			2021			% Change						2022			2021			% Change
Net Sales			$86.1			$108.7			(20.8)%						$86.1			$108.7			(20.8)%
Operating Income			$11.2			$(1.0)			NMF						$13.1			$1.4			NMF
Operating Margin			13.0%			(1.0)%			1400 bps						15.2%			1.3%			1390 bps

Customer demand remained strong for products and services but both Segment revenue and backlog were down 20.8% and 17% respectively as the U.S. solar industry continued to contend with panel importation guidelines governed by the Uyghur Forced Labor Prevention Act (UFLPA), which has impacted scoping and scheduling of projects.

Despite importation issues impacting revenue, adjusted operating margin improved as expected, increasing 1,390 basis points year-over-year and 230 basis points sequentially, driven by field operations productivity, 80/20 project management, business mix, and materials productivity.

Residential

For the fourth quarter, the Residential segment reported:

			Three Months Ended December 31,
$Millions			GAAP												Adjusted
			2022			2021			% Change						2022			2021			% Change
Net Sales			$171.9			$159.5			7.8%						$171.9			$159.5			7.8%
Operating Income			$21.6			$26.3			(17.9)%						$23.0			$26.5			(13.2)%
Operating Margin			12.5%			16.5%			(400) bps						13.4%			16.6%			(320) bps

Revenue increased 7.8%; the acquisition of QAP contributed 9.4% of growth for the segment. Organic revenue was impacted as the market returned to its typical lower seasonal demand patterns in the quarter as supply chain reliability improved and market prices began to align with changes in commodity indexes. QAP results, included for a full quarter, were as expected.

Adjusted operating income decreased 13.2% and adjusted operating margin decreased 320 basis points. The alignment of price and material cost, and the timing of changes in commodity indexes, impacted organic margin in the quarter. The acquisition of QAP, finalized in the third quarter, contributed 110 basis points of the decrease. Margins are expected to recover as price/cost alignment improves and QAP integration benefits are realized.

Agtech

For the fourth quarter, the Agtech segment reported:

			Three Months Ended December 31,
$Millions			GAAP												Adjusted
			2022			2021			% Change						2022			2021			% Change
Net Sales			$38.5			$49.8			(22.7)%						$37.6			$45.5			(17.4)%
Operating Income			$(2.4)			$(5.1)			52.9%						$1.7			$4.0			(57.5)%
Operating Margin			(6.3)%			(10.2)%			390 bps						4.6%			8.8%			(420) bps

GAAP revenue decreased 22.7%, with adjusted revenue down 17.4% due to project rescoping and rescheduling of produce growing projects into 2023. While quote activity remains robust, backlog decreased 13%.

Adjusted operating margin decreased 420 basis points as project rescheduling delayed project revenue recognition, partially offset by better project execution.

As previously disclosed, Gibraltar recorded a fourth quarter 2022 charge to write down the value of its processing equipment business.

Infrastructure

For the fourth quarter, the Infrastructure segment reported:

			Three Months Ended December 31,
$Millions			GAAP												Adjusted
			2022			2021			% Change						2022			2021			% Change
Net Sales			$17.3			$16.5			4.8%						$17.3			$16.5			4.8%
Operating Income			$2.4			$1.0			140.0%						$2.4			$1.1			118.2%
Operating Margin			13.7%			6.4%			730 bps						13.7%			6.5%			720 bps

Revenue increased 4.8% and backlog increased 23% as bidding activity remained very strong. Management expects continued positive impact in 2023 from increased infrastructure spending related to the Infrastructure Investment and Jobs Act.

Adjusted operating income more than doubled and adjusted operating margins improved 720 basis points driven by improved price material cost alignment, improved operating execution, product mix, and volume leverage.

Business Outlook

“We enter 2023 with good operating momentum and a plan to deliver full year growth, margin expansion, and strong cash performance for the year. We are well prepared for what will continue to be a fluid external environment and we expect that the Residential market will return to normal demand seasonality, panel supply for the solar industry will improve in the second half of the year, and Agtech projects for produce growing will get finalized.” Mr. Bosway concluded, “The long-term fundamentals of our end markets remain strong, and given the progress we made the last 12 months in our market positioning, systems, processes, and organization, we expect to drive solid performance in 2023 as we continue to execute toward our 2025 objectives.”

Gibraltar is providing guidance for revenue and earnings for the full year 2023. Consolidated revenue is expected to range between $1.36 billion and $1.41 billion, compared to $1.38 billion in 2022. GAAP EPS is expected to range between $3.04 and $3.24, compared to $2.56 in 2022, and adjusted EPS is expected to range between $3.46 and $3.66, compared to $3.40 in 2022.

Fourth Quarter 2022 Conference Call Details

Gibraltar will host a conference call today starting at 9:00 a.m. ET to review its results for the fourth quarter of 2022. Interested parties may access the webcast through the Investors section of the Company’s website at www.gibraltar1.com, where related presentation materials will also be posted prior to the conference call. The call also may be accessed by dialing (877) 407-3088 or (201) 389-0927. For interested individuals unable to join the live conference call, a webcast replay will be available on the Company’s website for one year.

About Gibraltar

Gibraltar is a leading manufacturer and provider of products and services for the renewable energy, residential, agtech, and infrastructure markets. Gibraltar’s mission, to make life better for people and the planet, is fueled by advancing the disciplines of engineering, science, and technology. Gibraltar is innovating to reshape critical markets in comfortable living, sustainable power, and productive growing throughout North America. For more please visit www.gibraltar1.com.

Forward-Looking Statements

Certain information set forth in this news release, other than historical statements, contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that are based, in whole or in part, on current expectations, estimates, forecasts, and projections about the Company’s business, and management’s beliefs about future operations, results, and financial position. These statements are not guarantees of future performance and are subject to a number of risk factors, uncertainties, and assumptions. Actual events, performance, or results could differ materially from the anticipated events, performance, or results expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from current expectations include, among other things, the availability and pricing of our principal raw materials and component parts, supply chain challenges causing project delays and field operations inefficiencies and disruptions, availability of labor at our manufacturing and distribution facilities or on our project sites, the loss of any key customers, adverse effects of inflation, our ability to sell assets that Gibraltar has determined to sell, other general economic conditions and conditions in the particular markets in which we operate, increases in spending due to laws and government incentives, such as the Infrastructure Investment and Jobs Act, changes in customer demand and capital spending, competitive factors and pricing pressures, our ability to develop and launch new products in a cost-effective manner, our ability to realize synergies from newly acquired businesses, disruptions to our IT systems, the impact of regulation (including the Department of Commerce’s solar panel anti-circumvention investigation and the Uyghur Forced Labor Prevention Act (UFLPA)), rebates, credits and incentives and variations in government spending and our ability to derive expected benefits from restructuring, productivity initiatives, liquidity enhancing actions, and other cost reduction actions.  Before making any investment decisions regarding our company, we strongly advise you to read the section entitled “Risk Factors” in our most recent annual report on Form 10-K and Quarterly Report on Form 10-Q which can be accessed under the “SEC Filings” link of the “Investor Info” page of our website at www.Gibraltar1.com. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable law or regulation.

Adjusted Financial Measures

To supplement Gibraltar’s consolidated financial statements presented on a GAAP basis, Gibraltar also presented certain adjusted financial measures in this news release and its quarterly conference call, including adjusted revenues, adjusted operating income and margin, adjusted net income, adjusted earnings per share (EPS), free cash flow and adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) each a non-GAAP financial measure. Adjusted revenue reflects the removal of revenue associated with our Processing business, which has been classified as held-for-sale. Adjusted net income, operating income and margin excludes special charges consisting of restructuring costs primarily associated with 80/20 simplification or lean initiatives, senior leadership transition costs, acquisition related costs and the operating losses generated by our processing business that has been classified as held-for-sale. These special charges are excluded since they may not be considered directly related to the Company’s ongoing business operations. The adjusted measures now exclude the results of the Processing business since it was classified as held for sale as of March 31, 2022. Our adjusted financial measures as of and for the three-month and twelve-month periods ending December 31, 2021 have been recast to reflect this additional adjustment as detailed in the appended reconciliation of adjusted financial measures. The results of the Processing business are considered non-recurring due to the Company’s commitment during the first quarter of 2022 to a plan to sell the Processing business. The aforementioned exclusions along with other adjustments to other income below operating profit are excluded from adjusted EPS. Adjusted EBITDA further excludes depreciation, amortization and stock compensation. In evaluating its business, the Company considers and uses these non-GAAP financial measures as supplemental measures of its operating performance. Free cash flow is operating cash flow less capital expenditures and the related margin is free cash flow divided by revenues. The Company believes that the presentation of results excluding these items provides meaningful supplemental data to investors that are indicative of the Company’s core operating results and facilitates comparison of operating results across reporting periods as well as comparison with other companies. Adjusted EBITDA and free cash flow are also useful measures of the Company’s ability to service debt and adjusted EBITDA is one of the measures used for determining the Company’s debt covenant compliance.

Adjustments to the most directly comparable financial measures presented on a GAAP basis are quantified in the reconciliation of adjusted financial measures excluding special charges provided in the supplemental financial schedules that accompany this news release. These adjusted measures should not be viewed as a substitute for the Company’s GAAP results and may be different than adjusted measures used by other companies and our presentation of non-GAAP financial measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.

Reconciliations of non-GAAP measures related to full-year 2023 guidance have not been provided due to the unreasonable efforts it would take to provide such reconciliations due to the high variability, complexity and uncertainty with respect to forecasting and quantifying certain amounts that are necessary for such reconciliations.

Contact:

LHA Investor Relations

Jody Burfening/Carolyn Capaccio

(212) 838-3777

rock@lhai.com

GIBRALTAR INDUSTRIES, INC.

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share data)

(unaudited)

			Three Months Ended December 31,												Twelve Months Ended December 31,
			2022						2021						2022						2021
Net sales			$	313,861					$	334,449					$	1,389,966					$	1,339,783
Cost of sales			244,838						268,639						1,071,272						1,049,772
Gross profit			69,023						65,810						318,694						290,011
Selling, general, and administrative expense			47,651						42,724						188,592						184,723
Intangible asset impairment			—						8,300						—						8,300
Income from operations			21,372						14,786						130,102						96,988
Interest expense, net			1,858						459						4,047						1,639
Other expense (income)			13,768						66						14,565						(4,213)
Income before taxes			5,746						14,261						111,490						99,562
Provision for income taxes			2,398						4,468						29,084						25,046
Income from continuing operations			3,348						9,793						82,406						74,516
Discontinued operations:
(Loss) income before taxes			—						(388)						—						1,479
Provision for income taxes			—						43						—						366
(Loss) income from discontinued operations			—						(431)						—						1,113
Net income			$	3,348					$	9,362					$	82,406					$	75,629
Net earnings per share – Basic:
Income from continuing operations			$	0.11					$	0.30					$	2.57					$	2.27
(Loss) income from discontinued operations			—						(0.02)						—						0.03
Net income			$	0.11					$	0.28					$	2.57					$	2.30
Weighted average shares outstanding – Basic			31,135						32,910						32,096						32,873
Net earnings per share – Diluted:
Income from continuing operations			$	0.11					$	0.30					$	2.56					$	2.25
(Loss) income from discontinued operations			—						(0.02)						—						0.04
Net income			$	0.11					$	0.28					$	2.56					$	2.29
Weighted average shares outstanding – Diluted			31,257						33,055						32,192						33,054

GIBRALTAR INDUSTRIES, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)

			December 31, 2022						December 31, 2021
			(unaudited)
Assets
Current assets:
Cash and cash equivalents			$	17,608					$	12,849
Accounts receivable, net of allowance of $3,746 and $3,738, respectively			217,156						236,444
Inventories, net			170,360						176,207
Prepaid expenses and other current assets			18,813						21,467
Total current assets			423,937						446,967
Property, plant, and equipment, net			109,584						96,885
Operating lease assets			26,502						18,120
Goodwill			512,363						510,942
Acquired intangibles			137,526						141,504
Other assets			701						483
			$	1,210,613					$	1,214,901
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable			$	106,582					$	172,286
Accrued expenses			73,721						67,993
Billings in excess of cost			35,017						46,711
Total current liabilities			215,320						286,990
Long-term debt			88,762						23,781
Deferred income taxes			47,088						40,278
Non-current operating lease liabilities			19,041						11,390
Other non-current liabilities			18,303						27,204
Stockholders’ equity:
Preferred stock, $0.01 par value; authorized 10,000 shares; none outstanding			—						—
Common stock, $0.01 par value; authorized 100,000 shares; 34,060 and 33,799 shares issued and outstanding in 2022 and 2021			340						338
Additional paid-in capital			322,873						314,541
Retained earnings			627,978						545,572
Accumulated other comprehensive (loss) income			(3,432)						187
Cost of 3,199 and 1,107 common shares held in treasury in 2022 and 2021			(125,660)						(35,380)
Total stockholders’ equity			822,099						825,258
			$	1,210,613					$	1,214,901

GIBRALTAR INDUSTRIES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

			Twelve Months Ended December 31,
			2022						2021
Cash Flows from Operating Activities
Net income			$	82,406					$	75,629
Income from discontinued operations			—						1,113
Income from continuing operations			82,406						74,516
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			26,167						31,966
Intangible asset impairment			—						8,300
Stock compensation expense			8,334						8,652
Held for sale valuation allowance			13,990						—
Exit activity costs, non-cash			2,276						1,193
Provision for deferred income taxes			6,337						2,968
Other, net			1,506						1,570
Changes in operating assets and liabilities (excluding acquisition balances):
Accounts receivable			32,754						(41,887)
Inventories			14,377						(85,763)
Other current assets and other assets			2,062						(426)
Accounts payable			(76,260)						38,367
Accrued expenses and other non-current liabilities			(11,258)						(14,384)
Net cash provided by operating activities of continuing operations			102,691						25,072
Net cash used in operating activities of discontinued operations			—						(2,002)
Net cash provided by operating activities			102,691						23,070
Cash Flows from Investing Activities
Acquisitions, net of cash acquired			(51,621)						4,143
Purchases of property, plant, and equipment, net			(20,062)						(17,491)
Net proceeds from sale of business			—						38,062
Net cash (used in) provided by investing activities of continuing operations			(71,683)						24,714
Net cash used in investing activities of discontinued operations			—						(176)
Net cash (used in) provided by investing activities			(71,683)						24,538
Cash Flows from Financing Activities
Proceeds from long-term debt			204,500						59,500
Long-term debt payments			(138,000)						(120,636)
Payment of debt issuance costs			(2,013)						—
Purchase of common stock at market prices			(89,494)						(6,497)
Net proceeds from issuance of common stock			—						1,021
Net cash used in financing activities			(25,007)						(66,612)
Effect of exchange rate changes on cash			(1,242)						(201)
Net increase (decrease) in cash and cash equivalents			4,759						(19,205)
Cash and cash equivalents at beginning of year			12,849						32,054
Cash and cash equivalents at end of year			$	17,608					$	12,849

GIBRALTAR INDUSTRIES, INC.

Reconciliation of Adjusted Financial Measures

(in thousands, except per share data)

(unaudited)

						Three Months Ended December 31, 2022
						As Reported In GAAP Statements						Restructuring Charges												Acquisition Related Items						Portfolio Management						Adjusted Financial Measures
Net Sales
Renewables						$	86,116					$	—											$	—					$	—					$	86,116
Residential						171,926						—												—						—						171,926
Agtech						38,543						—												—						(943)						37,600
Infrastructure						17,276						—												—						—						17,276
Consolidated sales						313,861						—												—						(943)						312,918
Income from operations
Renewables						11,182						1,897												51						—						13,130
Residential						21,557						527												951						—						23,035
Agtech						(2,436)						1,517												—						2,654						1,735
Infrastructure						2,363						—												—						—						2,363
Segment Income						32,666						3,941												1,002						2,654						40,263
Unallocated corporate expense						(11,294)						2,306												72						—						(8,916)
Consolidated income from operations						21,372						6,247												1,074						2,654						31,347
Interest expense						1,858						(140)												—						—						1,718
Other expense (income)						13,768						—												—						(13,990)						(222)
Income before income taxes						5,746						6,387												1,074						16,644						29,851
Provision for income taxes						2,398						1,308												265						3,438						7,409
Income from continuing operations						$	3,348					$	5,079											$	809					$	13,206					$	22,442
Income from continuing operations per share – diluted						$	0.11					$	0.16											$	0.03					$	0.42					$	0.72
Operating margin
Renewables						13.0		%				2.2		%										0.1		%				—		%				15.2		%
Residential						12.5		%				0.3		%										0.6		%				—		%				13.4		%
Agtech						(6.3)		%				3.9		%										—		%				6.9		%				4.6		%
Infrastructure						13.7		%				—		%										—		%				—		%				13.7		%
Segments Margin						10.4		%				1.3		%										0.3		%				0.8		%				12.9		%
Consolidated						6.8		%				2.0		%										0.3		%				0.8		%				10.0		%

GIBRALTAR INDUSTRIES, INC.

Reconciliation of Adjusted Financial Measures

(in thousands, except per share data)

(unaudited)

						Three Months Ended December 31, 2021
						As Reported In GAAP Statements						Restructuring & Intangible Asset Impairment Charges						Acquisition Related Items & Senior Leadership Transition Costs												Portfolio Management*						Adjusted Financial Measures *
Net Sales
Renewables						$	108,671					$	—					$	—											$	—					$	108,671
Residential						159,534						—						—												—						159,534
Agtech						49,751						—						—												(4,266)						45,485
Infrastructure						16,493						—						—												—						16,493
Consolidated sales						334,449						—						—												(4,266)						330,183
Income from operations
Renewables						(1,037)						74						2,396												—						1,433
Residential						26,250						216						—												—						26,466
Agtech						(5,064)						8,203						—												850						3,989
Infrastructure						1,048						26						—												—						1,074
Segments Income						21,197						8,519						2,396												850						32,962
Unallocated corporate expense						(6,411)						49						3												—						(6,359)
Consolidated income from operations						14,786						8,568						2,399												850						26,603
Interest expense						459						—						—												—						459
Other expense						66						—						—												—						66
Income before income taxes						14,261						8,568						2,399												850						26,078
Provision for income taxes						4,468						2,153						594												226						7,441
Income from continuing operations						$	9,793					$	6,415					$	1,805											$	624					$	18,637
Income from continuing operations per share - diluted						$	0.30					$	0.20					$	0.04											$	0.02					$	0.56
Operating margin
Renewables						(1.0)		%				0.1		%				2.1		%										—		%				1.3		%
Residential						16.5		%				0.1		%				—		%										—		%				16.6		%
Agtech						(10.2)		%				16.5		%				—		%										1.7		%				8.8		%
Infrastructure						6.4		%				0.2		%				—		%										—		%				6.5		%
Segments Margin						6.3		%				2.6		%				0.8		%										0.3		%				10.0		%
Consolidated						4.4		%				2.6		%				0.8		%										0.3		%				8.1		%
*Recast to exclude processing equipment business which was reclassified as held for sale as of March 31, 2022.

GIBRALTAR INDUSTRIES, INC.

Reconciliation of Adjusted Financial Measures

(in thousands, except per share data)

(unaudited)

						Twelve Months Ended December 31, 2022
						As Reported In GAAP Statements						Restructuring Charges & Senior Leadership Transition Costs												Acquisition Related Items						Portfolio Management						Adjusted Financial Measures
Net Sales
Renewables						$	377,567					$	—											$	—					$	—					$	377,567
Residential						767,248						—												—						—						767,248
Agtech						168,868						—												—						(7,840)						161,028
Infrastructure						76,283						—												—						—						76,283
Consolidated sales						1,389,966						—												—						(7,840)						1,382,126
Income from operations
Renewables						25,243						4,240												782						—						30,265
Residential						126,458						2,121												1,427						—						130,006
Agtech						2,914						1,837												—						6,769						11,520
Infrastructure						9,003						(63)												—						—						8,940
Segment Income						163,618						8,135												2,209						6,769						180,731
Unallocated corporate expense						(33,516)						2,837												601						—						(30,078)
Consolidated income from operations						130,102						10,972												2,810						6,769						150,653
Interest expense						4,047						(140)												—						—						3,907
Other expense						14,565						—												—						(13,890)						675
Income before income taxes						111,490						11,112												2,810						20,659						146,071
Provision for income taxes						29,084						2,485												702						4,441						36,712
Income from continuing operations						$	82,406					$	8,627											$	2,108					$	16,218					$	109,359
Income from continuing operations per share – diluted						$	2.56					$	0.26											$	0.07					$	0.51					$	3.40
Operating margin
Renewables						6.7		%				1.1		%										0.2		%				—		%				8.0		%
Residential						16.5		%				0.2		%										0.2		%				—		%				16.9		%
Agtech						1.7		%				1.1		%										—		%				4.0		%				7.2		%
Infrastructure						11.8		%				(0.1)		%										—		%				—		%				11.7		%
Segments Margin						11.8		%				0.6		%										0.2		%				0.5		%				13.1		%
Consolidated						9.4		%				0.8		%										0.2		%				0.5		%				10.9		%

GIBRALTAR INDUSTRIES, INC.

Reconciliation of Adjusted Financial Measures

(in thousands, except per share data)

(unaudited)

						Twelve Months Ended December 31, 2021
						As Reported In GAAP Statements						Restructuring & Intangible Asset Impairment Charges						Acquisition Related Items & Senior Leadership Transition Costs												Portfolio Management*						Adjusted Financial Measures *
Net Sales
Renewables						$	432,096					$	—					$	—											$	—					$	432,096
Residential						635,505						—						—												—						635,505
Agtech						199,161						—						—												(20,328)						178,833
Infrastructure						73,021						—						—												—						73,021
Consolidated sales						1,339,783						—						—												(20,328)						1,319,455
Income from operations
Renewables						20,158						5,962						8,610												—						34,730
Residential						105,821						393						—												—						106,214
Agtech						(931)						9,987						—												3,539						12,595
Infrastructure						8,911						26						—												—						8,937
Segments Income						133,959						16,368						8,610												3,539						162,476
Unallocated corporate expense						(36,971)						145						2,282												—						(34,544)
Consolidated income from operations						96,988						16,513						10,892												3,539						127,932
Interest expense						1,639						—						—												—						1,639
Other (income) expense						(4,213)						—						4,747												—						534
Income before income taxes						99,562						16,513						6,145												3,539						125,759
Provision for income taxes						25,046						4,150						1,059												926						31,181
Income from continuing operations						$	74,516					$	12,363					$	5,086											$	2,613					$	94,578
Income from continuing operations per share - diluted						$	2.25					$	0.38					$	0.15											$	0.08					$	2.86
Operating margin
Renewables						4.7		%				1.4		%				2.0		%										—		%				8.0		%
Residential						16.7		%				0.1		%				—		%										—		%				16.7		%
Agtech						(0.5)		%				5.0		%				—		%										1.8		%				7.0		%
Infrastructure						12.2		%				—		%				—		%										—		%				12.2		%
Segments Margin						10.0		%				1.2		%				0.6		%										0.3		%				12.3		%
Consolidated						7.2		%				1.2		%				0.7		%										0.3		%				9.7		%
*Recast to exclude processing equipment business which was reclassified as held for sale as of March 31, 2022.

GIBRALTAR INDUSTRIES, INC.

Reconciliation of Income From Continuing Operations to Adjusted EBITDA and Free Cash Flows

(in thousands)

(unaudited)

						Three Months Ended December 31, 2022
						Consolidated						Renewables						Residential						Agtech						Infrastructure
Net Sales						$	313,861					$	86,116					$	171,926					$	38,543					$	17,276
Less: Processing Revenues*						(943)						—						—						(943)						—
Adjusted Net Sales						$	312,918					$	86,116					$	171,926					$	37,600					$	17,276
Net Income						3,348
Provision for Income Taxes						2,398
Interest Expense						1,858
Other Expense						13,768
Operating Profit						21,372						11,182						21,557						(2,436)						2,363
Adjusted Measures**						9,975						1,948						1,478						4,171						—
Adjusted Operating Profit						31,347						13,130						23,035						1,735						2,363
Adjusted Operating Margin						10.0		%				15.2		%				13.4		%				4.6		%				13.7		%
Adjusted Other Income						(193)						—						—						—						—
Depreciation & Amortization						6,975						2,123						2,609						1,030						786
Less: Held for Sale Depreciation & Amortization						—						—						—						—						—
Adjusted Depreciation & Amortization						6,975						2,123						2,609						1,030						786
Stock Compensation Expense						2,445						195						245						108						41
Less: SLT Related Stock Compensation Expense						(838)						—						—						—						—
Adjusted Stock Compensation Expense						1,607						195						245						108						41
Adjusted EBITDA						40,122						15,448						25,889						2,873						3,190
Adjusted EBITDA Margin						12.8		%				17.9		%				15.1		%				7.6		%				18.5		%
Cash Flow - Operating Activities						64,130
Purchase of PPE, Net						(4,358)
Free Cash Flow						59,772
Free Cash Flow - % of Adjusted Net Sales						19.1		%
*To remove revenues of processing equipment business classified as held for sale
**Adjusted Measures details are presented on the corresponding Reconciliation of Adjusted Financial Measures

GIBRALTAR INDUSTRIES, INC.

Reconciliation of Income From Continuing Operations to Adjusted EBITDA and Free Cash Flows

(in thousands)

(unaudited)

						Three Months Ended December 31, 2021
						Consolidated						Renewables						Residential						Agtech						Infrastructure
Net Sales						$	334,449					$	108,671					$	159,534					$	49,751					$	16,493
Less: Processing Revenues*						(4,266)						—						—						(4,266)						—
Adjusted Net Sales						$	330,183					$	108,671					$	159,534					$	45,485					$	16,493
Net Income						9,793
Provision for Income Taxes						4,468
Interest Expense						459
Other Expense						66
Operating Profit						14,786						(1,037)						26,250						(5,064)						1,048
Adjusted Measures**						11,817						2,470						216						9,053						26
Adjusted Operating Profit						26,603						1,433						26,466						3,989						1,074
Adjusted Operating Margin						8.1		%				1.3		%				16.6		%				8.8		%				6.5		%
Adjusted Other Expense						66						—						—						—						—
Depreciation & Amortization						8,008						3,749						2,126						1,295						782
Less: Held for Sale Depreciation & Amortization						(332)						—						—						(332)						—
Less: Acquisition-Related Amortization						(1,567)						(1,567)						—						—						—
Adjusted Depreciation & Amortization						6,109						2,182						2,126						963						782
Stock Compensation Expense						1,883						162						224						86						33
Less: SLT Related Stock Compensation Expense						(128)						—						—						—						—
Adjusted Stock Compensation Expense						1,755						162						224						86						33
Adjusted EBITDA						34,401						3,777						28,816						5,038						1,889
Adjusted EBITDA Margin						10.4		%				3.5		%				18.1		%				11.1		%				11.5		%
Cash Flow - Operating Activities						39,595
Purchase of PPE, Net						(4,240)
Free Cash Flow						35,355
Free Cash Flow - % of Adjusted Net Sales						10.7		%
*To remove revenues of processing equipment business classified as held for sale
**Adjusted Measures details are presented on the corresponding Reconciliation of Adjusted Financial Measures

GIBRALTAR INDUSTRIES, INC.

Reconciliation of Income From Continuing Operations to Adjusted EBITDA and Free Cash Flows

(in thousands)

(unaudited)

						Twelve Months Ended December 31, 2022
						Consolidated						Renewables						Residential						Agtech						Infrastructure
Net Sales						$	1,389,966					$	377,567					$	767,248					$	168,868					$	76,283
Less: Processing Revenues*						(7,840)						—						—						(7,840)						—
Adjusted Net Sales						$	1,382,126					$	377,567					$	767,248					$	161,028					$	76,283
Net Income						82,406
Provision for Income Taxes						29,084
Interest Expense						4,047
Other Expense						14,565
Operating Profit						130,102						25,243						126,458						2,914						9,003
Adjusted Measures**						20,551						5,022						3,548						8,606						(63)
Adjusted Operating Profit						150,653						30,265						130,006						11,520						8,940
Adjusted Operating Margin						10.9		%				8.0		%				16.9		%				7.2		%				11.7		%
Adjusted Other Expense						695						—						—						—						—
Depreciation & Amortization						26,167						8,467						8,983						4,377						3,150
Less: Held for Sale Depreciation & Amortization						(332)						—						—						(332)						—
Adjusted Depreciation & Amortization						25,835						8,467						8,983						4,045						3,150
Stock Compensation Expense						8,334						939						990						427						170
Less: SLT Related Stock Compensation Expense						(683)						—						—						—						—
Adjusted Stock Compensation Expense						7,651						939						990						427						170
Adjusted EBITDA						183,444						39,671						139,979						15,992						12,260
Adjusted EBITDA Margin						13.3		%				10.5		%				18.2		%				9.9		%				16.1		%
Cash Flow - Operating Activities						102,691
Purchase of PPE, Net						(20,062)
Free Cash Flow						82,629
Free Cash Flow - % of Adjusted Net Sales						6.0		%
*To remove revenues of processing equipment business classified as held for sale
**Adjusted Measures details are presented on the corresponding Reconciliation of Adjusted Financial Measures

GIBRALTAR INDUSTRIES, INC.

Reconciliation of Income From Continuing Operations to Adjusted EBITDA and Free Cash Flows

(in thousands)

(unaudited)

						Twelve Months Ended December 31, 2021
						Consolidated						Renewables						Residential						Agtech						Infrastructure
Net Sales						$	1,339,783					$	432,096					$	635,505					$	199,161					$	73,021
Less: Processing Revenues*						(20,328)						—						—						(20,328)						—
Adjusted Net Sales						$	1,319,455					$	432,096					$	635,505					$	178,833					$	73,021
Net Income						74,516
Provision for Income Taxes						25,046
Interest Expense						1,639
Other Income						(4,213)
Operating Profit						96,988						20,158						105,821						(931)						8,911
Adjusted Measures**						30,944						14,572						393						13,526						26
Adjusted Operating Profit						127,932						34,730						106,214						12,595						8,937
Adjusted Operating Margin						9.7		%				8.0		%				16.7		%				7.0		%				12.2		%
Adjusted Other Expense						534						—						—						—						—
Depreciation & Amortization						31,966						14,682						8,694						5,279						3,092
Less: Held for Sale Depreciation & Amortization						(1,324)						—						—						(1,324)						—
Less: Acquisition-Related Amortization						(6,273)						(6,273)						—						—						—
Adjusted Depreciation & Amortization						24,369						8,409						8,694						3,955						3,092
Stock Compensation Expense						8,652						772						990						635						104
Less: SLT Related Stock Compensation Expense						(757)						—						—						(36)						—
Adjusted Stock Compensation Expense						7,895						772						990						599						104
Adjusted EBITDA						159,662						43,911						115,898						17,149						12,133
Adjusted EBITDA Margin						12.1		%				10.2		%				18.2		%				9.6		%				16.6		%
Cash Flow - Operating Activities						25,072
Purchase of PPE, Net						(17,491)
Free Cash Flow						7,581
Free Cash Flow - % of Adjusted Net Sales						0.6		%
*To remove revenues of processing equipment business classified as held for sale
**Adjusted Measures details are presented on the corresponding Reconciliation of Adjusted Financial Measures