Okay, morning everybody, and thank you for joining the Sidonia Company September 2025 Small Cap Conference. My name is Julio Romero, and I'm the Building Products, Industrials, and Engineering Construction Analyst here at Sidonia that covers Gibraltar Industries. Really pleased to be able to host them. The ticker is ROCK. With us today, we have Bill Bosway, Chief Executive Officer, and Joseph Loughrey, Chief Financial Officer. This is going to be, Bill and Joe will give an introduction to the company. It'll be followed by some question and answers from myself. If those in the audience are watching and have any questions, feel free to type them into the Q&A section at the bottom of your screen. Happy to ask on your behalf. With that, Bill, Joe, we appreciate you being here. Yeah, thanks, Julio. Happy to be here. Listen, for the audience, just to kind of right out of the gate, those of you that know us, we announced in June that we were exiting our renewables business. If you think of the portfolio going forward, and you can go online and you can see our presentation where we've done some restatements, you get an idea of what the continued operations of the business looks like without renewables. Effectively, really what that does is about 70% of our portfolio is now building products, and that's really residential and some light commercial. Then we have about 20% or so as in agtech, and then we have a small sliver still in infrastructure. I suspect we'll spend a lot of time today on building products. That may be where there's a lot of questions, a lot of interest, and we can go into that in whatever depth you guys would like to learn more about us. Part of the rationale for doing what we're doing is just the next phase in our transformation. When you look at the portfolio, when you look at the renewable space, you look at the end market, a lot of things have changed the last three or four years. You look at the industry that is in the process of consolidating. We were really the only solar player out there that was involved in something beyond solar. Everyone else is 100% focused. That was 20% of what we're doing. We think there's a better home for solar partnered with somebody else, and we actually think it's a better solution set for our investors going forward, with our focus in building products. You're going to see us continue to evolve in that direction even more so than where we are today. We're excited to take the next step in the journey and looking forward to addressing any questions you might have. I think just the last thing I'd mention is we're in a good position, relative to a very strong balance sheet. You're going to see us deploy capital in both share buybacks as well as additional M&A. That M&A is going to be focused basically 100% in this building product space. When I say building products, I also want to emphasize I'm not talking about the broad category of building products. I'm really talking about our existing swim lanes that we're in. Because of how we're positioned today, we think there's a lot of runway around the things that we actually do. I like that because as you deploy capital in things that you are close to your heart and what you do every day, the return profile historically seems to be better, obviously, than if you're getting into adjacencies. We're not talking about adjacencies relative to M&A. We're really talking about building out on the strategy that I'll share with you as you guys want to know more. I just wanted to leave it with that as well. With that, Julio, I'll turn it back to you for any questions that anyone might have. Absolutely. If folks have any questions to Gibraltar, feel free to type them into the Q&A section at the bottom of your screen. I'll kick it off here with maybe just starting with a progress update on the sale process of the renewables business. You know, are you guys still kind of targeting a sale of that business by year end 2025? Yeah, we are. We're finished up round two, if you will, as we narrow down group of buyers. I think we're remaining on track with that plan. Excellent. Thank you for that. I guess, you know, a lot of the questions we're getting now is, you know, the focus is now towards the residential site business. That segment in terms of the business units within it, if you could level set kind of those business units between what's in residential now, there's building products, which I think encompasses roofing and building accessories. There's mail and package, and then there's home improvement. Just kind of level sets where, you know, where those are as part of the segment. Yeah, sure. To your point, we call our first building products "building accessories." Effectively, what it is, it's trims, flashings, and ventilation that are part of a roof. Whether it's a new construction or a repair of a roof, it's the same technology, and that is our biggest business. What we've added to that is metal roofing over the last three years, and most recently through some acquisitions earlier this year. I'll go into that a little bit more in just a minute. We're really the largest player in trims, flashings, and ventilation in the U.S. It's a very fragmented market. We like that space because there's plenty of opportunity to grow as well. Whether the end market does or not, we have a lot of expansion opportunities because of how we're actually positioned today. Mail and package is single point mail, so a mailbox that you might buy for your home, or it's centralized mail that you'll find in an office building or large building housing condos or apartments, basically mail rooms. We're the largest player in that space as well, both in single and centralized mail, really good business. Those two businesses make up 95% of our residential segment. The reality is we do some light commercial inside that as well, but the bulk of it's residential. The third and smallest piece is home improvement, where we're doing a lot of shades, awnings, et cetera, and that's for outdoor living spaces. That's a smaller business. It's a good business, but it's a smaller business for us. That's what makes up the residential group today. It's really three businesses run by three leaders. If you go back seven or eight years, that was a disjointed group of companies that were kind of run on their own. Over the last five or six years, we've kind of brought that under these respective leaders. That's part of the simplification process we've been going through. When we started our journey in 2019, we had 19 companies. Now we have six. Three of them are in residential, and then the other three are renewables, infrastructure, and agtech. We're actually going down to five now. That is part of the simplification process internally that you're seeing with the portfolio transformation. Got it. The metal roofing would fall into the building products, building accessories category within that. Correct. We got into that, Julio, started about three and a half years ago. If you want me to dive in a little bit into metal roofing, I don't want to jump ahead of any questions, but happy to do that. I can explain a little bit more about what that end market looks like and what we're doing. I'll leave it up to you, however you want. Yeah, absolutely. In a little bit, comparing it to what the, what's not metal roofing within. Yeah. Everybody, when you look at this space, like I said, it's very fragmented. The reason it's fragmented is because building codes differ by major market. Those codes matter, and they govern everything from material type to size to thicknesses, and oftentimes to colors, even almost down to an HOA level inside a housing development. If you think about this business, on a national basis, it's probably not a good thing. If you think about it on a regional basis, which we traditionally did, that's probably not a good thing. What we've learned is start with the top 80 markets and see what it looks like. This preview I'm giving you is relevant for metal roofing or trims, flashings, and ventilation. It's all local because it's driven off of codes. What we've been doing the last couple of years is redeploying assets that were in our regional facilities and taking them down to local markets where we think that market is an opportunity for us to go in and do something better than what's currently being done. You're redeploying capital or existing assets, if you will, and you're focusing on making the 80s for that market. Then you're sourcing the 20s for that market from your regional facilities. The reason you're doing that is you're simplifying both facilities to where they're focused on the things that matter most for that chance for success. Another way to think about it is if you had a regional facility and you had six or seven large MSAs around you, and they all had different building codes, you just put a lot of complexity into that facility because you've got to deal with all the different codes, the sizes, the widths, the materials, et cetera. In our approach that we've been executing the last couple of years, we're trying to dismantle that thought process and get very local. We redeploy equipment to a local market so they focus on the 80s for that market only. Then they source the 20s from the regional facility, which keeps the regional facility very focused on the basics. It keeps the local facility focused on service on the basics, what sells in that market. That's how you drive participation gains. That's also how you drive margin. We've been able to grow our business accordingly, with that thought process relative to the market. Our goal is to grow 2x market. I'll circle back on that in a second, but let's jump back into metal roofing. When we got into metal roofing, there's two metal roofing markets to think about. One is panels that are sold through wholesalers and big box retailers that folks tend to buy to build a barn or build a large shed or repair something. It's a basic panel that's inventoried, and there aren't 20 different options or colors or sizes. It's typically unpainted, and here's a standard size, and you buy it. The other metal roofing world, which is what we've been investing in this year, is more around job packs that are unique to a particular building. It could be a home or it could be a light commercial facility like a school. If you go around the country, you're going to see more and more specifications moving towards this, particularly in schools and light commercial buildings that the state or local city are funding. Those are unique to that site. What happens there is those products that are put on those roofs are not sold through wholesale and retail in the way that traditional trims, flashings, and ventilation are. It's a contractor that's getting an architect to actually pull together a unique set of drawings for that specific site. That group, that contractor then comes to us, and we manufacture the entire job pack. It's the panels, it's the accessories, it's the trims, it's the flashings, it's the ventilation, but it's all local, and it's unique to that job. That's not an inventory product. It's more demand driven on a specific customer, whereas the traditional roofing through wholesale and big box is an inventory product. If you think about those two channels, they don't create demand. They actually fulfill demand. The contractor direct channel actually creates demand because they're dealing with the homeowner, and then we fulfill it direct to them. It adds a third channel for us, number one. It gets us into an end market that's growing 7% to 8% historically the last five years. There's a substitution effect where metal roofing is becoming more popular, versus traditional materials. It doesn't mean that it's going to replace shingles by any means, but it's carving out an opportunity for itself, and it's now a $3 billion market in the U.S. for residential and light commercial. The investments we've made organically were roll form panels initially. We still do that today. It's a good business for wholesale and retail. We'll continue to do that. Acquisitions we've made are actually dealing with job packs unique to custom applications where we see a big substitution effect happening in residential, not just high end, but middle market as well as light commercial. That's a direct to contractor sale. What happens in that scenario is if a contractor, we're talking to you, and you had in quote a shingle roof, and you said, I want to do that. Let's say, you know, it's a $30,000 bill. Of that $30,000, about $500 would be ours, our basket that we would sell through a wholesaler to that contractor. That contractor convinced you to go to a metal roof. That metal roof is probably $60,000. He comes direct to us, and our basket goes from $500 to $60,000 when you include the panels, the accessories, the trims, the flashings, ventilation, and it's a direct sale. Part of what we studied in getting into metal roofing is look at the profit pool associated with the various types of roofing that go into home or light commercial space. We know all those contractors because we've been in it from a trims, flashings, and ventilation perspective for a long time. A way to actually juice our growth and our profitability over time is to get into a space where we're direct to a contractor and you get a bigger share of both the revenue and profit pool. That's why metal roofing, outside the fact that it's becoming more popular for various reasons, is something that's important to us. It's also very local, just like trims, flashings, and ventilation are. The localization strategy for our residential business is really critical. Adding metal roofing to that opens up a bigger opportunity for us in a number of ways, but also allows us to work directly with the contractor and influence them as well. We're not suggesting that we would take our traditional business through wholesale and retail and move that to a contractor. We're just saying there's a third channel that is natural because you don't get the custom job pack from a wholesaler or a big box retailer. That's not what they do. It's a nice thing for us to broaden ourselves. It gets access to bigger pools of money and a direct relationship with the contractor is what we're trying to do. That's how that all fits together. That's a good end market. People ask me, what's driving it? First and foremost, it's taken about 10 to 15 years to get a contractor base around the country that knows actually how to sell it, how to install it, and realize that they can make more money on metal roofing than they do shingle. It doesn't mean shingle's bad. It just means it's another opportunity. You don't find as many people doing both in the past. Now you do. You get a contractor that is much more familiar with how to do metal roofing. When they're talking to a homeowner, they can have that discussion. They couldn't have that 10 or 15 years ago. That's kind of item number one. You've got an installed base of contractors that know how to do it. Secondly, you've got legislation. You've got storm scenarios, or what we call our four tornado alleys. We know where our hail alleys are across the country. Those events are driving more and more metal roofing, not just at the high end, but into middle market. Finally, when you get into the hurricane world, whether it's the coast from Texas all the way around Florida up to the Carolinas, there's all kinds of legislation being proposed around building codes that are pushing more and more metal roofing. We were just talking to a group earlier this morning, as an example, they're popping up replacing clay tiles in Miami. One, the aesthetics look much better. There's 28 different colors, there's different textures, all this good stuff, but there's building codes. If you pass Miami-Dade building codes, where they're very heavy around metal roofing, that's kind of the mecca for how the codes are set for a lot of the country. That's starting to creep up in different parts of Florida and into the coast. There's a lot of drivers for it. Like I said earlier, it's a $3 billion market. If I have a $3 billion metal roofing market, we also have a $3 billion traditional trims, flashings, ventilation market. Collectively with metal roofing, we've created a total addressable market of $6 billion for us. We've lived in a world of $3 billion. Of that $3 billion, we haven't been present near as much as we would have liked to have been. That's part of the reason why we're able to grow our share without the market being robust on the end market. We just have to be more present in what exists. That's really been our strategy, to drive more with existing customers, get into more local geographies, broaden our distribution across those three channels, and introduce new products. It's a combination of a lot of things, but that's how we're outpacing the market today. It's not rocket science. We have a long way to go. We've got a lot of things we can do much better, but we feel like we're outpacing the market right now. That's a good thing in a down market situation. As the market returns, and it will at some point, we'll be in a much broader geographic area. We'll be in much broader distribution of what we do, and we're in some new space and our total addressable market is much bigger. That's why we're excited about building products in general. That's why we made the acquisitions recently. That's why you're going to see us do more of that as we're currently involved in those and some processes as we speak. I'll stop there, Julio. Sorry, it was a lot, but. It's great. I'm taking it all in. That was one of my questions, you know, why is metal roofing and spec roofing becoming more popular? You talk about the installed base. You talked about storm resiliency, the aesthetics. Are there insurance benefits too, to a homeowner? That's part of it. The state of Florida has been dealing with. Sorry, go ahead. Yeah. The state of Florida has been dealing with this as an example, whereas I think most people know that attracting insurance companies to be there is tough. After you have a major, you know, a major hurricane, you have a lot of damage, you'll find a lot of insurance companies will go under. The state of Florida has a fund that they've always had in place that is a backstop for insurance companies. They go out and sell these premiums and they get a major storm and it, you know, they can't support it. They know that that fund is there. The problem with that is, you know, ultimately at the end of the day, the state wants to have stuff that holds up better. Insurance companies want to have stuff that holds up better. That's where a lot of this legislation is being proposed in certain parts of Florida where, look, you know, shingle may not make sense. Historically, someone might say, I don't want metal roofing in my HOA either because it was just flat gray. Now that, you know, it's different colors and different textures and looks much different than it did 10 years ago, and you've got a group that knows how to install it, it really does hold up much better than a lot of other roof types in these major events. Hurricane Ian really pointed that out for a lot of folks where you'd see a lot of footage where shingle roofs were gone right next to a metal roof, which looked like nothing happened to it. It's durability, how it's connected, whether it's hail or high wind, you know, it makes a difference and people are recognizing that. Yeah, there's some insurance play in this. Also, cities are rethinking building codes and making them, changing them, modifying them a little bit towards things like this. We liked that. We think that makes a lot of sense. You know, I think that's going to continue to propel things. Same thing happened in the Denver area two years ago. A huge hail event really drove metal roofing. Once it gets going, it's interesting as codes change and or people pick up on it, but contractors now become more familiar with it. They start talking to customers, homeowners about it. They have something they can point to. They have, you know, major events that they can rely on in their education of customers. That's how it gets going. You got to have a contractor base that knows how to talk to it, right? I mean, it's neat as a product, but at the end of the day, a homeowner and a contractor got to work that out. You're getting more and more people comfortable with it, and they're willing to pay more because you just have to replace a roof once to afford a metal roof. You know, it's one hailstorm away from that happening. There's a lot driving it at this stage. We're pretty excited about it. On the light commercial basis, look, it's a 50-year warranty. If you're a municipality and you're building a new school, I was just in the Carolinas visiting one of our metal roofing locations two weeks ago, and they're in the middle of a $200,000 project of a large home on the water, and they're in the middle of a quite large project. It was a school. Every school in that area has now moved to metal roof and it's spec'd in as an example. I'm not saying that's a proxy for the U.S., but you're seeing it kind of catch fire. Why? Because it's a 50-year warranty and municipalities don't want to have to deal with that cost on an ongoing basis if they can avoid it. It's funded by taxpayers at the local or state level, and maybe they get some federal funding to help, but you're seeing more and more of it happen. Libraries, schools, et cetera, in particular, are moving in that direction. Yeah, it's an interesting space. Excellent. I have a segue here. I want to segue into a question from the audience here that's related to all this. Do metal roofs use less trims, flashings, and ventilation, and thus your metal roofing acquisitions are a defensive measure as metal roof penetration increases, which could reduce demand for that legacy trim, flashings, and ventilation? No, they don't. They actually use the same amount. You have to ventilate a roof, an attic regardless. They're different. What metal roofing actually does, you know, think about the panels, but really, it's the trims and the flashings and the accessories that go with it. We're actually not just picking up the panels, the trims and flashings go with every roof style, and a metal roof is no exception, and it actually fits well with what we're doing. It's incremental for us. Okay. I'd say it this way. I don't know how much it's incremental for us because if we're already doing a lot of trims and flashings, what it does is increase our basket. As you get more into metal roofing, obviously we're pulling through more than we would otherwise if a metal roofer wasn't looking to us in the first place. We're driving our participation in trims and flashings up by the fact that we're in the metal roof to start with. Yes, you have a trim and flashing for every one of them. Good description about thinking about the third channel here. Can you just talk about the barriers to entry from a large wholesaler, like from a Beacon or an SRS, getting into that direct-to-contractor metal roofing business? Is it because it's regional, because it's made to order? It's made to order is what drives it. Think about the simple way to think about it: I come to you, Julio, and you want to do a metal roof. It's going to be unique to your house. Then, I'll go to Joe and his house will be different, and that'll be different. A different set of drawings will come, you'll bring it to us, we'll manufacture it, we'll either do it on site with portable roll formers, and we'll make the accessories and trims and flashings in our shop, or we'll make the whole job pack. That job pack is unique to you. That's not what wholesalers do, right? They don't, as I said earlier, create demand, they fulfill it. They fulfill it through an inventory strategy. That's why shingles make a lot of sense for them. That's why a lot of common trims and flashings do as well. A contractor shows up and they get what they need, they go do their roof. With the metal roof, someone's got to actually make it. That's not something that a wholesaler would ever inventory. It's not their business model, and they're not going to invest in equipment to do it because it doesn't make it. That's not their DNA, right? There are cases where a wholesaler may come to us and say, "Hey, I've got a contractor that came and they've got a, you know, a hundred square job opportunity for a metal roof," and we'll work with them on that. The general, you know, that's the exception. The rule is they're going to come direct to us. Those contractors know who we are and vice versa. On a light commercial project, the way you get an understanding of what's being out there is every light commercial project has to file for permits. We just go right into the systems. You can see what permits have been filed. You know what kind of structures are being built. You know what contractors have filed them. You go out and you have that connection. If you're very local, you know those guys anyway, but that gives you an idea of what's actually out there to be approved. On the residential side, it does vary. You have to have permits. How much of that's published and how much detail you get—Is that a metal roof or a shingle roof? Either way, the ability to access the data and do that efficiently to understand where the demand's coming from is part of what these guys grow up with and know how to do, and building those relationships with the contractors. That's why wholesalers aren't in it. That's why big box is not in it. It's a manufactured custom product unique to a specific site. That's where we play the role, and that's why it's direct. How big of a revenue driver can the cross-selling of your legacy trims and flashings, you know, selling that through the contractor as you sell the metal roofing as well? You know, kind of a bundled solution. How big can that be? How big is that now? Think about it. A guy, you know, I said earlier, I just, the end numbers, if I put a $40,000 roof on, it'll have trims, flashings, accessories, and the panels all in that package. If today we're not getting the trims and flashings for that contractor, because he's going to a metal roof manufacturer where we're not in a particular market, hopefully we're getting that trims and flashing through the wholesaler, which is where he might buy it from. I can't tell you if that's happening half the time or whatever, but we do put ourselves in a position to be able to do that direct now or to influence it through the wholesaler much more than we would otherwise, because we know the job is actually happening. If we have the job, then we're in a better position to make sure that we get our trims, flashing, ventilation going through there than we would have before. Collectively, between the two end markets, think of it as a $6 billion total addressable market. That's what's exciting about it. That's residential and light commercial, but that's why I get pretty fired up about the runway and the end market. At the end of the day, we just got to be more present. If we're sitting here with affordability issues and interest rates still hovering a little bit too high, how much that cracks over what period of time, can't control any of it. What I can control is getting into a bigger piece of where that $6 billion is, where I'm not today. That's what we focus on. I leave the rest of it to whatever happens, and we're going to focus on the things that we can do. That's why we're excited about, and I think that's why we've been able to grow in this down market. The first half of this year, just on our trims, flashings, ventilation, forget metal roofing, not counting that. The market's been down 4 or 5%, I think is what the industry stats say. We're up, you know, 2%. That's not great, but it's better than being down 4%. If we try to grow at 2x the market, I think what we're doing is showing up. We've got to prove that out over a longer period of time. I get that. One snowflake does not make a blizzard, but I feel pretty solid about what we're doing is working in a market that's not necessarily cooperating as much as we would like. When it does return, whatever that is, and whenever that is, we'll be in a much different position than we would have been otherwise across multiple channels, geographies, and product lines than we were two years ago. That's what gets us pretty excited. I got about 60 seconds here. I'm going to squeeze the same topic that you were talking about, outpacing in market demand, turning to the mail business, which I think was down 35% in 2024, and then lags you guys by a year. You guys were down 7%. You're outpacing them there. Yeah. When do the year-over-year comps for centralized mail start to get easier? When does that business start to turn positive? When you start to see starts turn around for multifamily in particular, and then starts for single family as well, it's a multifamily market for centralized mail. That's that ear lag we talked about, because that's really the last thing that goes into a building is the mail room. When you get into single point mail that's converting to centralized delivery in a neighborhood, it's not exactly the same way. You'll build X number of homes and you have to have mail delivery, so you put your first station in, and then as you build the next 50 homes, you put the next station in. As you sell these homes, you have to have mail delivery, so it comes more with the project, but you need starts to turn around as that starts to happen. You'll see that impact about a year later, is the way that's going to work. When they go down, same thing, when they go up, we'll have a bit of a lag. I think what we're trying to do in the midst of all this is just drive more presence with the right dealers and broader coverage in the U.S., which we've been working hard on. There are some other things that we're working on that can help us offset this as we go through this period. We're outperforming right now, but we'd like to turn that positive. I think it's going to be interesting to see how 2026 shapes up based on what happens in the next few months with rates and such, and things will start to turn at some point. In the meantime, it's about share gain, right? That's what we're focused on in this business as well. Excellent. Bill, Joe, thank you so much. We're out of time here, but a lot to walk through and a lot of moving parts here. I appreciate the time and walking us through. Yeah, thanks, Julio. Thanks everyone for joining us today. If you guys have any questions, don't hesitate to reach out to us. Happy to do one-on-ones as well. Thanks very much. Okay, thank you.