Q1 2025 Gibraltar Industries Inc Earnings Call

Speaker Change: [music].

Operator: Greetings and welcome to Gibraltar Industries first quarter 2025 financial results conference call. At this time, all participants are in a listen only mode.

Greetings and welcome to Chip Alterra industries first quarter 2025 financial results Conference call. At this time, all participants are in a listen only mode.

Operator: A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star 1 on your telephone. As a reminder, this conference call is being recorded.

A question and answer session will follow the formal presentation.

If anyone should require operator assistance. Please press star one on your telephone keypad.

Yeah.

Carolyn: As a reminder, this conference call is being recorded it is now my pleasure to introduce Carolyn capacity of Alliance Advisors Investor Relations. Thank you you may begin.

Carolyn Capaccio: It is now my pleasure to introduce Carolyn Capaccio of Alliance Advisors Investor Relations. Thank you. You may begin. Thank you, Sherry. Good morning, everyone. And thank you for joining us today.

Speaker Change: Thank you Sherry good morning, everyone and thank you for joining US today with me on the call is Bill Baas way, Gibraltar Industries', Chairman, President and Chief Executive Officer, and Joe Lovecchio, Gibraltar as Chief Financial Officer. The earnings press release that was issued this morning as well as the slide presentation that management will use during the call are both available in the <unk>.

Carolyn Capaccio: With me on the call is Bill Bosway, Gibraltar Industries Chairman, President and Chief Executive Officer, and Joe Lovecchio, Gibraltar's Chief Financial Officer. The earnings press release that was issued this morning, as well as the slide presentation that management will use during the call, are both available in the investor section of the company's website, GibraltarOne.com. Gibraltar's earnings press release and remarks contain non-GAAP financial measures. Tables of reconciliation of GAAP to adjusted financial measures can be found in the earnings press release that was issued today.

Carolyn: That's your section of the company's website Gibraltar, one dot com.

Carolyn: <unk> earnings press release, and remarks contain non-GAAP financial measures tables, and reconciliation of GAAP to adjusted financial measures can be found in the earnings press release that was issued today. Further. Please note that adjusted results include exclude the net sales and operating results of the residential electronic locker business, which was sold on.

Carolyn Capaccio: Further, please note that adjusted results exclude the net sales and operating results of the residential electronic locker business, which was sold on December 17, 2024.

Carolyn: December 17th 2024 also as noted on slide two of the presentation. The earnings press release that all presentation contain forward looking statements with respect to future financial results. These statements are not guarantees of future performance and the company's actual results may differ materially from the anticipated events performance or.

Carolyn Capaccio: Also, as noted on slide two of the presentation, the earnings press release and slide presentation contain forward-looking statements with respect to future financial results. These statements are not guaranteed the future performance, and the company's actual results may differ materially from the anticipated events, performance, or results expressed or implied by these forward-looking statements.

Speaker Change: Results expressed or implied by these forward looking statements Gibraltar advises you to read the risk factors detailed in its SEC filings, which can also be accessed through the company's website now I will turn it over the call over to Bill Bosley Bill.

Carolyn Capaccio: Gibraltar advises you to read the risk factors detailed in its SEC filings, which can also be accessed through the company's website.

William Bosway: Now I'll turn the call over to Bill Bosway. Bill? Thanks, Carolyn. Good morning, everyone, and thank you for joining today's call. We'll take you through our first quarter results, and then we're going to review our current full-year outlook and guidance, which remains unchanged from our previous guidance.

Bill Bosley: Thanks, Carol and good morning, everyone and thank you for joining today's call will take you through our first quarter results and then we're going to review our current full year outlook and guidance.

Bill Bosley: Which remains unchanged from our previous guidance then we'll open the call for your questions. So, let's turn to slide three for a review of the first quarter.

William Bosway: Then we'll open the call for your questions. So let's turn to slide three for a review of the first quarter. We delivered a solid start to the year with each of our businesses executing close to plan and demand in our end markets remaining consistent with the expectations going into the quarter. Adjusted sales were flat while adjusted operating income and EBITDA improved 110 and 160 basis points respectively. EPS improved 19% with solid margin performance in our residential, ag tech, and infrastructure businesses, which collectively offset specific challenges in our renewables business. We generated $14 million in operating cash flow and $2 million in free cash flow as we proactively invested in some pre-tariff inventory prior to our normal seasonal bill.

Bill Bosley: We delivered a solid start to the year with each of our businesses executing close to plan and demand in our end markets remaining consistent with the expectations going into the quarter. Adjusted sales were flat, while adjusted operating income and EBITDA improved 110 to 160 basis points respectively.

Bill Bosley: Improved 19% with solid margin performance in our residential AG tech and infrastructure businesses, which collectively offset specific challenges in our renewables business.

Bill Bosley: We generated 14 million in operating cash flow and 2 million in free cash flow as we proactively invested in some pre tariff inventory prior to our normal seasonal build.

William Bosway: Our demand remains solid, with new bookings for all our project-based businesses, ag tech, renewables, and infrastructure, each increasing during the quarter, resulting in a consolidated backlog being up 30%, $434 million, which is record level for Gibraltar. Year over year, ag tech bookings increased 226%, reflecting demand in both produce and structures markets. Infrastructure is up 11%, and renewables is up 3%. Renewables bookings and backlog were up sequentially, 90% and 30% respectively, which supports a solid second-half outlook for the business. In our residential business, participation gains awarded in 2024 across our building accessories product lines, trims, flashings, and ventilation are helping Gibraltar outpace in-market demand.

Demand remains solid with new bookings for all of our project based businesses AG Tech renewables and infrastructure each increasing during the quarter resulted in consolidated backlog being up 30% $434 million, which is record level for Gibraltar.

Bill Bosley: Year over year AG Tech bookings increased 226%, reflecting demand in both produce and structures markets infrastructure is up 11% and renewables is up 3% renewables.

Bill Bosley: Renewables bookings and backlog were up sequentially, 90% and 30%, respectively, which supports a solid second half outlook for the business.

Bill Bosley: In our residential business participation gains awarded in 2024 across our building and accessories product lines trims, flashing and ventilation, helping Gibraltar outpace end market demand.

William Bosway: With respect to portfolio management, the Lane supply acquisition completed in February also delivered solid performance, contributing to sales, margins, and backlog growth. Additionally, on March 31st, we completed two transactions that further expand our presence in the residential and light commercial metal roofing market.

Bill Bosley: With respect to portfolio management the lane supply acquisition completed in February also delivered solid performance contributing to sales margins and backlog growth.

Bill Bosley: Additionally on March 31st we completed two transactions that further expand our presence in the residential and light commercial metal roofing market.

William Bosway: We'll talk more about these in a moment. Collectively, in the first quarter, we invested and deployed $210 million to expand and build more presence in attractive end markets for both the ag tech and residential business. We've also continued to drive value through our stock repurchase program. To date, we have repurchased 91% of our current $200 million authorization. This week, our board of directors approved a new three-year $200 million program that we will execute opportunistically with available cash, and Joe will provide more details later in the call.

Bill Bosley: And we'll talk more about these in a moment.

Bill Bosley: Secondly, in the first quarter, we invested and deployed $210 million to expand and build more presence in attractive end markets for both the AG tech and residential businesses.

Bill Bosley: We've also continued to drive value to our start stock repurchase program.

Bill Bosley: To date, we have repurchased 91% of our current $200 million authorization. This week, our board of directors directors approved a new three year $200 million program that we will execute opportunistically with available cash and Joe will provide more details later in the call.

William Bosway: Now let's switch gears and discuss the full year and our decision to reaffirm our outlook and guidance for earnings for 2025. I do think it's important we start with some recent learning, namely the business environment in 2021 and 2022, where everyone experienced incredibly high inflation across all input. There was also significant disruption to supply chain. Marcus may not remember, but during that time, the price of hot rolled coil steel increased $50 per ton per week for effectively 50 straight weeks, eventually peaking at $2,200 per ton. That price today is approximately $900. So although the current situation is dynamic and presents some uncertainty, we have operated through a similar, if not more challenging, environment not too long ago.

Bill Bosley: Now, let's switch gears and discuss the full year and our decision to reaffirm our outlook and guidance for earnings for 2025.

Bill Bosley: Do think it's important we start with some recent learning, namely the business environment in 2021 and 2022.

Bill Bosley: Where everyone experienced incredibly high inflation across all input costs.

Bill Bosley: There was also a significant disruption to supply chain.

Bill Bosley: Markets may not remember, but during that time, the price of hot rolled coil steel increased $50 per ton per week for effectively 50 straight weeks eventually, peaking at $2200 per ton.

Bill Bosley: That price today is approximately $900 per ton.

Bill Bosley: So although the current situation is dynamic and presents some uncertainty we have operated through a similar if not more challenging environment not too long ago.

William Bosway: That being said, last November, we began preliminary modeling and planning for potential tariffs of 20 to 30 percent. and what they could mean for our markets, products, input costs, and or availability of materials. Although there remains uncertainty in today's economy, we have a relatively clear understanding of the potential impact from terrorists based on the amount and timing of terrorists announced to date. And we believe the impact to overall material cost will be approximately 5%, an amount we also believe we will manage and mitigate during the year.

Bill Bosley: That being said last November we began preliminary modeling and planning for potential tariffs of 20% to 30%.

Bill Bosley: What that could mean for our markets products input cost and or availability of materials.

Bill Bosley: Although there remains uncertainty of today's economy, we have a relatively clear understanding of the potential impact from tariffs based on the amount and timing of terrorists announced to date and.

Bill Bosley: And we believe the impact of overall material cost will be approximately 5%.

Bill Bosley: We also believe we will manage and mitigate during the year.

William Bosway: So in reaffirming our current guide, we have taken into consideration the status of five key business drivers. Number one, the impact of tariffs in the mitigating actions we have already taken or will deploy. Number two, our current order input rates across each business. Number three, current order backlog in each of our project-based businesses. Number four, we have reduced revenue expectations for renewables related to ongoing industry uncertainty unique to the solar industry. And number five, we have included incremental revenue and margin from our recent acquisition.

Bill Bosley: So in reaffirming our current guide we've taken into consideration the SaaS of five key business drivers.

Number one the impact of tariffs and the mitigating actions, we have already take or will we have already taken or will deploy.

Bill Bosley: Number two our current order input rates across each business.

Bill Bosley: Number three current order backlog in each of our project based businesses.

Bill Bosley: Number four we have reduced revenue expectations for rep for renewables related to ongoing industry uncertainty unique to the solar industry and.

Bill Bosley: And number five we have included incremental revenue and margin from our recent acquisitions will further discuss each of these drivers during today's call and then I'll summarize again, our thoughts at the end of our comments.

William Bosway: We'll further discuss each of these drivers during today's call, and then I'll summarize again our thoughts at the end of our comments.

Joseph Lovechio: So now let's dive into the business segments, and Joe will start with residential. Thanks Bill and good morning everyone. Let's start with residential on slide 4. Net sales for our residential segment decreased by 2.4 million or 1.3%, driven by lower retail store traffic and soft end-market point-of-sale activity early in the quarter, and in mail and package, which is driven mainly by new construction starts from the previous year. In the building accessories business, product sales have increased solidly, driven by participation gains we earned last year through our expansion initiatives in selected local markets, and strong acceptance of new products launched in 2024.

Bill Bosley: Let's dive into the business segments, and Joe will start with residential.

Joe Lovecchio: Thanks, Bill and good morning, everyone, let's start with residential on slide four.

Joe Lovecchio: Net sales for our residential segment decreased by $2 4 million or one 3% driven by lower retail store traffic in soft end market point of sale activity early in the quarter and in mail and package, which is driven mainly by new construction starts from the previous year.

And the building accessories business product sales had increased solidly driven by participation games, we earned last year through our expansion initiatives and selected local markets.

Joe Lovecchio: Strong acceptance of new products launched in 2024.

Joseph Lovechio: Order entry remains solid entering the second quarter, typically the start of the semester.

Joe Lovecchio: Order entry remains solid entering the second quarter typically the start of the season.

Joseph Lovechio: Now turning to margins. Adjusted operating EBITDA margins decreased 80 and 70 basis points, respectively, remaining at strong levels despite impacts from volume and product line mix for both building accessories and mail-in package. We continue to execute well and drive profitability benefits from 80-20 initially. Earlier this month, we successfully completed business system conversions at two of our residential facilities, and we continue to expect to have all locations completed in 2026.

Joe Lovecchio: Now turning to margins adjusted operating EBITDA margins decreased 80, and 70 basis points, respectively remaining at strong levels. Despite impacts from volume and product line mix for both building accessories and mail and package, we continue to execute execute well and drive profitability benefits from 80 20 initiatives.

Joe Lovecchio: Earlier. This month, we successfully completed business system conversions at two of our residential facilities and we continue to expect to have all locations completed in 2026.

Joseph Lovechio: So let's move to slide 5, and I'll give you an update on the residential market and our expansion initiatives. So if you think about it, compared to a fairly solid market in Q1 2024, this year the market started off slow in January and February and then started to improve in late March as the construction season started to ramp up. Retailer-appointed sale results were down 3% in the quarter, with a wide range of results, depending on the retailer, anywhere from 1 to 12%. The ARMA report also reflected a slower market with shingles shipments down 2% versus last year.

Joe Lovecchio: So let's move to slide five and I'll give you an update on the residential market and our expansion initiatives.

Joe Lovecchio: So if you think about a compared to a fairly solid market. In Q1 2024. This year. The market started off slow in January and February and then started to improve in late March as the construction season started to ramp up reaching.

Joe Lovecchio: Retail point of sale results were down 3% in the quarter with a wide range of results depending on the retailer anywhere from 1% to 12%.

Joe Lovecchio: Armour report also reflected a slower market, which with shingle shipments down 2% versus last year.

Joseph Lovechio: Overall, for our business, order strength remains in line with our plan and continues to be supported by participation gains in our core building products. In fact, with sales of trims, flashings, and ventilation up 3.5% in the quarter, we believe we outpaced end market demand as described above. Our mail-in-package product sales, specifically for our centralized mail solutions, which are driven mainly by new construction starts from the previous year and sold through our dealer channel, were down as expected in the quarter and in line with our plan. We remain active in our expansive initiatives and added seven local markets through two acquisitions that currently focus on the metal roofing and market.

Joe Lovecchio: Overall for our business order strength remains in line with our plan and continues to be supported by participation gains in our core building products in fact with sales of trends flashing and ventilation up three 5% in the quarter. We believe we outpaced the end market demand as described above.

Joe Lovecchio: Mainland packaged product sales specifically for our centralized mail solutions, which are driven mainly by new construction starts from the previous year.

Joe Lovecchio: Sold through our dealer channel were down as expected in the quarter and in line with our plan.

Joe Lovecchio: We remain active in our expansion initiatives and added seven local markets through two acquisitions that currently focus on the metal roofing end market.

Joseph Lovechio: And these locations will also drive sales synergies for trims, flashings, and other roofing accessories in the near future. We will continue to add more locations in 2025 through organic investment and M&A as we expand our localization efforts to better support customers and increase our participation.

Joe Lovecchio: These locations will also drive sales synergies for trims flashing at other roofing accessories in the near future we.

Joe Lovecchio: We will continue to add more locations in 2025 through organic investment and M&A and we as we expand our localization efforts to better support customers and increase our participation.

Joseph Lovechio: Let's turn to slide 6, and we'll discuss our recent acquisitions. So despite today's macro environment, the M&A market remains relatively active, particularly in the building products and ag tech segments, and we will continue to be engaged in opportunities as they present themselves. At that point, on March 31st, we completed two acquisitions in building products, both specializing in metal roofing systems, wall panels, and trim products, and both operating in attractive local markets, one positioned well in the Rocky Mountain region and one positioned well in the Carolinas. We are excited about the leadership and management teams in both businesses.

Joe Lovecchio: Let's turn to slide six and we'll discuss our recent acquisitions.

Joe Lovecchio: So despite today's macro environment. The M&A market remains relatively active particularly in the building products and <unk> segments, and we will continue to be engaged and opportunities as they present themselves that point on March 31st we completed two acquisitions in building products, both specializing in metal roofing systems wall panels and trim products and both operator.

Joe Lovecchio: And attractive local markets, one positioned well in the Rocky Mountain region, and one positioned well in the Carolinas. We are excited about the leadership and management teams in both businesses. They are highly experienced in the in their local markets and have built leadership positions with strong customer relationships as well.

Joseph Lovechio: They are highly experienced in their local markets and have built leadership positions with strong customer relationships as well. Metal roofing continues to become more mainstream, particularly in challenging weather-impacted end markets, and offers a viable substitute for traditional roofing building products. As well, we are excited for the go-to-market, direct-to-contractor model serving both residential and light commercial customers. We paid a total consideration of $90 million cash for combined net sales of $73 million and adjusted EBITDA margin of 17.8%, a multiple we view as reasonable.

Joe Lovecchio: Roofing continues to become more mainstream particularly in challenging weather impacted end markets and offers a viable substitute for traditional roofing building products as well. We are excited for the go to market direct to contractor model, serving both residential light commercial customers.

Joe Lovecchio: We paid a total consideration of $90 million cash combined net sales of $73 million and adjusted EBITDA margin of 17, 8% a multiple we view as reasonable and we expect these transactions to be accretive this year.

Joseph Lovechio: And we expect these transactions to be accretive this year.

William Bosway: Let's switch gears and we'll move on to Ag Tech. Returning to slide 7, AgTech net sales increased 32.4%, driven primarily by the Lane Supply Acquisition, which was completed on February 11, 2025.

Joe Lovecchio: Let's switch gears and we'll move on to AG Tech.

Joe Lovecchio: So turning to slide seven and take net sales increased 32, 4% driven primarily by the lane supply acquisition, which was completed on February 11th 2025.

William Bosway: Organic net sales decreased 12.6% as permit approval pushed two produce project start dates to the end of the second quarter. Bookings are up 226% driven mainly by our organic bookings and the addition of the lane supply backlog. Segment-adjusted operating and EBITDA margins expanded 270 and 330 basis points, respectively, driven by productivity, project mix, and project execution. And lane supply is performing as expected.

Joe Lovecchio: Organic net sales decreased 12, 6% and its permit approval pushed to produce project start dates to the end of the second quarter.

Joe Lovecchio: Bookings are up 226% driven mainly by organic bookings and the addition of the lane supply backlog.

Joe Lovecchio: Segment, adjusted operating and EBITDA margins expanded to 270, and 330 basis points, respectively, driven by productivity project mix and project execution and lane supply is performing as expected.

William Bosway: So as we move to slide 8, I wanted to share with you some recent wins that support our expansion initiatives in the U.S. If you recall, as we mentioned in our last earnings call, we are focused on winning more opportunities to support customers for the construction of new facilities. but, as well, retrofitting and servicing existing facilities. So here are two new projects signed in the quarter, one of which has recently started after some short schedule delays, and the other, which will begin later this year or in early 2026.

Joe Lovecchio: So let's move to slide eight I wanted to share with you. Some recent wins that support our expansion initiatives in the U S.

Joe Lovecchio: If you recall as we mentioned in our last earnings call. We are focused on winning more opportunity to support customers for the construction of new facilities.

Joe Lovecchio: But as well retrofitting and servicing existing facilities. So here are two new projects signed in the quarter one of which has recently started after some.

Joe Lovecchio: The short scheduled delays and the other which will begin later this year or in early 2026. So the one on the left the <unk>, Arizona project, which will be completed in three phases is a major retrofit project of an existing growing facility that spans approximately five miles long and a mile deep.

William Bosway: So the one on the left, the Howlings Arizona project, which will be completed in three phases, is a major retrofit project of an existing growing facility that spans approximately five miles long and a mile deep. The value of the project for Gibraltar is $90 million. Incremental to that, we have also entered a contract to provide daily maintenance for the existing growing operations while we retrofit other sections of the campus.

Joe Lovecchio: Value of the project for Gibraltar is $90 million.

Joe Lovecchio: Incremental to that we have also entered a contract to provide daily maintenance for the existing growing operations, while we retrofit other sections of the campus. This is a first for Gibraltar and we're super excited about that.

William Bosway: This is a first for Gibraltar, and we're super excited about it. This project started in Q2 and includes converting the existing greenhouse to a semi-closed facility with a climate corridor requiring over 140 miles of air distribution.

Joe Lovecchio: This project started in Q2 and includes converting the existing greenhouse to a semi closed facility with a climate corridor acquiring over 140 miles of air distribution.

William Bosway: As well, we are redesigning and retrofitting the irrigation, heating, and screen systems, and are also integrating and installing three new cogeneration CHP, or combined heat and power systems. On the right-hand side of the slide, you can see our new project with the University of Kentucky. Our partnership with them to design and build two greenhouse facilities, one for research and one for teaching, and then incorporate both of them into its new ag research facility is very exciting. We have designed and will build a 28,000 square foot research greenhouse to be located on the rooftop of the new UK Ag Research Facility.

Joe Lovecchio: As well, we are redesigning and retrofitting the irrigation heating and screen systems are also integrating and installing three new cogeneration CHP or combined heat and power systems.

Joe Lovecchio: On the right hand side of the slide you can see our new project with the University of Kentucky.

Joe Lovecchio: Our partnership with them to design and build two greenhouse facilities, one for research and one for teaching and then incorporate both of them into its new AG research facility is very exciting we have designed and will build a 28000 square foot research greenhouse to be located on the rooftop of the new U K AG research.

William Bosway: And we will also design and build a 4,000 square foot teaching greenhouse to be incorporated on the ground level of the research facility. The project value for Gibraltar will exceed $12 million.

Joe Lovecchio: Facility and we will also design and build a 4000 square foot teaching greenhouse to be incorporated on the ground level other research facility.

Joe Lovecchio: The project value for Gibraltar will exceed $12 million.

William Bosway: and is expected to start in Q4 this year or in early 2026.

Joe Lovecchio: It is expected to start in Q4 this year or in early 2026.

William Bosway: For 2025, with our existing backlog and pipeline of new opportunities, we expect the ag tech business to deliver solid growth and operating margin improvement. Based on the current timing of project schedules, the business should accelerate late Q2 through the end of the year. We also expect to book additional projects and further build our backlog for 2025 and 2026.

Joe Lovecchio: For 2025, with our existing backlog and pipeline of new opportunities, we expect the AG tech business to deliver solid growth and operating margin improvement.

Joe Lovecchio: Based on the current timing of project schedules the business should accelerate late Q2 through the end of the year. We also expect to book additional projects and further build our backlog for 2025 and 2026.

William Bosway: So let's move on to renewables. So moving to slide 9, renewables adjusted net sales decreased $7.8 million or 15.1%. And although bookings were up 3% versus last year, backlog was down 23%.

Joe Lovecchio: So let's move on to renewables.

Joe Lovecchio: Yeah.

Joe Lovecchio: So moving to slide nine renewables adjusted net sales decreased $7 8 million or 15, 1% and although bookings were up 3% versus last year backlog was down 23%.

William Bosway: As we discussed in our Q4 earnings call, sales and bookings were suppressed in the second half of 2024 as customers focused on meeting industry deadlines by December 3rd related to the expiration of the presidential proclamation. Since then, new bookings have improved, up 3% versus last year and up 90% sequentially, which resulted in backlog being up 30% sequentially. Adjusted operating margin decreased 50 basis points, while adjusted EBITDA margin improved 100 basis points. Operating margin was impacted by lower volume and field inefficiencies related to the launch and ramp of the new 1P tracker technology. So let's move to slide 10.

Joe Lovecchio: As we discussed in our Q4 earnings call sales and bookings were suppressed in the second half of 'twenty 'twenty four as customers focused on meeting industry deadlines by December 3rd related to the exploration of the presidential proclamation.

Joe Lovecchio: Since then new bookings have improved up 3% versus last year and up 90% sequentially, which resulted in backlog being up 30% sequentially.

Joe Lovecchio: Adjusted operating margin decreased 50 basis points, while adjusted EBITDA margin improved 100 basis points operating margin was impacted by lower volume and field and the inefficiencies related to the launch and ramp of the new one P tracker technology.

Joe Lovecchio: So let's move to slide 10, and I'll give you an update on the regulatory training and market situation.

William Bosway: I'll give you an update on the regulatory trade and in-market situation. The Department of Commerce has issued its final determination on the second ADE-CBD complaint and assigned tariff rates to the panel manufacturers operating in these countries accordingly. In almost all cases, the final tariff rates came in higher than what the DOC recommended in their preliminary findings.

Joe Lovecchio: The Department of Commerce has issued its final determination on the second <unk> complaint and assigned tariff rates to the panel manufacturers operating in these countries. Accordingly in almost all cases the final tariff rates came in higher than what the D. C recommended in their preliminary findings. The next step in the process is for the U S International Trade Commission to issue.

William Bosway: The next step in the process is for the U.S. International Trade Commission to issue its final determinations for ADE-CBD, which are expected on or around June 2nd. And if they are in agreement with the DOC, final orders are expected to be issued on or around June 9th.

Joe Lovecchio: Its final determinations for a D. C V D, which are expected on or around June 2nd and if they are in agreement with the DSC final orders are expected to be issued on or around June 9th.

William Bosway: Closure on this investigation is helpful for the industry as it brings a bit more clarity on costs, at least on panels imported from Southeast Asia. The higher ADCVD tariff rates create some concern for project economics, but given there is a much more developed and diverse panel supply chain today, the industry has more options to consider when designing and developing a project.

Joe Lovecchio: Closure on this investigation is helpful for the industry as it brings a bit more clarity on cost at least on panels imported from southeast Asia.

Joe Lovecchio: The higher 80, CVD tariff rates create some concern for project economics, but given there is a much more developed in diverse panel supply chain today. The industry has more options to consider when designing and developing a project.

William Bosway: As it relates to other dynamics in the solar market, developers are assessing four potential drivers of their business and how to proceed in this environment. As with all businesses, the potential impact from the tariffs recently announced and how to mitigate them. Secondly, what, if any, impact there will be to their power purchase agreements and what options are available to negotiate prices for new projects and renegotiate contracts for existing projects, if necessary. Third, the timing and impact of the reconciliation bill, if any, to existing IRA tax benefits, namely the ITC, PTC, and 45X.

Joe Lovecchio: As it relates to other dynamics in the solar market developers are assessing for potential drivers of their business and how to proceed in this environment.

Joe Lovecchio: As with all businesses the potential impact from the tariffs recently announced and how to mitigate them.

Joe Lovecchio: Secondly, what if any impact there will be to their purchase or their power purchase agreements and what options are available to negotiate prices for new projects.

Joe Lovecchio: And renegotiate contracts for existing projects if necessary.

Joe Lovecchio: Third the timing and impact of the reconciliation bill if any existing or a tax benefits, namely the ITC PTC in 45 X and then fourth Interconnectivity and transmission permitting has or will the government efficiency initiatives help improve today's situation or adversely impacted and will new.

William Bosway: And then fourth, interconnectivity and transmission permitting, has or will the government efficiency initiative help improve today's situation or adversely impact it, and will new or existing transmission capacity be redirected in favor of fossil fuel energy production? In general, developers are digesting a lot right now, working through potential scenarios based on a set of assumptions they are waiting to confirm one way or another. Regardless, with this added uncertainty, we believe it is likely there will be delays to existing project schedules and to the signing of new projects.

Joe Lovecchio: Or existing transmission capacity be redirected in favor of fossil fuel energy production.

Joe Lovecchio: In general developers are digesting a lot right now working through potential scenarios based on a set of assumptions there waiting to confirm one way or another regardless with this added uncertainty. We believe it is likely there will be delays to existing project schedules and to the signing of new projects.

William Bosway: Let's move to slide 11, and we'll discuss our renewables current market situation and the ongoing investments we are making to expand and grow the business. So as we discussed in our last earnings call, we expected new orders to start improving in Q1, and they did. New bookings have accelerated up 3%, as Joe said, versus prior year. In all our technologies, Tracker, Fixed Tilt, Canopy, and eBoss are contributing accordingly. And sequentially, new orders and backlog are up 90% and 30% respectively.

Joe Lovecchio: Let's move to slide 11, we will discuss our renewables current market situation and the ongoing investments, we're making to expand and grow the business.

Joe Lovecchio: So as we discussed in our last earnings call, we expected new orders to start improving in Q1 and they did.

Joe Lovecchio: New bookings have accelerated or up 3% as Joe said versus prior year and all of our technologies tracker fixed tilt canopy knee boss are contributing accordingly, and sequentially, new orders and backlog are up 90% and 30% respectively.

William Bosway: The new project pipeline remains active, albeit customers, as I mentioned, are assessing and or are waiting to see what happens with the new tariffs, the reconciliation bill, and the final determinations from the USITC. As a result, we are taking a more cautious view of industry demand.

Joe Lovecchio: The new project pipeline remains active, albeit customers as I mentioned are assessing and are waiting to see what happens with the new tariffs. The reconciliation bill and the final determinations from the U S C.

Joe Lovecchio: As a result, we are taking a more cautious view of industry demand.

William Bosway: And we have reduced our revenue and margin outlook for renewables in Q2 and for the year. Our full year plan is still built on the assumption of a slower first half and a stronger second half given our bookings activity and current backlog.

Joe Lovecchio: And we have reduced our revenue and margin outlook for renewables in Q2 and for the year. Our full year plan is still built on the assumption of a slower first half and a stronger second half given our bookings activity and current backlog.

William Bosway: On the right side of the slide, I have outlined some key investments we have made and are making to build and further improve the business. First, we added Hailstow capability to our tracker system cloud software and launched it in Q4 2024, along with commissioning improvements. Secondly, we have developed our 1P tracker designed for Pyle Foundations to help us expand geographic growth opportunities, which we are launching in Q4 2025. Third, we opened our internal distribution center to support 1P Tracker in Q4 2024 and upgraded our logistics network as well. Fourth, we're launching our next generation fixed tilt platforms in the first half of 2026.

Joe Lovecchio: On the right side.

Joe Lovecchio: This slide I have outlined some key investments we have made and are making to build and further improve the business.

Joe Lovecchio: First we added hailstone capability to our tracker system cloud software and launched it in Q4 2024, along with commissioning improvements.

Joe Lovecchio: Secondly, we have developed our one P tracker designed for pile foundations to help us expand geographic growth opportunities, which we are launching in Q4.

Joe Lovecchio: 2025.

Joe Lovecchio: Third we opened our internal distribution center to support one P tracker in Q4, 2024 and upgraded our logistics network as well.

Joe Lovecchio: Fourth we are launching our next generation fixed tilt platforms in the first half of 2026 and fifth we have reduced our fixed tilt manufacturing footprint by 50% through 80, 20 initiatives and finally <unk>.

William Bosway: Fifth, we have reduced our fixed-tilt manufacturing footprint by 50% through 80-20 initiatives. And finally, sixth, we have implemented multivariate micro-segmentation analytics to determine and prioritize additional states and local markets where our solutions create the most value for customers. We continue to focus on winning more where we are well-positioned today and have added focus across the upper Midwest where a combination of our technologies makes sense.

Joe Lovecchio: We have implemented multi varied micro segmentation analytics to determine and prioritize additional states and local markets, where our solutions create the most value for customers.

Joe Lovecchio: We continue to focus on winning more where we are well positioned today and have added focus across the upper Midwest, where a combination of our technologies makes sense.

William Bosway: Now let's move on to our infrastructure business. Let's move to slide 12. Infrastructure net sales decreased 0.6 million or 2.7% as project delays pushed some shipments into the second quarter. Demand remains strong and backlog is increasing 11%. Quoting activity remains robust, supported by ongoing investment and funding at both federal and state levels. Segment-adjusted operating and EBITDA margins improved 230 and 220 basis points, respectively, driven by strong execution, good supply chain management, and product line mix. And we expect sales growth and margin expansion in this business in 2025.

Joe Lovecchio: Now, let's move onto our infrastructure business.

Joe Lovecchio: So let's move to slide 12 infrastructure net sales decreased <unk> 6 million or two 7% as project delays pushed some shipments into the second quarter demand remains strong and backlog is.

Joe Lovecchio: Creasing, 11%.

Joe Lovecchio: Loading activity remains robust supported by ongoing investment in funding at both federal and state levels.

Joe Lovecchio: Segment, adjusted operating and EBITDA margins improved 230, and 220 basis points, respectively, driven by strong execution, good supply chain management and product line mix and we expect sales growth and margin expansion in this business in 2025.

William Bosway: So now let's move to slide 13 to discuss our balance sheet and cash flow. At March 31st, we had cash on hand of $25 million, which reflected our investments in ag tech and residential M&A and stock repurchases in the quarter, and we have $395 million available on our revolver. During the quarter, we generated approximately $14 million in cash from operations from net income which funded a working capital investment of $20 million. We invested in inventory, some of which we purchased at more favorable prices in anticipation of tariff introductions to support our typical Q2 to Q3 seasonal bill.

Joe Lovecchio: So now let's move to slide 13 to discuss our balance sheet and cash flow.

Joe Lovecchio: At March 31, we had cash on hand of $25 million, which reflected our investments in AD tech and residential M&A and stock repurchases in the quarter and we have 395 million available on our revolver.

Joe Lovecchio: During the quarter, we generated approximately $14 million in cash from operations from net income, which funded our working capital investment of $20 million.

Joe Lovecchio: We invested in inventory some of which we purchased at more favorable prices and in taste in anticipation of tariff introductions to support our typical Q2 to Q3 seasonal build.

William Bosway: And the increase in accounts receivable relates to collections which are flowing in during the course of the current quarter. Free cash flow generation was 1% of sales, which we expect to expand over the course of the year toward our 2025 target.

Joe Lovecchio: And the increase in accounts receivable relates to collections, which are flowing in during the course of the current quarter.

Joe Lovecchio: Free cash flow generation was 1% of sales, which we expect to expand over the course of the year toward our 2025 target.

William Bosway: During the quarter, we used $62 million to repurchase approximately 915,000 shares of common stock, and I'll cover our repurchase program in greater detail in just a moment. Our revolving credit facility remains untapped and we remain debt free.

Joe Lovecchio: During the quarter, we used 62 million to repurchase approximately 915000 shares of common stock and I'll cover our repurchase program in greater detail in just a moment.

Joe Lovecchio: Our revolving credit facility remains untapped and we remain debt free.

William Bosway: As mentioned, we acquired Lane Supply for $120 million in cash, subject to customary working capital and other adjustments. And as we announced today, on March 31st, we completed two metal roofing acquisitions in the residential segment for a combined approximate $90 million in cash. We expect to continue to generate strong cash flow in 2025 and in the coming year. Our capital allocation priorities for 2025 are to continue to invest in our organic growth in operating systems for scale, with capital expenditures approximately 3% a sale. We continue to explore inorganic growth opportunities and have an active pipeline of high-quality M&A.

Joe Lovecchio: As mentioned, we acquired lane supply for $120 million in cash subject to customary working capital and other adjustments.

Joe Lovecchio: And as we announced on March 31st we completed two metal roofing acquisitions in the residential segment for a combined approximate $90 million in cash.

Joe Lovecchio: We expect to continue to generate strong cash flow in 2025 and in the coming years.

Joe Lovecchio: Our capital allocation priorities for 2025 are to continue to invest in our organic growth and operating systems for scale with capital expenditures of approximately 3% of sales.

Joe Lovecchio: We continue to explore inorganic growth opportunities and have an active pipeline of high quality M&A are.

William Bosway: Our strong balance sheet provides optionality and flexibility and we remain focused in the near term on our residential and ag tech segments. Lastly, we plan to continue to deploy capital for value creation through opportunistic share repurchase.

Joe Lovecchio: Our strong balance sheet provides optionality and flexibility and we remain focused in the near term on a residential and AG tech segments.

Joe Lovecchio: Lastly, we plan to continue to deploy capital for value creation through opportunistic share repurchases.

William Bosway: So let's move to slide 14 to discuss share repurchase. To date, over the life of our current share repurchase program, we have repurchased approximately 3.6 million shares of common stock at an average price of $50.45. At quarter end, we had approximately 19 million, or roughly 9%, remaining under this $200 million stock repurchase authorization, which expires on May 2nd.

Joe Lovecchio: So, let's move to slide 14 to discuss share repurchase.

Joe Lovecchio: To date over the life of our current share repurchase program, we have repurchased approximately three 6 million shares of common stock at an average price of $50.45.

Joe Lovecchio: At quarter end, we had approximately $19 million or roughly 9% remaining under the 200 million stock repurchase authorization, which expires on may 2nd.

William Bosway: This week, our Board of Directors approved a new three-year, $200 million common stock repurchase program that will succeed our current program and expire on April 30th, 2028. Like our current program, this new program seeks to return value to shareholders through opportunistic repurchases to be funded by cash generated from operations and the use of our revolver, depending on timing of any M&A or repurchase.

Joe Lovecchio: This week, our board of directors approved a new three year 200 million common stock repurchase program that will succeed our current program and expire on April 32028 like.

Joe Lovecchio: Like our current program. This new program seeks to return value to shareholders through opportunistic repurchases to be funded by cash generated from operations and the use of our revolver, depending on timing of any M&A or repurchases. So now I'll turn the call back over to Bill.

William Bosway: So now I'll turn the call back over to Bill.

William Bosway: So let's move on to slide 15. I wanted to revisit. our 2025 guide, and review the four key drivers that support our plan. First, let's discuss driver number one, current demand. Order entry in our residential business has been consistently on pace with our Q2 plan, and we are benefiting from participation gains in our building accessory product. Our backlog for our project-based businesses, as mentioned earlier, is very solid and is at record levels today.

Bill Bosley: So let's move on to slide 15, I wanted to revisit.

Bill Bosley: Our 2025 2025 guide and review the four key drivers that support our plan.

Bill Bosley: First let's discuss driver number one current demand.

Bill Bosley: Order entry in our residential business has been consistently on pace with our Q2 plan and we are benefiting from participation gains in our building accessory product lines.

Bill Bosley: Our backlog for our project based businesses as mentioned earlier is very solid and is at record levels today.

William Bosway: Secondly, we made an adjustment to our renewables plan. We have reduced our outlook for renewables as developers deal with uncertainty associated with the new tariffs and AD-CBD impact.

Bill Bosley: Secondly, we made an adjustment to our renewables plan, we have reduced our outlook for renewables as developers deal with uncertainty associated with the new tariffs and 80 CVD impacts.

William Bosway: Thirdly, we have the impact of recent acquisitions. We have added in the incremental revenue and margin expected from the lane supply in our recent metal roofing acquisitions completed March 31st.

Bill Bosley: Thirdly.

Bill Bosley: We have the impact of recent acquisitions, we have added in the incremental revenue and margin expected from the lane supply in a recent metal roofing acquisitions completed in March 31.

William Bosway: And lastly, tariff mitigation. We are executing our price cost plan via the playbook we used in 2021 and 2022, which has been updated and modified for today's situation. And I think it's important to note that our forecast for the residential ag-tech and infrastructure businesses has effectively not changed from our plan for each segment coming into 2025.

Bill Bosley: And lastly, tariff mitigation, we are executing our price cost plan to be the playbook. We used in 2021 and 2022, which has been updated modified for today's situation.

Bill Bosley: And I think it's important to note that our forecast for the residential AG Tech and infrastructure businesses has effectively not changed from our plan for each segment coming into 2025.

William Bosway: So to reiterate our 2025 guidance on slide 16. We expect net sales to range between $1.4 billion and $1.45 billion, growing between 8% and 12%. adjusted operating margin to range between 13.9% and 14.2%, expanding 110 to 140 basis. adjusted EBITDA margin to range between 16.7% and 17%, expanding 100 to 130 basis points. Gap EPS to be in the range of $4.25 to $4.50, approximately flat to prior year. Adjusted EPS to be in the range of $4.80 and $5.05, representing growth of 13% to 19%, and free cash flows as a percentage set to net sales will reach 10%.

Bill Bosley: So reiterate our 2025 guidance on slide 16 weeks.

Bill Bosley: We expect net sales to range between $1 4 billion and 145 billion growing between eight and 12%.

Bill Bosley: Adjusted operating margin to range between 13, 9% and 14, 2% expanding 110 to 140 basis points.

Bill Bosley: Adjusted EBITDA margin to range between 16, 7% and 17%.

Bill Bosley: Adding 100 to 130 basis points.

Bill Bosley: <unk> EPS to be in the range of $4 25 to $4 50, approximately flat to prior year adjust.

Speaker Change: Adjusted EPS to be in the range of $4 $85, <unk> representing growth of 13% to 19%.

Bill Bosley: Free cash flow as a percentage to net sales will reach 10%.

William Bosway: We will continue to monitor the macro environment and be ready to make adjustments as necessary. While we are navigating through an interesting time period, I believe our team is well prepared and will execute accordingly. And as always, I'm grateful to our teams and proud of the work they do and the results that we deliver.

Bill Bosley: We will continue to monitor the macro environment and be ready to make adjustments as necessary. While we are navigating through an extreme time period I believe our team is well prepared and we'll execute accordingly, and as always I'm grateful to our teams I'm proud of the work they do and the results that we deliver so now let's open the call up we'll take your questions.

Operator: So now let's open the call up and we'll take your questions. Thank you. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question... You may press star 2 if you would like to remove your question from the queue. And for participants using speaker equipment, it may be necessary to pick up your handset before pressing the star 2. One moment while we poll for questions.

Bill Bosley: Thank you if you would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the questions here.

Bill Bosley: Kim if you really like to remove your question from the queue.

Bill Bosley: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys, one moment, while we poll for questions.

Daniel Moore: Our first question is from Daniel Moore with CJS Securities, please proceed. Thank you.

Speaker Change: Our first question is from Daniel Moore with CJS Securities. Please proceed.

Daniel Moore: Good morning, Bill. Good morning, Joe. I appreciate the caller.

Speaker Change: Thank you good morning, Bill Good morning, Joe I appreciate the color and thanks for taking the questions.

William Bosway: start with residential We obviously gave good color, you know, as you described, one of the three end markets. The plan is essentially unchanged, just talk about the cadence of demand over the past You know, if you've seen any impact kind of since Liberation Day. and you know same question for your participation gains it sounds like they picked up after a sluggish Just talk about. being kind of in real time on both of those events. Yeah, thanks Dan. From a demand perspective, real-time demand continues to flow in as we had built in the plan, as we expected, and it's increasing as we enter the season, which as we anticipated.

Speaker Change: Start with residential.

Speaker Change: You, obviously gave good color.

Speaker Change: As you described one of the three end markets that the plan is essentially unchanged just talk about the cadence of demand over the past few months.

Speaker Change: You know if you've seen any impact kind of since liberation day.

Speaker Change: And same question for your participation gains.

Speaker Change: Sounds like they've picked up after a sluggish Q4.

Speaker Change: Just talk about.

Speaker Change: What you're seeing kind of in real time on both of those.

Speaker Change: Both of those fronts.

Dan: Yes, Thanks, Dan.

Speaker Change: From a demand perspective real time.

Speaker Change: Demand continues to flow in as we had built into the plan as we expected and it's increasing as we entered the season.

Speaker Change: Which as we anticipated.

William Bosway: From a participation gain perspective, if you recall, we talked a lot about how the timing of these gains would start to flow into the first quarter, and they've started to happen that way. That was just a matter of the incumbents being flushed out relative to inventory and us coming in, and so that's worked as we had expected. And then subsequent to that, we continue to expand ourselves into local markets where we weren't. So whether it's new products, whether it's existing products where we've won more business at branches or at stores, or we've gotten into additional markets, all of it's driving towards the participation gains.

Speaker Change: From our participation gain perspective, if you recall, we've talked a lot about how the timing of these gains will start to flow into the first quarter and they've started to happen.

Speaker Change: It happened that way and that was just a matter of the income that's been flushed out relative to inventory and what's coming in and so that's worked as we had expected and then subsequent to that we continue to expand ourselves into local markets, where we werent. So whether it's new products, whether it's existing products, where we've won more business had branches where it <unk>.

Speaker Change: Tours or we've gotten into additional markets all of it's driving towards the participation gains and frankly.

William Bosway: And frankly, if you think about the residential market the last couple of years, it's not been robust to start with. So our plan has been and will continue to be to drive towards a larger piece of the pie, and to do that, you've got to get local and you have to have the right products, and you've got to serve customers with speed and excellence. I'm not saying we're perfect by any means, but we're getting some momentum and we're going to continue pushing hard down that path, and we're in a financial position to do so to maintain those investments and make those acquisitions.

Speaker Change: If you think about the residential market. The last couple of years, it's not been robust to start with so our plan has been and will continue to be to drive towards a larger piece of the pie and to do that you've got to get local and you have to have the right products in and you've got to serve customers with speed and excellence and beyond.

Speaker Change: Not saying, we're perfect by any means, but where where we gained some momentum and we're going to continue pushing hard down that path and we're in a financial position to do so.

Speaker Change: To maintain those investments and make those acquisitions so.

William Bosway: So that's where we think things are today. That's how demand's shaping up today, and that's supportive of what we thought.

Speaker Change: That's where we think things are today, that's how demand shaping up today and.

Speaker Change: That's that's supportive of what we thought.

William Bosway: Inclusive of these two acquisitions, what's your overall revenue in metals? on a pro forma basis, and how should we think about the TAM and the opportunity. Yeah, well, you know, first of all, it's a really interesting market and what we like about it, obviously, I mentioned earlier, is the margin profiles is really solid. We like the opportunity to go there. We have synergies that we can leverage as well on the back end of that business. We really like getting closer to the contractor and that direct-to-contractor market. It gives you more opportunity to drive margin in that way if you perform really well.

Speaker Change: Helpful inclusive of these two acquisitions.

Speaker Change: What's your sort of overall revenue and metal roofing on a pro forma basis.

Speaker Change: And how should we think about the Tam and the opportunity set there.

Speaker Change: Yeah, well first of all it's a really interesting market and what we like about it obviously I mentioned earlier is the margin profiles.

Speaker Change: <unk> is really solid we like the opportunity to go there we have synergies that we can leverage as well in the back into that business, we really like getting closer to the contractor and that direct to contractor market.

Speaker Change: It gives you more opportunity to drive margin that way, if you perform really well our metal bit our metal roofing business really started four or five years ago, we were in that $50 million to $60 million range in and now with the acquisitions, we've made and the progress we made in the last three or four years.

William Bosway: Our metal roofing business really started four or five years ago. We were in that $50-$60 million range and now with the acquisitions we made and the progress we made the last three or four years, you're starting to see us creep more towards a couple hundred million dollars. So, we're not done. We're excited about where we want to go. We've got, you know, we're very active right now in the M&A world. There are opportunities out there as we speak and we're engaged and we're going to continue to invest accordingly. So, it's all about finding the right markets.

Speaker Change: We're starting to see us creep up towards more towards a couple of hundred million dollars. So we are we're not done.

Speaker Change: We're excited about where we want to go we've got.

Speaker Change: We're very active right now in the M&A World there are opportunities out there as we speak.

Speaker Change: And we're engaged and we're going to continue to invest accordingly, so it's all about finding the right markets.

William Bosway: And we've talked a lot about that on trims, flashings, and ventilation. It's almost the exact same approach on metal roofing. It's figuring out what MSAs you want to be in and how you can do something different than maybe what and how the market's being served today. So yeah, we're excited about it. It's got a great substitution effect. I won't bore everyone with a lot of details, but there are states that are pushing a little bit harder on building codes to drive metal roofing, not just the roofing, but panels where you have maybe more risk of significant weather events.

Speaker Change: And we've talked a lot about that on trims flashing and ventilation. It's almost the exact same approach on metal roofing.

Speaker Change: It's figuring out what Msas you want to be in and how you can do something different and maybe what and how the market is being served today. So yeah.

Speaker Change: Yeah, we're excited about it it's got a great substitution effect.

Speaker Change: I won't bore everyone with a lot of details, but there are states that are pushing a little bit harder building codes to drive metal roofing not just the roofing, but panels right, where you have maybe more risk significant weather events and so there's a lot of good momentum behind it and.

William Bosway: And so there's a lot of good momentum behind it. and we're excited to be part of it. And I presume still a pretty small, you know, penetration at this stage. Oh, yeah. Yeah, the market is probably in excess of $3 billion, is how I'd characterize it. And I say that, Dan, because there's the roofing that people think about on top of the roof. What you're finding now more also when you think about light commercial and residential is the panels may be replacing siding or brick or other things. So the market continues to kind of expand, if you will, in those traditional end markets that were served other ways.

Speaker Change: We're excited to be part of it.

Speaker Change: And I presume, it's still a pretty small.

Speaker Change: Penetration at this stage Oh, yeah, yeah. The market is probably in excess of $3 billion, how I'd characterize it.

Speaker Change: When I say that Dan because theres the roofing that people think about the on top of the roof for what you're finding now more.

Speaker Change: Also when you think about light commercial and residential is the panels, maybe replacing siding or break other things. So the market continues to kind of expand.

Speaker Change: If you will and those those traditional end markets that were served other ways.

Speaker Change: Helpful.

Joseph Lovechio: Joe, we can certainly do the math and happy to do it if but you know figured I'd ask what your kind of expected revenue and EPS recent acquisitions. Yeah, so we kind of assumed an accretion benefit of about $0.15 EPS, and then revenue probably around $50 million.

Bill Bosley: Joe We can certainly do the math and happy to do it but I figured I'd ask what youre kind of expected revenue and EPS contribution from the two recent.

Speaker Change: Recent acquisitions looks like for the balance of 'twenty five.

Speaker Change: Yeah, So we kind of assumed oh and accretion benefit of about 15 cents.

Speaker Change: Yes.

Speaker Change: And then revenue probably around $50 million.

Speaker Change: Perfect.

Daniel Moore: last one I'll jump back.

Speaker Change: Okay last one I'll jump back.

William Bosway: Just curious how things are progressing at lane supply on the last call you mentioned. 3 other players of size in the market, have you had, I know it's early days, have you had dialogues with any of those? might be able to ramp up penetration there. Yeah. No, we haven't, Dan, on that front, but I will say the team's doing a nice job. They're on track. We've made some investments in additional capacity because of the demand profile that's in front of us.

Speaker Change: Just curious how things are progressing at lean supply in the last call you mentioned theres three other players the size in the market have.

Speaker Change: Have you had I know it's early days have you had dialogues with any of those at this point.

Speaker Change: Just thinking about the cadence of how quickly it might be able to ramp up penetration there and thanks for the color.

Speaker Change: Yeah, No we havent, Dan on that front, but I will say that the team is doing a nice job there.

Speaker Change: On track.

Speaker Change: We've made some investments in additional capacity because of the demand profile. That's in front of us that equipment is coming in.

William Bosway: That equipment is coming in to be installed, and so we're excited about the business, and I think, you know, we've been in it now for 45 days, so as we get a little bit further down the road, obviously, we'll start taking a look at some broader opportunities in space, but right now, there's integration work to be done. There's some synergy work to be done, and there's some investment to get up and running as we get into the season. Carp before the horse. Makes sense. Appreciate the color. Yep, thank you.

Speaker Change: To be installed and so we're excited about.

Speaker Change: The business and I think you know we've been at now for 45 days.

Speaker Change: So as we get a little bit further down the road, obviously will start taking a look at some broader opportunities in the space, but but right now there's integration work to be done there is some synergy work to be done.

And there's some investment to be get up and running as we get into the season.

Speaker Change: Put the cart before the horse makes sense I appreciate the color.

Speaker Change: Yep. Thank you.

Walt Liptak: Our next question is from Walt Liptak with Seaport Research, please proceed. Hi, thanks. Good morning, guys. I wanted to ask about the renewable segment. And just a little bit more specifically, you know, it sounds like you're you're lowering the revenue and profit outlook for that business. I wonder if you can give us an idea of, you know, what, you know, how much that change was. And then, you know, what you're thinking longer term. Thank you. Yeah, so, well, if you're modeling, I'd think 15 to 20% is the adjustment. That can change, and the reason there's a range is because we've got put in place what we thought might be pushed to the right, and it's more of a timing issue than anything else.

Speaker Change: Our next question is from what Liptak with Seaport Research. Please proceed.

Speaker Change: Hi, Thanks, Good morning, guys.

I wanted to ask about the <unk> the renewable segment and.

Speaker Change: And just a little bit more specifically it sounds like you're you're lowering the revenue and profit outlook for that business I Wonder if you can give us an idea of.

Speaker Change: You know what you know how much of that change was.

Speaker Change: And then you know what youre thinking longer term for that business.

Speaker Change: Yes, so well.

Speaker Change: If you're modeling I think 15% to 20% is the adjustment that can change and the reason there's a range is because.

Speaker Change: Where we've got put in place what we thought might be pushed to the right. It's more of a timing issue than anything else. So.

William Bosway: So, as we said, we've got the backlog. I do think developers are working through some of this. Some of these assumptions right now and they need clarity before they start signing more projects but we've taken 15 to 20% in that range is how I think about from a modeling perspective and obviously we've been able to offset that through the strength of the rest of the business and the acquisitions. So that's how the plan... for the rest of your years, Bill.

Speaker Change: As we said we've got the backlog.

Speaker Change: I do think developers are working through some of this.

Speaker Change: Some of these assumptions right now and they need clarity before they start buying more projects, but.

Speaker Change: Yeah, we've taken 15 years to 20% in that range is how I would think about it from a modeling perspective, and obviously, we've been able to offset that through the strength of the rest of the business and the acquisition. So that's how the plan for.

Speaker Change: For the rest of yours built.

William Bosway: You know, long-term of the business, let's see what evolves and what we learn with the IRA and a host of other things. And there's a tremendous amount of work being done. I think, you know, it's a little bit unfortunate where it's not necessarily clear on a lot what's happened the last month or so for a lot of different industries, but we're starting to get, you know, buckets of clarity that are starting to come out, and that's true for renewables, particularly around, like, the reconciliation bill. And so there's a lot of activity with the industry and DC helping people understand what's important, what's not.

Speaker Change: The long term of the business, let's see what.

Speaker Change: Evolve and what we learned with the IR, a and a host of other things and there's a tremendous amount of work being done I think.

Speaker Change: A little bit unfortunate, where it's not so clear on a lot what is what's happened the last month or so for a lot of different industries, but we're starting to get buckets of clarity that are starting to come out and that's true for renewables, particularly around like the reconciliation Bill and so there are there's a lot of activity with the industry in D. C can helping people understand.

Speaker Change: What's important what's not and.

William Bosway: And, you know, we'll have more clarity here sooner than later, and I think that will impact how our and when our developers, you know, what they do next. So that's probably the best framework I can give you today, but like I said, we feel pretty solid with what we have in our backlog, and the backlog built as we had expected. So, you know, the plan was built in slow first half. Second half, we'll start to pick up as we discussed, and we'll go from there as we learn more. Okay, sounds great.

Speaker Change: We'll have more clarity here sooner than later and I think that will impact.

Speaker Change: How are and when our developers.

Speaker Change: You know what they do next so.

Speaker Change: That's probably the best framework I can give you today, but like I said, we feel pretty solid with what we have in our backlog and the backlog build as we had expected.

Speaker Change: So the.

Speaker Change: The plan was built slow first half second half will start to pick up as we discussed in.

Speaker Change: And we'll go from there as we learn more.

Speaker Change: Okay sounds great.

William Bosway: And, you know, maybe just change topics at 30,000 feet. I wonder if you could talk a little bit about your supply chain. And I think you have a couple of factories that are out in China. I don't think of you as having a lot of supply from China, but I wonder if talk about what products or components you get from China and, you know, could any tariffs get offset with... Yeah, well, first and foremost, from a supply chain perspective, the one thing we all dealt with in 21-22 was just getting access to components and materials.

Speaker Change: You know maybe just to change topics.

Speaker Change: At 30000 feet I Wonder if you could talk a little bit about your supply chain.

Speaker Change: I think you have a couple of factories that are out in China.

Speaker Change: Think of you as having a lot of supply from China, but I wonder if you could.

Speaker Change: Talk about what products or.

Speaker Change: Our components, you get from China and.

Speaker Change: Any tariffs get offset with pricing.

Speaker Change: Yeah, well first and foremost from a supply chain perspective.

Speaker Change: Yeah. The one thing we all dealt with in 'twenty. One 'twenty two is just getting access to to components and materials that is not an issue today for us.

William Bosway: That's not an issue today for us. I suspect it's not for many. We remind people, and sometimes people may not remember this, but a year, a year and a half ago there was an ABCDD case on aluminum extrusions across that was trying to cover 15-plus countries. So during that time, that really forced us to find local suppliers to help avoid and offset some of that in the event that that case was going to have a difficult ruling for folks like us. That case was dismissed, but we didn't wait for the ruling.

Speaker Change: Respects, it's not for many.

Speaker Change: I'll remind people and sometimes people may not remember this but a year year and a half ago. There were a number there was a D. C. D. D case on aluminum extrusion across that was trying to cover a 15 plus countries.

Speaker Change: So during that time that really forced us to find local suppliers to help avoid and offset some of that in the event that that case was going to have a difficult ruling for folks like us that case was dismissed.

Speaker Change: We didn't wait for the ruling we started actually redesigning our supply chain for aluminum extrusion to have more local capabilities. So.

William Bosway: We started actually redesigning our supply chain for aluminum extrusions to have more local capabilities. The other side of that is, how do you start moving stuff out of China? We've been doing that for the last few years. We still buy some things in China. We don't have any factories ourselves in China. We do have some suppliers in China. And where we've been able to move that the last couple of years to Malaysia or some other parts of the world, we've been doing that. But there's still some dependency on there and we factor that into our tariff calculator and we understand that by business and what we have to do to overcome it is also well planned I think for each business.

Speaker Change: The other side of that is how do you start moving stuff out of China, and we've been doing that for the last few years, we still buy some things in China, We don't have any factories ourselves in China, we do have some suppliers in China.

Speaker Change: And where we've been able to move that the last couple of years to Malaysia or.

Speaker Change: Some other parts of the world, we've been doing that but theres still some dependency on there and we will we factor that into our tariff calculator and we understand that by business than what we have to do to overcome it.

Speaker Change: Is also well planned I think for each business as I mentioned in the call. We actually went through the exercise back in November because everyone was hearing about tariffs. So we just plugged in 20% to 30% said what does that mean, so each business had been working on this for some time.

William Bosway: As I mentioned in the call, we actually went through the exercise back in November because everyone was hearing about tariffs so we just plugged in 20 to 30% and said, what does that mean? So each business has been working on this for some time and I feel like we have a pretty good idea of what that cost impact is. I mentioned that earlier, what it means to our material cost and you break that down by business and everyone has a plan to offset it accordingly. That'll be done through productivity, through 80-20, through price, through mixing the business with higher margin products, channel margin mixes.

Speaker Change: And I feel like we have a pretty good idea of what that cost impact as I mentioned that earlier, what it means to our material cost and you break that down by business and everyone has a plan offset it accordingly that'll be done through <unk>.

Speaker Change: Productivity through 2020 through price.

Speaker Change: Through mixing the business with higher margin projects products.

Speaker Change: Channel margin makes us so theres a lot of levers in the playbook that we learn from in 'twenty, one 'twenty two.

William Bosway: So there's a lot of levers in the playbook that we learned from in 21 and 22 that I think are there that we can utilize for each business accordingly. I'm not saying we'll be perfect with it but I am saying that I think 2021 and 2022 are much more challenging than what we're dealing with right now as it relates to inflation associated with tariffs. So I feel pretty good about our operating capability in this environment.

Speaker Change: Are there that we can utilize for each business accordingly, I'm, not saying will be perfect with it but I am saying that.

Speaker Change: I think 2021 2022 are much more challenging than what we're dealing with right now as it relates to inflation associated with tariffs.

Speaker Change: So I feel pretty good about our operating capability in this environment.

William Bosway: Okay, appreciate that.

Speaker Change: Okay I appreciate that alright. Thanks.

William Bosway: All right, thanks.

William Bosway: And then the last one for me, in residential, you know, the, you know, I, I know of, you know, Gibraltar is always being value-added with, with the customers. And so I wonder if you could talk about, you know, how you add value with the direct-to-contractor model, and if, if there is a value-add there, is this a creative Yeah, it is. We've talked a lot about localization. So again, if it's trims, flashings, ventilation products, metal roofing, the idea of speed and being able to respond in short periods of time, whether it's 24 hours or 48 hours, matters a lot.

Speaker Change: And then last one for me.

Speaker Change: In residential.

Speaker Change: The.

Speaker Change: I know of.

Speaker Change: Alterra has always being value added with our with the customers and so I Wonder if you could talk about you know how you add value with a direct to contractor model and if a if there is a value add there is accretive to margins.

Speaker Change: Yes. It is.

Speaker Change: We've talked a lot about localization so again, it fits trims lashings ventilation products metal roofing.

Speaker Change: The idea of speed and being able to respond in short periods of time, whether it's 24 hours or 48 hours matters a lot for your counter person into wholesale branch or if you're a contractor we're dealing directly with.

William Bosway: If you're a counterperson at the wholesale branch or if you're a contractor we're dealing directly with. Our bucket, if you think about our bucket of products as it relates to a roof. Traditionally speaking, our core products, that bucket is not overly expensive. But if that bucket isn't there on time, that roof doesn't go on. So if you can outpace or outmaneuver or be more flexible or have greater speed than your competition, I think you can do pretty well in this space. I think the other thing we've been doing is coming out with some newer creative products the last three or four years that are resonating with contractors, but again, those are all designed to, one, give you confidence on the job that when installed, it's going to work so you don't have to come back, and or create more productivity for the contractor on the job for the same reasons.

Speaker Change: Our bucket.

Speaker Change: If you think about our bucket of products as it relates to a roof.

Speaker Change: Traditionally speaking in our core products that bucket is not overly expensive.

Speaker Change: But as that bucket isn't there on time that roof doesn't go on so.

Speaker Change: So if you can outpace or outmaneuver or be more flexible have greater speed than your.

Speaker Change: Competition, I think you can do pretty well in this space.

Speaker Change: I think the other thing we've been doing is is.

Speaker Change: Coming out with some some newer creative products the last three or four years that are resonating with contractors, but again those are all designed to one give you confidence on the job that when installed. It's gonna work. So you don't have to come back and or create more productivity for the contractor on the job for the same reasons a contract.

William Bosway: A contractor doing a roof cannot come back. to that job and have to work on it twice without having a major economic impact on their business. And so we do everything we can to avoid that. by involving them in our new product development. So our contractors or our people are on site oftentimes working with them to see what makes the most sense. So it is new products, it's trying to drive speed throughout the chain from the time we make it to the time it's put on the roof, and it's being in the right local markets that are underserved by a competitive framework.

Speaker Change: We're doing a roof cannot come back.

Speaker Change: So that job and have to work on it twice.

Speaker Change: Without having a major economic impact on their business and so we do everything we can to avoid that.

Speaker Change: By involving them in our new product development. So our contractors or are people are on site oftentimes working with and working with them to see what makes most sense. So it is new products, it's trying to drive speed throughout the chain from the time, we make it to the time, it's put on the roof and.

Speaker Change: And it's been in the right local markets that are underserved by competitive framework and so as I said I think last call or maybe the call before.

William Bosway: And so, as I said, I think last call or maybe the call before, we have studied the top 80 MSAs and on top of that, now we're going into the smaller markets where there's opportunity as well. So it's a very, I'd say, regimented and disciplined approach to how we go out and create differentiation in the markets where we think there's an opportunity.

Speaker Change: We have studied the top 80, msas and on top of that now we're going into the smaller markets, where there's opportunity as well so it's a very I'd.

Speaker Change: I'd say regimented and disciplined approach to.

Speaker Change: How we go out and create differentiation in the markets, where we think theres an opportunity and that's that's that's I'm sharing with you our strategy I just think it is hard to duplicate otherwise had already been done.

William Bosway: I'm sharing with you our strategy. I just think it's hard to duplicate, otherwise it'd already be done. Okay, makes sense.

William Bosway: All right, thank you.

Speaker Change: Okay. It makes sense alright, thank you.

Julio Romero: Our next question is from Julio Romero with Sidoti and Company. Please.

Speaker Change: Our next question is from of who the Hell Romero with Sidoti and company. Please proceed.

Justin: Good morning, this is Justin on for Julio. On AgTech, can you discuss current project schedules and what kind of visibility they give you into sequential segment performance as we go into 2Q and then also the back half of the year? Yeah, Justin, it varies a little bit by type of – you've got produce and you have structures business. In our structures business, you've got a number of different – Subsegments, if you will, are in market segments that we track. And they're all a little bit different in terms of how schedules work.

Justin: Good morning, this is Justin on for Julio.

Speaker Change: On AG Tech can you discuss current project schedules and what kind of visibility. They give you into sequential segment performance as we go into <unk> and then also the back half of the year.

Speaker Change: Yeah, Justin it varies a little bit by type of you've got producing you have structures business and our structures business.

Speaker Change: You've got a number of different.

Speaker Change: Sub segments. If you will are in end market segments that we track and they're all a little bit different in terms of how schedules work. So let me start with produce much larger projects generally speaking.

William Bosway: So let me start with produce. Much larger projects, generally speaking. If it's a retrofit project and the building's already standing, once you get your series of permits, you're usually, a lot of times, you're inside, so you have less disruption. If it's a brand new construction project, you may deal a little bit with, obviously, permits and getting those final permits in place. And then you may deal with weather. Typical construction kind of stuff. But those are larger projects. And when they move a month, it can change a quarter. Doesn't necessarily change the year, but it changes a quarter.

Speaker Change: If it's a retrofit project and the buildings already standing once you get your series of permits you're usually a lot of times you're inside so you had less disruption it's a.

Speaker Change: A brand new construction project you.

Speaker Change: You may do a little bit with obviously permits and getting those final permits in place and then you may do with weather.

Speaker Change: Oh cool construction kind of stuff, but those are larger projects and when they move.

Speaker Change: A month it can change a quarter.

Speaker Change: It doesn't necessarily change the year, but it changes a quarter when you get on the other end of the spectrum like the lane supply acquisition, they will get a a a a store roadmap that covers the next 25 30 weeks.

William Bosway: When you get on the other end of the spectrum, like the lane supply acquisition, they will get a store roadmap that covers the next 25, 30 weeks. And it will tell you exactly where and in what order that they're going to do those stores in those cities. That may change a little bit. They may, you know, put and take on what cities come first or second versus what they thought before. But in general, you get that visibility out there. And that's one of the reasons that the lane acquisition also helps us is because when you have a very large project, you have a little bit of unpredictability with the things I mentioned.

Speaker Change: And it will tell you exactly where and in what order that they're going to do those stores in those cities.

Speaker Change: That may change a little bit they may you know.

Speaker Change: Put and take on what cities come first or second versus what they thought before but in general you get that visibility out there and that's one of the reasons that the lane acquisition also helps us.

Speaker Change: Because when you have the very large projects you had a little bit of unpredictability with the things I mentioned, but when you have a cadence like lane.

William Bosway: But when you have a cadence-like lane, that kind of helps offset that and gets the overall business a little bit more predictable.

Speaker Change: That kind of help offset that and get to get to the overall business a little bit more predictable. So I would say think about this and remember this too when you see our backlog remember those are signed contracts.

William Bosway: So I would say, think about this and remember this too. When you see our backlog, remember those are signed contracts. They have deposits. Those projects are going to happen. The scheduling can vary a little bit versus what the original plan was for that customer. And we react to it accordingly. But I would say with the mix of business as we're developing it, we're going to be a little bit more predictable. And right now, the way things are flowing, you'll see a pretty strong second half, starting really in Q2.

Speaker Change: Deposits are.

Speaker Change: Those projects are going to happen.

Speaker Change: The scheduling can vary a little bit versus what the original plan was for that customer and we react to it accordingly, but I would say with the mix of business as we are developing it we're gonna be a little bit more predictable and right now the way things are flowing you'll see a pretty strong second half starting really in Q2 and have shared with you a couple of projects just recently.

William Bosway: And I shared with you a couple of projects that just recently signed. That's not all that we signed, but the ones we just recently signed. So hopefully, that gives you a little more color on how we think about it. But that's how the business actually works in AgData. Very helpful. Thanks for the caller there.

Speaker Change: Sign that it's not all of that we signed but the ones. We just recently signed so hopefully that gives you a little more color on how we think about it but that's how the business actually works in AG Tech.

Speaker Change: Very helpful. Thanks for the color there.

William Bosway: And then, can you speak to capital allocation priorities going forward, and does the new $200 million repurchase authorization signal you will be more opportunistic with repurchases going forward? Yeah, I don't think we'll be any more or less opportunistic than we have been. I think we did a pretty good job. If you recall, the first program we launched three years ago, we came out and said, listen, based on the end markets right now and the amount of M&A activity in our segment. And that's when interest rates really shot up. We didn't anticipate a lot of M&A, so we said let's return this way to our shareholders just because we didn't think the opportunities would be there as much.

Speaker Change: And then can you speak to capital allocation priorities going forward and does the new $200 million repurchase authorization signal you would be more opportunistic with repurchases going forward.

Speaker Change: Yeah, I don't think it will be any more or less opportunistic than we have been I think we did a pretty good job. If you recall. The first program. We launched three years ago, we came out and said listen based on the end markets right now and the amount of M&A activity in our segments.

Speaker Change: And Thats, what interest rates really shot up we didn't anticipate a lot of M&A. So we said, let's let's return this way to our shareholders just because we didn't think opportunities would be there as much.

William Bosway: I would say with the framework of the business and how we expect it to evolve and the cash that we can generate, we feel like given a more active M&A landscape, we're going to continue to deploy more there, but we're going to have capacity to actually return as well through our buyback program. So you'll see us do both. As Joe mentioned, it'll be opportunistic on the buyback, but as these opportunities that we're currently involved in, if they continue to evolve like we expect, you'll see us deploy more M&A or continue to deploy M&A, particularly in residential and ag tech like we have in the first quarter.

Speaker Change: I would say.

Speaker Change: With the framework of the business and how we expect it to evolve in the cash that we can generate we feel like given a more active M&A.

Speaker Change: Land scape were going to continue to deploy more there, but we're going to have capacity to actually return as well.

Speaker Change: Through our buyback program, so you'll see US do both as Joe mentioned, we'll be opportunistic on the on the buyback, but as these opportunities that we're currently involved in they continue to evolve like we expect you'll see us deploy more M&A or continue to deploy M&A, particularly in residential in AG Tech like we have in the first quarter. So that's the way.

William Bosway: So that's the way we think about it. Those are the two drivers of how we're going to deploy, and then of course we'll support the ongoing investments we need in the business, which is relatively small in comparison. So put ourselves in a really good position because we're going to generate a lot of cash. We have a good balance sheet. It's going to allow us to do more than one of the two, and that's how we're approaching.

Speaker Change: We think about those are the two drivers of how we're going to deploy it and of course will support the ongoing investments we need in the business, which is relatively small in comparison, so putting ourselves make a really good position.

Speaker Change: Because we're going to generate a lot of cash we have a good balance sheet, which will allow us to do more than then one of the two.

Speaker Change: And that's how we're that's how we're approaching it.

William Bosway: Great. Thanks again for the color.

Speaker Change: Great. Thanks again for the color that's all for me.

William Bosway: That's all for me.

Speaker Change: Okay.

Daniel Moore: Our next question is a follow-up from Daniel Moore with CJS. Yeah, just in general, you know, project based businesses, obviously, backlogs remain very healthy, as you described, you know, that said, across almost every business and industry, you know, Right. So are you seeing any of that in ag tech infrastructure or is it, you know, primarily We've really actually seen it in renewables, Dan, and what we anticipate is that that will happen. So we've made those adjustments to the plan, so there's no surprise on renewables if it does. And frankly, you know, with what's been going on in renewables the last three or four years from an end market perspective, every one of these situations that came about, whether the investigations or what have you, resulted in, you know, projects getting pushed.

Speaker Change: Our next question is a follow up from Daniel Moore with CJS. Please proceed.

Daniel Moore: Yeah, just in general you know the.

Speaker Change: Project based businesses, obviously backlogs remain very healthy as you described.

Daniel Moore: That said across almost every business and industry.

Daniel Moore: That we've seen projects are being pushed to the right. So are you seeing any of that in AG tech infrastructure or is it primarily isolated to renewables right now.

Daniel Moore: We've actually seen it in renewables, Dan and and what we anticipate is that that will happen. So we've made those adjustments to the plan. So theres no surprise on renewables if it does and frankly, you know with what's been going on in renewables. The last three or four years from an end market perspective every one of these situations.

Daniel Moore: [noise] about whether the investigations are what have resulted in <unk>.

William Bosway: So I can't tell you today that we've seen that actually happen, but what I think is going to happen is why we've adjusted renewables down, because there's a history of the last three or four years where that actually happened. We are not seeing that in ag tech or infrastructure, outside of the common, you know, stuff moving around for a delay on permitting or whatever. But I think when the tariffs were announced, there was a short pause, as there was for everybody, to see what if anything this, you know, this would impact respective businesses. And I think our growers have realized, ultimately, at the end of the day, food is food.

Daniel Moore: Projects getting pushed so.

Daniel Moore: I can't tell you today that we've seen that actually happen, but what I think is going to happen is why we've adjusted renewables down because there's a history the last three or four years, where that actually happens.

Daniel Moore: We are not seeing that in AG tech or infrastructure.

Daniel Moore: Outside of the common.

Daniel Moore: Stuff moving around for the delay in permitting or whatever but I think when when the tariffs were announced there was a short pause as there was for everybody to see what if anything this you know.

Daniel Moore: This would would impact.

Daniel Moore: The respective businesses and I think our growers have realized ultimate 10, a day food as food, it's not discretionary it's fruits and vegetables and.

William Bosway: It's not discretionary. It's fruits and vegetables and their demand profile hasn't really changed. Remember, also, we have business in Canada and we have business in the U.S. So, you know, that has continued to move on. And I would say the pipeline there of opportunities has not slowed down. And the ones we're currently involved in right now continue to seem to move forward. So that's good news. And I think, as I mentioned earlier, Lane has not slowed down. In fact, I think they've accelerated a little bit more. So I think, I suspect, if, you know, if you're in a discretionary spend world and your business really focused on that or supported that, there's probably a little different view.

Daniel Moore: Their demand profile Hasnt really changed remember also we have business in Canada, and we have business and in the U S. So.

Daniel Moore: That has continued to move on and I would say, they're a pipeline there of opportunities has not slowed down and the ones that we're currently involved in right now continue to seem to move forward. So.

Daniel Moore: That's good news and I think as I mentioned earlier lane has not slowed down and in fact, if anything they've accelerated a little bit more so I think I suspect if if youre in discretionary spend world and.

And your business really focused on that are supported that there's probably a little different view.

William Bosway: Our world is not discretionary. We're not remodel. We're repair. We're food. We are, I would say, more deemed, I'm going to say deemed potential. That's not my point. But it's really not a discretionary world that we live in, per se. So that piece, I'm not saying we're immune to everything, but I think that is a reality with our business that hopefully is helpful to navigate through whatever. We're going to see the next few months. I do not believe the world is going to come to an end. I believe we will start getting some clarity on a number of fronts over the next four or five months.

Speaker Change: Our world is not discretionary we're not remodel.

Daniel Moore: We're repair where food we are I.

I would say more deemed MSA deemed essential that's not my point, but it's really not a discretionary world that we live in a per se. So.

Daniel Moore: That piece I'm, not saying, we're immune to everything but.

I think that is a reality with our business that hopefully is helpful to navigate through whatever.

Daniel Moore: We're going to see the next few months I do not believe the world is going to come to an end.

Daniel Moore: I believe things will will we will start getting some clarity on a number of fronts over the next four or five months Theres a lot of reasons for that.

William Bosway: There's a lot of reasons for that that I think will happen. And I don't think the tariff situation, as announced, will be where we land either. We have planned as if it is going to be, but I'm not entirely in the camp that that's going to be the case. So, you know, we'll learn collectively the next few months, but that's where my head is right now. Thank you again.

Daniel Moore: And I think will happen and I don't think the tariff situation has announced will be where we land either we have planned as if it is going to be.

Daniel Moore: But I'm not entirely in the camp that that's going to be the case. So yeah, we'll learn to collectively the next few months, but that's where my head is right now.

Speaker Change: Makes sense, okay. Thank you again.

Daniel Moore: Yep.

Operator: There are no more further questions at this time.

Speaker Change: There are no more further questions at this time I would like to China floor back over to Mr. Bass for closing remarks.

William Bosway: I would like to turn the floor back over to Mr. Boswell for closing. Well, thanks. Hey, listen, everybody, thanks for joining us. I know it's a pretty interesting time right now. There's a lot going on. There's a lot to think about. We feel pretty good about where we are. And I'm not saying, again, it's easy, but I think we're prepared and we're working through it. Coming up, we do plan to present the CGS virtual conference in May, the Jeffries Power and Wells Fargo industrial conferences in June, as well as other events coming up. So thank you again for your ongoing support of Gibraltar.

Speaker Change: Well, Thanks, Hey, listen everybody. Thanks for joining us I know, it's a pretty interesting time right now there's a lot going on there's a lot to think about we feel pretty good about.

Speaker Change: Where we are and I'm, not saying again, its easy, but I think we're prepared and we're working through it.

Speaker Change: Coming up we are we do plan to present those C. J S. Virtual conference in May the Jefferies power and Wells Fargo industrial conferences in June as well as the other ones coming up. So thank you again for your ongoing support of Gibraltar, and we really look forward to giving an update again after the second quarter.

William Bosway: And we really look forward to giving you an update again after the second quarter. So take care. Thank you.

Speaker Change: Take care. Thank you.

Operator: This will conclude today's conference. You may disconnect your lines at this time and thank you for your participation.

Speaker Change: Thank you. This will conclude today's conference you may disconnect. Your lines at this time and thank you for your participation.

Speaker Change: [music].