Greetings and welcome to Gibraltar Industries' First Quarter 2025 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. As a reminder, this conference is being recorded. 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. With me on the call is Bill Bosway, Gibraltar Industries' Chairman, President, and Chief Executive Officer; and Joe Lovechio, 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 gibraltar1.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. Further, please note that adjusted results exclude the net sales and operating results of the residential electronic locker business, which was sold on December 17th, 2024. Also, as noted on Slide 2 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 for 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. 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'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. Then we'll open the call for your questions. So, let's turn to Slide 3 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 basis points and 160 basis points respectively. EPS improved by 19% due to solid margin performance in our Residential, Agtech, 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. We proactively invested in some pre-tariff inventory prior to our normal seasonal build. Our demand remains solid, with new bookings for all our project-based businesses, Agtech, Renewables, and Infrastructure, each increasing during the quarter, resulting in consolidated backlog being up 30% to $434 million, which is a record level for Gibraltar. Year-over-year Agtech 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 market demand. 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, and 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 Agtech and residential businesses. 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. 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 costs. And there was also significant disruption to the supply chain. Markets may not remember, but during that time, the price of hot-rolled coil steel increased by $50 per ton per week for effectively 50 straight weeks, eventually peaking at $2,200 per ton. That price today is approximately $900 per ton. 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. That being said, last November, we began preliminary modeling and planning for potential tariffs of 20% to 30% and what that 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 tariffs based on the amount and timing of tariffs announced to date. We believe the impact on overall material cost will be approximately 5%, an amount we also believe we will manage and mitigate during the year. So in reaffirming our current guidance, we have taken into consideration the status of five key business drivers: Number one, the impact of tariffs and 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 acquisitions. I 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. 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, particularly 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. Order entry remained solid entering the second quarter, typically the start of the season. 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 well and drive profitability benefits from our 80/20 initiatives. 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 by 2026.

So let's move to slide 5. 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 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%. The ARMA report also reflected a slower market with shingle shipments down 2% versus last year. Overall, for our business, our strength remains in line with our plan and continues to be supported by participation gains in our core building products. In fact, with the sales of trims, flashings, and ventilation up 3.5% in the quarter, we believe we outpaced end market demand as described above. Our mail and 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 remained active in our expansive initiatives and added seven local markets through two acquisitions that currently focus on the metal roofing end market. 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, and as we expand our localization efforts to better support customers and increase our participation. 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 Agtech segments, and we will continue to be engaged in opportunities as they present themselves. To that point, on March 31, 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're excited about the leadership and management teams in both businesses. 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. It offers a viable substitute for traditional roofing building products. As well, we're excited for the go-to-market direct-to-contractor models serving both residential and commercial customers. We paid a total consideration of $90 million in cash for combined net sales of $73 million and adjusted EBITDA margin of 17.8%, a multiple we view as reasonable. We expect these transactions to be accretive this year. Let's switch gears and we'll move on to Agtech.

So turning to slide 7, Agtech net sales increased 32.4%, driven primarily by the Lane Supply acquisition, which was completed on February 11, 2025. Organic net sales decreased 12.6%, as permit approval pushed project start dates to the end of the second quarter. Bookings are up 226%, driven mainly by organic bookings and the addition of the Lane Supply backlog. Segment adjusted operating and EBITDA margins expanded by 270 basis points and 330 basis points respectively driven by productivity, project mix, and project execution. Lane Supply is performing as expected.

So let's move to slide 8. I wanted to share with you some recent wins that support our expansion initiatives in the US. 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 scheduled delays and the other which will begin later this year or in early 2026. The Houwelings 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 one 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. This is a first for Gibraltar and we're very excited about that. 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. We are also redesigning and retrofitting the irrigation, heating, and screening systems and are integrating and installing three new co-generation 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 includes designing and building two greenhouse facilities, one for research and one for teaching, and then incorporating both into its new Ag research facility is very exciting. We have designed and will build a 28,000 square foot research greenhouse located on the rooftop of the new UK Ag research facility. 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 and is expected to start in Q4 this year or in early 2026. For 2025, with our existing backlog and pipeline of new opportunities, we expect the Agtech business to deliver solid growth and operating margin improvement. Based on the current timing and the 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. So, let's move on to Renewables.

So moving to Slide 9, Renewables adjusted net sales decreased by $7.8 million or 15.1%, and although bookings were up 3% versus last year, backlog was down 23%. 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 3, 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 by 50 basis points while adjusted EBITDA margin improved by 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. I'll give you an update on the regulatory trade and end market situation. The Department of Commerce has issued its final determination on the second AD/CVD 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. The next step in the process is for the US International Trade Commission to issue its final determinations for AD/CVD, which are expected on or around June 2. If they agree with the DOC, final orders are expected to be issued on around June 9. 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. The higher AD/CVD 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. 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, there is 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. Thirdly, the timing and impact of the reconciliation bill if any to existing IRA tax benefits namely the ITC, PTC, and 45X. Lastly, interconnectivity and transmission permitting is critical— 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’re 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. Let's move to slide 11 and we'll discuss our Renewables current market situation and the ongoing investments we're making to expand and grow the business. 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 the prior year. All our technologies tracker fixed tilt canopy and eBOS are contributing accordingly, and sequentially new orders and backlog are up 90% and 30% respectively. 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. 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. 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 hail stow 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 pile foundations to help us expand geographic growth opportunities, which we are launching in Q4 of 2025. Third, we opened our internal distribution center to support 1P tracker in Q4 2024 and upgraded our logistics network. Fourth, we're launching our next generation fixed tilt platforms in the first half of 2026. Fifth, we have reduced our fixed tilt manufacturing footprint by 50% through our 80/20 initiatives. Lastly, 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. 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 by 230 basis points and 220 basis points respectively, driven by strong execution, good supply chain management, and product line mix. We expect sales growth and marginal expansion in this business in 2025. 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 Agtech and Residential M&A, as well as stock repurchases in the quarter. 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 build. The increase in accounts receivable relates to collections flowing in during 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. 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. As mentioned, we acquired Lane Supply for $120 million in cash, subject to customary working capital and other adjustments. 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 years. Our capital allocation priorities for 2025 are to continue investing in our organic growth in operating systems for scale, with capital expenditures approximately 3% of sales. We continue to explore inorganic growth opportunities and have an active pipeline of high-quality M&A. Our strong balance sheet provides optionality and flexibility, and we remain focused in the near term on our Residential and Agtech segments. Lastly, we plan to continue to deploy capital for value creation through opportunistic share repurchases. 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. 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 the timing of any M&A or repurchases. So now I'll turn the call back over to Bill.

So let's move on to slide 15. I want to revisit our 2025 guidance and review the four key drivers that support our plan. First, let's discuss driver number one: current demand. Our 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. Our backlog for our project-based businesses, as mentioned earlier, is very solid and at record levels today. 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/CVD impacts. Thirdly, we have the impact of recent acquisitions. We have added the incremental revenue and margin expected from the Lane Supply and our recent metal roofing acquisitions completed on March 31st. Lastly, tariff mitigation. We're executing our price/cost plan via the playbook we used in 2021 and 2022, which has been updated and modified for today's situation. I think it's important to note that our forecast for the Residential, Agtech, and Infrastructure businesses has effectively not changed from our plan for each segment coming into 2025. 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 points; adjusted EBITDA margin to range between 16.7% and 17%, expanding 100 to 130 basis points; GAAP EPS to be in the range of $4.25 to $4.50, approximately flat to the 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 of net sales will reach 10%. 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 we'll execute accordingly. 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 and we'll take your questions.

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

Thank you. Good morning, Bill. Good morning, Joe. I appreciate the color and thanks for taking my questions. To start with Residential, obviously, you gave good color 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 if you've seen any impact since Liberation Day, and the same question for your participation gains. It sounds like they've picked up after a sluggish Q4. Just talk about what you're seeing kind of in real-time on both of those fronts.

Yeah, thanks, Dan. From a demand perspective, real-time, demand continues to flow in as we had built on the plan as we expected, and it's increasing as we enter the season, which we anticipated. 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. 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. That's worked as we had expected. Subsequently, we continue to expand ourselves into local markets where we weren't. Whether it's new products, existing products, or getting into additional markets, all of it's driving towards the participation gains. Frankly, if you think about the Residential markets in 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. To do that, you have to get local and have the right products while serving customers with speed and excellence. I'm not saying we are perfect by any means, but we're gaining momentum and we're going to continue pushing hard down that path. We're in a financial position to maintain those investments and make those acquisitions. So that's where we think things are today, and that's how demand is shaping up today, supportive of what we thought.

Helpful. Inclusive of these two acquisitions, what would your overall revenue in metal roofing be on a pro forma basis? And how should we think about the TAM and the opportunity set there?

Well, first of all, it's a really interesting market. What we like about it is that the merchant profile is solid. We have synergies we can leverage on the back end of that business. We really like getting closer to the contractor and that direct-to-contractor market gives you more opportunity to drive margins if you perform really well. Our metal roofing business really started four or five years ago. We were in that $50 million, $60 million range, and now with the acquisitions and progress made in the last three or four years, you're starting to see us creep towards a couple hundred million. We're not done. We're excited about where we want to go. We're actively engaged in the M&A world, and there are opportunities out there as we speak. We're going to continue to invest accordingly. It's all about finding the right markets. We've talked a lot about trims, flashings, and ventilation. It’s almost the exact approach on metal roofing, which involves figuring out which MSAs to focus on and how we can serve the market better than others. There are states pushing building codes to drive metal roofing, not just for roofing but also panels where there's a higher risk of significant weather events, so good momentum is behind it and we’re excited to be part of it.

And I presume it's still a pretty small penetration at this stage?

Yeah, the market is probably in excess of $3 billion, which I would characterize it as. The roofing you typically think about is on top; but what you are finding now is more traditional markets being supplemented by metal roofing panels.

Helpful. Joe, we can certainly do the math, and happy to do it if but figured I'd ask what your expected revenue and EPS contribution from the two recent acquisitions looks like for the balance of 2025?

Yeah, so we assumed an accretion benefit of about $0.15 EPS, and revenue probably around $50 million.

Perfect. Okay. Last one I'll jump back. Just curious how things are progressing at Lane Supply. In the last call, you mentioned there's three other players of size in the market. Have you had dialogues with any of those at this point? Just thinking about the cadence of how quickly you might be able to ramp up penetration there? Thanks for the color.

No, we haven't done anything 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. That equipment is coming in to be installed, so we're excited about the business. We've been in now for 45 days. As we get a little further down the road, we'll start taking a look at some broader opportunities in the space. But right now, there's integration work to be done, some synergy work, and investment to get up and running as we enter the season.

Hi, thanks. Good morning, guys. I wanted to ask about the Renewables segment and just a little bit more specifically, it sounds like you're lowering the revenue and profit outlook for that business. I wonder if you can give us an idea of how much that change was, and then what you're thinking longer-term for that business?

Yes, so, well if you're modeling, I think the adjustment is about 15% to 20%. That can change. The reason there's a range is because we anticipate pushing timelines to the right. It's more of a timing issue, really. As we said, we’ve got the backlog. Developers are working through some assumptions right now and need clarity before they start signing more projects. So, that’s how I think about modeling perspectives. Long-term for the business, let’s see what evolves and what we learn with the IRA and a host of other things. There’s a tremendous amount of work being done. It’s a little unfortunate but it’s not necessarily clear what's happened in the last month for many different industries. We’re starting to get buckets of clarity that are coming out, and that’s true for Renewables, particularly around the reconciliation bill. There’s a lot of activity with the industry and DC, helping people understand what’s important. We will have more clarity here sooner than later, and I think that’ll impact how and when our developers proceed. So that’s probably the best framework I can give you today. Still, we feel pretty solid with what we have in our backlog, built as we had expected. The plan was built on a slow first half and a stronger second half as we discussed.

Okay, sounds great. And maybe just to change topics at 30,000 feet, I wonder if you could talk a little bit about your supply chain. 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 you could talk about what products or components you get from China and could any tariffs get offset with pricing?

Yes. Well, first and foremost, from a supply chain perspective, the one thing we dealt with in 2021 and 2022 was just getting access to components and materials. That's not an issue today for us, and I suspect it's not for many. I remind people and sometimes people may not remember this, but a year and a half ago, there was an AD/CVD case on aluminum extrusions that covered 15-plus countries. That forced us to find local suppliers to help avoid and offset some of that. That case was dismissed, but we didn’t wait for the ruling. We started 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 suppliers in China. Where we could move that the last couple of years to Malaysia or other parts of the world, we’ve been doing that, but there’s still some dependency. We factor that into our tariff calculator and understand that by business and what we need to do to overcome it. Each business has a plan to offset it quarterly. I mentioned earlier what it meant to our material cost. Each business has incorporated productivity, pricing, and channel margin mixes. There are many levers that we can utilize. I’m not saying we’ll be perfect with it, but I am saying that I think we have a better grasp on managing this environment than we did in 2021 and 2022, which were much more challenging.

Okay, appreciate that. All right, thanks. And then the last one for me in Residential, I know Gibraltar has always emphasized adding value with the customers, and I wonder if you could talk about how you add value with the direct-to-contractor model and if there's a value add that occurs regarding margins?

Yes, it is. We've talked a lot about localization. So again, if it's trims, flashings, ventilation products, or metal roofing, the idea of speed and responding in short periods of time, whether it's 24 hours or 48 hours, matters a lot to contractors. Our bucket of products related to roofing is not overly expensive. However, if that bucket isn't there on time, that roof doesn't go on. Speed and agility are vital in this space. Furthermore, we’re coming out with new creative products in the last three or four years that resonate with contractors and give confidence for installations to avoid the need to return to the job. We involve our contractors in our new product development, working together to see what makes the most sense. It’s about driving speed throughout the chain from production to installation. We’ve studied top MSAs and smaller markets where opportunities remain. It’s a disciplined approach to create differentiation; one that we believe is hard to duplicate.

Okay. Makes sense. All right. Thank you.

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?

It varies somewhat by type; we have the produce side and the structures business. Within our structures business, there are several subsegments we monitor, each with different schedule dynamics. For produce, these are generally larger projects. In the case of retrofits, once permits are secured, the work typically proceeds with minimal disruption. However, new construction projects may encounter weather-related or permit delays. These are usually large projects, and a month’s shift can impact a quarter without significantly affecting the yearly outlook. Conversely, with the Lane Supply acquisition, we have a detailed roadmap for the next 25 to 30 weeks that outlines order and timing, providing visibility that mitigates the unpredictability from larger projects. Our backlog includes signed contracts, so they will proceed, although schedules may change. Given our current business mix, we anticipate a robust second half starting in Q2.

Very helpful. Thanks for the color there. 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?

Yes, I don’t think we’ll be any more or less opportunistic than we have been. We did a pretty good job with our first program three years ago. We anticipated a lot of M&A activity in our segments, especially when interest rates spiked. We didn’t expect many M&A opportunities, so we decided to return funds to shareholders. With this active M&A landscape, we’re continuing to deploy more, but we still have capacity for our buyback program. You’ll see us pursue both opportunities as they evolve. As Joe mentioned, it will be opportunistic on the buyback, but we expect to continue deploying M&A, especially in Residential and Agtech, as we have in the first quarter.

Yes, just in general, the project-based businesses, obviously backlogs remain very healthy as you described. That said, across almost every business and industry that we've seen, projects are being pushed to the right. Are you seeing any of that in Agtech, Infrastructure, or is it primarily isolated to Renewables right now?

We’ve seen this primarily in Renewables. We haven’t observed this with Agtech or Infrastructure. There’s common slowdowns with permit delays, but historically, Renewables have faced project pushes due to uncertainties. We’ve adjusted our Renewables plan to account for this possibility. We haven't seen Agtech or Infrastructure slow down significantly, as growers are aware that their demand has not changed. We also have operations in Canada and the U.S., which remain active. So I suspect if you’re in a discretionary spending world, your outlook would differ. Our world is essential; we focus on repair and food. I’m not saying we’re immune, but that's the reality of our business. I believe we'll gain clarity on many fronts soon. I don't expect the tariff situation to remain static. We’ve planned for potential impacts, but I’m cautious for the next few months. Overall, we're confident. Well, thanks everyone for joining us. I know it's a pretty interesting time right now. There's a lot going on. We feel pretty good about where we are. I'm not saying it's easy, but I think we're prepared. Coming up, we are planning to present at the CGS Virtual Conference in May, the Jefferies Power and Wells Fargo Industrial Conferences in June, as well as other events. Thank you again for your ongoing support of Gibraltar.

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