Renewable energy and infrastructure solutions provider Gibraltar Industries (NASDAQ: ROCK) announced better-than-expected revenue in Q4 CY2025, but sales fell by 11% year on year to $268.7 million. The company’s full-year revenue guidance of $1.80 billion at the midpoint came in 50.8% above analysts’ estimates. Its non-GAAP profit of $0.76 per share was 2.2% above analysts’ consensus estimates.

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Company Overview

Gibraltar (NASDAQ: ROCK) makes renewable energy, agriculture technology and infrastructure products. Its mission statement is to make everyday living more sustainable.

Revenue Growth

Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last five years, Gibraltar grew its sales at a sluggish 1.9% compounded annual growth rate. This fell short of our benchmarks and is a tough starting point for our analysis.

We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Gibraltar’s performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 9.2% annually.

This quarter, Gibraltar’s revenue fell by 11% year on year to $268.7 million but beat Wall Street’s estimates by 1.3%.

Looking ahead, sell-side analysts expect revenue to grow 4.4% over the next 12 months. Although this projection indicates its newer products and services will fuel better top-line performance, it is still below average for the sector.

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Operating Margin

Gibraltar has managed its cost base well over the last five years. It demonstrated solid profitability for an industrials business, producing an average operating margin of 11.1%. This result was particularly impressive because of its low gross margin, which is mostly a factor of what it sells and takes huge shifts to move meaningfully. Companies have more control over their operating margins, and it’s a show of well-managed operations if they’re high when gross margins are low.

Analyzing the trend in its profitability, Gibraltar’s operating margin rose by 3.1 percentage points over the last five years, as its sales growth gave it operating leverage.

This quarter, Gibraltar generated an operating margin profit margin of 5.5%, down 5.6 percentage points year on year. Since Gibraltar’s operating margin decreased more than its gross margin, we can assume it was less efficient because expenses such as marketing, R&D, and administrative overhead increased.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Gibraltar’s EPS grew at an unimpressive 6.1% compounded annual growth rate over the last five years. On the bright side, this performance was better than its 1.9% annualized revenue growth and tells us the company became more profitable on a per-share basis as it expanded.

We can take a deeper look into Gibraltar’s earnings to better understand the drivers of its performance. As we mentioned earlier, Gibraltar’s operating margin declined this quarter but expanded by 3.1 percentage points over the last five years. Its share count also shrank by 9.6%, and these factors together are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth.

Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.

For Gibraltar, its two-year annual EPS declines of 1.6% show it’s continued to underperform. These results were bad no matter how you slice the data.

In Q4, Gibraltar reported adjusted EPS of $0.76, down from $1.01 in the same quarter last year. Despite falling year on year, this print beat analysts’ estimates by 2.2%. Over the next 12 months, Wall Street expects Gibraltar’s full-year EPS of $3.98 to grow 9%.

Key Takeaways from Gibraltar’s Q4 Results

We were impressed by Gibraltar’s optimistic full-year revenue guidance, which blew past analysts’ expectations. We were also happy its revenue narrowly outperformed Wall Street’s estimates. On the other hand, its full-year EPS guidance missed. Overall, this print had some key positives, but the outlook was a blemish. The stock remained flat at $49.21 immediately following the results.

Should you buy the stock or not? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).