Executive Summary

Q1 2025 was mixed: Adjusted EPS beat consensus by ~18% while revenue missed by ~2%, with strength in Agtech and Infrastructure offset by Renewables softness and a soft Residential market mix. ROCK reiterated full‑year 2025 guidance and announced a new $200M, 3‑year buyback amid a record $434M backlog (+30% YoY) .
Consolidated results: Net sales $290.0M (-0.9% YoY), GAAP EPS $0.69, Adjusted EPS $0.95 (+18.8% YoY). Adj. operating margin 12.3% and Adj. EBITDA $46.2M (15.9% margin) .
Segment mix: Agtech up 32% (Lane Supply acquisition) with margin expansion; Infrastructure margins +230 bps; Renewables down 15% with 1P tracker ramp inefficiencies; Residential margins remained strong but down on mix .
Management reaffirmed 2025 outlook (sales $1.40–$1.45B; GAAP EPS $4.25–$4.50; Adj. EPS $4.80–$5.05) and quantified Renewables plan reduction while citing a tariff “playbook” and ~5% materials cost impact mitigation as drivers of confidence; buyback authorization refreshed to $200M .

What Went Well and What Went Wrong

What Went Well
- Agtech growth and margin expansion: Sales +32.4% YoY (Lane Supply), adjusted operating margin +270 bps to 10.8% on productivity/mix; backlog up 226% YoY .
- Infrastructure execution: Margin +230 bps to 24.7% despite slight revenue decline; backlog +11% on robust quoting and funding tailwinds .
- Capital allocation and pipeline: Two metal roofing acquisitions ($90M cash) immediately accretive (2024 rev $73M, adj. EBITDA ~$13M); new $200M repurchase program approved . Quote: “We paid a total consideration of $90 million… and we expect these transactions to be accretive this year.” — CFO Joseph Lovechio .
What Went Wrong
- Renewables softness: Sales -15.1% YoY; adjusted operating margin 3.4% (down 50 bps) with inefficiencies from 1P tracker launch and legacy tracker discontinuation costs in GAAP .
- Residential market mixed: Segment net sales -2.8% YoY; adjusted margin dipped 80 bps to 18.0% as Mail & Package volumes softened; POS down ~3% with retailer variance (1% to 12%) .
- Cash conversion seasonally light: Operating cash flow $13.7M and FCF $2.3M (0.8% of adj. sales), reflecting inventory build ahead of peak season and tariff pre-buys .

Financial Results

Consolidated performance vs prior two quarters (oldest → newest)

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($M)	$361.2	$302.1	$290.0
GAAP Diluted EPS ($)	$1.11	$1.50	$0.69
Adjusted Diluted EPS ($)	$1.27	$1.01	$0.95
Adjusted Operating Margin (%)	13.9%	12.7%	12.3%
Adjusted EBITDA ($M)	$58.9	$46.7	$46.2
Adjusted EBITDA Margin (%)	16.3%	15.5%	15.9%

Versus estimates (S&P Global)

Metric	Q1 2025 Consensus	Q1 2025 Actual	Surprise
Revenue ($M)	$296.8*	$290.0	-$6.8 (‑2.3%)*
Adjusted EPS ($)	$0.81*	$0.95	+$0.14 (+17.8%)*
EBITDA ($M)	$40.3*	$46.2	+$5.9 (+14.6%)*

Values retrieved from S&P Global.*

Segment breakdown (Q1 2025 vs Q1 2024 recast where provided)

Segment	Net Sales Q1’24 ($M)	Net Sales Q1’25 ($M)	Adj. Op Margin Q1’24	Adj. Op Margin Q1’25
Residential	$182.4	$180.0	18.8%	18.0%
Agtech	$34.0	$45.0	8.1%	10.8%
Renewables	$51.5	$43.7	3.9%	3.4%
Infrastructure	$21.9	$21.3	22.4%	24.7%

Key KPIs

KPI	Q1 2025
Total backlog	$434M (+30% YoY, record)
Agtech backlog	+226% YoY
Renewables backlog	-23% YoY; +30% QoQ on bookings acceleration
Infrastructure backlog	+11% YoY
Operating cash flow	$13.7M
Free cash flow	$2.3M (0.8% of adj. sales)
Share repurchases	$62.4M; ~915k shares in Q1
Cash & equivalents	$25.1M
Liquidity	$395M available revolver; debt‑free
New buyback authorization	$200M through Apr-2028

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Consolidated Net Sales	FY 2025	$1.40–$1.45B	$1.40–$1.45B	Maintained
GAAP EPS	FY 2025	$4.25–$4.50	$4.25–$4.50	Maintained
Adjusted EPS	FY 2025	$4.80–$5.05	$4.80–$5.05	Maintained
Adjusted Operating Margin	FY 2025	—	13.9–14.2%	New detail
Adjusted EBITDA Margin	FY 2025	—	16.7–17.0%	New detail
Free Cash Flow (% sales)	FY 2025	—	10%	New detail
Renewables segment outlook	FY 2025	Included in plan	Plan reduced by ~15–20% (modeling basis)	Lowered (segment only)

Earnings Call Themes & Trends

Topic	Q3 2024 (Q‑2)	Q4 2024 (Q‑1)	Q1 2025 (Current)	Trend
Tariffs/AD‑CVD and IRA	AD/CVD headwinds, Dec 3 deadline hit bookings/backlog	Continued solar trade/IRA complexities cited in outlook	Tariff playbooks per business; ~5% materials impact mitigated via price/mix/productivity	Stabilizing visibility; mitigation in place
Renewables execution	1P tracker launch pressured margins; backlog down 24%	Sequential margin improvement; bookings pushed; early 2025 bookings +33%	Sales -15%; margin 3.4%; bookings up; plan cut 15–20% to reflect delays	Cautious near term
Residential demand/share	Slower market; margins expanded on execution	“Roughly in line”; POS slow but improving	POS down ~3%; trims/flashings/ventilation +3.5% on share gains	Share gains offset soft end‑market
Agtech momentum	Sales +30%; margin expansion; backlog down 3% on timing	New orders >$45M since Jan; timing moved to 2025	Lane performing; backlog +226%; large wins: Houwelings ($90M), Univ. of Kentucky (> $12M)	Strengthening pipeline
Capital allocation	—	Lane Supply acquisition announced	Two metal roofing acquisitions ($90M); new $200M buyback; 91% of prior buyback executed	Accelerating M&A + returns

Management Commentary

“We delivered a solid start to the year… Adjusted net sales were flat and adjusted EPS increased 18.8%. Backlog reached a record level $434 million, up 30%.” — Management statement in Q1 release .
“We developed a tariff playbook for each business… 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.” — CEO William Bosway .
“We paid a total consideration of $90 million of cash [for two metal roofing businesses]… adjusted EBITDA margin of 17.8%… expected to be accretive this year.” — CFO Joseph Lovechio .
“We have reduced our outlook for renewables as developers deal with uncertainty associated with the new tariffs and the AD/CVD impacts.” — CEO William Bosway .

Q&A Highlights

Residential cadence and share: POS down ~3% but participation gains flowing through as incumbents flush inventory; localization and product innovation supporting share capture .
Metal roofing strategy/TAM: Pro forma business “creeping towards a couple of hundred million dollars” with a >$3B market opportunity; substitution benefits and code tailwinds noted .
Acquisition contribution in 2025: ~$0.15 EPS accretion and ~$50M revenue from the two metal roofing deals in the balance of 2025 .
Renewables planning: Modeling a 15–20% reduction to the 2025 plan to reflect potential schedule slippage; seen as timing rather than lost demand .
Supply chain/tariffs: Increased local sourcing (e.g., aluminum extrusions), reduced China exposure; tariff impacts to be mitigated through productivity, 80/20, price, and mix .
Capital returns: New $200M buyback; approach remains opportunistic alongside an active M&A pipeline, especially in Residential and Agtech .

Estimates Context

Q1 2025: Adjusted EPS beat by ~$0.14 (+17.8%), EBITDA beat by ~$5.9M (+14.6%), while revenue missed by ~$6.8M (‑2.3%). Management cited Renewables softness and Residential mix offset by Agtech/Infrastructure execution and M&A .
Implication: Street models likely need higher Agtech/Infrastructure margins and acquisition accretion, with lower Renewables revenue/margin 1H‑weighted and a stronger 2H ramp; consolidated FY guide unchanged .
Values retrieved from S&P Global.*

Key Takeaways for Investors

Quality of earnings held up: Adjusted EPS beat despite a modest revenue miss—supported by execution, M&A accretion, and backlog strength; non‑GAAP add‑backs were primarily restructuring ($0.15/sh) and acquisition costs ($0.11/sh) .
Renewables reset largely about timing: Bookings accelerated sequentially (+90%); plan prudently trimmed 15–20% as developers digest tariff/IRA outcomes—monitor ITC determinations and policy clarity as catalysts .
Residential strategy working in a soft market: Share gains in trims/flashings/ventilation and expanding metal roofing footprint should support mix and margin resilience into the seasonal ramp .
Agtech is a bright spot: Lane Supply integration on track; large retrofit and academic wins increase visibility into 2H and 2026; segment margin expansion should continue .
Capital deployment remains a catalyst: New $200M buyback, debt‑free balance sheet, and active M&A pipeline give flexibility to compound EPS and offset macro headwinds .
Watch 1P tracker execution: Field efficiency improvements and fixed‑tilt platform updates are key to unlocking Renewables margin; sequential backlog build is encouraging .
FY25 guide reaffirmed with more detail on margins and FCF: Execution against 13.9–14.2% adjusted operating margin and 10% FCF-to-sales will be critical to multiple support .

Notes on non‑GAAP adjustments: Adjusted Q1 EPS excludes $0.15/sh restructuring and $0.11/sh acquisition-related costs; GAAP EPS $0.69 vs Adjusted $0.95 reflects these items and other below‑the‑line adjustments .

Citations

Q1 2025 8‑K and exhibit 99.1 press release and financials .
Q1 2025 press release (duplicate content) .
Q4 2024 8‑K and exhibit 99.1 .
Q3 2024 8‑K and exhibit 99.1 .
Q1 2025 earnings call transcript (prepared remarks and Q&A) .