Research on Rockfire Resources Plc (ROCK) from Sidoti & Company
This morning, Gibraltar announced it has agreed to sell its Infrastructure business to Saint-Gobain (foreign) for $208 million in cash, with the sale expected to close in 4Q:26. The Infrastructure segment posted TTM sales and TTM adjusted (for stock comp) EBITDA of $90 million and $22 million, respectively, equating to a TTM margin of 24.6%. As we see it, the Infrastructure sale continues a multiyear simplification of the portfolio and will leave ROCK as a two-segment company: Residential and Agtech. ROCK held net debt of $1.2 billion as of 2Q:26; the sale of Infrastructure would further bolster the balance sheet, taking pro forma net leverage down to about 2.9x by year-end 2026 (from 3.4x prior) and pro forma net debt to $853 million (from $1.061 billion prior). We plan to adjust our estimates once the sale closes and management updates its 2026 outlook (expected on the 3Q:26 earnings call). We maintain our $76 price target based on 15x our 2027 EPS estimate of $5.09.
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