•Fourth-quarter diluted EPS of $0.11 and adjusted diluted EPS of $0.89
•Full-year net sales of $1.36 billion
•Full-year operating margin of 8.7%; full-year adjusted operating margin improves to 11.0%
•Full-year diluted EPS of $3.89; full-year adjusted diluted EPS grows 4% to $4.97
•UW Solutions acquisition delivers in-line with expectations
•Provides initial outlook for fiscal 2026
MINNEAPOLIS, MN, April 24, 2025 – Apogee Enterprises, Inc. (Nasdaq: APOG) today reported its fiscal 2025 fourth-quarter and full-year results. The prior year fourth-quarter and full-year results included the impact of an additional week of operations compared to fiscal 2025. The Company reported the following selected financial results:
Three Months Ended
(Unaudited, $ in thousands, except per share amounts)
March 1, 2025
March 2, 2024
% Change
Net sales
$
345,694
$
361,840
(4.5)%
Operating income
$
6,134
$
21,866
(71.9)%
Operating margin
1.8
%
6.0
%
Net earnings
$
2,485
$
15,736
(84.2)%
Diluted earnings per share
$
0.11
$
0.71
(84.5)%
Additional Non-GAAP Measures1
Adjusted operating income
$
28,700
$
34,269
(16.3)%
Adjusted operating margin
8.3
%
9.5
%
Adjusted diluted earnings per share
$
0.89
$
1.14
(21.9)%
Adjusted EBITDA
$
41,105
$
43,039
(4.5)%
Adjusted EBITDA margin
11.9
%
11.9
%
1 Adjusted operating income, adjusted operating margin, adjusted diluted earnings per share (EPS), adjusted EBITDA, and adjusted EBITDA margin are non-GAAP financial measures. See Use of Non-GAAP Financial Measures and reconciliations to the most directly comparable GAAP measures later in this press release.
Apogee Enterprises, Inc. • 4400 West 78th Street • Minneapolis, MN 55435 • (952) 835-1874 • www.apog.com
Apogee Enterprises, Inc.
Page 2
Change in Segment Names
During the fourth quarter, the Company changed the names of two reporting segments, to better reflect their product focus and capabilities. The previously named Architectural Framing Systems Segment is now referred to as the Architectural Metals Segment. The previously named Large-Scale Optical Segment is now referred to as the Performance Surfaces Segment.
Components of Changes in Net Sales
Three months ended March 1, 2025, compared with the three months ended March 2, 2024
(In thousands, except percentages)
Architectural Metals
Architectural Services
Architectural Glass
Performance Surfaces
Intersegment eliminations
Consolidated
Fiscal 2024 net sales
$
139,188
$
106,278
$
96,187
$
27,113
$
(6,926)
$
361,840
Organic business2
(16,126)
20,510
(13,902)
(135)
(951)
(10,604)
Impact of 53rd week3
(10,914)
(8,893)
(7,128)
(2,241)
472
(28,704)
Acquisition4
—
—
—
23,162
—
23,162
Fiscal 2025 net sales
$
112,148
$
117,895
$
75,157
$
47,899
$
(7,405)
$
345,694
Total net sales growth (decline)
(19.4)
%
10.9
%
(21.9)
%
76.7
%
6.9
%
(4.5)
%
Organic business2
(11.6)
%
19.3
%
(14.5)
%
(0.5)
%
13.7
%
(2.9)
%
Impact of 53rd week3
(7.8)
%
(8.4)
%
(7.4)
%
(8.3)
%
(6.8)
%
(7.9)
%
Acquisition4
—
%
—
%
—
%
85.4
%
—
%
6.4
%
Year ended March 1, 2025, compared with the year ended March 2, 2024
(In thousands, except percentages)
Architectural Metals
Architectural Services
Architectural Glass
Performance Surfaces
Intersegment eliminations
Consolidated
Fiscal 2024 net sales
$
601,736
$
378,422
$
378,449
$
99,223
$
(40,888)
$
1,416,942
Organic business2
(66,113)
50,332
(49,124)
(6,835)
12,512
(59,228)
Impact of 53rd week3
(10,914)
(8,893)
(7,128)
(2,241)
472
(28,704)
Acquisition4
—
—
—
31,984
—
31,984
Fiscal 2025 net sales
$
524,709
$
419,861
$
322,197
$
122,131
$
(27,904)
$
1,360,994
Total net sales growth (decline)
(12.8)
%
11.0
%
(14.9)
%
23.1
%
(31.8)
%
(3.9)
%
Organic business2
(11.0)
%
13.3
%
(13.0)
%
(6.9)
%
(30.6)
%
(4.2)
%
Impact of 53rd week3
(1.8)
%
(2.4)
%
(1.9)
%
(2.3)
%
(1.2)
%
(2.0)
%
Acquisition4
—
%
—
%
—
%
32.2
%
—
%
2.3
%
Ty R. Silberhorn, Chief Executive Officer stated, “I am proud of the results our team delivered in fiscal 2025. We expanded adjusted operating margin for the third consecutive year, delivered another year of adjusted ROIC above our targeted level, and achieved record adjusted diluted EPS of $4.97. Through executing our strategy, we’ve driven sustainable operating improvements, that will serve as the foundation for our continued success.”
Mr. Silberhorn continued, “Looking ahead to fiscal 2026, we anticipate current macroeconomic uncertainty to create headwinds in our core non-residential construction market as well as our specialty glass and acrylic markets. Against this backdrop, we’re focused on delivering near-term financial results, creating certainty where we are able during a challenging macroeconomic environment, while continuing to make investments in growth opportunities to further our transformation.”
2 Organic business includes net sales associated with acquired product lines or geographies that occur after the first twelve months from the date the product line or business is acquired and net sales from internally developed product lines or businesses.
3 Amount is estimated based on average weekly net sales of the final month of the prior-year period.
4 The acquisition of UW Solutions, completed on November 4, 2024.
Apogee Enterprises, Inc. • 4400 West 78th Street • Minneapolis, MN 55435 • (952) 835-1874 • www.apog.com
•Net sales decreased 4.5% to $345.7 million. The prior year included an extra week of operations, which negatively impacted net sales by 7.9%. Net sales were also unfavorably impacted by lower volume, primarily in Architectural Metals and Architectural Glass. These items were partially offset by sales growth in Architectural Services and $23.2 million, or 6.4%, of inorganic sales contribution from the acquisition of UW Solutions.
•Gross margin declined 280 basis points to 21.6%, primarily due to $9.4 million of expense related to an arbitration award, the unfavorable sales leverage impact of lower volume, and an unfavorable product mix in Architectural Metals. These items were partially offset by a more favorable mix of projects in Architectural Services, and lower restructuring, short-term incentive, insurance-related, and quality expenses.
•Selling, general and administrative (SG&A) expenses as a percent of net sales increased 140 basis points to 19.8%, primarily due to a $7.6 million impairment charge in Architectural Metals, the unfavorable sales leverage impact of lower volume, as well as $3.1 million of acquisition-related expenses and higher amortization expense associated with the UW Solutions transaction. These items were partially offset by lower restructuring expense and lower long-term incentive costs.
•Operating income was $6.1 million, and operating margin decreased to 1.8%. Adjusted operating income was $28.7 million and adjusted operating margin decreased by 120 basis points to 8.3%. The lower adjusted operating margin was primarily driven by the unfavorable sales leverage impact of lower volume, and a less favorable product mix, partially offset by a more favorable mix of projects in Architectural Services and lower incentive, insurance-related, and quality expenses.
•Net interest expense increased to $3.5 million, compared to $0.9 million, primarily due to increased debt as a result of the acquisition of UW Solutions.
•Other income was $0.1 million, compared to expense of $1.6 million. The prior year included the unfavorable impact of an investment market-valuation adjustment.
•Diluted earnings per share (EPS) were $0.11, compared to $0.71, and adjusted diluted EPS decreased to $0.89, compared to $1.14.
Full-Year Consolidated Results (Fiscal 2025 compared to Fiscal 2024)
•Net sales declined 3.9% to $1.36 billion. The prior year included an extra week of operations, which negatively impacted net sales by 2.0%. Net sales were also unfavorably impacted by lower volume, primarily in Architectural Glass and Architectural Metals. These items were partially offset by net sales growth in Architectural Services, and $32.0 million, or 2.3%, of inorganic sales contribution from the acquisition of UW Solutions.
•Operating margin was 8.7%, compared to 9.4%. Adjusted operating margin increased 70 basis points to 11.0%, primarily driven by a more favorable mix of projects in Architectural Services, lower quality and insurance-related costs, and lower bad debt expense, partially offset by the unfavorable sales leverage impact of lower volume and higher lease costs.
•Diluted EPS was $3.89, compared to $4.51. Adjusted diluted EPS grew 4.2% to a record $4.97.
Apogee Enterprises, Inc. • 4400 West 78th Street • Minneapolis, MN 55435 • (952) 835-1874 • www.apog.com
Net sales declined 19.4% to $112.1 million, driven by lower volume, a less favorable sales mix, and a 7.8% unfavorable impact from the additional week in the prior year. The segment had an operating loss of $5.7 million, which included a $7.6 million impairment charge and $1.3 million of restructuring charges. Adjusted operating income was $3.2 million, or 2.8% of net sales, compared to $12.8 million, or 9.2% of net sales. The lower adjusted operating margin was primarily driven by the unfavorable sales leverage impact of lower volume, a less favorable product mix, and unfavorable productivity impacts from the launch of a more standardized product line across multiple facilities, partially offset by lower quality and short-term incentive costs.
Architectural Services
Net sales increased 10.9% to $117.9 million, primarily due to increased volume and a more favorable mix of projects, partially offset by an 8.4% unfavorable impact from the additional week in the prior year. Operating income improved to $8.6 million. Adjusted operating income increased to $8.5 million, or 7.2% of net sales, compared to $6.1 million, or 5.8% of net sales. The improved adjusted operating margin was primarily driven by a more favorable mix of projects, partially offset by higher short-term incentive compensation and lease expenses. Segment backlog5 at the end of the quarter was $720.3 million, compared to $742.2 million at the end of the third quarter.
Architectural Glass
Net sales declined 21.9% to $75.2 million, driven by lower volume, and a 7.4% unfavorable impact from the additional week in the prior year. Operating income was $11.0 million, or 14.6% of net sales, compared to $18.9 million, or 19.7% of net sales. The lower operating margin was primarily driven by the unfavorable sales leverage impact of lower volume, partially offset by lower quality costs.
Performance Surfaces
Net sales increased 76.7% to $47.9 million. This included a 0.5% organic business sales decline, an 8.3% unfavorable impact from the extra week in the prior year, and 85.4% of favorable inorganic contribution from the UW Solutions acquisition. Operating income was $6.1 million, or 12.8% of net sales, which included $3.2 million of acquisition-related costs. Adjusted operating income was $9.3 million, or 19.5% of net sales, compared to $6.9 million, or 25.6% of net sales. The lower adjusted operating margin was primarily driven by the dilutive impact of lower adjusted operating margin from UW Solutions, and the unfavorable sales leverage impact of lower organic volume, partially offset by improved productivity.
Corporate and Other
Corporate and other expense decreased to $13.8 million, compared to $14.5 million, primarily due to lower restructuring charges, lower long-term incentive compensation costs, and lower insurance-related expenses, partially offset by $9.4 million of expense related to an arbitration award.
Financial Condition
Net cash provided by operating activities in the fourth quarter was $30.0 million, compared to $74.9 million in the prior year period. For the full year, net cash provided by operating activities was $125.2 million, compared to $204.2 million last year, primarily reflecting increased cash used for working capital. Capital expenditures for the full year were $35.6 million, compared to $43.2 million last year.
In the fourth quarter, the Company returned $35.8 million of cash to shareholders, through $30.3 million of stock repurchases and $5.5 million of dividends. For the full year, the Company returned $67.1 million of cash to shareholders through share repurchases and dividends, up from $33.0 million in the prior year.
5 Backlog is a non-GAAP financial measure. See Use of Non-GAAP Financial Measures later in this press release for more information.
Apogee Enterprises, Inc. • 4400 West 78th Street • Minneapolis, MN 55435 • (952) 835-1874 • www.apog.com
Apogee Enterprises, Inc.
Page 5
Quarter-end long-term debt increased to $285.0 million, bringing the Consolidated Leverage Ratio6 (as defined in the Company’s credit agreement) to 1.3x at the end of the quarter.
Subsequent Events
Arbitration Award
As a result of a March 2025 appellate court decision confirming a December 2022 arbitration award, the Company paid the arbitration award, including accrued post-judgment interest, in the amount of $24.7 million, on April 7, 2025. As a result of the decision, we recorded expense of $9.4 million, which represents the impact of the award amount net of existing reserves and estimated insurance proceeds. This impact was recorded in cost of goods sold in the fourth quarter of fiscal 2025.
Project Fortify
The Company completed the initial phase of Project Fortify during the fourth quarter of fiscal 2025, incurring total project pre-tax charges of $16.7 million, with estimated annualized cost savings of approximately $14 million. The Company is announcing a second phase of Project Fortify (referred to as "Project Fortify Phase 2" or "Phase 2") to drive further cost efficiencies, primarily in the Architectural Services and Architectural Metals Segments. Phase 2 will further optimize our manufacturing footprint and align resources to enable a more effective operating model. The Company expects the actions of Phase 2 to incur approximately $24 million to $26 million of pre-tax charges, of which approximately $8 million are expected to be non-cash charges, and deliver estimated annualized pre-tax cost savings of approximately $13 million to $15 million. The Company expects the actions associated with Phase 2 to be substantially completed by the end of the fourth quarter of fiscal 2026.
Fiscal 2026 Outlook
Due to current macroeconomic and tariff-related uncertainty, the Company is providing a wider range of outlook metrics than historical practice. The outlook provided includes the estimated impacts of the prevailing international tariff frameworks in place as of the date of this release.
The Company expects net sales in the range of $1.37 billion to $1.43 billion. The Company expects diluted EPS in the range of $2.54 to $3.19 and adjusted diluted EPS in the range of $3.55 to $4.107. This includes a current projected unfavorable EPS impact from tariffs of $0.45 to $0.55, which will mostly impact the first half of fiscal 2026, before mitigation efforts take full effect. The Company’s outlook assumes interest expense of $14.5 million to $15.5 million, an effective tax rate of approximately 24.5%, and capital expenditures between $35 million to $40 million.
The Company expects the UW Solutions business, that was acquired in November 2024, to contribute approximately $100 million of net sales with an adjusted EBITDA margin of approximately 20%.
Due to the impacts of moderating operating margins in Metals and Glass, increased interest expense, and tariff-related expenses concentrated in the first half of fiscal 2026, the Company expects more significant year-over-year declines in adjusted diluted EPS in the first and second quarters of fiscal 2026.
Conference Call Information
The Company will host a conference call today at 8:00 a.m. Central Time to discuss this earnings release. This call will be webcast and is available in the Investor Relations section of the Company’s website, along with presentation slides, at https://www.apog.com/events-and-presentations. A replay and transcript of the webcast will be available on the Company’s website following the conference call.
6 Consolidated Leverage Ratio is a non-GAAP financial measure. See Use of Non-GAAP Financial Measures later in this press release for more information.
7 See reconciliation of Fiscal 2026 estimated adjusted diluted earnings per share to GAAP diluted earnings per share later in this press release.
Apogee Enterprises, Inc. • 4400 West 78th Street • Minneapolis, MN 55435 • (952) 835-1874 • www.apog.com
Apogee Enterprises, Inc.
Page 6
About Apogee Enterprises
Apogee Enterprises, Inc. (Nasdaq: APOG) is a leading provider of architectural building products and services, as well as high-performance coated materials used in a variety of applications. Headquartered in Minneapolis, MN, our portfolio of industry-leading products and services includes architectural glass, windows, curtainwall, storefront and entrance systems, integrated project management and installation services, and high-performance coatings that provide protection, innovative design, and enhanced performance. For more information, visit www.apog.com.
Use of Non-GAAP Financial Measures
Management uses non-GAAP measures to evaluate the Company’s historical and prospective financial performance, measure operational profitability on a consistent basis, as a factor in determining executive compensation, and to provide enhanced transparency to the investment community. Non-GAAP measures should be viewed in addition to, and not as a substitute for, the reported financial results of the Company prepared in accordance with GAAP. Other companies may calculate these measures differently, limiting the usefulness of the measures for comparison with other companies. This release and other financial communications may contain the following non-GAAP measures:
•Adjusted operating income, adjusted operating margin, adjusted net earnings, and adjusted diluted EPS are used by the Company to provide meaningful supplemental information about its operating performance by excluding amounts that the Company does not consider to be part of core operating results, to enhance comparability of results from period to period.
•Adjusted EBITDA represents adjusted net earnings before interest, taxes, depreciation, and amortization. The Company believes adjusted EBITDA and adjusted EBITDA margin metrics provide useful information to investors and analysts about the Company’s core operating performance.
•Free cash flow is defined as net cash provided by operating activities, minus capital expenditures. The Company considers this measure an indication of its financial strength. However, free cash flow does not fully reflect the Company’s ability to freely deploy generated cash, as it does not reflect, for example, required payments on indebtedness and other fixed obligations.
•Adjusted return on invested capital (“ROIC”) is defined as adjusted operating income net of tax, divided by average invested capital. The Company believes this measure is useful in understanding operational performance and capital allocation over time.
•Consolidated Leverage Ratio is calculated as Consolidated Funded Indebtedness minus Unrestricted Cash at the end of the current period, divided by Consolidated EBITDA (calculated as EBITDA plus certain non-cash charges and allowed addbacks, less certain non-cash income, plus the pro forma effect of acquisitions and certain pro forma run-rate cost savings for acquisitions and dispositions, as applicable for the trailing twelve months ended as of the current period). All capitalized and undefined terms used in this bullet are defined in the Company’s credit agreement dated July 19, 2024. The Company is unable to present a quantitative reconciliation of forward-looking expected Consolidated Leverage Ratio to its most directly comparable forward-looking GAAP financial measure because such information is not available, and management cannot reliably predict all the necessary components of such GAAP financial measure without unreasonable effort or expense. In addition, the Company believes such reconciliation would imply a degree of precision that would be confusing or misleading to investors.
•Backlog is an operating measure used by management to assess future potential sales revenue. Backlog is defined as the dollar amount of signed contracts or firm orders, generally as a result of a competitive bidding process, which is expected to be recognized as revenue. It is most meaningful for the Architectural Services segment, due to the longer-term nature of their projects. Backlog is not a term defined under U.S. GAAP and is not a measure of contract profitability. Backlog should not be used as the sole indicator of future revenue because the Company has a substantial number of projects with short lead times that book-and-bill within the same reporting period that are not included in backlog.
Apogee Enterprises, Inc. • 4400 West 78th Street • Minneapolis, MN 55435 • (952) 835-1874 • www.apog.com
Apogee Enterprises, Inc.
Page 7
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. The words “may,” “believe,” “expect,” “anticipate,” “intend,” “estimate,” “forecast,” “project,” “should,” “will,” “continue,” and similar expressions are intended to identify “forward-looking statements”. These statements reflect Apogee management’s expectations or beliefs as of the date of this release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. All forward-looking statements are qualified by factors that may affect the results, performance, financial condition, prospects and opportunities of the Company, including the following: (A) North American and global economic conditions, including the cyclical nature of the North American and Latin American non-residential construction industries and the potential impact of an economic downturn or recession; (B) U.S. and global instability and uncertainty arising from events outside of our control; (C) actions of new and existing competitors; (D) departure of key personnel and ability to source sufficient labor; (E) product performance, reliability and quality issues; (F) project management and installation issues that could affect the profitability of individual contracts; (G) dependence on a relatively small number of customers in one operating segment; (H) financial and operating results that could differ from market expectations; (I) self-insurance risk related to a material product liability or other events for which the Company is liable; (J) maintaining our information technology systems and potential cybersecurity threats; (K) cost of regulatory compliance, including environmental regulations; (L) supply chain disruptions, including fluctuations in the availability and cost of materials used in our products and the impact of trade policies and regulations, including existing and potential future tariffs; (M) integration and future operating results of acquisitions, including but not limited to the acquisition of UW Solutions, and management of acquired contracts; (N) impairment of goodwill or indefinite-lived intangible assets; (O) our ability to successfully manage and implement our enterprise strategy; (P) our ability to maintain effective internal controls over financial reporting; (Q) our judgements regarding accounting for tax positions and resolution of tax disputes; (R) the impacts of cost inflation and interest rates; and (S) the impact of changes in capital and credit markets on our liquidity and cost of capital. The Company cautions investors that actual future results could differ materially from those described in the forward-looking statements and that other factors may in the future prove to be important in affecting the Company’s results, performance, prospects, or opportunities. New factors emerge from time to time, and it is not possible for management to predict all such factors, nor can it assess the impact of each factor on the business or the extent to which any factor, or a combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. More information concerning potential factors that could affect future financial results is included in the Company’s Annual Report on Form 10-K and in subsequent filings with the U.S. Securities and Exchange Commission.
Apogee Enterprises, Inc. • 4400 West 78th Street • Minneapolis, MN 55435 • (952) 835-1874 • www.apog.com
Apogee Enterprises, Inc.
Page 8
Apogee Enterprises, Inc.
Consolidated Condensed Statements of Income
(Unaudited)
Three Months Ended
Twelve Months Ended
March 1, 2025
March 2, 2024
March 1, 2025
March 2, 2024
(In thousands, except per share amounts)
(13 weeks)
(14 weeks)
% Change
(52 weeks)
(53 weeks)
% Change
Net sales
$
345,694
$
361,840
(4.5)
%
$
1,360,994
$
1,416,942
(3.9)
%
Cost of sales
271,127
273,374
(0.8)
%
1,001,101
1,049,814
(4.6)
%
Gross profit
74,567
88,466
(15.7)
%
359,893
367,128
(2.0)
%
Selling, general and administrative expenses
68,433
66,600
2.8
%
241,783
233,295
3.6
%
Operating income
6,134
21,866
(71.9)
%
118,110
133,833
(11.7)
%
Interest expense, net
3,525
949
271.4
%
6,159
6,669
(7.6)
%
Other (income) expense, net
(130)
1,633
(108.0)
%
(623)
(2,089)
(70.2)
%
Earnings before income taxes
2,739
19,284
(85.8)
%
112,574
129,253
(12.9)
%
Income tax expense
254
3,548
(92.8)
%
27,522
29,640
(7.1)
%
Net earnings
$
2,485
$
15,736
(84.2)
%
$
85,052
$
99,613
(14.6)
%
Basic earnings per share
$
0.12
$
0.72
(83.3)
%
$
3.91
$
4.55
(14.1)
%
Diluted earnings per share
$
0.11
$
0.71
(84.5)
%
$
3.89
$
4.51
(13.7)
%
Weighted average basic shares outstanding
21,539
21,819
(1.3)
%
21,726
21,871
(0.7)
%
Weighted average diluted shares outstanding
21,793
22,102
(1.4)
%
21,891
22,091
(0.9)
%
Cash dividends per common share
$
0.26
$
0.25
4.0
%
$
1.01
$
0.97
4.1
%
% of Sales
Gross margin
21.6
%
24.4
%
26.4
%
25.9
%
Selling, general and administrative expenses
19.8
%
18.4
%
17.8
%
16.5
%
Operating margin
1.8
%
6.0
%
8.7
%
9.4
%
Apogee Enterprises, Inc. • 4400 West 78th Street • Minneapolis, MN 55435 • (952) 835-1874 • www.apog.com
Apogee Enterprises, Inc.
Page 9
Apogee Enterprises, Inc.
Business Segment Information
(Unaudited)
Three Months Ended
Twelve Months Ended
March 1, 2025
March 2, 2024
March 1, 2025
March 2, 2024
(In thousands)
(13 weeks)
(14 weeks)
% Change
(52 weeks)
(53 weeks)
% Change
Segment net sales
Architectural Metals
$
112,148
$
139,188
(19.4)
%
$
524,709
$
601,736
(12.8)
%
Architectural Services
117,895
106,278
10.9
%
419,861
378,422
11.0
%
Architectural Glass
75,157
96,187
(21.9)
%
322,197
378,449
(14.9)
%
Performance Surfaces
47,899
27,113
76.7
%
122,131
99,223
23.1
%
Intersegment eliminations
(7,405)
(6,926)
6.9
%
(27,904)
(40,888)
(31.8)
%
Net sales
$
345,694
$
361,840
(4.5)
%
$
1,360,994
$
1,416,942
(3.9)
%
Segment operating income (loss)
Architectural Metals
$
(5,721)
$
6,847
(183.6)
%
$
42,466
$
64,833
(34.5)
%
Architectural Services
8,563
3,629
136.0
%
30,046
11,840
153.8
%
Architectural Glass
10,997
18,927
(41.9)
%
59,274
68,046
(12.9)
%
Performance Surfaces
6,130
6,945
(11.7)
%
19,611
24,233
(19.1)
%
Corporate and other
(13,835)
(14,482)
(4.5)
%
(33,287)
(35,119)
(5.2)
%
Operating income
$
6,134
$
21,866
(71.9)
%
$
118,110
$
133,833
(11.7)
%
Segment operating margin
Architectural Metals
(5.1)
%
4.9
%
8.1
%
10.8
%
Architectural Services
7.3
%
3.4
%
7.2
%
3.1
%
Architectural Glass
14.6
%
19.7
%
18.4
%
18.0
%
Performance Surfaces
12.8
%
25.6
%
16.1
%
24.4
%
Corporate and other
N/M
N/M
N/M
N/M
Operating margin
1.8
%
6.0
%
8.7
%
9.4
%
N/M - Indicates calculation is not meaningful
•Segment net sales is defined as net sales for a certain segment and includes revenue related to intersegment transactions.
•Net sales intersegment eliminations are reported separately to exclude these sales from our consolidated total.
•Segment operating income is equal to net sales, less cost of goods sold, and SG&A.
•Segment operating income includes operating income related to intersegment sales transactions and excludes certain corporate costs that are not allocated at a segment level. We report these unallocated corporate costs separately in Corporate and other.
•Segment operating income does not include any other income or expense, interest expense or a provision for income taxes.
Apogee Enterprises, Inc. • 4400 West 78th Street • Minneapolis, MN 55435 • (952) 835-1874 • www.apog.com
Apogee Enterprises, Inc.
Page 10
Apogee Enterprises, Inc.
Consolidated Condensed Balance Sheets
(Unaudited)
(In thousands)
March 1, 2025
March 2, 2024
Assets
Current assets
Cash and cash equivalents
$
41,448
$
37,216
Receivables, net
185,590
173,557
Inventories, net
92,305
69,240
Contract assets
71,842
49,502
Other current assets
50,919
29,124
Total current assets
442,104
358,639
Property, plant and equipment, net
268,139
244,216
Operating lease right-of-use assets
62,314
40,221
Goodwill
235,775
129,182
Intangible assets, net
128,417
66,114
Other non-current assets
38,520
45,692
Total assets
$
1,175,269
$
884,064
Liabilities and shareholders' equity
Current liabilities
Accounts payable
98,804
84,755
Accrued compensation and benefits
48,510
53,801
Contract liabilities
35,193
34,755
Operating lease liabilities
15,290
12,286
Other current liabilities
87,659
59,108
Total current liabilities
285,456
244,705
Long-term debt
285,000
62,000
Non-current operating lease liabilities
51,632
31,907
Non-current self-insurance reserves
30,382
30,552
Other non-current liabilities
34,901
43,875
Total shareholders’ equity
487,898
471,025
Total liabilities and shareholders’ equity
$
1,175,269
$
884,064
Apogee Enterprises, Inc. • 4400 West 78th Street • Minneapolis, MN 55435 • (952) 835-1874 • www.apog.com
Apogee Enterprises, Inc.
Page 11
Apogee Enterprises, Inc.
Consolidated Statement of Cash Flows
(Unaudited)
Twelve Months Ended
March 1, 2025
March 2, 2024
(In thousands)
(52 weeks)
(53 weeks)
Operating Activities
Net earnings
$
85,052
$
99,613
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization
44,608
41,588
Share-based compensation
10,725
9,721
Deferred income taxes
3,836
(9,748)
Asset impairment on property, plant and equipment
—
6,195
Loss (gain) on disposal of property, plant and equipment
408
826
Impairment on intangible assets
7,634
—
Settlement of New Markets Tax Credit transaction
—
(4,687)
Non-cash lease expense
13,749
11,721
Other, net
(1,247)
4,615
Changes in operating assets and liabilities:
Receivables
(508)
23,993
Inventories
(5,810)
9,366
Contract assets
(22,625)
9,880
Accounts payable
9,595
(2,655)
Accrued compensation and benefits
(11,793)
2,102
Contract liabilities
598
6,590
Operating lease liability
(12,703)
(12,632)
Accrued income taxes
(5,120)
6,523
Other current assets and liabilities
8,763
1,143
Net cash provided by operating activities
125,162
204,154
Investing Activities
Capital expenditures
(35,593)
(43,180)
Proceeds from sales of property, plant and equipment
693
293
Purchases of marketable securities
(2,394)
(2,953)
Sales/maturities of marketable securities
3,570
2,165
Acquisition of business, net of cash acquired
(232,169)
—
Net cash used by investing activities
(265,893)
(43,675)
Financing Activities
Proceeds from revolving credit facilities
77,201
196,964
Repayment on revolving credit facilities
(57,201)
(304,817)
Proceeds from term loans
250,000
—
Repayment of debt
(47,000)
—
Payments of debt issuance costs
(3,798)
—
Repurchase of common stock
(45,364)
(11,821)
Dividends paid
(21,737)
(21,133)
Other, net
(6,052)
(3,800)
Net cash provided by (used in) financing activities
146,049
(144,607)
Effect of exchange rates on cash
(1,086)
(129)
Increase in cash, cash equivalents and restricted cash
4,232
15,743
Cash, cash equivalents and restricted cash at beginning of period
37,216
21,473
Cash and cash equivalents at end of period
$
41,448
$
37,216
Apogee Enterprises, Inc. • 4400 West 78th Street • Minneapolis, MN 55435 • (952) 835-1874 • www.apog.com
Apogee Enterprises, Inc.
Page 12
Apogee Enterprises, Inc.
Reconciliation of Non-GAAP Financial Measures
Adjusted Net Earnings and Adjusted Diluted Earnings per Share
(Unaudited)
Three Months Ended
Twelve Months Ended
March 1, 2025
March 2, 2024
March 1, 2025
March 2, 2024
(In thousands)
(13 weeks)
(14 weeks)
(52 weeks)
(53 weeks)
Net earnings
$
2,485
$
15,736
$
85,052
$
99,613
Acquisition-related costs (1)
Transaction
676
—
4,424
—
Integration
1,114
—
2,055
—
Backlog amortization
1,535
—
2,340
—
Inventory step-up
1,104
—
1,483
—
Total Acquisition-related costs
4,429
—
10,302
—
Restructuring charges (2)
1,110
12,403
4,323
12,403
Impairment expense (3)
7,634
—
7,634
—
Arbitration award expense (4)
9,393
—
9,393
—
NMTC settlement gain (5)
—
—
—
(4,687)
Income tax impact on above adjustments (6)
(5,614)
(3,039)
(7,832)
(1,890)
Adjusted net earnings
$
19,437
$
25,100
$
108,872
$
105,439
Three Months Ended
Twelve Months Ended
March 1, 2025
March 2, 2024
March 1, 2025
March 2, 2024
(13 weeks)
(14 weeks)
(52 weeks)
(53 weeks)
Diluted earnings per share
$
0.11
$
0.71
$
3.89
$
4.51
Acquisition-related costs (1)
Transaction
0.03
—
0.20
—
Integration
0.05
—
0.09
—
Backlog amortization
0.07
—
0.11
—
Inventory step-up
0.05
—
0.07
—
Total Acquisition-related costs
0.20
—
0.47
—
Restructuring charges (2)
0.05
0.56
0.20
0.56
Impairment expense (3)
0.35
—
0.35
—
Arbitration award expense (4)
0.43
—
0.43
—
NMTC settlement gain (5)
—
—
—
(0.21)
Income tax impact on above adjustments (6)
(0.26)
(0.14)
(0.36)
(0.09)
Adjusted diluted earnings per share
$
0.89
$
1.14
$
4.97
$
4.77
Weighted average diluted shares outstanding
21,793
22,102
21,891
22,091
Apogee Enterprises, Inc. • 4400 West 78th Street • Minneapolis, MN 55435 • (952) 835-1874 • www.apog.com
Apogee Enterprises, Inc.
Page 13
(1)
Acquisition-related costs include:
•Transaction costs related to the UW Solutions acquisition.
•Integration costs related to one-time expenses incurred to integrate the UW Solutions acquisition.
•Backlog amortization related to the value attributed to contracting the backlog purchased in the UW Solutions acquisition. These costs were amortized in SG&A over the period that the contracted backlog was shipped.
•Inventory step-up related to the incremental cost to value inventory acquired as part of the UW Solutions acquisition at fair value. These costs were expensed to cost of goods sold over the period the inventory was sold.
(2)
Restructuring charges related to Project Fortify, including $(0.2) million of employee termination costs and $1.3 million of other costs incurred in the fourth quarter of fiscal 2025, and $1.1 million of employee termination costs and $3.2 million of other costs incurred in fiscal 2025. Restructuring charges related to Project Fortify, including $6.2 million of asset impairment charges, $5.9 million of employee termination costs and $0.3 million of other costs incurred in the fourth quarter of fiscal 2024.
(3)
Impairment expense on intangible assets in the Architectural Metals Segment.
(4)
Expense related to an arbitration award, which represents the impact of the award amount net of existing reserves and estimated insurance proceeds.
(5)
Realization of a New Markets Tax Credit (NMTC) benefit during the second quarter of fiscal 2024, which was recorded in other expense (income), net.
(6)
Income tax impact reflects the estimated blended statutory tax rate for the jurisdictions in which the charge or income occurred.
Apogee Enterprises, Inc. • 4400 West 78th Street • Minneapolis, MN 55435 • (952) 835-1874 • www.apog.com
Apogee Enterprises, Inc.
Page 14
Apogee Enterprises, Inc.
Reconciliation of Non-GAAP Financial Measures
Adjusted Operating Income (Loss) and Adjusted Operating Margin
(Unaudited)
Three Months Ended March 1, 2025
(In thousands)
Architectural Metals
Architectural Services
Architectural Glass
Performance Surfaces
Corporate and Other
Consolidated
Operating income (loss)
$
(5,721)
$
8,563
$
10,997
$
6,130
$
(13,835)
$
6,134
Acquisition-related costs (1)
Transaction
—
—
—
—
676
676
Integration
—
—
—
559
555
1,114
Backlog amortization
—
—
—
1,535
—
1,535
Inventory step-up
—
—
—
1,104
—
1,104
Total Acquisition-related costs
—
—
—
3,198
1,231
4,429
Restructuring charges (2)
1,268
(30)
—
—
(128)
1,110
Impairment expense (3)
7,634
—
—
—
—
7,634
Arbitration award expense (4)
—
—
—
—
9,393
9,393
Adjusted operating income (loss)
$
3,181
$
8,533
$
10,997
$
9,328
$
(3,339)
$
28,700
Operating margin
(5.1)
%
7.3
%
14.6
%
12.8
%
N/M
1.8
%
Acquisition-related costs (1)
Transaction
—
—
—
—
N/M
0.2
Integration
—
—
—
1.2
N/M
0.3
Backlog amortization
—
—
—
3.2
N/M
0.4
Inventory step-up
—
—
—
2.3
N/M
0.3
Total Acquisition-related costs
—
—
—
6.7
N/M
1.3
Restructuring charges (2)
1.1
—
—
—
N/M
0.3
Impairment expense (3)
6.8
—
—
—
N/M
2.2
Arbitration award expense (4)
—
—
—
—
N/M
2.7
Adjusted operating margin
2.8
%
7.2
%
14.6
%
19.5
%
N/M
8.3
%
Three Months Ended March 2, 2024
(In thousands)
Architectural Metals
Architectural Services
Architectural Glass
Performance Surfaces
Corporate and Other
Consolidated
Operating income (loss)
$
6,847
$
3,629
$
18,927
$
6,945
$
(14,482)
$
21,866
Restructuring charges (2)
5,970
2,526
—
—
3,907
12,403
Adjusted operating income (loss)
$
12,817
$
6,155
$
18,927
$
6,945
$
(10,575)
$
34,269
Operating margin
4.9
%
3.4
%
19.7
%
25.6
%
N/M
6.0
%
Restructuring charges (2)
4.3
2.4
—
—
N/M
3.4
Adjusted operating margin
9.2
%
5.8
%
19.7
%
25.6
%
N/M
9.5
%
(1)
Acquisition-related costs include:
•Transaction costs related to the UW Solutions acquisition.
•Integration costs related to one-time expenses incurred to integrate the UW Solutions acquisition.
•Backlog amortization related to the value attributed to contracting the backlog purchased in the UW Solutions acquisition. These costs were amortized in SG&A over the period that the contracted backlog was shipped.
•Inventory step-up related to the incremental cost to value inventory acquired as part of the UW Solutions acquisition at fair value. These costs were expensed to cost of goods sold over the period the inventory was sold.
Apogee Enterprises, Inc. • 4400 West 78th Street • Minneapolis, MN 55435 • (952) 835-1874 • www.apog.com
Apogee Enterprises, Inc.
Page 15
(2)
Restructuring charges related to Project Fortify, including $(0.2) million of employee termination costs and $1.3 million of other costs incurred in the fourth quarter of fiscal 2025. Restructuring charges related to Project Fortify, including $6.2 million of asset impairment charges, $5.9 million of employee termination costs and $0.3 million of other costs incurred in the fourth quarter of fiscal 2024.
(3)
Impairment expense on intangible assets in the Architectural Metals Segment.
(4)
Expense related to an arbitration award, which represents the impact of the award amount net of existing reserves and estimated insurance proceeds.
Apogee Enterprises, Inc.
Reconciliation of Non-GAAP Financial Measures
Adjusted Operating Income (Loss) and Adjusted Operating Margin
(Unaudited)
Twelve Months Ended March 1, 2025
(In thousands)
Architectural Metals
Architectural Services
Architectural Glass
Performance Surfaces
Corporate and Other
Consolidated
Operating income (loss)
$
42,466
$
30,046
$
59,274
$
19,611
$
(33,287)
$
118,110
Acquisition-related costs (1)
Transaction
—
—
—
—
4,424
4,424
Integration
—
—
—
706
1,349
2,055
Backlog amortization
—
—
—
2,340
—
2,340
Inventory step-up
—
—
—
1,483
—
1,483
Total Acquisition-related costs
—
—
—
4,529
5,773
10,302
Restructuring charges (2)
4,024
(489)
—
—
788
4,323
Impairment expense (3)
7,634
—
—
—
—
7,634
Arbitration award expense (4)
—
—
—
—
9,393
9,393
Adjusted operating income (loss)
$
54,124
$
29,557
$
59,274
$
24,140
$
(17,333)
$
149,762
Operating margin
8.1
%
7.2
%
18.4
%
16.1
%
N/M
8.7
%
Acquisition-related costs (1)
Transaction
—
—
—
—
N/M
0.3
Integration
—
—
—
0.6
N/M
0.2
Backlog amortization
—
—
—
1.9
N/M
0.2
Inventory step-up
—
—
—
1.2
N/M
0.1
Total Acquisition-related costs
—
—
—
3.7
N/M
0.8
Restructuring charges (2)
0.8
(0.1)
—
—
N/M
0.3
Impairment expense (3)
1.5
—
—
—
N/M
0.6
Arbitration award expense (4)
—
—
—
—
N/M
0.7
Adjusted operating margin
10.3
%
7.0
%
18.4
%
19.8
%
N/M
11.0
%
Twelve Months Ended March 2, 2024
(In thousands)
Architectural Metals
Architectural Services
Architectural Glass
Performance Surfaces
Corporate and Other
Consolidated
Operating income (loss)
$
64,833
$
11,840
$
68,046
$
24,233
$
(35,119)
$
133,833
Restructuring charges (2)
5,970
2,526
—
—
3,907
12,403
Adjusted operating income (loss)
$
70,803
$
14,366
$
68,046
$
24,233
$
(31,212)
$
146,236
Operating margin
10.8
%
3.1
%
18.0
%
24.4
%
N/M
9.4
%
Restructuring charges (2)
1.0
0.7
—
—
N/M
0.9
Adjusted operating margin
11.8
%
3.8
%
18.0
%
24.4
%
N/M
10.3
%
Apogee Enterprises, Inc. • 4400 West 78th Street • Minneapolis, MN 55435 • (952) 835-1874 • www.apog.com
Apogee Enterprises, Inc.
Page 16
(1)
Acquisition-related costs include:
•Transaction costs related to the UW Solutions acquisition.
•Integration costs related to one-time expenses incurred to integrate the UW Solutions acquisition.
•Backlog amortization related to the value attributed to contracting the backlog purchased in the UW Solutions acquisition. These costs were amortized in SG&A over the period that the contracted backlog was shipped.
•Inventory step-up related to the incremental cost to value inventory acquired as part of the UW Solutions acquisition at fair value. These costs were expensed to cost of goods sold over the period the inventory was sold.
(2)
Restructuring charges related to Project Fortify, including $1.1 million of employee termination costs and $3.2 million of other costs incurred in fiscal 2025. Restructuring charges related to Project Fortify, including $6.2 million of asset impairment charges, $5.9 million of employee termination costs and $0.3 million of other costs incurred in fiscal 2024.
(3)
Impairment expense on intangible assets in the Architectural Metals Segment.
(4)
Expense related to an arbitration award, which represents the impact of the award amount net of existing reserves and estimated insurance proceeds.
Apogee Enterprises, Inc. • 4400 West 78th Street • Minneapolis, MN 55435 • (952) 835-1874 • www.apog.com
Apogee Enterprises, Inc.
Page 17
Apogee Enterprises, Inc.
Reconciliation of Non-GAAP Financial Measures
Adjusted EBITDA and Adjusted EBITDA Margin (Earnings before interest, taxes, depreciation and amortization)
(Unaudited)
Three Months Ended
Twelve Months Ended
March 1, 2025
March 2, 2024
March 1, 2025
March 2, 2024
(In thousands)
(13 weeks)
(14 weeks)
(52 weeks)
(53 weeks)
Net earnings
$
2,485
$
15,736
$
85,052
$
99,613
Income tax expense
254
3,548
27,522
29,640
Interest expense, net
3,525
949
6,159
6,669
Depreciation and amortization
13,810
10,403
44,608
41,588
EBITDA
$
20,074
$
30,636
$
163,341
$
177,510
Acquisition-related costs (1)
Transaction
676
—
4,424
—
Integration
1,114
—
2,055
—
Inventory step-up
1,104
—
1,483
—
Total Acquisition-related costs
2,894
—
7,962
—
Restructuring charges (2)
1,110
12,403
4,323
12,403
Impairment expense (3)
7,634
—
7,634
—
Arbitration award expense (4)
9,393
—
9,393
—
NMTC settlement gain (5)
—
—
—
(4,687)
Adjusted EBITDA
$
41,105
$
43,039
$
192,653
$
185,226
EBITDA Margin
5.8
%
8.5
%
12.0
%
12.5
%
Adjusted EBITDA Margin
11.9
%
11.9
%
14.2
%
13.1
%
(1)
Acquisition-related costs include:
•Transaction costs related to the UW Solutions acquisition.
•Integration costs related to one-time expenses incurred to integrate the UW Solutions acquisition.
•Inventory step-up related to the incremental cost to value inventory acquired as part of the UW Solutions acquisition at fair value. These costs were expensed to cost of goods sold over the period the inventory was sold.
(2)
Restructuring charges related to Project Fortify, including $(0.2) million of employee termination costs and $1.3 million of other costs incurred in the fourth quarter of fiscal 2025, and $1.1 million of employee termination costs and, $3.2 million of other costs incurred in fiscal 2025. Restructuring charges related to Project Fortify, including $6.2 million of asset impairment charges, $5.9 million of employee termination costs and $0.3 million of other costs incurred in the fourth quarter of fiscal 2024.
(3)
Impairment expense on intangible assets in the Architectural Metals Segment.
(4)
Expense related to an arbitration award, which represents the impact of the award amount net of existing reserves and estimated insurance proceeds.
(5)
Realization of a New Markets Tax Credit (NMTC) benefit during the second quarter of fiscal 2024, which was recorded in other expense (income), net.
Apogee Enterprises, Inc. • 4400 West 78th Street • Minneapolis, MN 55435 • (952) 835-1874 • www.apog.com
Apogee Enterprises, Inc.
Page 18
Apogee Enterprises, Inc.
Reconciliation of Non-GAAP Measure - Adjusted Return on Invested Capital Reconciliation
(Unaudited)
Twelve Months Ended
(In thousands, except percentages)
March 1, 2025
March 2, 2024
Net earnings
$
85,052
$
99,613
Interest expense, net (after tax)
4,619
5,002
Other income, net (after tax)
(467)
(1,567)
Net operating income after taxes
$
89,204
$
103,048
Adjustments:
Acquisition-related costs (1)
10,302
—
Restructuring charges (2)
4,323
12,403
Impairment expense (3)
7,634
—
Arbitration award expense (4)
9,393
—
Total adjustments
$
31,652
$
12,403
Less income tax impact on adjustments (5)
7,832
3,101
Adjusted net operating income after taxes
$
113,024
$
112,350
Average invested capital (6)
$
757,178
$
668,555
Return on invested capital (ROIC) (7)
11.8
%
15.4
%
Adjusted ROIC (8)
14.9
%
16.8
%
(1)
Acquisition-related costs include:
•Transaction costs related to the UW Solutions acquisition.
•Integration costs related to one-time expenses incurred to integrate the UW Solutions acquisition.
•Backlog amortization related to the value attributed to contracting the backlog purchased in the UW Solutions acquisition. These costs were amortized in SG&A over the period that the contracted backlog was shipped.
•Inventory step-up related to the incremental cost to value inventory acquired as part of the UW Solutions acquisition at fair value. These costs were expensed to cost of goods sold over the period the inventory was sold.
(2)
Restructuring charges related to Project Fortify, including $1.1 million of employee termination costs and $3.2 million of other costs incurred in fiscal 2025. Restructuring charges related to Project Fortify, including $6.2 million of asset impairment charges, $5.9 million of employee termination costs and $0.3 million of other costs incurred in fiscal 2024.
(3)
Impairment expense on intangible assets in the Architectural Metals Segment.
(4)
Expense related to an arbitration award which, represents the impact of the award amount net of existing reserves and estimated insurance proceeds.
(5)
Income tax impact reflects the tax rate for the jurisdictions in which the charge or income occurred.
(6)
Average invested capital represents a trailing five quarter average of total assets less current liabilities (excluding current portion long-term debt).
(7)
ROIC is calculated by dividing net operating income after taxes by average invested capital.
(8)
Adjusted ROIC calculated by dividing adjusted operating income after taxes by average invested capital.
Apogee Enterprises, Inc. • 4400 West 78th Street • Minneapolis, MN 55435 • (952) 835-1874 • www.apog.com
Apogee Enterprises, Inc.
Page 19
Apogee Enterprises, Inc.
Fiscal 2026 Outlook
Reconciliation of Fiscal 2026 outlook of estimated Diluted Earnings per Share to Adjusted Diluted Earnings per Share
(Unaudited)
Fiscal Year Ending February 28, 2026
Low Range
High Range
Diluted earnings per share
$
2.54
$
3.19
Acquisition-related costs (1)
0.14
0.09
Restructuring charges (2)
1.20
1.11
Income tax impact on above adjustments per share
(0.33)
(0.29)
Adjusted diluted earnings per share
$
3.55
$
4.10
(1)
Acquisition-related costs include costs related to one-time expenses incurred to integrate the UW Solutions acquisition.
(2)
Restructuring charges related to Project Fortify Phase 2.
Apogee Enterprises, Inc. • 4400 West 78th Street • Minneapolis, MN 55435 • (952) 835-1874 • www.apog.com
