Apogee Enterprises (APOG, Financial) saw a significant rise of 22% following its Q2 earnings report. The company delivered another impressive EPS beat, marking the sixth consecutive double-digit EPS surprise. Although revenue fell by 3.2% year-over-year to $342.4 million, it surpassed analysts' expectations for a more significant decline. Apogee also significantly increased its FY25 EPS guidance to $4.90-5.20, up from $4.65-5.00, while reaffirming its FY25 revenue guidance at a decline of 4% to 7%.- The rev ...

On October 4, 2024, Apogee Enterprises Inc (APOG, Financial) released its 8-K filing for the fiscal 2025 second quarter, reporting a mixed performance with a notable improvement in operating margins despite a decline in net sales. The company, a leading provider of architectural products and services, reported a 3.2% decrease in net sales to $342 million, exceeding the estimated $335.29 million. However, it exceeded the estimated earnings per share (EPS) of $1.18, achieving a diluted EPS of $1.40 and an adj ...

[Executive Summary](index=1&type=section&id=Executive%20Summary) [Q2 Fiscal 2025 Financial Highlights](index=1&type=section&id=Q2%20Fiscal%202025%20Financial%20Highlights) Apogee Enterprises reported its fiscal 2025 second quarter results with a decrease in net sales but improved operating margins and adjusted EPS growth, alongside increased operating cash flow | Metric | Q2 FY25 (Aug 31, 2024) | Q2 FY24 (Aug 26, 2023) | % Change | | :-------------------------- | :--------------------- | :--------------------- | :------- | | Net Sales | $342.44 million | $353.68 million | (3.2)% | | Operating Income | $41.97 million | $40.55 million | 3.5% | | Operating Margin | 12.3% | 11.5% | | | Diluted EPS | $1.40 | $1.52 | (7.9)% | | Adjusted Operating Income | $43.14 million | $40.55 million | 6.4% | | Adjusted Operating Margin | 12.6% | 11.5% | 110 bps | | Adjusted Diluted EPS | $1.44 | $1.36 | 5.9% | | Adjusted EBITDA | $53.12 million | $51.15 million | 3.9% | | Adjusted EBITDA Margin | 15.5% | 14.5% | | | YTD Cash Flow from Operations | $64 million | | Improved | [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Ty R. Silberhorn highlighted strong profitability, improved operating margins, and adjusted EPS growth despite volume pressure, attributing success to strategic execution and a stronger operating foundation. The recent acquisition of UW Solutions is expected to drive future growth - The company achieved **strong profitability**, **improved operating margins**, **adjusted EPS growth**, and **increased operating cash flow**, despite volume pressure, demonstrating sustainable improvements from strategic execution[2](index=2&type=chunk) - The recently announced **acquisition of UW Solutions** is expected to position the company for continued success and build a **powerful new growth engine**, leveraging combined capabilities for long-term growth[3](index=3&type=chunk) [Consolidated Results Overview](index=2&type=section&id=Consolidated%20Results%20Overview) [Second Quarter Fiscal 2025 Performance](index=2&type=section&id=Second%20Quarter%20Fiscal%202025%20Performance) Consolidated net sales decreased by 3.2% due to lower volume, partially offset by improved pricing and mix. Gross margin improved by 140 basis points, driven by favorable pricing, project mix, material costs, and lower insurance costs. Operating income increased, with adjusted operating margin improving by 110 basis points, while interest expense decreased significantly - **Net sales decreased 3.2% to $342.4 million**, primarily due to lower volume, partially offset by improved pricing and mix[3](index=3&type=chunk) - **Gross margin improved 140 basis points to 28.4%**, driven by improved pricing, a more favorable mix of projects in Architectural Services, favorable material costs, and lower insurance-related costs[4](index=4&type=chunk) - **Selling, general and administrative (SG&A) expenses as a percent of net sales increased 70 basis points to 16.2%**, mainly due to higher incentive compensation and the unfavorable sales leverage impact of lower volume[4](index=4&type=chunk) | Metric | Q2 FY25 (Aug 31, 2024) | Q2 FY24 (Aug 26, 2023) | % Change | | :-------------------------- | :--------------------- | :--------------------- | :------- | | Operating Income | $42.0 million | $40.6 million | 3.5% | | Operating Margin | 12.3% | 11.5% | | | Adjusted Operating Income | $43.1 million | $40.6 million | 6.4% | | Adjusted Operating Margin | 12.6% | 11.5% | 110 bps | | Interest Expense | $1.1 million | $2.2 million | (48.9)% | | Diluted EPS | $1.40 | $1.52 | (7.9)% | | Adjusted Diluted EPS | $1.44 | $1.36 | 5.9% | [Segment Results](index=2&type=section&id=Segment%20Results) [Architectural Framing Systems](index=2&type=section&id=Architectural%20Framing%20Systems) Net sales for Architectural Framing Systems decreased by 11.0% due to reduced volume from exiting lower-margin product lines and lower end-market demand. Adjusted operating income and margin also declined | Metric | Q2 FY25 (Aug 31, 2024) | Q2 FY24 (Aug 26, 2023) | % Change | | :-------------------------- | :--------------------- | :--------------------- | :------- | | Net Sales | $141.4 million | $158.8 million | (11.0)% | | Operating Income | $17.1 million | $21.1 million | (18.6)% | | Adjusted Operating Income | $18.1 million | $21.1 million | | | Adjusted Operating Margin | 12.8% | 13.3% | | - The **lower adjusted operating margin** was primarily driven by the unfavorable sales leverage impact of lower volume and a less favorable mix, partially offset by favorable material costs[7](index=7&type=chunk) [Architectural Glass](index=2&type=section&id=Architectural%20Glass) Architectural Glass net sales decreased by 4.2% due to lower end-market demand, but operating income significantly increased by 20.8%, leading to a 490 basis point improvement in operating margin, driven by improved pricing, product mix, and lower operating costs | Metric | Q2 FY25 (Aug 31, 2024) | Q2 FY24 (Aug 26, 2023) | % Change | | :--------------- | :--------------------- | :--------------------- | :------- | | Net Sales | $90.1 million | $94.1 million | (4.2)% | | Operating Income | $21.1 million | $17.4 million | 20.8% | | Operating Margin | 23.4% | 18.5% | 490 bps | [Architectural Services](index=3&type=section&id=Architectural%20Services) Architectural Services net sales grew by 11.3% due to a more favorable project mix and increased volume. Operating income surged by 74.2%, with adjusted operating margin improving by 250 basis points. Segment backlog decreased to $792.1 million | Metric | Q2 FY25 (Aug 31, 2024) | Q2 FY24 (Aug 26, 2023) | % Change | | :-------------------------- | :--------------------- | :--------------------- | :------- | | Net Sales | $98.0 million | $88.1 million | 11.3% |\ | Operating Income | $6.1 million | $3.5 million | 74.2% | | Adjusted Operating Income | $6.4 million | $3.5 million | | | Adjusted Operating Margin | 6.5% | 4.0% | 250 bps | | Segment Backlog (Q2 end) | $792.1 million | | | | Segment Backlog (Q1 end) | | $866.9 million | | [Large-Scale Optical](index=3&type=section&id=Large-Scale%20Optical) Large-Scale Optical net sales decreased by 16.1% primarily due to lower volume in the retail channel. Operating income and margin also saw a decline, partially offset by improved mix and cost savings | Metric | Q2 FY25 (Aug 31, 2024) | Q2 FY24 (Aug 26, 2023) | % Change | | :--------------- | :--------------------- | :--------------------- | :------- | | Net Sales | $19.8 million | $23.6 million | (16.1)% | | Operating Income | $3.8 million | $4.7 million | (18.7)% | | Operating Margin | 19.1% | 19.7% | (60 bps) | [Corporate and Other](index=3&type=section&id=Corporate%20and%20Other) Corporate and other expenses slightly increased to $6.2 million, mainly due to higher compensation and benefit costs, partially offset by lower insurance-related expenses | Metric | Q2 FY25 (Aug 31, 2024) | Q2 FY24 (Aug 26, 2023) | % Change | | :-------------------------- | :--------------------- | :--------------------- | :------- | | Corporate and Other Expense | $6.2 million | $6.1 million | 0.7% | [Financial Condition](index=3&type=section&id=Financial%20Condition) [Cash Flow and Capital Allocation](index=3&type=section&id=Cash%20Flow%20and%20Capital%20Allocation) Net cash provided by operating activities improved significantly in Q2 and year-to-date, primarily driven by higher net earnings. The company returned $25.9 million to shareholders through share repurchases and dividends in the first half of the fiscal year | Metric | Q2 FY25 (Aug 31, 2024) | Q2 FY24 (Aug 26, 2023) | YTD FY25 (Aug 31, 2024) | YTD FY24 (Aug 26, 2023) | | :-------------------------------------- | :--------------------- | :--------------------- | :---------------------- | :---------------------- | | Net cash provided by operating activities | $58.7 million | $41.3 million | $64.1 million | $62.6 million | | Capital expenditures | | | $15.7 million | $15.1 million | | Cash returned to shareholders | | | $25.9 million | | [Debt and Leverage](index=3&type=section&id=Debt%20and%20Leverage) The company maintained a low long-term debt level of $62.0 million and a Consolidated Leverage Ratio of 0.1x at quarter-end, indicating a strong financial position | Metric | As of Aug 31, 2024 | | :-------------------------- | :----------------- | | Long-term debt | $62.0 million | | Consolidated Leverage Ratio | 0.1x | [Fiscal 2025 Outlook](index=3&type=section&id=Fiscal%202025%20Outlook) [Net Sales and EPS Guidance](index=3&type=section&id=Net%20Sales%20and%20EPS%20Guidance) Apogee Enterprises continues to expect a full-year net sales decline of 4% to 7%, including impacts from a 52-week year and Project Fortify. The company is raising its full-year diluted EPS outlook to $4.81-$5.08 and adjusted diluted EPS to $4.90-$5.20 | Metric | Fiscal Year Ending March 1, 2025 (Low Range) | Fiscal Year Ending March 1, 2025 (High Range) | | :----------------------------------- | :------------------------------------------- | :-------------------------------------------- | | Full-year net sales decline | 4% | 7% | | Diluted EPS | $4.81 | $5.08 | | Adjusted diluted EPS | $4.90 | $5.20 | [Project Fortify and Acquisition Impact](index=3&type=section&id=Project%20Fortify%20and%20Acquisition%20Impact) The outlook incorporates a 2 percentage point net sales decline from reverting to a 52-week year and 1 percentage point from Project Fortify actions. The UW Solutions acquisition, expected to close November 1, 2024, is projected to add $30 million in net sales but decrease adjusted diluted EPS by approximately $0.10 due to increased interest and amortization. Project Fortify is expected to incur $15-$16 million in pre-tax charges, leading to $13-$14 million in annualized cost savings - **Full-year net sales decline range of 4% to 7%** includes approximately **2 percentage points** from reverting to a 52-week year and **1 percentage point** from Project Fortify actions to eliminate lower-margin offerings[13](index=13&type=chunk) - The **UW Solutions acquisition** (expected to close Nov 1, 2024) is anticipated to add approximately **$30 million in incremental net sales** but **decrease adjusted diluted EPS by about $0.10**, primarily due to increased interest and amortization expense[13](index=13&type=chunk) - **Project Fortify** is expected to incur **$15 million to $16 million in pre-tax charges**, leading to updated **annualized cost savings of $13 million to $14 million**, with approximately **60% realized in fiscal 2025**[14](index=14&type=chunk) - The company continues to expect an **effective tax rate of approximately 24.5%** and **capital expenditures between $40 million to $50 million**[15](index=15&type=chunk) [Additional Company Information](index=4&type=section&id=Additional%20Company%20Information) [About Apogee Enterprises](index=4&type=section&id=About%20Apogee%20Enterprises) Apogee Enterprises, Inc. is a leading provider of architectural products and services for enclosing buildings, and high-performance glass and acrylic products for preservation, energy conservation, and enhanced viewing - **Apogee Enterprises, Inc.** is a **leading provider of architectural products and services** for enclosing buildings[17](index=17&type=chunk) - The company also provides **high-performance glass and acrylic products** used for preservation, energy conservation, and enhanced viewing[17](index=17&type=chunk) - Its portfolio includes **architectural glass, windows, curtainwall, storefront and entrance systems, integrated project management, installation services, and value-added glass and acrylic** for custom picture framing and displays[17](index=17&type=chunk) [Conference Call Details](index=4&type=section&id=Conference%20Call%20Details) Apogee Enterprises hosted a conference call on October 4, 2024, at 8:00 a.m. Central Time to discuss the earnings release, with webcast and presentation slides available on the company's investor relations website - A conference call was hosted on **October 4, 2024, at 8:00 a.m. Central Time** to discuss the earnings release[16](index=16&type=chunk) - The call was **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[16](index=16&type=chunk) [Use of Non-GAAP Financial Measures](index=4&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) Management uses non-GAAP measures like adjusted operating income, adjusted EBITDA, free cash flow, consolidated leverage ratio, and backlog to evaluate financial performance, measure operational profitability, and provide enhanced transparency, emphasizing they should be viewed as supplemental to GAAP results - **Non-GAAP measures** are used by management to **evaluate historical and prospective financial performance**, **measure operational profitability**, determine executive compensation, and provide **enhanced transparency**[18](index=18&type=chunk) - Key non-GAAP measures include **Adjusted operating income, adjusted operating margin, adjusted net earnings, adjusted effective tax rate, and adjusted diluted EPS**, which exclude amounts not considered part of core operating results[18](index=18&type=chunk) - **Adjusted EBITDA** represents **adjusted net earnings before interest, taxes, depreciation, and amortization**, providing insights into core operating performance[18](index=18&type=chunk) - **Free cash flow** is defined as **net cash provided by operating activities minus capital expenditures**, indicating financial strength[18](index=18&type=chunk) - **Consolidated Leverage Ratio** is a defined term per the Company's credit agreement, calculated based on funded indebtedness, cash, and adjusted EBITDA[18](index=18&type=chunk) - **Backlog** is an operating measure used to **assess future potential sales revenue**, particularly meaningful for the Architectural Services segment due to longer-term projects[20](index=20&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements subject to various risks and uncertainties, including economic conditions, competition, supply chain disruptions, and integration of acquisitions, which could cause actual results to differ materially from expectations - The press release contains **forward-looking statements** reflecting management's expectations, which are subject to various factors that may affect results, performance, financial condition, prospects, and opportunities[21](index=21&type=chunk) - **Key risk factors** include North American and global **economic conditions**, U.S. and global instability, actions of **competitors**, departure of **key personnel**, product performance issues, **supply chain disruptions**, and **integration of acquisitions**[21](index=21&type=chunk) - The company cautions that **actual future results could differ materially** from those described in forward-looking statements, and new factors may emerge that could impact results[21](index=21&type=chunk) [Financial Statements](index=6&type=section&id=Financial%20Statements) [Consolidated Condensed Statements of Income](index=6&type=section&id=Consolidated%20Condensed%20Statements%20of%20Income) This section presents the unaudited consolidated statements of income for the three and six months ended August 31, 2024, and August 26, 2023, detailing revenue, costs, and profitability metrics | (In thousands, except per share amounts) | Three Months Ended Aug 31, 2024 | Three Months Ended Aug 26, 2023 | % Change | Six Months Ended Aug 31, 2024 | Six Months Ended Aug 26, 2023 | % Change | | :--------------------------------------- | :------------------------------ | :------------------------------ | :------- | :---------------------------- | :---------------------------- | :------- | | Net sales | $342,440 | $353,675 | (3.2)% | $673,956 | $715,388 | (5.8)% | | Cost of sales | 245,119 | 258,304 | (5.1)% | 477,780 | 527,031 | (9.3)% | | Gross profit | 97,321 | 95,371 | 2.0% | 196,176 | 188,357 | 4.2% | | Selling, general and administrative expenses | 55,356 | 54,818 | 1.0% | 112,830 | 114,037 | (1.1)% | | Operating income | 41,965 | 40,553 | 3.5% | 83,346 | 74,320 | 12.1% | | Interest expense, net | 1,140 | 2,230 | (48.9)% | 1,590 | 4,266 | (62.7)% | | Other income, net | 290 | 4,900 | (94.1)% | 433 | 4,612 | (90.6)% | | Earnings before income taxes | 41,115 | 43,223 | (4.9)% | 82,189 | 74,666 | 10.1% | | Income tax expense | 10,549 | 9,896 | 6.6% | 20,612 | 17,763 | 16.0% | | Net earnings | $30,566 | $33,327 | (8.3)% | $61,577 | $56,903 | 8.2% | | Basic earnings per share | $1.40 | $1.54 | (9.1)% | $2.83 | $2.61 | 8.4% | | Diluted earnings per share | $1.40 | $1.52 | (7.9)% | $2.80 | $2.57 | 8.9% | | Gross margin | 28.4% | 27.0% | | 29.1% | 26.3% | | | Operating margin | 12.3% | 11.5% | | 12.4% | 10.4% | | [Segment Net Sales and Operating Income](index=7&type=section&id=Segment%20Net%20Sales%20and%20Operating%20Income) This table provides a detailed breakdown of net sales and operating income (loss) for each of Apogee's segments, including Architectural Framing Systems, Architectural Glass, Architectural Services, and Large-Scale Optical, for the three and six months ended August 31, 2024, and August 26, 2023 | (In thousands) | Three Months Ended Aug 31, 2024 | Three Months Ended Aug 26, 2023 | % Change | Six Months Ended Aug 31, 2024 | Six Months Ended Aug 26, 2023 | % Change | | :-------------------------- | :------------------------------ | :------------------------------ | :------- | :---------------------------- | :---------------------------- | :------- | | **Segment net sales** | | | | | | | | Architectural Framing Systems | $141,350 | $158,801 | (11.0)% | $274,522 | $322,963 | (15.0)% | | Architectural Glass | 90,101 | 94,096 | (4.2)% | 176,804 | 191,298 | (7.6)% | | Architectural Services | 98,018 | 88,064 | 11.3% | 197,045 | 177,482 | 11.0% | | Large-Scale Optical | 19,832 | 23,645 | (16.1)% | 41,036 | 46,101 | (11.0)% | | Net sales | $342,440 | $353,675 | (3.2)% | $673,956 | $715,388 | (5.8)% | | **Segment operating income (loss)** | | | | | | | | Architectural Framing Systems | $17,141 | $21,060 | (18.6)% | $35,477 | $41,005 | (13.5)% | | Architectural Glass | 21,068 | 17,434 | 20.8% | 38,159 | 33,955 | 12.4% | | Architectural Services | 6,130 | 3,519 | 74.2% | 11,753 | 2,923 | 302.1% | | Large-Scale Optical | 3,793 | 4,663 | (18.7)% | 8,639 | 10,188 | (15.2)% | | Corporate and other | (6,167) | (6,123) | 0.7% | (10,682) | (13,751) | (22.3)% | | Operating income | $41,965 | $40,553 | 3.5% | $83,346 | $74,320 | 12.1% | [Consolidated Condensed Balance Sheets](index=8&type=section&id=Consolidated%20Condensed%20Balance%20Sheets) This section presents the unaudited consolidated balance sheets as of August 31, 2024, and March 2, 2024, providing a snapshot of the company's assets, liabilities, and shareholders' equity | (In thousands) | August 31, 2024 | March 2, 2024 | | :--------------------------------- | :-------------- | :------------ | | **Assets** | | | | Total current assets | $393,788 | $358,639 | | Property, plant and equipment, net | 240,627 | 244,216 | | Operating lease right-of-use assets | 41,886 | 40,221 | | Goodwill | 129,119 | 129,182 | | Intangible assets, net | 64,547 | 66,114 | | Other non-current assets | 47,125 | 45,692 | | **Total assets** | **$917,092** | **$884,064** | | **Liabilities and shareholders' equity** | | | | Total current liabilities | 238,849 | 244,705 | | Long-term debt | 62,000 | 62,000 | | Non-current operating lease liabilities | 33,323 | 31,907 | | Non-current self-insurance reserves | 32,055 | 30,552 | | Other non-current liabilities | 44,443 | 43,875 | | Total shareholders' equity | 506,422 | 471,025 | | **Total liabilities and shareholders' equity** | **$917,092** | **$884,064** | [Consolidated Condensed Statements of Cash Flows](index=9&type=section&id=Consolidated%20Condensed%20Statements%20of%20Cash%20Flows) This section outlines the unaudited consolidated cash flow statements for the six months ended August 31, 2024, and August 26, 2023, detailing cash flows from operating, investing, and financing activities | (In thousands) | Six Months Ended Aug 31, 2024 | Six Months Ended Aug 26, 2023 | | :-------------------------------------------- | :---------------------------- | :---------------------------- | | **Operating Activities** | | | | Net earnings | $61,577 | $56,903 | | Net cash provided by operating activities | $64,132 | $62,564 | | **Investing Activities** | | | | Capital expenditures | (15,662) | (15,018) | | Net cash used by investing activities | (15,450) | (15,069) | | **Financing Activities** | | | | Proceeds from revolving credit facilities | 95,201 | 174,853 | | Repayments on revolving credit facilities | (95,201) | (199,000) | | Repurchase of common stock | (15,061) | (11,821) | | Dividends paid | (10,821) | (10,467) | | Net cash used by financing activities | (34,633) | (50,140) | | Increase (decrease) in cash and cash equivalents | 13,808 | (3,050) | | Cash and cash equivalents at end of period | $51,024 | $18,423 | [Non-GAAP Reconciliations](index=10&type=section&id=Non-GAAP%20Reconciliations) [Adjusted Net Earnings and Adjusted Diluted Earnings per Share](index=10&type=section&id=Adjusted%20Net%20Earnings%20and%20Adjusted%20Diluted%20Earnings%20per%20Share) This section reconciles GAAP net earnings and diluted EPS to their adjusted non-GAAP counterparts for the three and six months ended August 31, 2024, and August 26, 2023, primarily adjusting for restructuring charges related to Project Fortify and a New Market Tax Credit (NMTC) settlement gain | (In thousands) | Three Months Ended Aug 31, 2024 | Three Months Ended Aug 26, 2023 | Six Months Ended Aug 31, 2024 | Six Months Ended Aug 26, 2023 | | :--------------------------------------- | :------------------------------ | :------------------------------ | :---------------------------- | :---------------------------- | | Net earnings | $30,566 | $33,327 | $61,577 | $56,903 | | Restructuring charges | 1,179 | — | 2,301 | — | | NMTC settlement gain | — | (4,687) | — | (4,687) | | Income tax impact on above adjustments | (289) | 1,148 | (564) | 1,148 | | Adjusted net earnings | $31,456 | $29,788 | $63,314 | $53,364 | | Diluted earnings per share | $1.40 | $1.52 | $2.80 | $2.57 | | Restructuring charges (per share) | 0.05 | — | 0.10 | — | | NMTC settlement gain (per share) | — | (0.21) | — | (0.21) | | Income tax impact on above adjustments (per share) | (0.01) | 0.05 | (0.03) | 0.05 | | Adjusted diluted earnings per share | $1.44 | $1.36 | $2.88 | $2.41 | [Adjusted Operating Income (Loss) and Adjusted Operating Margin](index=11&type=section&id=Adjusted%20Operating%20Income%20(Loss)%20and%20Adjusted%20Operating%20Margin) This section provides a reconciliation of GAAP operating income (loss) and operating margin to adjusted non-GAAP figures for both the three and six months ended August 31, 2024, and August 26, 2023, detailing adjustments for Project Fortify restructuring charges across various segments | (In thousands) | Architectural Framing Systems | Architectural Glass | Architectural Services | LSO | Corporate and Other | Consolidated | | :--------------------------------- | :---------------------------- | :------------------ | :--------------------- | :------ | :------------------ | :----------- | | **Three Months Ended Aug 31, 2024** | | | | | | | | Operating income (loss) | $17,141 | $21,068 | $6,130 | $3,793 | $(6,167) | $41,965 | | Restructuring charges | 916 | — | 258 | — | 5 | 1,179 | | Adjusted operating income (loss) | $18,057 | $21,068 | $6,388 | $3,793 | $(6,162) | $43,144 | | Operating margin | 12.1% | 23.4% | 6.3% | 19.1% | N/M | 12.3% | | Adjusted operating margin | 12.8% | 23.4% | 6.5% | 19.1% | N/M | 12.6% | | **Six Months Ended Aug 31, 2024** | | | | | | | | Operating income (loss) | $35,477 | $38,159 | $11,753 | $8,639 | $(10,682) | $83,346 | | Restructuring charges | 1,914 | — | 258 | — | 129 | 2,301 | | Adjusted operating income (loss) | $37,391 | $38,159 | $12,011 | $8,639 | $(10,553) | $85,647 | | Operating margin | 12.9% | 21.6% | 6.0% | 21.1% | N/M | 12.4% | | Adjusted operating margin | 13.6% | 21.6% | 6.1% | 21.1% | N/M | 12.7% | [Adjusted EBITDA and Adjusted EBITDA Margin](index=13&type=section&id=Adjusted%20EBITDA%20and%20Adjusted%20EBITDA%20Margin) This section reconciles net earnings to EBITDA and adjusted EBITDA for the three and six months ended August 31, 2024, and August 26, 2023, incorporating adjustments for income tax, interest, depreciation, amortization, restructuring charges, and NMTC settlement gain | (In thousands) | Three Months Ended Aug 31, 2024 | Three Months Ended Aug 26, 2023 | Six Months Ended Aug 31, 2024 | Six Months Ended Aug 26, 2023 | | :---------------------------- | :------------------------------ | :------------------------------ | :---------------------------- | :---------------------------- | | Net earnings | $30,566 | $33,327 | $61,577 | $56,903 | | Income tax expense | 10,549 | 9,896 | 20,612 | 17,763 | | Interest expense, net | 1,140 | 2,230 | 1,590 | 4,266 | | Depreciation and amortization | 9,688 | 10,379 | 19,664 | 20,661 | | EBITDA | $51,943 | $55,832 | $103,443 | $99,593 | | Restructuring charges | 1,179 | — | 2,301 | — | | NMTC settlement gain | — | (4,687) | — | (4,687) | | Adjusted EBITDA | $53,122 | $51,145 | $105,744 | $94,906 | | EBITDA Margin | 15.2% | 15.8% | 15.3% | 13.9% | | Adjusted EBITDA Margin | 15.5% | 14.5% | 15.7% | 13.3% | [Fiscal 2025 Outlook Reconciliation](index=14&type=section&id=Fiscal%202025%20Outlook%20Reconciliation) This section reconciles the estimated GAAP diluted EPS outlook to the adjusted diluted EPS outlook for fiscal year 2025, accounting for projected restructuring charges related to Project Fortify and their income tax impact | | Fiscal Year Ending March 1, 2025 (Low Range) | Fiscal Year Ending March 1, 2025 (High Range) | | :----------------------------------------------- | :------------------------------------------- | :-------------------------------------------- | | Diluted earnings per share | $4.81 | $5.08 | | Restructuring charges | 0.12 | 0.16 | | Income tax impact on above adjustments per share | (0.03) | (0.04) | | Adjusted diluted earnings per share | $4.90 | $5.20 |

Apogee Enterprises Inc (APOG, Financial) is set to release its Q2 2025 earnings on Oct 4, 2024. The consensus estimate for Q2 2025 revenue is $335.29 million, and the earnings are expected to come in at $1.18 per share. The full year 2025's revenue is expected to be $1.34 billion and the earnings are expected to be $4.75 per share. More detailed estimate data can be found on the Forecast page.Apogee Enterprises Inc (APOG, Financial) Estimates TrendsOver the past 90 days, revenue estimates for Apogee Enterpr ...

Apogee Enterprises, Inc. (APOG) announced that it has inked an agreement with Heartwood Partners to acquire UW Interco, LLC (UW Solutions) for $240 million in cash. This transaction is consistent with Apogee's goal of adding distinctive businesses with a great operational track record to its portfolio. UW Solutions, a U.S. manufacturer, produces high-performance coated substrates for building products and graphic arts markets, boasting innovative formulations and iconic brands like ResinDEK, ChromaLuxe, RDC ...

Core Insights - Heartwood Partners announced the sale of its investment in UW Solutions to Apogee Enterprises for a transaction valued at $240 million, expected to close in Q4 2024 [1][2] - UW Solutions is a leading manufacturer of advanced surface coated products, with a focus on HD printable materials, industrial flooring systems, and engineered coatings [1] - Under Heartwood's ownership, UW Solutions expanded its management team and operations, including the acquisition of RDC Coatings, enhancing its vertical integration [2] Company Overview - UW Solutions is headquartered in Louisville, KY, and specializes in products for graphics and warehouse mezzanine decking applications [1] - The company has developed a range of solutions, including ChromaLuxe® and Unisub® brands for printable materials, and ResinDek® for flooring systems [1] Investment Strategy - Heartwood Partners employs a lower-leverage, current cash yield approach, focusing on long-term growth through both organic and acquisition-driven strategies [3] - The firm manages over $1.4 billion in investments and has completed more than 100 acquisitions, emphasizing partnerships with management teams [3]

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For Immediate Release Chicago, IL – September 18, 2024 – Today, Zacks Equity Research discusses Xinyi Glass (XYIGF) and Apogee Enterprises (APOG) . Industry: Glass Link: https://www.zacks.com/commentary/2337079/2-glass-products-stocks-poised-to-navigate-industrychallenges Despite increased costs and labor shortage marring the near-term outlook of the Zacks Glass Products industry, it is poised to benefit from the rising demand for glass — both as a packaging option and for use in construction. This is backe ...

Despite increased costs and labor shortage marring the near-term outlook of the Zacks Glass Products industry, it is poised to benefit from the rising demand for glass — both as a packaging option and for use in construction. This is backed by its endless recyclability and sustainability benefits. Growing demand for energy-efficient, smart windows or smart glass panels will be another catalyst for the industry going forward.Companies like Xinyi Glass (XYIGF) and Apogee Enterprises (APOG) are poised to gain ...

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