Financial Performance - Apogee Enterprises, Inc's Q2 FY26 net sales reached $358.2 million, a 4.6% year-over-year increase[11, 12, 13] - Adjusted EBITDA for Q2 FY26 was $44.4 million, a 16.4% decrease year-over-year[12, 13] - The adjusted EBITDA margin for Q2 FY26 was 12.4%, a 310 bps decrease year-over-year[12, 13] - Adjusted diluted EPS for Q2 FY26 was $0.98, a 31.9% decrease year-over-year[12, 13] Segment Results - Architectural Metals net sales were $140.9 million, a 0.3% decrease year-over-year, with an adjusted EBITDA margin of 14.8%, a 90 bps decrease[20, 23] - Architectural Services net sales were $100.5 million, a 2.5% increase year-over-year, with an adjusted EBITDA margin of 5.0%, a 250 bps decrease[20, 23] - Architectural Glass net sales were $72.2 million, a 19.9% decrease year-over-year, with an adjusted EBITDA margin of 16.1%, a 1070 bps decrease[20, 23] - Performance Surfaces net sales were $48.4 million, a 144.0% increase year-over-year, with an adjusted EBITDA margin of 23.2%, a 10 bps increase[20, 23] Cash Flow and Balance Sheet - Free cash flow for the six months ended August 30, 2025, was $25.5 million, compared to $48.5 million for the same period in the previous year[24] - Total debt as of August 30, 2025, was $270.0 million[24] - Net debt as of August 30, 2025, was $230.5 million[24] FY26 Outlook - The company estimates tariffs to reduce full-year adjusted diluted EPS by $0.35 to $0.45[33, 42] - The updated full-year FY26 net sales outlook is $1.39 billion to $1.42 billion[38] - The updated full-year FY26 adjusted diluted EPS outlook is $3.60 to $3.90[38]

Core Points - Apogee Enterprises, Inc. has declared a quarterly cash dividend of $0.26 per share [1] - The dividend is scheduled to be payable on November 13, 2025, to shareholders of record as of October 29, 2025 [1] - Apogee Enterprises, Inc. is recognized as a leading provider of architectural building products and services, along with high-performance coated materials [1]

Company Performance - Apogee Enterprises Inc. reported better-than-expected second-quarter financial results, with shares gaining 1.4% to $42.00 in after-hours trading [2] - Levi Strauss & Co. reported third-quarter earnings of 34 cents per share, exceeding the analyst consensus estimate of 31 cents per share, and quarterly sales of $1.543 billion, surpassing the estimate of $1.501 billion; however, shares fell 7.7% to $22.65 in after-hours trading [2] - VolitionRX Ltd. announced a public offering of common stock and common stock warrants, leading to a 20% dip in shares to $0.48 in after-hours trading [2] - USANA Health Sciences Inc. reported preliminary third-quarter results with an adjusted loss of 15 cents per share and sales of $214.00 million, resulting in an 11.4% decline in shares to $23.26 in after-hours trading [2] - Nurix Therapeutics Inc. reported worse-than-expected third-quarter financial results, causing shares to fall 5.7% to $10.24 in after-hours trading [2]

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) Apogee reported **solid Q2 FY26 results** with **4.6% net sales increase to $358.2 million**, despite profitability declines [Second Quarter Fiscal 2026 Overview](index=1&type=section&id=Second%20Quarter%20Fiscal%202026%20Overview) Apogee Enterprises reported solid second-quarter fiscal 2026 results with a 4.6% increase in net sales, reaching $358.2 million, though net earnings and diluted EPS decreased | Metric | August 30, 2025 ($ in thousands) | August 31, 2024 ($ in thousands) | % Change | | :-------------------------- | :------------------------------- | :------------------------------- | :------- | | Net sales | $358,194 | $342,440 | 4.6% | | Net earnings | $23,649 | $30,566 | (22.6)% | | Diluted earnings per share | $1.10 | $1.40 | (21.4)% | | Adjusted EBITDA | $44,368 | $53,122 | (16.5)% | | Adjusted EBITDA margin | 12.4 % | 15.5 % | | | Adjusted diluted earnings per share | $0.98 | $1.44 | (31.9)% | [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Ty R. Silberhorn highlighted solid Q2 results driven by revenue growth in Performance Surfaces and Architectural Services, emphasizing continued strategic execution and tariff mitigation - **Solid second quarter results** led by revenue growth in Performance Surfaces and Architectural Services[2](index=2&type=chunk) - Continued focus on executing strategy and tariff mitigation plans in a dynamic operating environment[2](index=2&type=chunk) - Growth potential unlocked by UW Solutions acquisition, combined with structural cost savings and operational efficiencies from Project Fortify Phase 2, will enhance ability to deliver sustained long-term value[2](index=2&type=chunk) [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) The company reported a 4.6% increase in net sales to $358 million, with EBITDA and adjusted EBITDA margins at 12.4%, and updated its fiscal 2026 outlook - Net sales increased **4.6%** to **$358 million**[3](index=3&type=chunk) - EBITDA margin and adjusted EBITDA margin of **12.4%**[3](index=3&type=chunk) - Diluted earnings per share of **$1.10** and adjusted diluted earnings per share of **$0.98**[3](index=3&type=chunk) - Updates outlook for net sales and adjusted diluted EPS[3](index=3&type=chunk) [Consolidated Financial Results](index=2&type=section&id=Consolidated%20Financial%20Results) This section details the company's Q2 FY26 consolidated financial performance, including sales, profitability, cash flow, debt, and updated fiscal year 2026 outlook [Second Quarter Fiscal 2026 Performance](index=2&type=section&id=Second%20Quarter%20Fiscal%202026%20Performance) Consolidated net sales increased by 4.6% to $358.2 million, primarily due to the UW Solutions acquisition and higher volume in Architectural Services, partially offset by declines in Architectural Glass and unfavorable mix in Architectural Metals - Consolidated net sales increased **4.6%** to **$358.2 million**, driven by **$24.9 million** inorganic sales from UW Solutions acquisition and higher volume in Architectural Services, offset by lower volume/price in Architectural Glass and **unfavorable mix** in Architectural Metals[8](index=8&type=chunk) - Gross margin decreased to **23.1%** (from **28.4%**) due to lower price/volume, **unfavorable mix**, and higher material, tariff, and health insurance costs, partially offset by lower incentive compensation[8](index=8&type=chunk) - Operating income declined to **$26.9 million** from **$42.0 million** (**35.9% decrease**), and operating margin decreased **480 basis points** to **7.5%**[8](index=8&type=chunk) - Adjusted EBITDA decreased to **$44.4 million** (from **$53.1 million**), and adjusted EBITDA margin decreased to **12.4%** (from **15.5%**), primarily due to lower price/volume, **unfavorable mix**, and higher material, tariff, and health insurance costs[8](index=8&type=chunk) - Interest expense increased to **$4.1 million** due to higher debt from the UW Solutions acquisition[8](index=8&type=chunk) - Other income was **$5.1 million**, primarily from a **$4.6 million** gain related to a New Market Tax Credit[8](index=8&type=chunk) - Income tax expense as a percentage of earnings before income tax was **15.4%** (compared to **25.7%**), primarily due to a decrease in tax expense for discrete items[8](index=8&type=chunk) [Financial Condition](index=3&type=section&id=Financial%20Condition) Net cash provided by operating activities in Q2 FY26 was $57.1 million, a slight decrease from the prior year, with year-to-date operating cash flow decreasing significantly due to lower net earnings and increased working capital usage | Metric | Q2 FY26 ($M) | Q2 FY25 ($M) | YTD FY26 ($M) | YTD FY25 ($M) | | :-------------------------------- | :----------- | :----------- | :------------ | :------------ | | Net cash provided by operating activities | $57.1M | $58.7M | $37.3M | $64.1M | - Year-to-date change in operating cash flow primarily driven by **lower net earnings** and an increase in cash used for working capital, including a **$13.7 million** arbitration award settlement[12](index=12&type=chunk) - Net cash used in investing activities was **$10.9 million**, primarily for capital expenditures[12](index=12&type=chunk) - Returned **$11 million** of cash to shareholders through dividend payments[12](index=12&type=chunk) - Quarter-end long-term debt decreased **$41 million** from Q1 to **$270 million**, reducing the **Consolidated Leverage Ratio** to **1.5x**[12](index=12&type=chunk) [Fiscal Year 2026 Outlook](index=3&type=section&id=Fiscal%20Year%202026%20Outlook) Apogee updated its fiscal 2026 outlook, projecting net sales between $1.39 billion and $1.42 billion, with adjusted diluted EPS between $3.60 and $3.90, including tariff impacts | Metric | Low Range (FY26 Outlook) | High Range (FY26 Outlook) | | :-------------------------- | :----------------------- | :------------------------ | | Net sales | $1.39 billion | $1.42 billion | | Diluted EPS | $2.79 | $3.19 | | Adjusted diluted EPS | $3.60 | $3.90 | - Projected unfavorable EPS impact from tariffs of **$0.35 to $0.45**[14](index=14&type=chunk) - Assumes an effective tax rate of approximately **27%**[14](index=14&type=chunk) - Continues to assume capital expenditures between **$35 million to $40 million**[14](index=14&type=chunk) [Segment Results (Second Quarter Fiscal 2026 Compared to Second Quarter Fiscal 2025)](index=2&type=section&id=Segment%20Results) This section provides a comparative analysis of net sales and adjusted EBITDA for each business segment in Q2 FY26 versus Q2 FY25 [Architectural Metals](index=2&type=section&id=Architectural%20Metals) Architectural Metals net sales slightly decreased to $140.9 million, with adjusted EBITDA declining to $20.8 million (14.8% of net sales) due to unfavorable mix and higher costs | Metric | Q2 FY26 ($M) | Q2 FY25 ($M) | % Change | | :-------------------- | :----------- | :----------- | :------- | | Net sales | $140.9M | $141.4M | (0.3)% | | Adjusted EBITDA | $20.8M | $22.2M | (6.3)% | | Adjusted EBITDA margin | 14.8% | 15.7% | | - Lower adjusted EBITDA margin primarily driven by **unfavorable mix** and **higher material and tariff costs**, partially offset by **lower incentive compensation expense**[5](index=5&type=chunk) [Architectural Services](index=2&type=section&id=Architectural%20Services) Architectural Services net sales increased to $100.5 million due to higher volume, but adjusted EBITDA decreased to $5.0 million (5.0% of net sales) primarily due to project mix | Metric | Q2 FY26 ($M) | Q2 FY25 ($M) | % Change | | :-------------------- | :----------- | :----------- | :------- | | Net sales | $100.5M | $98.0M | 2.5% | | Adjusted EBITDA | $5.0M | $7.3M | (31.7)% | | Adjusted EBITDA margin | 5.0% | 7.5% | | - Decrease in adjusted EBITDA margin primarily driven by **project mix**, partially offset by **lower short-term incentive compensation costs**[6](index=6&type=chunk) - **Segment backlog** at the end of the quarter was **$792.3 million**, compared to $682.9 million at the end of the first quarter[6](index=6&type=chunk) [Architectural Glass](index=2&type=section&id=Architectural%20Glass) Architectural Glass net sales significantly decreased to $72.2 million due to lower volume and price, resulting in adjusted EBITDA falling to $11.6 million (16.1% of net sales) | Metric | Q2 FY26 ($M) | Q2 FY25 ($M) | % Change | | :-------------------- | :----------- | :----------- | :------- | | Net sales | $72.2M | $90.1M | (19.9)% | | Adjusted EBITDA | $11.6M | $24.1M | (51.8)% |

Core Insights - Apogee Enterprises, Inc. reported its financial results for the second quarter of fiscal 2026, which ended on August 30, 2025 [1] Financial Performance - The company provided selected financial results for the three months ended August 30, 2025, compared to the same period in the previous year [1] - Specific financial metrics, including revenue and earnings per share, were highlighted, showing the percentage change year-over-year [1]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Presents unaudited consolidated financial statements, including balance sheets, results of operations, cash flows, and detailed notes on accounting policies, debt, and acquisitions [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Summarizes the company's financial position, detailing assets, liabilities, and shareholders' equity at specific dates | (In thousands) | August 30, 2025 | March 1, 2025 | | :--- | :--- | :--- | | **Assets** | | | | Total current assets | $460,106 | $442,104 | | Property, plant and equipment, net | $259,177 | $268,139 | | Goodwill | $236,653 | $235,775 | | Intangible assets, net | $116,485 | $128,417 | | Total assets | $1,154,683 | $1,175,269 | | **Liabilities and Shareholders' Equity** | | | | Total current liabilities | $261,892 | $285,456 | | Long-term debt | $270,000 | $285,000 | | Total shareholders' equity | $500,215 | $487,898 | | Total liabilities and shareholders' equity | $1,154,683 | $1,175,269 | - Total assets decreased by **$20.59 million** from March 1, 2025, to August 30, 2025, primarily due to decreases in property, plant and equipment, intangible assets, and other non-current assets, partially offset by increases in receivables and inventories[8](index=8&type=chunk) - Total current liabilities decreased by **$23.56 million**, while total shareholders' equity increased by **$12.32 million** during the same period[8](index=8&type=chunk) [Consolidated Results of Operations](index=4&type=section&id=Consolidated%20Results%20of%20Operations) Details the company's revenues, expenses, and net earnings over specific reporting periods | (In thousands, except per share data) | Three Months Ended August 30, 2025 | Three Months Ended August 31, 2024 | Change (YoY) | Six Months Ended August 30, 2025 | Six Months Ended August 31, 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net sales | $358,194 | $342,440 | +4.6% | $704,816 | $673,956 | +4.6% | | Gross profit | $82,607 | $97,321 | -15.1% | $157,732 | $196,176 | -19.6% | | Operating income | $26,888 | $41,965 | -35.9% | $33,819 | $83,346 | -59.4% | | Net earnings | $23,649 | $30,566 | -22.6% | $20,962 | $61,577 | -65.9% | | Basic earnings per share | $1.10 | $1.40 | -21.4% | $0.98 | $2.83 | -65.3% | | Diluted earnings per share | $1.10 | $1.40 | -21.4% | $0.97 | $2.80 | -65.4% | - Net sales increased by **4.6%** for both the three and six months ended August 30, 2025, compared to the prior year periods[9](index=9&type=chunk) - Gross profit, operating income, and net earnings significantly decreased for both periods, indicating pressure on profitability despite sales growth[9](index=9&type=chunk) [Consolidated Statements of Comprehensive Earnings](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Earnings) Reports net earnings and other comprehensive income (loss) to arrive at total comprehensive earnings for the period | (In thousands) | Three Months Ended August 30, 2025 | Three Months Ended August 31, 2024 | Six Months Ended August 30, 2025 | Six Months Ended August 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net earnings | $23,649 | $30,566 | $20,962 | $61,577 | | Other comprehensive earnings (loss) | $84 | $(1,224) | $2,692 | $(703) | | Total comprehensive earnings | $23,733 | $29,342 | $23,654 | $60,874 | - Total comprehensive earnings for the three months ended August 30, 2025, decreased by **19.1%** year-over-year, while for the six months, it decreased by **61.1%**[11](index=11&type=chunk) - Other comprehensive earnings shifted from a loss of **$1,224 thousand** in the prior three-month period to a gain of **$84 thousand** in the current period, primarily due to foreign currency translation adjustments[11](index=11&type=chunk) [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Presents the cash inflows and outflows from operating, investing, and financing activities | (In thousands) | Six Months Ended August 30, 2025 | Six Months Ended August 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $37,280 | $64,132 | | Net cash used in investing activities | $(10,883) | $(15,450) | | Net cash used in financing activities | $(29,130) | $(34,633) | | Decrease in cash, cash equivalents and restricted cash | $(1,922) | $13,808 | | Cash and cash equivalents at end of period | $39,526 | $51,024 | - Net cash provided by operating activities decreased by **$26.85 million** for the six months ended August 30, 2025, compared to the prior year, primarily due to lower net earnings and increased cash used for working capital[12](index=12&type=chunk)[149](index=149&type=chunk) - Net cash used in investing activities decreased by **$4.57 million**, mainly due to lower capital expenditures[12](index=12&type=chunk)[150](index=150&type=chunk) - Net cash used in financing activities decreased by **$5.5 million**, driven by a reduction in common stock repurchases[12](index=12&type=chunk)[151](index=151&type=chunk) [Consolidated Statements of Shareholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Shareholders'%20Equity) Outlines changes in the company's equity accounts, including common stock, retained earnings, and comprehensive income | (In thousands) | Balance at March 1, 2025 | Balance at August 30, 2025 | Change | | :--- | :--- | :--- | :--- | | Common Shares Outstanding (in thousands) | 21,418 | 21,515 | +97 | | Common Stock at Par Value | $7,139 | $7,172 | +$33 | | Additional Paid-In Capital | $156,075 | $158,065 | +$1,990 | | Retained Earnings | $359,976 | $367,578 | +$7,602 | | Accumulated Other Comprehensive (Loss) Income | $(35,292) | $(32,600) | +$2,692 | | Total Shareholders' Equity | $487,898 | $500,215 | +$12,317 | - Total shareholders' equity increased by **$12.3 million** from March 1, 2025, to August 30, 2025, primarily driven by net earnings and other comprehensive income, partially offset by cash dividends and share retirements[13](index=13&type=chunk) - Cash dividends of **$0.26 per share** were paid in both the first and second quarters of fiscal 2026[13](index=13&type=chunk) [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Provides detailed explanations and supplementary information for the consolidated financial statements [1. Summary of Significant Accounting Policies](index=9&type=section&id=Note%201.%20Summary%20of%20Significant%20Accounting%20Policies) Describes the key accounting principles and methods used in preparing the financial statements - The Company adopted **ASU 2023-07**, 'Improvements to Reportable Segment Disclosures,' in the fourth quarter of fiscal 2025 for annual requirements and in the first quarter of fiscal 2026 for interim requirements, expanding segment expense and other item disclosures[18](index=18&type=chunk) - **ASU 2023-09**, 'Improvements to Income Tax Disclosures,' is effective for fiscal 2026 annual and fiscal 2027 interim financial statements, requiring disaggregation of tax reconciliation items and income taxes paid by jurisdiction[19](index=19&type=chunk) - **ASU 2024-03**, 'Disaggregation of Income Statement Expenses,' effective for annual periods after December 15, 2026, will require more detailed expense information but is not expected to impact financial position or results of operations[20](index=20&type=chunk) [2. Revenue

Core Insights - Apogee Enterprises, Inc. (APOG) is set to announce its second-quarter fiscal 2026 results on October 9, with earnings estimated at 86 cents per share, reflecting a year-over-year decline of 40.3% [1][3] Earnings Estimates - The Zacks Consensus Estimate for APOG's second-quarter earnings has remained unchanged over the past 60 days, indicating stability in expectations despite the anticipated decline [1][2] - The Earnings Surprise Prediction (ESP) for Apogee is 0.00%, and it currently holds a Zacks Rank of 3 (Hold) [4][3] Performance Factors - The Architectural Services segment is expected to have positively influenced Apogee's fiscal second-quarter performance, driven by improved pricing and a strategic shift towards premium products [5] - The Architectural Glass segment has benefited from a better sales mix and productivity improvements, likely enhancing margins in the second fiscal quarter [6] Challenges and Headwinds - Apogee anticipates ongoing inflationary pressures and supply chain disruptions, which may hinder production levels due to labor constraints [7] - The company expects tariffs to negatively impact earnings per share by 45-55 cents in the first half of fiscal 2026, affecting second-quarter margins [8] Stock Performance - Apogee's stock has declined by 42.4% over the past year, significantly underperforming compared to the industry average decline of 20.6% [9]

Core Points - Apogee Enterprises, Inc. will report its fiscal 2026 second quarter results on October 9, 2025, after market close [1] - A conference call to discuss the financial results and provide a business update is scheduled for October 10, 2025, at 8:00 a.m. Central Time [1] Company Overview - Apogee Enterprises, Inc. is a leading provider of architectural building products and services, including high-performance coated materials [3] - The company is headquartered in Minneapolis, MN, and has a workforce of approximately 4,400 employees [4][8] - Apogee reported revenues of $1.4 billion in 2023 [4][8]

Core Insights - Apogee Enterprises, Inc. (APOG) is experiencing growth in its Architectural Services segment, driven by improved pricing and product mix, which is expected to enhance margins in the upcoming quarters [1][3][5] - The company is facing challenges such as inflation, supply-chain disruptions, and elevated interest rates, which could impact revenues [2][15] Segment Performance - The Architectural Services segment has shown year-over-year growth and margin expansion in fiscal 2025, continuing into fiscal 2026, aided by a strategic shift towards premium products [3][11] - Although net sales in the Architectural Glass segment declined in the past two quarters, an improved sales mix and productivity gains are anticipated to positively influence future performance [4][11] Financial Guidance - Apogee raised its fiscal 2026 net revenue guidance to $1.40-$1.44 billion from $1.37-$1.43 billion, and adjusted EPS guidance to $3.80-$4.20 from $3.55-$4.10 [5][11] - The acquisition of UW Interco, LLC for $242 million is expected to contribute approximately $100 million in sales for fiscal 2026, with an adjusted EBITDA margin of around 20% [9][10][11] Strategic Initiatives - The company is implementing Project Fortify to phase out lower-margin products and services, which includes shutting down its Toronto manufacturing site, potentially impacting revenues [12][14] - Apogee's strategic review has led to a focus on profitable growth, with goals including an ROIC greater than 12% and an operating margin exceeding 10% [6][7] Operational Improvements - The company is pursuing operational and commercial improvements, including cost reductions and enhanced supply chain efficiencies, to mitigate inflationary pressures [8][15] - Restructuring costs related to Project Fortify have been significant, with $1.1 million in employee termination costs and $6.2 million in asset impairment charges incurred in fiscal 2024 [13][15] Market Performance - Apogee's stock has declined by 34.9% over the past year, compared to a 14% decline in the industry [16]

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