Apogee(US:APOG)2025-06-26 22:09Financial Performance - Net sales increased by 4.6% to $346.6 million, driven by $22.0 million of inorganic sales from the acquisition of UW Solutions[4] - Net loss of $2.7 million compared to net earnings of $31.0 million in the prior year, representing a decline of 108.7%[1] - Adjusted EBITDA decreased by 34.7% to $34.4 million, with an adjusted EBITDA margin of 9.9%[1] - Diluted loss per share was $0.13, while adjusted diluted earnings per share was $0.56, a decrease of 61.1%[1] - Gross profit decreased by 24.0% to $75,125,000 from $98,855,000 year-over-year[21] - Operating income fell significantly by 83.3% to $6,931,000 compared to $41,381,000 in the prior year[21] - For the three months ended May 31, 2025, the consolidated net loss was $2.688 million, compared to a net earnings of $31.011 million for the same period in 2024[36] - Adjusted EBITDA for the three months ended May 31, 2025, was $34.384 million, with an adjusted EBITDA margin of 9.9%, compared to $52.622 million and 15.9% for the same period in 2024[36] - EBITDA for the three months ended May 31, 2025, was $18.685 million, down from $51.500 million in the same period in 2024[36] Cost and Expenses - Gross margin decreased to 21.7% from 29.8%, primarily due to restructuring charges and higher aluminum costs[4] - Selling, general and administrative (SG&A) expenses as a percentage of net sales increased by 240 basis points to 19.7%[4] - The company incurred $15.3 million in pre-tax costs associated with Project Fortify Phase 2 during the first quarter[12] - The company reported restructuring costs of $15.350 million related to Project Fortify Phase 2 for the three months ended May 31, 2025[37] - The company incurred acquisition-related costs of $349,000 for the three months ended May 31, 2025, related to the integration of the UW Solutions acquisition[41] - The company’s interest expense for the three months ended May 31, 2025, was $3.846 million, compared to $450,000 for the same period in 2024[36] - The income tax expense for the three months ended May 31, 2025, was $5.091 million, compared to $10.063 million for the same period in 2024[36] - The company reported a depreciation and amortization expense of $12.436 million for the three months ended May 31, 2025[36] Sales and Segment Performance - The Architectural Glass segment experienced a 15.5% decline in net sales, dropping to $73,273,000 from $86,703,000[32] - Performance Surfaces segment saw a significant increase in net sales by 99.3%, rising to $42,250,000 from $21,204,000[32] - Segment backlog at the end of the quarter was $682.9 million, down from $720.3 million at the end of the previous quarter[6] - Net sales for the three months ended May 31, 2025, were $346,622,000, representing a 4.6% increase compared to $331,516,000 for the same period in 2024[21] Financial Outlook - The company raised its fiscal year outlook for net sales to a range of $1.40 billion to $1.44 billion[13] - Projected unfavorable EPS impact from tariffs is estimated to be between $0.35 to $0.45, mostly affecting the first half of the fiscal year[13] - The fiscal 2026 outlook estimates diluted earnings per share to range from $2.59 to $3.12, with adjusted diluted earnings per share projected between $3.80 and $4.20[44] Assets and Liabilities - Total current assets increased slightly to $447,959,000 from $442,104,000[23] - Long-term debt increased to $311,000,000 from $285,000,000, indicating a rise in financial leverage[23] - Cash and cash equivalents at the end of the period were $32,831,000, down from $41,448,000 at the beginning of the period[25]