Apogee(APOG) - 2026 Q2 - Quarterly Report

PART I. FINANCIAL INFORMATION Item 1. Financial Statements 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 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] - Total current liabilities decreased by $23.56 million, while total shareholders' equity increased by $12.32 million during the same period[8] Consolidated Results of Operations 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] - Gross profit, operating income, and net earnings significantly decreased for both periods, indicating pressure on profitability despite sales growth[9] Consolidated Statements of Comprehensive Earnings 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] - 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] Consolidated Statements of Cash Flows 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][149] - Net cash used in investing activities decreased by $4.57 million, mainly due to lower capital expenditures[12][150] - Net cash used in financing activities decreased by $5.5 million, driven by a reduction in common stock repurchases[12][151] Consolidated Statements of Shareholders' Equity 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] - Cash dividends of $0.26 per share were paid in both the first and second quarters of fiscal 2026[13] Notes to Consolidated Financial Statements Provides detailed explanations and supplementary information for the consolidated financial statements 1. Summary of Significant Accounting Policies 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] - 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] - 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] [2. Revenue