Apogee Enterprises (APOG) investor relations material

Executive summary

• Net sales rose 4.6% year-over-year to $358.2 million, driven by the UW Solutions acquisition and higher Architectural Services volume, but offset by declines in Architectural Glass and Metals.

• Adjusted EBITDA margin declined to 12.4% from 15.5% due to lower price/volume, unfavorable mix, and higher costs.

• Gross margin fell to 23.1% from 28.4%, impacted by higher material, tariff, and health insurance costs.

• Operating income dropped 35.9% to $26.9 million, with net earnings at $23.6 million, down 22.6% year-over-year.

• Focused on executing strategic initiatives, including Project Fortify Phase 2 and productivity improvements through the Apogee Management System.

Financial highlights

• Q2 net sales reached $358.2M, up 4.6% year-over-year, with $24.9M from UW Solutions.

• Adjusted EBITDA was $44.4M, down 16.4% year-over-year; adjusted EBITDA margin declined 310 bps to 12.4%.

• Adjusted diluted EPS was $0.98, a 31.9% decrease year-over-year; diluted EPS was $1.10, down 21.4%.

• Free cash flow for the first six months was $25.5M, down from $48.5M in the prior year period.

• Interest expense rose to $4.1M for the quarter due to higher debt from the acquisition.

Outlook and guidance

• Full-year FY26 net sales expected between $1.39B and $1.42B (previously $1.40B–$1.44B).

• Adjusted diluted EPS guidance revised to $3.60–$3.90 (previously $3.80–$4.20), with a $0.35–$0.45 EPS headwind from tariffs.

• CapEx projected at $35M–$40M; adjusted effective tax rate around 27%.

• Project Fortify Phase 2 expected to incur $24–$26M in pre-tax charges and deliver $13–$15M in annualized pre-tax cost savings.

• Second half net sales and adjusted diluted EPS expected to grow year-over-year, led by Performance Surfaces.