Apogee Enterprises (APOG) Q4 2024 earnings summary

Executive summary

• FY2024 delivered record adjusted operating income of $146.2M, adjusted diluted EPS of $4.77 and operating cash flow of $204.2M, despite lower full-year sales.

• Adjusted operating margin rose 160 bps to 10.3%, and adjusted ROIC increased to 16.5%; pricing, mix, cost savings and productivity gains supported profitability.

• Q4 sales rose 5.2% to $361.8M and adjusted diluted EPS increased 32.6% to $1.14; reported diluted EPS declined to $0.71.

Financial highlights

• FY2024 net sales declined 1.6% to $1.417B; gross profit rose 9.5% to $367.1M and reported operating income increased 6.4% to $133.8M.

• FY net earnings fell 4.3% to $99.6M and diluted EPS was $4.51 versus $4.64; adjusted diluted EPS rose 19.8% to $4.77.

• Q4 adjusted operating income rose 33.1% to $34.3M; gross profit increased 13.3% to $88.5M and gross margin expanded 170 bps to 24.4%.

• Q4 net earnings declined 22.2% to $15.7M and reported operating income fell 15.0% to $21.9M, including $12.4M of Project Fortify restructuring charges.

• FY2024 adjusted EBITDA increased 11.1% to $185.2M, with a 13.1% margin, up 150 bps.

Outlook and guidance

• FY2025 net sales guidance is down 4%–7%; the 52-week-year reversion is expected to reduce sales by ~2 percentage points and Project Fortify by ~1 point.

• FY2025 diluted EPS guidance is $4.25–$4.55 and adjusted diluted EPS guidance is $4.35–$4.75; the shorter year is expected to reduce adjusted EPS by ~$0.20.

• FY2025 planning assumes an adjusted effective tax rate of ~24.5% and CapEx of $40M–$50M; Fortify’s sales impact is expected to have no material effect on adjusted EPS.