Apogee Enterprises Reports Fiscal 2027 First Quarter Results

  • First-quarter net sales of $342.7 million
  • First-quarter diluted EPS of $0.54 and adjusted diluted EPS of $0.57
  • Pending Kalwall acquisition on track for early July close, advancing strategy to expand into higher-growth differentiated product offerings
  • Company reaffirms fiscal 2027 guidance

MINNEAPOLIS--(BUSINESS WIRE)--Jun. 26, 2026-- Apogee Enterprises, Inc. (Nasdaq: APOG), a leading provider of architectural building products and services, as well as high-performance coated materials used in a variety of applications, today reported its results for the first quarter of fiscal 2027, ended May 30, 2026. The Company reported the following selected financial results:

 

 

Three Months Ended

 

 

(Unaudited, $ in thousands, except per share amounts)

 

May 30, 2026

 

May 31, 2025

 

% Change

Net sales

 

$

342,684

 

 

$

346,622

 

 

(1.1

)%

Operating income

 

$

18,839

 

 

$

6,931

 

 

171.8

%

Operating margin

 

 

5.5

%

 

 

2.0

%

 

 

Net earnings

 

$

11,535

 

 

$

(2,688

)

 

529.1

%

Diluted earnings per share

 

$

0.54

 

 

$

(0.13

)

 

515.4

%

Non-GAAP Measures1

 

 

 

 

 

 

Adjusted EBITDA

 

$

32,115

 

 

$

34,384

 

 

(6.6

)%

Adjusted EBITDA margin

 

 

9.4

%

 

 

9.9

%

 

(5.1

)%

Adjusted diluted earnings per share

 

$

0.57

 

 

$

0.56

 

 

1.8

%

(1)

Earnings before interest, taxes, depreciation and amortization (EBITDA), EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, and adjusted diluted earnings per share (EPS) are non-GAAP financial measures. See Use of Non-GAAP Financial Measures and reconciliations to the most directly comparable GAAP measures later in this press release.

“Our results for the quarter reflect solid execution as our team effectively navigated a dynamic operating environment,” said Donald Nolan, Executive Chair and CEO. “We continued to advance our strategic priorities while maintaining strong operational performance across the business. We also maintained a disciplined capital allocation approach, returning cash to shareholders through dividends and share repurchases. In parallel, we are progressing integration planning for the pending Kalwall acquisition, which we expect to support our long-term growth strategy following its anticipated early July closing.”

First-Quarter Consolidated Results (First Quarter Fiscal 2027 compared to First Quarter Fiscal 2026)

  • Net sales decreased 1.1% to $342.7 million, driven by lower volume, partially offset by favorable pricing as we pass on higher material and freight costs and mix.
  • Gross margin rose 20 basis points to 21.9%, primarily due to price, productivity improvements including savings from Project Fortify 2, and favorable mix, partially offset by higher material and freight costs and impacts from lower volume.
  • Selling, general and administrative (SG&A) expenses as a percentage of net sales decreased 330 basis points to 16.4%, primarily due to benefits from cost savings of Fortify Phase 2.
  • Operating income increased to $18.8 million from $6.9 million, and operating margin increased 350 basis points to 5.5%.
  • Adjusted EBITDA decreased to $32.1 million, compared to $34.4 million, and adjusted EBITDA margin decreased to 9.4%, compared to 9.9%. The decrease in adjusted EBITDA margin was primarily driven by higher material and freight costs and the impacts from lower volume, partially offset by productivity improvements and benefits from cost savings of Fortify Phase 2.
  • Interest expense decreased to $2.8 million, compared to $3.8 million, primarily due to lower average debt balance.
  • Diluted earnings per share (EPS) were $0.54, compared to a diluted loss per share of $0.13, and adjusted diluted EPS increased to $0.57, compared to $0.56.

First Quarter Segment Results (First Quarter Fiscal 2027 Compared to First Quarter Fiscal 2026)

Architectural Metals

Net sales declined 4.8% to $122.4 million, driven by lower volume, partially offset by favorable price and product mix. Adjusted EBITDA was $13.7 million, or 11.2% of net sales, compared to $9.4 million, or 7.3% of net sales. The higher adjusted EBITDA margin was primarily driven by favorable mix and improved productivity and cost savings from Fortify Phase 2, partially offset by the impact from lower volume and the net impact from higher aluminum costs.

Architectural Services

Net sales increased 8.2% to $115.2 million, primarily due to increased volume. Adjusted EBITDA was $6.1 million, or 5.3% of net sales, compared to $6.1 million, or 5.7% of net sales. The slight decrease in adjusted EBITDA margin was primarily driven by project mix, mostly offset by benefits from actions of Project Fortify 2 to reduce the impact of tariffs and the impact from increased volume. Segment backlog1 at the end of the quarter was $734.5 million compared to $682.9 million at the end of fiscal year 2026.

Architectural Glass

Net sales declined 7.6% to $67.7 million, driven by lower price and volume, partially offset by favorable mix. Adjusted EBITDA was $5.9 million, or 8.7% of net sales, compared to $13.4 million, or 18.3% of net sales. The decrease in adjusted EBITDA margin was primarily driven by the impact of lower price, volume, and inflation of material costs.

Performance Surfaces

Net sales increased 4.9% to $44.3 million due to increased volume and favorable price. Adjusted EBITDA was $6.6 million, or 14.8% of net sales compared to $8.0 million, or 18.8% of net sales. The decrease in adjusted EBITDA margin was primarily driven by the net impact of higher material and freight costs, partially offset by productivity.

Corporate and Other

Corporate and other adjusted EBITDA was an expense of $0.2 million, compared to $2.4 million in the prior year, primarily due to an insurance-related benefit.

Financial Condition

Net cash provided by operating activities in the first quarter was $7.4 million, compared to $19.8 million net cash used by operating activities in the prior year period.

The Company returned $15.3 million of cash to shareholders, through $9.7 million of share repurchases and $5.6 million of dividends.

Quarter-end long-term debt slightly increased to $237.4 million, bringing the Consolidated Leverage Ratio2 (as defined in the Company’s credit agreement) to 1.3x at the end of the quarter.

______________________________

1 Backlog is a non-GAAP financial measure. See Use of Non-GAAP Financial Measures later in this press release for more information.

2 Consolidated Leverage Ratio is a non-GAAP financial measure. See Use of Non-GAAP Financial Measures later in this press release for more information.

Fiscal 2027 Outlook

Based on current macroeconomic conditions and excluding any impacts from the pending Kalwall acquisition, the Company continues to expect net sales to be in the range of $1.38 billion to $1.43 billion and adjusted diluted EPS in the range of $2.70 to $3.25. The Company’s outlook also continues to assume interest expense of approximately $10 million, an adjusted effective tax rate of 26% to 27%, and capital expenditures between $35 million and $40 million.

Assuming the pending Kalwall acquisition closes in early July, the Company expects net sales in the range of $1.43 billion to $1.48 billion. While the acquisition is expected to be accretive to adjusted diluted EPS, it is not expected to materially change the Company’s fiscal 2027 adjusted diluted EPS outlook of $2.70 to $3.25. The Company also expects interest expense to be approximately $14 million, an adjusted effective tax rate of 26% to 27%, and capital expenditures between $35 million and $40 million.

Conference Call Information

The Company will host a conference call today at 8:00 a.m. Central Time to discuss this earnings release. This call will be webcast and is available in the Investor Relations section of the Company’s website, along with presentation slides, at https://www.apog.com/events-and-presentations. A replay and transcript of the webcast will be available on the Company’s website following the conference call.

About Apogee Enterprises

Apogee Enterprises, Inc. (Nasdaq: APOG) is a leading provider of architectural building products and services, as well as high-performance coated materials used in a variety of applications. Headquartered in Minneapolis, MN, our portfolio of industry-leading products and services includes architectural glass, windows, curtainwall, storefront and entrance systems, integrated project management and installation services, and high-performance coatings that provide protection, innovative design, and enhanced performance. For more information, visit www.apog.com.

Use of Non-GAAP Financial Measures

Management uses non-GAAP measures to evaluate the Company’s historical and prospective financial performance, measure operational profitability on a consistent basis, as a factor in determining executive compensation, and to provide enhanced transparency to the investment community. Non-GAAP measures should be viewed in addition to, and not as a substitute for, the reported financial results of the Company prepared in accordance with GAAP. Other companies may calculate these measures differently, limiting the usefulness of the measures for comparison with other companies. This release and other financial communications may contain the following non-GAAP measures:

  • Adjusted net earnings and adjusted diluted EPS are used by the Company to provide meaningful supplemental information about its operating performance by excluding amounts that the Company does not consider to be part of core operating results, to enhance comparability of results from period to period. The Company is unable to provide a quantitative reconciliation of its forward-looking adjusted diluted EPS guidance to the most directly comparable GAAP measure without unreasonable effort because it cannot reliably predict the timing and magnitude of certain items, including acquisition-related costs, integration costs, restructuring-related items, and other discrete items that could materially affect GAAP results.
  • Adjusted EBITDA represents adjusted net earnings before interest, taxes, depreciation, and amortization. The Company uses adjusted EBITDA and adjusted EBITDA margin to assess segment performance and make decisions about the allocation of operating and capital resources by analyzing recent results, trends, and variances of each segment in relation to forecasts and historical performance.
  • Consolidated Leverage Ratio is calculated as Consolidated Funded Indebtedness minus Unrestricted Cash at the end of the current period, divided by Consolidated EBITDA. All capitalized and undefined terms used in this bullet and not otherwise defined herein are defined in the Company’s credit agreement dated July 19, 2024, which is included as an exhibit to the Company’s most recent Annual Report on form 10-K. The Company is unable to present a quantitative reconciliation of forward-looking expected Consolidated Leverage Ratio to its most directly comparable forward-looking GAAP financial measure without unreasonable effort because management cannot reliably predict all the necessary components of that GAAP measure. In addition, the Company believes such reconciliation could imply a degree of precision that would be confusing or misleading to investors.
  • Backlog is defined as the dollar amount of signed contracts or firm orders, generally as a result of a competitive bidding process, which is expected to be recognized as revenue. Backlog is an operating measure used by management to assess future potential sales revenue. It is most meaningful for the Architectural Services segment, due to the longer-term nature of their projects. Backlog is not a term defined under U.S. GAAP and is not a measure of contract profitability. Backlog should not be used as the sole indicator of future revenue because the Company has a substantial number of projects with short lead times that book-and-bill within the same reporting period that are not included in backlog.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. The words “may,” “believe,” “expect,” “anticipate,” “intend,” “estimate,” “forecast,” “project,” “should,” “will,” “continue,” and similar expressions are intended to identify “forward-looking statements”. These statements reflect Apogee management’s expectations or beliefs as of the date of this release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. All forward-looking statements are qualified by factors that may affect the results, performance, financial condition, prospects and opportunities of the Company, including the following: (A) North American and global economic conditions, including the cyclical nature of the North American and Latin American non-residential construction industries, which may adversely affect demand for the Company’s products and services; (B) U.S. and global instability and uncertainty arising from events outside of our control; (C) actions of new and existing competitors; (D) departure of key personnel and ability to source sufficient labor; (E) product performance, reliability and quality issues; (F) project management and installation issues that could affect the profitability of individual contracts; (G) financial and operating results that could differ from market expectations; (H) self-insurance risk related to a material product liability or other events for which the Company is liable; (I) maintaining our information technology systems and potential cybersecurity threats; (J) cost of regulatory compliance, including environmental regulations; (K) supply chain disruptions, including fluctuations in the availability and cost of materials used in our products and the impact of trade policies and regulations, including existing and potential future tariffs; (L) the ability to complete announced acquisitions on expected terms and timing; the successful integration and future operating performance of acquired businesses; and the ability to achieve anticipated benefits, including cost synergies, within expected timeframes; (N) our ability to successfully manage and implement our enterprise strategy; (O) our ability to maintain effective internal controls over financial reporting; (P) our judgments regarding accounting for tax positions and resolution of tax disputes; (Q) the impacts of cost inflation and interest rates; and (R) the impact of changes in capital and credit markets on our liquidity and cost of capital. These factors are not exhaustive. Additional factors that could cause actual results to differ materially from those described in the forward-looking statements may emerge from time to time, and it is not possible for the Company to predict all such factors or assess the impact of each factor, or any combination of factors, on the Company’s business. More information concerning these and other risks is included in the Company’s Annual Report on Form 10-K and in subsequent filings with the U.S. Securities and Exchange Commission.

Apogee Enterprises, Inc.

Consolidated Statements of Income

(Unaudited)

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

(In thousands, except per share amounts)

 

May 30, 2026

 

May 31, 2025

 

% Change

Net sales

 

$

342,684

 

 

$

346,622

 

 

(1.1

)%

Cost of sales

 

 

267,654

 

 

 

271,497

 

 

(1.4

)%

Gross profit

 

 

75,030

 

 

 

75,125

 

 

(0.1

)%

Selling, general and administrative expenses

 

 

56,191

 

 

 

68,194

 

 

(17.6

)%

Operating income

 

 

18,839

 

 

 

6,931

 

 

171.8

%

Interest expense, net

 

 

2,834

 

 

 

3,846

 

 

(26.3

)%

Other expense, net

 

 

73

 

 

 

682

 

 

(89.3

)%

Earnings before income taxes

 

 

15,932

 

 

 

2,403

 

 

563.0

%

Income tax expense

 

 

4,397

 

 

 

5,091

 

 

(13.6

)%

Net earnings (loss)

 

$

11,535

 

 

$

(2,688

)

 

529.1

%

 

 

 

 

 

 

 

Basic earnings (loss) per share

 

$

0.55

 

 

$

(0.13

)

 

523.1

%

Diluted earnings (loss) per share

 

$

0.54

 

 

$

(0.13

)

 

515.4

%

Weighted average basic shares outstanding

 

 

21,045

 

 

 

21,338

 

 

(1.4

)%

Weighted average diluted shares outstanding

 

 

21,312

 

 

 

21,338

 

 

(0.1

)%

Cash dividends per common share

 

$

0.27

 

 

$

0.26

 

 

3.8

%

 

 

 

 

 

 

 

% of Sales

 

 

 

 

 

 

Gross margin

 

 

21.9

%

 

 

21.7

%

 

 

Selling, general and administrative expenses

 

 

16.4

%

 

 

19.7

%

 

 

Operating margin

 

 

5.5

%

 

 

2.0

%

 

 

Apogee Enterprises, Inc.

Consolidated Condensed Balance Sheets

(Unaudited)

(In thousands)

 

May 30, 2026

 

February 28, 2026

Assets

 

 

 

 

Current assets

 

 

 

 

Cash and cash equivalents

 

$

26,434

 

$

39,523

Receivables, net

 

 

192,204

 

 

 

198,516

 

Inventories, net

 

 

101,803

 

 

 

98,059

 

Contract assets

 

 

59,344

 

 

 

59,512

 

Other current assets

 

 

50,619

 

 

 

43,823

 

Total current assets

 

 

430,404

 

 

 

439,433

 

Property, plant and equipment, net

 

 

247,763

 

 

 

255,032

 

Operating lease right-of-use assets

 

 

45,633

 

 

 

48,736

 

Goodwill

 

 

236,647

 

 

 

236,744

 

Intangible assets, net

 

 

108,592

 

 

 

111,261

 

Other non-current assets

 

 

32,420

 

 

 

31,139

 

Total assets

 

$

1,101,459

 

 

$

1,122,345

 

Liabilities and shareholders' equity

 

 

 

 

Current liabilities

 

 

 

 

Accounts payable

 

$

86,166

 

 

$

105,478

 

Accrued compensation and benefits

 

 

30,435

 

 

 

39,667

 

Contract liabilities

 

 

68,265

 

 

 

60,903

 

Operating lease liabilities

 

 

14,737

 

 

 

14,729

 

Other current liabilities

 

 

45,002

 

 

 

46,079

 

Total current liabilities

 

 

244,605

 

 

 

266,856

 

Long-term debt

 

 

237,411

 

 

 

232,279

 

Non-current operating lease liabilities

 

 

35,780

 

 

 

39,375

 

Non-current self-insurance reserves

 

 

26,439

 

 

 

24,914

 

Other non-current liabilities

 

 

45,205

 

 

 

47,127

 

Total shareholders’ equity

 

 

512,019

 

 

 

511,794

 

Total liabilities and shareholders’ equity

 

$

1,101,459

 

 

$

1,122,345

 

Apogee Enterprises, Inc.

Consolidated Statement of Cash Flows

(Unaudited)

 

 

Three Months Ended

 

 

 

 

 

 

 

(In thousands)

 

May 30, 2026

 

May 31, 2025

Operating Activities

 

 

 

 

Net earnings

 

$

11,535

 

 

$

(2,688

)

Adjustments to reconcile net earnings to net cash provided by operating activities:

 

 

 

 

Depreciation and amortization

 

 

12,579

 

 

 

12,436

 

Share-based compensation

 

 

2,309

 

 

 

2,300

 

Deferred income taxes

 

 

1,333

 

 

 

2,496

 

Impairment of long-lived assets

 

 

—

 

 

 

7,418

 

Non-cash lease expense

 

 

2,981

 

 

 

3,738

 

Other, net

 

 

(40

)

 

 

1,622

 

Changes in operating assets and liabilities:

 

 

 

 

Receivables

 

 

6,339

 

 

 

(3,938

)

Inventories

 

 

(3,699

)

 

 

(11,255

)

Contract assets

 

 

113

 

 

 

2,596

 

Accounts payable

 

 

(15,638

)

 

 

1,103

 

Accrued compensation and benefits

 

 

(9,225

)

 

 

(16,639

)

Contract liabilities

 

 

7,312

 

 

 

8,104

 

Operating lease liability

 

 

(3,430

)

 

 

(3,643

)

Accrued income taxes

 

 

1,189

 

 

 

1,698

 

Other current assets and liabilities

 

 

(6,228

)

 

 

(25,130

)

Net cash provided by (used in) operating activities

 

 

7,430

 

 

 

(19,782

)

Investing Activities

 

 

 

 

Capital expenditures

 

 

(6,289

)

 

 

(7,167

)

Purchases of marketable securities

 

 

(4,637

)

 

 

—

 

Other, net

 

 

1,157

 

 

 

185

 

Net cash used by investing activities

 

 

(9,769

)

 

 

(6,982

)

Financing Activities

 

 

 

 

Proceeds from revolving credit facilities

 

 

33,000

 

 

 

59,000

 

Repayment on revolving credit facilities

 

 

(25,000

)

 

 

(33,000

)

Repayment of term loans

 

 

(2,867

)

 

 

—

 

Repurchase of common stock

 

 

(9,654

)

 

 

—

 

Dividends paid

 

 

(5,630

)

 

 

(5,520

)

Other, net

 

 

(995

)

 

 

(2,835

)

Net cash (used by) provided by financing activities

 

 

(11,146

)

 

 

17,645

 

Effect of exchange rates on cash

 

 

396

 

 

 

502

 

Decrease in cash and cash equivalents

 

 

(13,089

)

 

 

(8,617

)

Cash and cash equivalents at beginning of period

 

 

39,523

 

 

 

41,448

 

Cash and cash equivalents at end of period

 

$

26,434

 

 

$

32,831

 

Apogee Enterprises, Inc.

Business Segment Information

(Unaudited)

 

 

Three Months Ended

 

 

(In thousands)

 

May 30, 2026

 

May 31, 2025

 

% Change

Segment net sales

 

 

 

 

 

 

Architectural Metals

 

$

122,443

 

 

$

128,624

 

 

(4.8

)%

Architectural Services

 

 

115,237

 

 

 

106,505

 

 

8.2

%

Architectural Glass

 

 

67,712

 

 

 

73,273

 

 

(7.6

)%

Performance Surfaces

 

 

44,324

 

 

 

42,250

 

 

4.9

%

Intersegment eliminations

 

 

(7,032

)

 

 

(4,030

)

 

74.5

%

Net sales

 

$

342,684

 

 

$

346,622

 

 

(1.1

)%

Segment adjusted EBITDA

 

 

 

 

 

 

Architectural Metals

 

$

13,699

 

 

$

9,366

 

 

46.3

%

Architectural Services

 

 

6,137

 

 

 

6,067

 

 

1.2

%

Architectural Glass

 

 

5,894

 

 

 

13,417

 

 

(56.1

)%

Performance Surfaces

 

 

6,578

 

 

 

7,959

 

 

(17.4

)%

Corporate and other

 

 

(193

)

 

 

(2,425

)

 

(92.0

)%

Adjusted EBITDA

 

$

32,115

 

 

$

34,384

 

 

(6.6

)%

Segment adjusted EBITDA margins

 

 

 

 

 

 

Architectural Metals

 

 

11.2

%

 

 

7.3

%

 

 

Architectural Services

 

 

5.3

%

 

 

5.7

%

 

 

Architectural Glass

 

 

8.7

%

 

 

18.3

%

 

 

Performance Surfaces

 

 

14.8

%

 

 

18.8

%

 

 

Adjusted EBITDA margin

 

 

9.4

%

 

 

9.9

%

 

 

  • Segment net sales is defined as net sales of the segment including revenue related to intersegment transactions.
  • Intersegment net sales eliminations are presented separately to exclude these sales from our consolidated total.

Apogee Enterprises, Inc.

Reconciliation of Non-GAAP Financial Measures

Adjusted EBITDA and Adjusted EBITDA Margin

(Unaudited)

 

 

Three Months Ended May 30, 2026

(In thousands)

 

Architectural
Metals

 

Architectural
Services

 

Architectural
Glass

 

Performance
Surfaces

 

Corporate and
Other

 

Consolidated

Net earnings (loss)

 

$

9,759

 

 

$

5,372

 

 

$

2,496

 

 

$

2,628

 

 

$

(8,720

)

 

$

11,535

 

Interest expense (income), net

 

 

386

 

 

 

(33

)

 

 

(172

)

 

 

—

 

 

 

2,653

 

 

 

2,834

 

Income tax expense

 

 

—

 

 

 

—

 

 

 

71

 

 

 

—

 

 

 

4,326

 

 

 

4,397

 

Depreciation and amortization

 

 

3,554

 

 

 

798

 

 

 

3,499

 

 

 

3,950

 

 

 

778

 

 

 

12,579

 

EBITDA

 

 

13,699

 

 

 

6,137

 

 

 

5,894

 

 

 

6,578

 

 

 

(963

)

 

 

31,345

 

Acquisition-related costs (1)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

770

 

 

 

770

 

Adjusted EBITDA

 

$

13,699

 

 

$

6,137

 

 

$

5,894

 

 

$

6,578

 

 

$

(193

)

 

$

32,115

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA margin

 

 

11.2

%

 

 

5.3

%

 

 

8.7

%

 

 

14.8

%

 

 

N/M

 

 

 

9.1

%

Adjusted EBITDA margin

 

 

11.2

%

 

 

5.3

%

 

 

8.7

%

 

 

14.8

%

 

 

N/M

 

 

 

9.4

%

 

 

Three Months Ended May 31, 2025

(In thousands)

 

Architectural
Metals

 

Architectural
Services

 

Architectural
Glass

 

Performance
Surfaces

 

Corporate and
Other

 

Consolidated

Net earnings (loss)

 

$

3,669

 

 

$

(6,193

)

 

$

10,202

 

 

$

4,132

 

 

$

(14,498

)

 

$

(2,688

)

Interest expense (income), net

 

 

457

 

 

 

(52

)

 

 

(145

)

 

 

—

 

 

 

3,586

 

 

 

3,846

 

Income tax expense

 

 

(44

)

 

 

(8

)

 

 

90

 

 

 

—

 

 

 

5,053

 

 

 

5,091

 

Depreciation and amortization

 

 

3,813

 

 

 

1,072

 

 

 

3,270

 

 

 

3,550

 

 

 

731

 

 

 

12,436

 

EBITDA

 

 

7,895

 

 

 

(5,181

)

 

 

13,417

 

 

 

7,682

 

 

 

(5,128

)

 

 

18,685

 

Acquisition-related costs (1)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

277

 

 

 

72

 

 

 

349

 

Restructuring costs (2)

 

 

1,471

 

 

 

11,248

 

 

 

—

 

 

 

—

 

 

 

2,631

 

 

 

15,350

 

Adjusted EBITDA

 

$

9,366

 

 

$

6,067

 

 

$

13,417

 

 

$

7,959

 

 

$

(2,425

)

 

$

34,384

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA margin

 

 

6.1

%

 

 

(4.9

%)

 

 

18.3

%

 

 

18.2

%

 

 

(1.5

%)

 

 

5.4

%

Adjusted EBITDA margin

 

 

7.3

%

 

 

5.7

%

 

 

18.3

%

 

 

18.8

%

 

 

(0.7

%)

 

 

9.9

%

(1)

Acquisition-related costs associated with the pending Kalwall acquisition in fiscal 2027 and the UW Solutions acquisition in fiscal 2026, respectively, which management does not consider reflective of core operating performance for the periods presented.

(2)

Restructuring costs related to Project Fortify Phase 2, including $7.4 million of asset impairment charges in fiscal 2026.

Apogee Enterprises, Inc.

Reconciliation of Non-GAAP Financial Measures

Adjusted net earnings and adjusted diluted earnings per share

(Unaudited)

 

 

Three Months Ended

(In thousands)

 

May 30, 2026

 

May 31, 2025

Net earnings

 

$

11,535

 

 

$

(2,688

)

Acquisition-related costs (1)

 

 

770

 

 

 

349

 

Restructuring costs (2)

 

 

—

 

 

 

15,350

 

Income tax impact on above adjustments (3)

 

 

(188

)

 

 

(1,161

)

Adjusted net earnings

 

$

12,117

 

 

$

11,850

 

 

 

 

 

 

 

 

Three Months Ended

 

 

May 30, 2026

 

May 31, 2025

Diluted earnings per share

 

$

0.54

 

 

$

(0.13

)

Acquisition-related costs (1)

 

 

0.04

 

 

 

0.02

 

Restructuring costs (2)

 

 

—

 

 

 

0.72

 

Income tax impact on above adjustments (3)

 

 

(0.01

)

 

 

(0.05

)

Adjusted diluted earnings per share

 

$

0.57

 

 

$

0.56

 

Weighted average diluted shares outstanding

 

 

21,312

 

 

 

21,338

 

(1)

Acquisition-related costs associated with the pending Kalwall and UW Solutions acquisitions in fiscal 2027 and the UW Solutions acquisition in fiscal 2026, respectively, which management does not consider reflective of core operating performance for the periods presented.

(2)

Restructuring costs related to Project Fortify Phase 2, including $7.4 million of asset impairment charges in fiscal 2026.

(3)

Income tax impact reflects the estimated blended statutory tax rate for the jurisdictions in which the charge or income occurred.

 

Jeremy Steffan
Vice President, Investor Relations & Communications
952.346.3502
ir@apog.com

Source: Apogee Enterprises, Inc.