Apogree Enterprises reports fourth-quarter and full-year results
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Apogee Enterprises, Inc. reported its fiscal 2025 fourth-quarter and full-year results. The prior year’s fourth-quarter and full-year results included the impact of an additional week of operations compared to fiscal 2025.
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Three Months Ended |
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(Unaudited, $ in thousands, except per share amounts) |
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March 1, 2025 |
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March 2, 2024 |
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% Change |
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Net sales |
|
$ |
345,694 |
|
|
$ |
361,840 |
|
|
(4.5 |
)% |
|
Operating income |
|
$ |
6,134 |
|
|
$ |
21,866 |
|
|
(71.9 |
)% |
|
Operating margin |
|
|
1.8 |
% |
|
|
6.0 |
% |
|
|
|
|
Net earnings |
|
$ |
2,485 |
|
|
$ |
15,736 |
|
|
(84.2 |
)% |
|
Diluted earnings per share |
|
$ |
0.11 |
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|
$ |
0.71 |
|
|
(84.5 |
)% |
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Additional Non-GAAP Measures1 |
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Adjusted operating income |
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$ |
28,700 |
|
|
$ |
34,269 |
|
|
(16.3 |
)% |
|
Adjusted operating margin |
|
|
8.3 |
% |
|
|
9.5 |
% |
|
|
|
|
Adjusted diluted earnings per share |
|
$ |
0.89 |
|
|
$ |
1.14 |
|
|
(21.9 |
)% |
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Adjusted EBITDA |
|
$ |
41,105 |
|
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$ |
43,039 |
|
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(4.5 |
)% |
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Adjusted EBITDA margin |
|
|
11.9 |
% |
|
|
11.9 |
% |
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During the fourth quarter, the company changed the names of two reporting segments, to better reflect their product focus and capabilities. The previously named Architectural Framing Systems Segment is now referred to as the Architectural Metals Segment. The previously named Large-Scale Optical Segment is now referred to as the Performance Surfaces Segment.
Three months ended March 1, 2025, compared with the three months ended March 2, 2024
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(In thousands, except percentages) |
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Architectural |
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Architectural |
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Architectural |
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Performance |
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Intersegment |
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Consolidated |
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Fiscal 2024 net sales |
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$ |
139,188 |
|
|
$ |
106,278 |
|
|
$ |
96,187 |
|
|
$ |
27,113 |
|
|
$ |
(6,926 |
) |
|
$ |
361,840 |
|
|
Organic business2 |
|
|
(16,126 |
) |
|
|
20,510 |
|
|
|
(13,902 |
) |
|
|
(135 |
) |
|
|
(951 |
) |
|
|
(10,604 |
) |
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Impact of 53rd week3 |
|
|
(10,914 |
) |
|
|
(8,893 |
) |
|
|
(7,128 |
) |
|
|
(2,241 |
) |
|
|
472 |
|
|
|
(28,704 |
) |
|
Acquisition4 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
23,162 |
|
|
|
— |
|
|
|
23,162 |
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|
Fiscal 2025 net sales |
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$ |
112,148 |
|
|
$ |
117,895 |
|
|
$ |
75,157 |
|
|
$ |
47,899 |
|
|
$ |
(7,405 |
) |
|
$ |
345,694 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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Total net sales growth (decline) |
|
|
(19.4 |
)% |
|
|
10.9 |
% |
|
|
(21.9 |
)% |
|
|
76.7 |
% |
|
|
6.9 |
% |
|
|
(4.5 |
)% |
|
Organic business2 |
|
|
(11.6 |
)% |
|
|
19.3 |
% |
|
|
(14.5 |
)% |
|
|
(0.5 |
)% |
|
|
13.7 |
% |
|
|
(2.9 |
)% |
|
Impact of 53rd week3 |
|
|
(7.8 |
)% |
|
|
(8.4 |
)% |
|
|
(7.4 |
)% |
|
|
(8.3 |
)% |
|
|
(6.8 |
)% |
|
|
(7.9 |
)% |
|
Acquisition4 |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
85.4 |
% |
|
|
— |
% |
|
|
6.4 |
% |
Year ended March 1, 2025, compared with the year ended March 2, 2024
|
(In thousands, except percentages) |
|
Architectural |
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Architectural |
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Architectural |
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Performance |
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Intersegment |
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Consolidated |
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Fiscal 2024 net sales |
|
$ |
601,736 |
|
|
$ |
378,422 |
|
|
$ |
378,449 |
|
|
$ |
99,223 |
|
|
$ |
(40,888 |
) |
|
$ |
1,416,942 |
|
|
Organic business2 |
|
|
(66,113 |
) |
|
|
50,332 |
|
|
|
(49,124 |
) |
|
|
(6,835 |
) |
|
|
12,512 |
|
|
|
(59,228 |
) |
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Impact of 53rd week3 |
|
|
(10,914 |
) |
|
|
(8,893 |
) |
|
|
(7,128 |
) |
|
|
(2,241 |
) |
|
|
472 |
|
|
|
(28,704 |
) |
|
Acquisition4 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
31,984 |
|
|
|
— |
|
|
|
31,984 |
|
|
Fiscal 2025 net sales |
|
$ |
524,709 |
|
|
$ |
419,861 |
|
|
$ |
322,197 |
|
|
$ |
122,131 |
|
|
$ |
(27,904 |
) |
|
$ |
1,360,994 |
|
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Total net sales growth (decline) |
|
|
(12.8 |
)% |
|
|
11.0 |
% |
|
|
(14.9 |
)% |
|
|
23.1 |
% |
|
|
(31.8 |
)% |
|
|
(3.9 |
)% |
|
Organic business2 |
|
|
(11.0 |
)% |
|
|
13.3 |
% |
|
|
(13.0 |
)% |
|
|
(6.9 |
)% |
|
|
(30.6 |
)% |
|
|
(4.2 |
)% |
|
Impact of 53rd week3 |
|
|
(1.8 |
)% |
|
|
(2.4 |
)% |
|
|
(1.9 |
)% |
|
|
(2.3 |
)% |
|
|
(1.2 |
)% |
|
|
(2.0 |
)% |
|
Acquisition4 |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
32.2 |
% |
|
|
— |
% |
|
|
2.3 |
% |
“I am proud of the results our team delivered in fiscal 2025,” said Ty R. Silberhorn, Chief Executive Officer. “We expanded adjusted operating margin for the third consecutive year, delivered another year of adjusted ROIC above our targeted level, and achieved record adjusted diluted EPS of $4.97. Through executing our strategy, we’ve driven sustainable operating improvements, that will serve as the foundation for our continued success.”
“Looking ahead to fiscal 2026, we anticipate current macroeconomic uncertainty to create headwinds in our core non-residential construction market as well as our specialty glass and acrylic markets,” said Silberhorn. “Against this backdrop, we’re focused on delivering near-term financial results, creating certainty where we are able during a challenging macroeconomic environment, while continuing to make investments in growth opportunities to further our transformation.”
Fourth-Quarter Consolidated Results
- Net sales decreased 4.5% to $345.7 million. The prior year included an extra week of operations, which negatively impacted net sales by 7.9%. Net sales were also unfavorably impacted by lower volume, primarily in Architectural Metals and Architectural Glass. These items were partially offset by sales growth in Architectural Services and $23.2 million, or 6.4%, of inorganic sales contribution from the acquisition of UW Solutions.
- Gross margin declined 280 basis points to 21.6%, primarily due to $9.4 million of expense related to an arbitration award, the unfavorable sales leverage impact of lower volume, and an unfavorable product mix in Architectural Metals. These items were partially offset by a more favorable mix of projects in Architectural Services, and lower restructuring, short-term incentive, insurance-related, and quality expenses.
- Selling, general and administrative (SG&A) expenses as a percent of net sales increased 140 basis points to 19.8%, primarily due to a $7.6 million impairment charge in Architectural Metals, the unfavorable sales leverage impact of lower volume, as well as $3.1 million of acquisition-related expenses and higher amortization expense associated with the UW Solutions transaction. These items were partially offset by lower restructuring expense and lower long-term incentive costs.
- Operating income was $6.1 million, and operating margin decreased to 1.8%. Adjusted operating income was $28.7 million and adjusted operating margin decreased by 120 basis points to 8.3%. The lower adjusted operating margin was primarily driven by the unfavorable sales leverage impact of lower volume, and a less favorable product mix, partially offset by a more favorable mix of projects in Architectural Services and lower incentive, insurance-related, and quality expenses.
- Net interest expense increased to $3.5 million, compared to $0.9 million, primarily due to increased debt as a result of the acquisition of UW Solutions.
- Other income was $0.1 million, compared to expense of $1.6 million. The prior year included the unfavorable impact of an investment market-valuation adjustment.
- Diluted earnings per share (EPS) were $0.11, compared to $0.71, and adjusted diluted EPS decreased to $0.89, compared to $1.14.
Full-Year Consolidated Results
- Net sales declined 3.9% to $1.36 billion. The prior year included an extra week of operations, which negatively impacted net sales by 2.0%. Net sales were also unfavorably impacted by lower volume, primarily in Architectural Glass and Architectural Metals. These items were partially offset by net sales growth in Architectural Services, and $32.0 million, or 2.3%, of inorganic sales contribution from the acquisition of UW Solutions.
- Operating margin was 8.7%, compared to 9.4%. Adjusted operating margin increased 70 basis points to 11.0%, primarily driven by a more favorable mix of projects in Architectural Services, lower quality and insurance-related costs, and lower bad debt expense, partially offset by the unfavorable sales leverage impact of lower volume and higher lease costs.
- Diluted EPS was $3.89, compared to $4.51. Adjusted diluted EPS grew 4.2% to a record $4.97.