MINNEAPOLIS – Apogee (NASDAQ:) Enterprises, Inc. announced today: (NASDAQ: APOG) today reported an impressive first-quarter fiscal 2025 performance with a big beat on its earnings and revenue forecasts, along with elevated full-year earnings expectations.
Apogee stock responded positively to the news, rising 3.8%.
The company reported first-quarter adjusted diluted EPS of $1.44, beating analysts’ estimates of $0.99 by $0.45. Revenue for the quarter was also higher than expected, at $331.5 million versus the consensus estimate of $328.47 million.
Although net sales were down 8.3% compared to the same quarter last year, Apogee’s operational efficiency shined with a 37% increase in adjusted diluted earnings per share. The company’s operating margin improved to 12.5%, with an adjusted operating margin of 12.8%. Apogee’s management attributed the strong results to a favorable mix of projects in its architectural services, favorable material costs, productivity gains, and lower insurance-related costs, which offset the impact of lower volume.
The company now expects an adjusted diluted EPS range of $4.65 to $5.00 for fiscal 2025, compared to the analyst consensus of $4.52.
CEO Ty R. Silberhorn commented on the results, saying, “Our team continued to lead operational execution across the company, delivering significant growth in operating income and record adjusted EPS, despite continued pressure on volume.” He also noted the company’s focus on achieving results in a challenging environment while investing for long-term growth.
The first quarter also saw improvements across segments, with Architectural Services net sales growing 10.7% to $99.0 million, and segment operating income increasing significantly compared to the operating loss in the same quarter last year. The Architectural Glass segment also improved operating margin by 270 basis points, driven by productivity gains and improved pricing.
Apogee’s financial position remains strong, with net cash provided by operating activities of $5.5 million and a net leverage ratio of 0.2x. The Company continues to manage its capital effectively, as evidenced by long-term debt at the end of the quarter of $77.0 million, compared to $62.0 million at the end of fiscal 2024.
Looking ahead, Apogee expects full-year net sales to decline in the range of 4% to 7%, including impacts from the return to a 52-week year and the elimination of certain lower-margin product and service offerings as part of Project Fortify.
The company also expects pre-tax charges related to Project Fortify to reach $15 million to $16 million, resulting in annual cost savings of $12 million to $14 million, with a significant portion of the plan completed in the third quarter of the year. Finance 2025.
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