Q1 2026 Apogee Enterprises Inc Earnings Call Transcript
Key Points
- Apogee Enterprises Inc (APOG) exceeded expectations for Q1 2026, demonstrating positive momentum through operational actions and a renewed focus on growth.
- Revenues were stronger than expected, led by significant net sales growth in the Glass and Services segments.
- The company successfully executed tariff mitigation plans, expecting to substantially mitigate the impact of tariffs in the second half of the fiscal year.
- Apogee Enterprises Inc (APOG) raised its fiscal year outlook for both revenue and earnings, driven by improvements in Metals, Glass, and Performance Surfaces segments.
- The company is actively building a pipeline of strategic M&A opportunities to diversify its business mix and accelerate growth.
- Adjusted EBITDA margin decreased to 9.9%, primarily due to a less favorable mix and higher aluminum costs in Metals, as well as higher tariff expenses in Services.
- Adjusted diluted EPS declined to $0.56, impacted by lower adjusted EBITDA, higher interest expense, and a higher adjusted effective tax rate.
- Metals segment faced a decline in net sales by 3.4% due to a less favorable mix, despite higher volume.
- The Services segment experienced a decrease in adjusted EBITDA margin to 5.7%, primarily driven by higher tariff expenses.
- Net cash used in operating activities was $19.8 million, compared to $5.5 million of net cash provided by operating activities a year ago, driven by lower net earnings and increased cash used for working capital.
Good day and thank you for standing by. Welcome to the Q1 2026 Apogee Enterprises earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Nick Manganaro. Please go ahead.
Thank you. Good morning and welcome to Apogee Enterprises' fiscal 2026 first quarter earnings call. Please note there are slides to accompany today's remarks. These are available in the investor relations section of Apogee's website.
During this call, the team will reference certain non-GAAP financial measures. Definitions of these measures and the reconciliation to the nearest GAAP measures are provided in the earnings release and slide deck that were issued this morning.
As a reminder, today's call will contain forward-looking statements. These reflect management's expectations based on currently available information. Actual results may differ materially from those expressed today. More
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