Q2 2026 Apogee Enterprises Inc Earnings Call Transcript
Key Points
- Net sales improved by almost 5%, driven by both inorganic and organic growth in performance surfaces.
- Architectural services recorded another quarter of net sales growth and grew their backlog by over $100 million.
- Metals showed significant sequential top and bottom line improvement as tariff-driven price increases went into full effect.
- Cash flow in the quarter was strong, demonstrating the company's ability to generate cash in a dynamic macroeconomic environment.
- The company remains focused on acquisitions that fit strategic and financial objectives, aiming to add differentiated products and expand geographic reach.
- Volume in metals faltered as tariff-driven price increases took full effect, resulting in sales and EBITDA being below expectations for Q2.
- Expectations for glass volume and price have been lowered due to a competitive environment impacting their ability to secure volumes without significant margin concessions.
- Higher aluminum costs are expected to put more pressure on pricing and volume in metals, with margins expected to drop in Q3.
- Adjusted EBITA margin decreased to 12.4%, driven by lower price and volume, unfavorable mix, and higher material, tariff, and health insurance costs.
- Despite solid performance, the outlook for the second half of the year has been lowered due to increased pressure on volume and price in glass and higher aluminum costs.
Good day and thank you for standing by. Welcome to Apogee Enterprise's second quarter earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question answer session. To ask a question during the session, you will need to press 11 on your telephone.
You will then hear an automated message advising your hand is raised. To withdraw your question, please press 11 again. As a reminder, this conference is being recorded for replay purposes. I will now turn the conference over to Jeremy Stefan, Vice President, Investor Relations and communications to begin. Jeremy, please go ahead.
Thank you. Good morning and welcome to Apogee Enterprises fiscal 2026 second quarter earnings call. On the call today are Ty Silverhorn, Apogee's Chief Executive Officer, and Matt Osberg, our Chief Financial Officer.
During this call, the team will reference certain non-GAAP financial measures. Definitions of these measures and a reconciliation to the nearest GAAP
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