Q1 2027 Apogee Enterprises Inc Earnings Call Transcript
Key Points
- Apogee Enterprises Inc (APOG) delivered revenue of $343 million and adjusted diluted EPS of $0.57, demonstrating strong execution despite challenging conditions.
- The Services segment achieved its ninth consecutive quarter of top-line growth, with an 8.2% increase in net sales.
- The acquisition of Kalwall is expected to be accretive in the first year, with anticipated revenue of approximately $85 million and a long-term margin rate of 20%.
- The company maintained a strong balance sheet with a consolidated leverage ratio of 1.3 times and significant capital available for future deployment.
- Apogee Enterprises Inc (APOG) is actively advancing its strategy with a focus on building a more differentiated, higher-margin, and specification-driven portfolio.
- Net sales decreased by 1.1% to $342.7 million, primarily due to lower volume in metals and glass segments.
- Adjusted EBITDA margin decreased to 9.4% from 9.9% a year ago, impacted by higher material and freight costs.
- The Glass segment faced pressure from softer conditions in new construction and lower demand for premium product offerings.
- The Performance Surfaces segment experienced a decrease in adjusted EBITDA margin due to higher material and freight costs.
- The company expects net sales and adjusted EPS to be lower on a year-over-year basis in the second quarter.
Good day, and thank you for standing by. Welcome to the Apogee Enterprises first quarter earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded for replay purposes.
I will now turn the conference over to Jeremy Steffan, Vice President, Investor Relations and Communications, to begin. Jeremy, please go ahead.
Thank you. Good morning, and welcome to Apogee Enterprises fiscal 2027 first quarter earnings call. On the call today are Don Nolan, Apogee's Chief Executive Officer; and Mark Augdahl, 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 measures are provided in the earnings release and slide deck which are available in the Investor Relations section of our website.
As a reminder, today's call will contain forward-looking statements. These reflect management's expectations based on currently available information.
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