Apogee Enterprises, Inc. Q4 FY2026 earnings call

• Performance Services successfully integrated UW Solutions into the segment, delivering first year financial targets of $100 million in revenue and adjusted EBITDA margin of at least 20%.
• Apigee management system utilizes technology with embedded AI to drive improvements across manufacturing footprint, e.g., architectural metals segment made progress in tube light brand, reconfigured finishing facility in Wausau.
• Actively managed cost structure and manufacturing footprint to mitigate tariffs and drive efficiencies.

Metals net sales declined approximately 2% to $110 million, reflecting continued challenging market conditions. Adjusted EBITDA margin improved to 6.5%. Services segment delivered its eighth consecutive quarter of year-over-year net sales growth, adjusted EBITDA margin decreased to 7.5 percent. Glass net sales declined to approximately $67 million, adjusted EBITDA margin also declined to 13.5 percent. Performance services net sales increased to over 13%, adjusted EBITDA margin decreased due to higher material and manufacturing costs.

For fiscal 2027, expect full-year net sales between $1.38 billion and $1.43 billion, adjusted diluted EPS in the range of $2.70 to $3.25. Headwinds include normalization of corporate incentive compensation expense, elevated aluminum and fuel cost inflation, and persistently rising health insurance expense. Tailwinds include benefits from fourth quarter Fortify 2 actions, prior year tariff costs mitigation, pricing actions, and continued cost controls. Anticipate slightly more revenue and profit in second half, interest expense ~$10 million, adjusted effective tax rate 26% - 27%, capital expenditures between $35 million and $40 million.

• Challenging macroeconomic environment.
• Competitive pricing and volume pressure in metals and glass segments.
• Elevated long-term interest rates.
• Dynamic macroeconomic environment leading to uneven demand.

Q: Julio Romero asked about effect of year-to-date rise in aluminum prices and price increases to offset.

A: Aluminum costs have increased, baking in increases, addressing via price and levers.

Q: Asked about tariffs and impact.

A: Tariff impact from prior year is tailwind in 2027.

Q: Don asked about Apogee management system leveraging AI.

A: Early days in AI, rolling out co-pilot, some impact seen.

Q: Singular Research asked about metal customer mix, glass price structure, SDNA efficiency.

A: Not shifted metal customer mix due to aluminum; glass passes on supplier surcharges; SG&A rate to increase in 2027 as incentives reinstated; performance services investing in growth with no near-term capacity bottlenecks.