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Aug 31, 2024
Apogee Enterprises Q2 2025 Earnings Report
Apogee Enterprises reported second quarter fiscal 2025 results, showing improved profitability despite a slight sales decrease.
Key Takeaways
Apogee Enterprises reported a 3.2% decrease in net sales to $342.4 million. However, the company improved its operating margin to 12.3% and adjusted operating margin to 12.6%. Diluted EPS was $1.40, while adjusted diluted EPS increased by 6% to $1.44. The company is raising its full-year EPS outlook.
Net sales decreased by 3.2% to $342 million due to lower volume, partially offset by improved pricing and mix.
Operating margin improved to 12.3%, and adjusted operating margin increased by 110 bps to 12.6%.
Diluted EPS was $1.40, with adjusted diluted EPS increasing by 6% to $1.44.
The company is raising its full-year EPS outlook.
Apogee Enterprises
Apogee Enterprises
Apogee Enterprises Revenue by Segment
Revenue by Segment
Architectural Services Revenue
CapyFin.comArchitectural Glass Revenue
CapyFin.com Forward Guidance
The Company continues to expect a full-year net sales decline in the range of 4% to 7%. The Company is increasing its outlook for full-year diluted EPS to a range of $4.81 to $5.08 and adjusted diluted EPS to a range of $4.90 to $5.20.
Positive Outlook
- Full-year diluted EPS outlook increased to a range of $4.81 to $5.08.
- Adjusted diluted EPS outlook increased to a range of $4.90 to $5.20.
- Expects a total of $15 million to $16 million of pre-tax charges in connection with Project Fortify.
- Updated annualized cost savings of $13 million to $14 million from Project Fortify.
- Continues to expect an effective tax rate of approximately 24.5%.
Challenges Ahead
- Continues to expect a full-year net sales decline in the range of 4% to 7%.
- Approximately 2 percentage points of decline related to fiscal 2025 reverting to a 52-week year.
- Approximately 1 percentage point of decline related to the actions of Project Fortify.
- Incremental net sales of approximately $30 million expected from UW Solutions acquisition, assuming closing on November 1, 2024.
- Expects a decrease in adjusted diluted EPS of approximately $0.10 due to increased interest and amortization expense related to the UW Solutions acquisition.
Revenue & Expenses
Visualization of income flow from segment revenue to net income