Apogee Enterprises Reports Decline in Financial Performance for Fiscal Year Ending March 1, 2025

Apogee Enterprises, Inc. reported a decline in financial performance for the fiscal year ending March 1, 2025, with net sales of $1.36 billion, a decrease of 3.9% from $1.42 billion in the previous fiscal year. The company's operating income also fell to $118.1 million, down 11.7% from $133.8 million in fiscal 2024. Net earnings decreased by 14.6% to $85.1 million, resulting in diluted earnings per share of $3.89, compared to $4.51 in the prior year. The decline in revenue was attributed to lower volume in the Architectural Metals and Architectural Glass segments, as well as the unfavorable impact of one less week of sales compared to the previous year.

In terms of strategic developments, Apogee completed the acquisition of UW Interco, LLC (UW Solutions) for $240.9 million in November 2024, which contributed $32 million in net sales during the fiscal year. The company also initiated "Project Fortify," a restructuring plan aimed at streamlining operations and improving profitability, which incurred total costs of $16.7 million. The company expects annualized cost savings of approximately $14 million from this initiative. A second phase of Project Fortify was announced in April 2025, with anticipated pre-tax charges of $24 million to $26 million and expected annualized savings of $13 million to $15 million.

Operationally, Apogee's Architectural Metals segment saw a significant decline in net sales, dropping 12.8% to $524.7 million, while the Architectural Services segment experienced an increase of 11% to $419.9 million. The Architectural Glass segment's sales fell by 14.9% to $322.2 million, while the Performance Surfaces segment reported a 23.1% increase in sales to $122.1 million, largely due to the acquisition of UW Solutions. The company had approximately 4,500 employees as of March 1, 2025, up from 4,400 the previous year.

Looking ahead, Apogee's management expressed cautious optimism, emphasizing the importance of executing their strategic initiatives and managing costs effectively. The company is focused on enhancing its operational capabilities and leveraging its recent acquisition to drive growth in the high-performance coated materials market. However, management acknowledged potential risks, including market volatility and economic conditions that could impact demand for their products and services. The company remains committed to improving its profitability and operational efficiency as it navigates these challenges.