Slide 1: Fiscal 2025 Fourth Quarter Earnings Call
Apogee Enterprises, Inc. Nasdaq: APOG Fiscal 2025 Fourth Quarter Earnings Call April 24, 2025 University of Washington, NanoES – Seattle © Aaron Leitz Photography; courtesy of ZGF
Slide 2: Non-GAAP measures & forward-looking statements
Non-GAAP measures & forward-looking statements This presentation contains measures of financial performance that are not defined by U.S. GAAP. We believe that these measures provide useful information and include these measures in other communications to investors. For each of these non-GAAP financi
Slide 3: Changes in Segment Naming
Changes in Segment Naming During the fourth quarter of fiscal 2025, as part of strategic changes in our business, we made changes to the names of our reporting segments. • Our previously named Architectural Framing Systems Segment is now referred to as the Architectural Metals Segment. • Our previou
Slide 4: Agenda
Agenda Introductory remarks Ty Silberhorn Chief Executive Officer Financial results and outlook Matt Osberg Chief Financial Officer Q&A Brooklyn Health Center, New York Photo courtesy of Terry Wieckert Q4 FY2025 Earnings | April 24, 2025 Apogee Enterprises, Inc. 4
Slide 5: Introductory Remarks
Introductory Remarks Q4 FY2025 Earnings | April 24, 2025 Apogee Enterprises, Inc. 5
Slide 6: Full Year FY25 Highlights
Full Year FY25 Highlights • Solid strategic execution in a challenging market environment Net sales $1.36 B (3.9)% YoY • Improved adjusted operating margin and record adjusted diluted EPS Adjusted • All segments within, or above, their long-term target margin range operating $149.8M +2.4% YoY income
Slide 7: Executing Our Strategy Has Delivered Sustainable Performance Improvements
Executing Our Strategy Has Delivered Sustainable Performance Improvements 1 ECONOMIC • Built a more competitive cost structure LEADER • Improved operational execution and drove significant productivity gains IN TARGET MARKETS • Refocused our business on differentiated products and services 2 • Incre
Slide 8: Progress on Our Financial Targets
Progress on Our Financial Targets FY25 Enterprise Targets (announced at our Nov 2021 investor day) > 12% > 10% > 1.2x Construction Index Adjusted Adjusted ROIC* Revenue Growth Operating Margin** 16.8% 9.6% 14.9% 13.8% 11.0% 6.8% Target 8.1% ✓ Target 6.3% 8.7% 10.3% ✓ -1.6% -3.9% FY22 FY23 FY24 FY25
Slide 9: Growing Profit Dollars and EPS
Growing Profit Dollars and EPS Adjusted Operating Income* Adjusted Diluted EPS* $ in millions $146 $150 $4.97 $4.77 $126 $3.98 $83 $2.48 FY22 FY23 FY24 FY25 FY22 FY23 FY24 FY25 *Adjusted operating income and adjusted diluted EPS are non-GAAP metrics, see appendix for a reconciliation. Apogee Enterpr
Slide 10: Consistent, Strong Cash Flow Generation
Consistent, Strong Cash Flow Generation Cash Flow From Operations ($ in millions) Cash Flow Drivers $204 ▪ Increased operating income ▪ Strong working $125 capital management $101 $103 ▪ Disciplined investments FY22 FY23 FY24 FY25 Q4 FY2025 Earnings | April 24, 2025 Apogee Enterprises, Inc. 10
Slide 11: Balanced Capital Allocation to Enable our Strategy
Balanced Capital Allocation to Enable our Strategy Capital Deployment FY23-FY25 Dividends $132M Increased dividend Share 12 consecutive years 24% Repurchases 11% Reduced share $63M count by 13% 23% Acquisitions $124M UW Solutions CapEx • Profitability & $232M growth investments 42% • Maintenance cap
Slide 12: Strong Balance Sheet Provides Flexibility for Further Capital Deployment
Strong Balance Sheet Provides Flexibility for Further Capital Deployment LOW LEVERAGE STRONG LIQUIDITY Consolidated leverage ratio (as defined in our credit agreement)* 0.9 1.3 $365M 0.1 Undrawn revolver capacity FY23 FY24 FY25 (end of FY25) *Non-GAAP metric, see definition in appendix NO NEAR-TERM
Slide 13: Capital Allocation Priorities
Capital Allocation Priorities Invest in Return Maintain a Profitable Capital to Strong Growth Shareholders Balance Sheet • High-return organic • Continued • Currently, low leverage investments dividend growth of 1.3x • Disciplined M&A to • Opportunistic • Additional capacity with strengthen core buy
Slide 14: Our Approach to M&A
Our Approach to M&A A focused and disciplined approach to strengthen existing core offerings and expand into high value adjacencies Internal M&A Capabilities Target Characteristics Dedicated resources in place Aligned with long-term industry trends Defined M&A strategy and focus areas Differentiated
Slide 15: Performance Surfaces - A Platform for Growth
Performance Surfaces - A Platform for Growth ✓ Differentiated business with strong positions in attractive niche markets ✓ Expanded capabilities in coating process technology and performance coatings ✓ R&D capabilities that can be leveraged to diversify into new markets ✓ Runway for above market gro
Slide 16: UW Solutions Integration on Track
UW Solutions Integration on Track ➢ Progressing on Integration • Transitioned majority of UW Solutions to Apogee’s back-office platforms • Integrating segment sales, operations, and R&D capabilities • Identifying new market and product application opportunities ➢ Delivering Financial Targets • Achie
Slide 17: Results & Outlook
Results & Outlook Q4 FY2025 Earnings | April 24, 2025 Apogee Enterprises, Inc. 17
Slide 18: FY25 Results
FY25 Results Q4 FY2025 Earnings | April 24, 2025 Apogee Enterprises, Inc. 18
Slide 19: Q4 FY25 Results
Q4 FY25 Results $ in millions, except EPS Commentary Q4 FY25 Q4 FY24 Change 13 weeks 14 weeks • Net sales drivers: – Organic business change of (2.9)%, primarily driven by lower volumes Net sales $345.7 $361.8 (4.5)% in Glass and Metals, offset by strong sales growth in Services – $23.2 million, or
Slide 20: FY25 Full-Year Results
FY25 Full-Year Results $ in millions, except EPS FY25 FY24 Commentary Change 52 weeks 53 weeks • Net sales drivers: Net sales $1,361 $1,417 (3.9)% – Organic business change of (4.2)%, primarily driven by lower volumes in Glass and Metals, offset by growth in Services – $32.0 million, or 2.3%, inorga
Slide 21: FY25 Segment Results
FY25 Segment Results Fourth Quarter FY25 Full Year FY25 Segment Adjusted Segment Adjusted net sales operating net sales operating $ in millions margin % $ in millions margin % Architectural Metals $112.1 2.8% Architectural Metals $524.7 10.3% YoY change (19.4)% (640) bps YoY change (12.8)% (150) bps
Slide 22: FY25 Cash Flow and Balance Sheet
FY25 Cash Flow and Balance Sheet $ in millions FY25 FY24 Commentary Cash flow from operations $125.2 $204.2 • Lower YoY cash flow, primarily driven by increased cash Capital expenditures $35.6 $43.2 used for working capital Free cash flow* $89.6 $161.0 • Returned $67 million of cash to shareholders
Slide 23: FY26 Outlook
FY26 Outlook Q4 FY2025 Earnings | April 24, 2025 Apogee Enterprises, Inc. 23
Slide 24: Calendar Year 2025 Market Outlook
Calendar Year 2025 Market Outlook Forecasts call for continued market headwinds in non-residential construction FMI forecast of construction put in place in the U.S. for selected building types Forecasted 2025 • Most forecasts call for flat to low-single Building Type Growth Rate digit growth for no
Slide 25: Estimated Tariff Impact Summary
Estimated Tariff Impact Summary Tariff Summary assumes tariffs in place as of April 23, 2025 DIRECT INDIRECT • Tariffs incurred directly by the company to deliver products to customers • Primarily Section 232 tariffs which include a 25% tariff on aluminum • Raw material cost inflation, primarily alu
Slide 26: FY26 Focus Areas
FY26 Focus Areas Managing what we can control to navigate near-term uncertainty, while continuing to position the company for our next chapter of growth • Actions to mitigate the impact of tariffs • Execute Project Fortify – Phase 2 Manage near- • Stabilize Architectural Metals performance term unce
Slide 27: Project Fortify Phase 2
Project Fortify Phase 2 Project Fortify – Phase 2 Implementing a second phase of Project Fortify to further optimize our operating footprint and align resources to enable a more effective operating model. • Actions concentrated in Architectural Metals and Services • Expected to incur additional rest
Slide 28: FY26 Outlook
FY26 Outlook Additional details • Tariffs estimated to reduce full year adjusted diluted EPS by ~$0.45 to $0.55; primarily in 1H before mitigation efforts take effect Net sales $1.37B - $1.43B • UW Solutions expected to contribute ~$100 million of net sales at ~20% EBITDA margin • Full year interest
Slide 29: Long-Term Segment Margin Ranges
Long-Term Segment Margin Ranges Shifting our segment long-term target margin ranges to adjusted EBITDA margin, to reflect our strategic focus on inorganic growth PREVIOUS ADJUSTED FY26 EST. D&A UPDATED ADJUSTED OPERATING MARGIN* RUN RATE EBITDA MARGIN* TARGET TARGET Metals 10-15% ~3% 13-18% Glass 10
Slide 30: Summary
Summary • Record full year adjusted EPS & improved adjusted operating margin • Continued our track record of adjusted operating margin expansion and adjusted ROIC above targeted levels • Demonstrated sustainable operating improvements • Executed strategic organic & inorganic investments to enable gr
Slide 31: Q&A
Q&A Q4 FY2025 Earnings | April 24, 2025 Apogee Enterprises, Inc. 31
Slide 32: Components of Changes in Net Sales
Components of Changes in Net Sales Three months ended March 1, 2025, compared with the three months ended March 2, 2024 Architectural Architectural Architectural Performance Intersegment (In thousands, except percentages) Metals Services Glass Surfaces eliminations Consolidated Fiscal 2024 net sales
Slide 33: Non-GAAP Financial Measures
Non-GAAP Financial Measures • Adjusted operating income, adjusted operating margin, adjusted net earnings, and adjusted diluted EPS are used by the Company to provide meaningful supplemental information about its operating performance by excluding amounts that the Company does not consider to be par
Slide 34: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Adjusted net earnings and adjusted diluted earnings per share (Unaudited) Three Months Ended Twelve Months Ended In thousands March 1, 2025 March 2, 2024 March 1, 2025 March 2, 2024 (13 weeks) (14 weeks) (52 weeks) (53 weeks) Net earnings $ 2,485 $ 15,73
Slide 35: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Adjusted operating income (loss) and adjusted operating margin (Unaudited) Three Months Ended March 1, 2025 Architectural Architectural Architectural Performance Corporate In thousands Metals Services Glass Surfaces and Other Consolidated Operating incom
Slide 36: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Adjusted operating income (loss) and adjusted operating margin (Unaudited) Twelve Months Ended March 1, 2025 Architectural Architectural Architectural Performance Corporate In thousands Metals Services Glass Surfaces and Other Consolidated Operating inco
Slide 37: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin (Earnings before interest, taxes, depreciation, and amortization) (Unaudited) Three Months Ended Twelve Months Ended March 1, 2025 March 2, 2024 March 1, 2025 March 2, 2024 In thousands (13 weeks) (14 w
Slide 38: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Adjusted Return on Invested Capital Reconciliation (unaudited) Twelve Months Ended Twelve Months Ended In thousands, except percentages March 1, 2025 March 2, 2024 Net earnings $ 85,052 $ 99,613 Interest expense, net (after tax) 4,619 5,002 Other income,
Slide 39: Multi-Year Reconciliation of Adjusted Operating Income and Adjusted Operating Margin
Multi-Year Reconciliation of Adjusted Operating Income and Adjusted Operating Margin Adjusted operating income and adjusted operating margin (Unaudited) Twelve Months Ended Twelve Months Ended Twelve Months Ended Twelve Months Ended Mar 1, 2025 Mar 2, 2024 Feb 25, 2023 Feb 26, 2022 Operating Operati
Slide 40: Multi-Year Reconciliation of Adjusted Diluted EPS
Multi-Year Reconciliation of Adjusted Diluted EPS Adjusted diluted earnings per share (EPS) (Unaudited) Twelve Months Ended Twelve Months Ended Twelve Months Ended Twelve Months Ended In thousands, except percentages March 1, 2025 March 2, 2024 February 25, 2023 February 26, 2022 Diluted earnings pe
Slide 41: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Footnotes to non-GAAP reconciliation tables (1) Acquisition-related costs include: • Transaction costs related to the UW Solutions acquisition. • Integration costs related to one-time expenses incurred to integrate the UW Solutions acquisition. • Backlog
Slide 42: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Fiscal 2026 Outlook Reconciliation of Fiscal 2026 outlook of estimated diluted earnings per share to adjusted diluted earnings per share (Unaudited) Fiscal Year Ending February 28, 2026 Low Range High Range Diluted earnings per share $ 2.54 $ 3.19 Acquis