Q2 2025 Apogee Enterprises Inc Earnings Call Transcript
Key Points
- Apogee Enterprises Inc (APOG) achieved a strong adjusted operating margin of 12.6%, marking the second consecutive quarter with margins above 12%.
- The company reported exceptionally strong cash flow from operations, with a 42% increase compared to the previous year's second quarter.
- Architectural glass outperformed expectations due to strong pricing and mix, contributing significantly to profitability.
- The acquisition of UW Solutions is expected to be accretive to Apogee's long-term financial profile, enhancing revenue growth and adjusted EBITDA margin.
- Apogee Enterprises Inc (APOG) increased its full-year adjusted EPS outlook to a range of $4.90 to $5.20, reflecting stronger-than-expected second-quarter performance.
- Revenue declined by 3% year over year, primarily due to lower volumes in framing, glass, and LSO segments.
- The company faced continued softness in some end markets, particularly non-residential construction.
- Framing systems experienced an 11% decline in net sales due to the strategic shift away from lower-margin product lines.
- LSO sales declined by 16%, mainly due to lower volume in the retail channel.
- The services backlog decreased to $792 million from $867 million in the previous quarter, although it remains up 17% compared to a year ago.
Good day and thank you for standing by. Welcome to the Q2 2025 Apogee Enterprises' earnings conference call. (Operator Instructions) Please be advised, today's conference is being recorded.
I would like to turn the call over to your speaker today, Jeff Huebschen, Vice President of Investor Relations. Please go ahead.
Thank you, Kevin. Good morning, everyone, and welcome to Apogee Enterprises fiscal 2025 second-quarter earnings call. With me today are Ty Silberhorn, Apogee's Chief Executive Officer; and Matt Osberg, Chief Financial Officer.
I'd like to remind everyone that there are slides to accompany today's remarks. These are available in the Investor Relations section of Apogee's website. During this call, we 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 we issued this morning.
I'd also like to remind everyone that
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