Q1 2025 Apogee Enterprises Inc Earnings Call Transcript
Key Points
- Achieved significant adjusted operating margin expansion to 12.8%, the highest in the company's 75-year history.
- Adjusted diluted EPS grew 37% to $1.44, driven by higher adjusted operating income and lower interest expense.
- Architectural Services delivered double-digit sales growth and significant margin expansion.
- Strong backlog growth in Services, ending the quarter at $867 million, a 22% increase year-over-year.
- Successful implementation of Project Fortify, leading to improved cost structure and productivity gains.
- Net sales declined by 8%, driven primarily by lower volumes in Framing Systems and Architectural Glass.
- Framing Systems and Glass segments experienced revenue declines of 19% and 11%, respectively.
- Expect continued headwinds in some construction market verticals, including office and commercial sectors.
- Anticipated lower sales levels due to softness in end markets and actions of Project Fortify.
- Cash from operations decreased to $5.5 million from $21.3 million in the previous year's first quarter.
Good day and thank you for standing by, and welcome to the Q1 2025 Apogee Enterprises earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded. (Operator Instructions)
I would now like to hand the conference over to your speaker today Jeff Huebschen, Vice President of Investor Relations.
Thank you, Josh. Good morning, everyone, and welcome to Apogee Enterprises fiscal 2025 first 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 a company 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 reconciliation to the nearest GAAP measures are provided in the earnings release and slide deck, we issued this morning.
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