Latest news with #EBITDA
Yahoo
19 hours ago
- Business
- Yahoo
Balanced Take on POST's FY25 EBITDA Outlook: Will It Hit the Target?
Post Holdings, Inc. POST modestly raised its full-year fiscal 2025 adjusted EBITDA guidance during the most recent earnings call, projecting the metric to be in the range of $1.43 billion to $1.47 billion, up from the prior estimated range of $1.42 billion to $1.46 billion. This development stands out as a key signal amid persistent industry and macroeconomic headwinds. The guidance raise reflects management's confidence in recovering previously incurred costs related to avian influenza within its Foodservice segment, a $30 million headwind now anticipated to be recouped by fiscal earnings call made clear that pricing adjustments instituted in April are expected to backfill earlier cost pressures from the fiscal second quarter related to avian influenza, assuming no further outbreaks. The Foodservice team prioritized maintaining customer supply throughout the disruption, even as it navigated elevated egg costs. This approach highlights Post's operational focus on protecting relationships while executing price-cost alignment to stabilize margins in the second half of fiscal across key categories such as cereal, pet food and refrigerated retail remains challenged, with continued softness in consumer consumption. Instead, the guidance revision underscores POST's reliance on execution levers, price realization, cost discipline and supply-chain stabilization to support profitability in a volatile this context, the EBITDA guidance increase sends a signal of internal momentum, particularly in supply-constrained categories like eggs and refrigerated sides, where the company has historically faced restrictions. However, investors should remain cautious. The revised guidance is contingent upon the containment of avian influenza and sustained pricing power. Any disruption to these assumptions could jeopardize the anticipated in an industry where many peers are revising downward or holding flat due to demand erosion and margin compression, the company's ability to revise its forecast upward, however slightly, indicates a differentiated level of execution. The outlook positions the company as better equipped to weather volatility and stabilize earnings despite ongoing top-line pressure. Shares of this Zacks Rank #3 (Hold) company have lost 5.8% in the past three months compared with the industry's 5.1% decline. POST underperformed the broader Consumer Staples sector's decline of 0.4% and the S&P 500 index's growth of 9.4%, during the same period. Image Source: Zacks Investment Research Post Holdings currently trades at a forward 12-month P/E ratio of 14.84, which is slightly below the industry average of 15.69 and notably down from the sector average of 17.31. This valuation positions the stock at a modest discount relative to both its direct peers and the broader consumer staples sector. Image Source: Zacks Investment Research BRF S.A. BRFS raises, produces and slaughters poultry and pork for the processing, production and sale of fresh meat, processed products, pasta, margarine, pet food and other products. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks Zacks Consensus Estimate for BRF S.A.'s current fiscal-year sales and earnings implies growth of 11.1% and 8.3%, respectively, from the prior-year levels. BRFS delivered a trailing four-quarter earnings surprise of 5.4%, on International MDLZ manufactures, markets and sells snack food and beverage products. It presently has a Zacks Rank of 2. MDLZ delivered a trailing four-quarter earnings surprise of 9.8%, on consensus estimate for Mondelez's current fiscal-year sales implies growth of 5.3% from the year-ago Group AB OTLY, an oatmilk company, provides a range of plant-based dairy products made from oats. It presently has a Zacks Rank of 2. OTLY delivered a trailing four-quarter earnings surprise of 25.1%, on consensus estimate for Oatly Group's current fiscal-year sales and earnings implies growth of 2.3% and 63.8%, respectively, from the year-ago figures. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BRF S.A. (BRFS) : Free Stock Analysis Report Mondelez International, Inc. (MDLZ) : Free Stock Analysis Report Post Holdings, Inc. (POST) : Free Stock Analysis Report Oatly Group AB Sponsored ADR (OTLY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20 hours ago
- Business
- Yahoo
Cineverse Corp (CNVS) Q4 2025 Earnings Call Highlights: Record Revenue Growth and Strategic ...
Q4 Revenue: $15.6 million, a 58% increase over the prior year. Q4 Net Income: $858,000, a $15.5 million increase over the prior year. Q4 Adjusted EBITDA: $4 million, a 158% increase over the prior year quarter. Q4 Direct Operating Margin: 55%, above the target range of 45% to 50%. Full-Year Revenue: $78.2 million, a 59% increase over the prior year. Full-Year Net Income: $3.8 million. Full-Year Adjusted EBITDA: $13.9 million, a 216% increase over the prior year. SG&A Expenses: $5.4 million for the quarter, a decrease of $1.4 million from the prior year quarter. Cash and Cash Equivalents: $13.9 million as of March 31, 2025. Net Cash Provided by Operations: $18.5 million for the year, a $29.1 million improvement over the prior year. Streaming Engagement: 3.2 billion minutes streamed in Q4, up 45% over the prior year. Podcast Revenue Growth: 57% increase over the prior year. c360 Revenue Growth: 290% year-over-year increase in Q4. Warning! GuruFocus has detected 7 Warning Signs with CNVS. Release Date: June 27, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Cineverse Corp (NASDAQ:CNVS) reported a 58% increase in total revenue for the fourth quarter, reaching $15.6 million, and a 59% increase for the full fiscal year, totaling $78.2 million. The company achieved a significant improvement in net income, with a $15.5 million increase over the prior year, resulting in a net income of $858,000 for the quarter. Adjusted EBITDA for the quarter was $4 million, marking a 158% increase over the prior year, showcasing strong financial performance. Cineverse Corp (NASDAQ:CNVS) successfully launched new initiatives, including the reorganization of its technology business and the creation of a dedicated theatrical motion pictures division. The company reported strong growth in its streaming and podcasting businesses, with podcast revenues up 57% over the prior year and streaming platforms delivering a 45% increase in minutes streamed. The company faces challenges in the advertising environment, with a depressed direct and programmatic advertising market due to companies pulling back on discretionary advertising spend. Despite strong financial performance, the company acknowledges the pressure on CPMs and fill rates for open market programmatic advertising due to a glut of supply in competitive channels. Cineverse Corp (NASDAQ:CNVS) is still in the early stages of expanding its Matchpoint technology to major studios, with the need to prove its capabilities through pilots and commercial trials. The company is navigating a competitive landscape in the podcasting space, requiring strategic investments in direct sales and content expansion to maintain growth momentum. There is a reliance on the success of upcoming film releases to drive future revenue, with significant investments in new films like The Toxic Avenger and Silent Night, Deadly Night. Q: Chris, with the upcoming wide releases, how much more are you willing to invest if you see early signs of success? Also, how do you view pay windows and licensing opportunities for the licenses you own? A: Christopher McGurk, Chairman and CEO: As we continue to fill out our slate, our objective is to set up a pay output deal, and we've started discussions in that regard. We'll be announcing more films similar to those in our current release slate and expanding into family films, fantasy, Black Cinema, and comedy. Once these pieces are in place, we'll get serious about negotiating a pay deal. Q: How should investors think about cineSearch and Matchpoint in terms of pipeline opportunities and potential impact on results? A: Erick Opeka, President and Chief Strategy Officer: We're now focused on enterprise-level opportunities rather than smaller entities. Tony Huidor, President of Technology and Chief Product Officer, added that each major studio deal could be $5 million and up, depending on the scope. The current pilot with a major studio could expand significantly, and we expect a strong foothold in the business within a few years. Q: Can you provide more details on the monetization of podcasting and the impact of direct sponsorships? A: Erick Opeka, President and Chief Strategy Officer: Podcasts offer premium content, leading to higher CPMs than CTV. We're focusing on shows with significant listener bases and have hired a direct sales team. Deals with larger brands can reach below six figures, and we expect to double our podcast revenue compared to last year, depending on macro conditions. Q: How do you view the profitability and operating margins, especially with successful wide releases? A: Christopher McGurk, Chairman and CEO: We achieved a 55% operating margin last quarter, and we feel confident in meeting or exceeding our target of 45% to 50% going forward. Mark Lindsey, CFO, noted that the margin last quarter was 49%. Q: What is the strategy for expanding the theatrical slate and securing output deals? A: Christopher McGurk, Chairman and CEO: We plan to announce more films similar to our current slate and expand into other genres. Once our release slate is complete, we'll focus on negotiating a pay output deal, leveraging our unique media assets and releasing formula. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
2 days ago
- Business
- Yahoo
WM price target raised to $250 from $244 at CIBC
CIBC raised the firm's price target on WM (WM) to $250 from $244 and keeps a Neutral rating on the shares. The firm said its main takeaway from the company's three-year outlook presented at its Investor Day is that it continues to expect outsized EBITDA and free cash flow growth, with this growth exceeding 2019-2021 targets from WM's 2019 Investor Day. It appears the company is not suffering from the law of large numbers, which addresses a concern that the growth rate will slow relative to peers over the medium term, the analyst tells investors in a research note. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See the top stocks recommended by analysts >> Read More on WM: Disclaimer & DisclosureReport an Issue WM price target raised to $245 from $241 at BMO Capital WM price target raised to $255 from $251 at Oppenheimer Waste Management: Balancing Growth Potential with Near-Term Challenges Waste Management: Balancing Promising Growth with Market Uncertainties Waste Management: Buy Rating Affirmed Amidst Strong Growth Prospects and Attractive Valuation Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Zawya
2 days ago
- Business
- Zawya
Africa: Global mining revenue drops 3% in 2024 — PwC reports
Andries Rossouw, the PwC Africa Energy, utilities and resources leader, outlined the global mining results for 2024 at the launch of PwC's Mine 2025: Concentrating on the future report on Thursday, 26 June 2025. The results are grim with the world's top 40 performers — excluding gold-focused firms — reporting drops in revenue by 3% and earnings before interest, taxes, depreciation and amortisation (EBITDA) down by 10%. Gold stays strong While most of the industry grappled with rising costs and tightening margins, record gold prices meant that gold revenues increased by 15%, while gold EBITDA rose to 32% as a result of operating leverage. The rising costs and narrowing margins placed pressure on much of the industry, pushing overall EBITDA margins down to 22%, compared to 24% in 2023. The report focuses on the role that mining plays in expanding and interlocking domains of human activity. It also examines the ways that value is being put into motion, as megatrends – and the responses to them – dictate developments in supply, demand and investment. Concentration risk arises from the natural endowment of mineral resources that cannot be changed and the enabling environments created by countries. As a result, over the years, there's been a rise in the concentration of both reserves and production, as well as the development of substantial mismatches between the two. Challenges around the world The concentration of mining and processing in a small number of geographies creates the risk that global supply and prices will be affected by location-specific challenges such as natural disasters, wars, social unrest, political or regulatory changes, and infrastructure failures. Countries have adopted various strategies to secure supply and leverage the value of key commodities. 'Megatrends are transforming the industry, driving the need for new supply chains, influencing national strategies, fostering innovative collaborations and unlocking new value pools. 'As the world undergoes rapid urbanisation, transitions to new energy sources and embraces technological advancements, the demand for mined resources continues to grow. 'These global forces are reshaping industries, making mining central to how we move, build, feed, care and power society,' says Rossouw. Future-proofing the sector If mining companies are to create value for stakeholders in the emerging world of domains, they need to future-proof their businesses. The growth of these domains also offers potential for mining companies to become involved in other industries that help mines operate more effectively. These efforts often result in economic development initiatives that provide benefits to the climate —and to broader society. 'Beyond the domains of growth, key trends such as population growth, the energy transition, environmental impact, tech innovation and AI, access to funds as well as policy and regulation are expected to shape the future of the industry,' says Rossouw. 'However, as we forge ahead, one thing is certain: collaboration will be essential – in 2025, in 2030 and in 2035.'
Yahoo
2 days ago
- Business
- Yahoo
Apogee Enterprises Reports Fiscal 2026 First Quarter Results
Net sales increased 4.6% to $346.6 million EBITDA margin of 5.4% and adjusted EBITDA margin of 9.9% Diluted loss per share of $0.13 and adjusted diluted earnings per share of $0.56 Raises fiscal year net sales and adjusted diluted EPS outlook MINNEAPOLIS, June 27, 2025--(BUSINESS WIRE)--Apogee Enterprises, Inc. (Nasdaq: APOG), a leading provider of architectural building products and services, as well as high-performance coated materials used in a variety of applications, today reported its results for the first quarter of fiscal 2026, ended May 31, 2025. The Company reported the following selected financial results: (Unaudited, $ in thousands, except per share amounts) Three Months Ended May 31, 2025 June 1, 2024 % Change Net sales $ 346,622 $ 331,516 4.6% Net (loss) earnings $ (2,688 ) $ 31,011 (108.7)% Diluted (loss) earnings per share $ (0.13 ) $ 1.41 (109.2)% Additional Non-GAAP Measures1 Adjusted EBITDA $ 34,384 $ 52,622 (34.7)% Adjusted EBITDA margin 9.9 % 15.9 % Adjusted diluted earnings per share $ 0.56 $ 1.44 (61.1)% Ty R. Silberhorn, Apogee's Chief Executive Officer, stated: "We are pleased to deliver results ahead of our expectations in the first quarter amid challenging market conditions and year-over-year headwinds. We are also raising our fiscal year outlook for net sales and adjusted diluted EPS as we build momentum for what we expect will be a stronger second half of the year." Mr. Silberhorn continued, "Although tariffs adversely impacted our first quarter results, we continue to execute our mitigation plans and barring any material change to tariff policies, we expect to be able to substantially mitigate the impact of tariffs on the second half of the fiscal year." Mr. Silberhorn concluded, "We also continue to be excited about the opportunities to build a platform for growth in our Performance Surfaces segment. Our recent investments in additional capacity, and the acquisition of UW Solutions, expand our market reach and broaden our product offerings. We are executing a structured integration plan to bring out the best in both businesses. We are encouraged by the early results of the acquisition, and they demonstrate how we can use our balance sheet to acquire assets to set us up for future growth." Consolidated Results (First Quarter Fiscal 2026 compared to First Quarter Fiscal 2025) Net sales increased 4.6% to $346.6 million, primarily driven by $22.0 million of inorganic sales from the acquisition of UW Solutions. Growth from inorganic sales was partially offset by lower volume in Architectural Glass and a less favorable mix in Architectural Metals. Gross margin decreased to 21.7% from 29.8% primarily due to restructuring charges of $6.9 million, a less favorable mix and higher aluminum costs in Architectural Metals, and higher tariff expense in Architectural Services. Selling, general and administrative (SG&A) expense as a percent of net sales increased 240 basis points to 19.7%, primarily due to restructuring charges of $8.4 million and increased amortization expense associated with the UW Solutions transaction, partially offset by lower long-term incentive expense. Operating income decreased to $6.9 million, primarily driven by restructuring charges related to Project Fortify Phase 2 of $15.3 million, a less favorable mix and higher aluminum costs in Architectural Metals, higher tariff expense in Architectural Services, and increased amortization expense associated with the UW Solutions transaction, partially offset by lower long-term incentive expense. Adjusted EBITDA decreased to $34.4 million and adjusted EBITDA margin decreased to 9.9%. The decrease in adjusted EBITDA margin was primarily driven by a less favorable mix and higher aluminum costs in Architectural Metals, as well as higher tariff expense in Architectural Services, partially offset by lower long-term incentive expense. Net interest expense increased to $3.8 million, primarily due to increased debt resulting from the acquisition of UW Solutions. Income tax expense decreased to $5.1 million, primarily driven by lower earnings before taxes. Net income decreased from net earnings of $31.0 million to a net loss of $2.7 million. Diluted loss per share was $0.13. Adjusted diluted EPS was $0.56, primarily driven by lower adjusted operating income. Segment Results (First Quarter Fiscal 2026 Compared to First Quarter Fiscal 2025) Architectural Metals Architectural Metals net sales were $128.6 million, compared to $133.2 million, primarily reflecting a less favorable mix, partially offset by higher volume. Adjusted EBITDA was $9.4 million, or 7.3% of net sales, compared to $23.8 million, or 17.9% of net sales. The lower adjusted EBITDA margin was primarily driven by a less favorable mix, higher aluminum costs, unfavorable productivity, and unfavorable sales leverage, partially offset by the impact from higher volume. Architectural Services Architectural Services net sales were $106.5 million compared to $99.0 million, primarily due to increased volume. Adjusted EBITDA was $6.1 million, or 5.7% of net sales, compared to $6.6 million, or 6.6% of net sales. The decrease in adjusted EBITDA margin was primarily driven by the impact of higher tariff expense, partially offset by a more favorable mix of projects and favorable sales leverage. Segment backlog2 at the end of the quarter was $682.9 million, compared to $720.3 million at the end of the fourth quarter. Architectural Glass Architectural Glass net sales were $73.3 million, compared to $86.7 million, primarily reflecting reduced volume due to lower end-market demand. Adjusted EBITDA was $13.4 million, or 18.3% of net sales, compared to $20.2 million, or 23.3% of net sales. The lower adjusted EBITDA margin was primarily driven by unfavorable sales leverage. Performance Surfaces Performance Surfaces net sales were $42.3 million, compared to $21.2 million. Net sales included $22.0 million of inorganic sales contribution from the acquisition of UW Solutions. Adjusted EBITDA was $8.0 million, or 18.8% of net sales compared to $5.6 million, or 26.6% of net sales. The lower adjusted EBITDA margin was primarily driven by the dilutive impact of lower adjusted EBITDA margin from UW Solutions, unfavorable mix, and increased corporate allocations expense. Corporate and Other Corporate and other adjusted EBITDA expense was $2.4 million, compared to $3.7 million, primarily driven by lower long-term incentive expense. Financial Condition Net cash used in operating activities was $19.8 million, compared to $5.5 million net cash provided by operating activities in the prior year period. The change was primarily driven by lower net earnings and an increase in cash used for working capital including a net payment of $13.7 million for the settlement of an arbitration award. Net cash used by investing activities was $7.0 million, primarily related to capital expenditures. The Company returned $5.5 million of cash to shareholders through dividend payments. Quarter-end long-term debt increased to $311 million, which increased the Consolidated Leverage Ratio3 (as defined in the Company's credit agreement) to 1.6x at the end of the quarter. Project Fortify As previously announced, in the first quarter of fiscal 2026, the Company began the second phase of Project Fortify (referred to as "Project Fortify Phase 2" or "Phase 2") to drive further cost efficiencies, primarily in the Architectural Services and Architectural Metals Segments. Phase 2 will further optimize the manufacturing footprint and align resources to enable a more effective operating model. The Company continues to expect the actions of Phase 2 to incur a total of approximately $24 million to $26 million in pre-tax charges, and deliver estimated annualized pre-tax cost savings of approximately $13 million to $15 million. During the first quarter, the Company incurred $15.3 million of pre-tax costs associated with Phase 2. The Company expects the actions associated with Phase 2 to be substantially completed by the end of the fourth quarter of fiscal 2026. Fiscal 2026 Outlook The Company is raising its outlook for the fiscal year for both net sales and diluted EPS. The Company now expects net sales in the range of $1.40 billion to $1.44 billion (previously $1.37 billion to $1.43 billion), diluted EPS in the range of $2.59 to $3.12 (previously $2.54 to $3.19) and adjusted diluted EPS in the range of $3.80 to $4.20 (previously $3.55 to $4.10). This includes a projected unfavorable EPS impact from tariffs of $0.35 to $0.45, which will mostly impact the first half of the fiscal year before mitigation efforts take full effect. The Company's revised outlook assumes an effective tax rate of 33% and an adjusted effective tax rate of approximately 27.5%. The Company continues to assume capital expenditures between $35 million to $40 million. Conference Call Information The Company will host a conference call today at 8:00 a.m. Central Time to discuss this earnings release. This call will be webcast and is available in the Investor Relations section of the Company's website, along with presentation slides, at A replay and transcript of the webcast will be available on the Company's website following the conference call. About Apogee Enterprises Apogee Enterprises, Inc. (Nasdaq: APOG) is a leading provider of architectural building products and services, as well as high-performance coated materials used in a variety of applications. Headquartered in Minneapolis, MN, our portfolio of industry-leading products and services includes architectural glass, windows, curtainwall, storefront and entrance systems, integrated project management and installation services, and high-performance coatings that provide protection, innovative design, and enhanced performance. For more information, visit Use of Non-GAAP Financial Measures Management uses non-GAAP measures to evaluate the Company's historical and prospective financial performance, measure operational profitability on a consistent basis, as a factor in determining executive compensation, and to provide enhanced transparency to the investment community. Non-GAAP measures should be viewed in addition to, and not as a substitute for, the reported financial results of the Company prepared in accordance with GAAP. Other companies may calculate these measures differently, limiting the usefulness of the measures for comparison with other companies. This release and other financial communications may contain the following non-GAAP measures: Adjusted net earnings, adjusted diluted EPS, and adjusted EBITDA are used by the Company to provide meaningful supplemental information about its operating performance by excluding amounts that are not considered part of core operating results to enhance comparability of results from period to period. Adjusted EBITDA represents adjusted net earnings before interest, taxes, depreciation, and amortization. We use adjusted EBITDA to assess segment performance and make decisions about the allocation of operating and capital resources by analyzing recent results, trends, and variances of each segment in relation to forecasts and historical performance. Consolidated Leverage Ratio is calculated as Consolidated Funded Indebtedness minus Unrestricted Cash at the end of the current period, divided by Consolidated EBITDA (calculated as EBITDA plus certain non-cash charges and allowed addbacks, less certain non-cash income, plus the pro forma effect of acquisitions and certain pro forma run-rate cost savings for acquisitions and dispositions, as applicable for the trailing twelve months ended as of the current period). All capitalized and undefined terms used in this bullet are defined in the Company's credit agreement dated July 19, 2024. The Company is unable to present a quantitative reconciliation of forward-looking expected Consolidated Leverage Ratio to its most directly comparable forward-looking GAAP financial measure because such information is not available, and management cannot reliably predict all the necessary components of such GAAP financial measure without unreasonable effort or expense. In addition, the Company believes such reconciliation would imply a degree of precision that would be confusing or misleading to investors. Backlog is an operating measure used by management to assess future potential sales revenue. Backlog is defined as the dollar amount of signed contracts or firm orders, generally as a result of a competitive bidding process, which is expected to be recognized as revenue. It is most meaningful for the Architectural Services segment, due to the longer-term nature of their projects. Backlog is not a term defined under U.S. GAAP and is not a measure of contract profitability. Backlog should not be used as the sole indicator of future revenue because the Company has a substantial number of projects with short lead times that book-and-bill within the same reporting period that are not included in backlog. Forward-Looking Statements This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. The words "may," "believe," "expect," "anticipate," "intend," "estimate," "forecast," "project," "should," "will," "continue," and similar expressions are intended to identify "forward-looking statements". These statements reflect Apogee management's expectations or beliefs as of the date of this release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. All forward-looking statements are qualified by factors that may affect the results, performance, financial condition, prospects and opportunities of the Company, including the following: (A) North American and global economic conditions, including the cyclical nature of the North American and Latin American non-residential construction industries and the potential impact of an economic downturn or recession; (B) U.S. and global instability and uncertainty arising from events outside of our control; (C) actions of new and existing competitors; (D) departure of key personnel and ability to source sufficient labor; (E) product performance, reliability and quality issues; (F) project management and installation issues that could affect the profitability of individual contracts; (G) dependence on a relatively small number of customers in one operating segment; (H) financial and operating results that could differ from market expectations; (I) self-insurance risk related to a material product liability or other events for which the Company is liable; (J) maintaining our information technology systems and potential cybersecurity threats; (K) cost of regulatory compliance, including environmental regulations; (L) supply chain disruptions, including fluctuations in the availability and cost of materials used in our products and the impact of trade policies and regulations, including existing and potential future tariffs; (M) integration and future operating results of acquisitions, including but not limited to the acquisition of UW Solutions, and management of acquired contracts; (N) impairment of goodwill or indefinite-lived intangible assets; (O) our ability to successfully manage and implement our enterprise strategy; (P) our ability to maintain effective internal controls over financial reporting; (Q) our judgements regarding accounting for tax positions and resolution of tax disputes; (R) the impacts of cost inflation and interest rates; and (S) the impact of changes in capital and credit markets on our liquidity and cost of capital. The Company cautions investors that actual future results could differ materially from those described in the forward-looking statements and that other factors may in the future prove to be important in affecting the Company's results, performance, prospects, or opportunities. New factors emerge from time to time, and it is not possible for management to predict all such factors, nor can it assess the impact of each factor on the business or the extent to which any factor, or a combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. More information concerning potential factors that could affect future financial results is included in the Company's Annual Report on Form 10-K and in subsequent filings with the U.S. Securities and Exchange Commission. ______________________________________________________________ 1 Earnings before interest, taxes, depreciation and amortization (EBITDA), EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, and adjusted diluted earnings per share (EPS) are non-GAAP financial measures. See Use of Non-GAAP Financial Measures and reconciliations to the most directly comparable GAAP measures later in this press release. 2 Backlog is a non-GAAP financial measure. See Use of Non-GAAP Financial Measures later in this press release for more information. 3 Consolidated Leverage Ratio is a non-GAAP financial measure. See Use of Non-GAAP Financial Measures later in this press release for more information. Apogee Enterprises, Inc. Consolidated Condensed Statements of Income (Unaudited) (In thousands, except per share amounts) Three Months Ended May 31, 2025 June 1, 2024 % Change Net sales $ 346,622 $ 331,516 4.6 % Cost of sales 271,497 232,661 16.7 % Gross profit 75,125 98,855 (24.0 )% Selling, general and administrative expenses 68,194 57,474 18.7 % Operating income 6,931 41,381 (83.3 )% Interest expense, net 3,846 450 754.7 % Other expense (income), net 682 (143 ) (576.9 )% Earnings before income taxes 2,403 41,074 (94.1 )% Income tax expense 5,091 10,063 (49.4 )% Net (loss) earnings $ (2,688 ) $ 31,011 (108.7 )% Basic (loss) earnings per share $ (0.13 ) $ 1.42 (109.2 )% Diluted (loss) earnings per share $ (0.13 ) $ 1.41 (109.2 )% Weighted average basic shares outstanding 21,338 21,823 (2.2 )% Weighted average diluted shares outstanding 21,338 22,061 (3.3 )% Cash dividends per common share $ 0.26 $ 0.25 4.0 % Apogee Enterprises, Inc. Consolidated Condensed Balance Sheets (Unaudited) (In thousands) May 31, 2025 March 1, 2025 Assets Current assets Cash and cash equivalents $ 32,831 $ 41,448 Receivables, net 189,956 185,590 Inventories, net 103,901 92,305 Contract assets 69,457 71,842 Other current assets 51,814 50,919 Total current assets 447,959 442,104 Property, plant and equipment, net 263,279 268,139 Operating lease right-of-use assets 58,961 62,314 Goodwill 236,560 235,775 Intangible assets, net 119,117 128,417 Other non-current assets 30,956 38,520 Total assets $ 1,156,832 $ 1,175,269 Liabilities and Shareholders' Equity Current liabilities Accounts payable 97,763 98,804 Accrued compensation and benefits 32,153 48,510 Contract liabilities 43,342 35,193 Operating lease liabilities 15,671 15,290 Other current liabilities 64,317 87,659 Total current liabilities 253,246 285,456 Long-term debt 311,000 285,000 Non-current operating lease liabilities 48,653 51,632 Non-current self-insurance reserves 29,560 30,382 Other non-current liabilities 32,590 34,901 Total shareholders' equity 481,783 487,898 Total liabilities and shareholders' equity $ 1,156,832 $ 1,175,269 Apogee Enterprises, Inc. Consolidated Statement of Cash Flows (Unaudited) Three Months Ended (In thousands) May 31, 2025 June 1, 2024 Operating Activities Net (loss) earnings $ (2,688 ) $ 31,011 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 12,436 9,976 Share-based compensation 2,300 2,704 Deferred income taxes 2,496 3,466 Loss on disposal of property, plant and equipment 328 22 Impairment on intangible assets 7,418 — Non-cash lease expense 3,738 2,895 Other, net 1,294 (925 ) Changes in operating assets and liabilities: Receivables (3,938 ) (9,845 ) Inventories (11,255 ) (11,337 ) Contract assets 2,596 5,511 Accounts payable 1,103 (1,871 ) Accrued compensation and benefits (16,639 ) (24,850 ) Contract liabilities 8,104 1,648 Operating lease liability (3,643 ) (3,007 ) Accrued income taxes 1,698 6,535 Other current assets and liabilities (25,130 ) (6,480 ) Net cash (used in) provided by operating activities (19,782 ) 5,453 Investing Activities Capital expenditures (7,167 ) (7,229 ) Proceeds from sales of property, plant and equipment 10 40 Purchases of marketable securities — (740 ) Sales/maturities of marketable securities 175 600 Net cash used in investing activities (6,982 ) (7,329 ) Financing Activities Proceeds from revolving credit facilities 59,000 30,000 Repayment on revolving credit facilities (33,000 ) (15,000 ) Repurchase of common stock — (15,061 ) Dividends paid (5,520 ) — Other, net (2,835 ) (4,865 ) Net cash provided by (used in) financing activities 17,645 (4,926 ) Effect of exchange rates on cash 502 (51 ) Decrease in cash, cash equivalents and restricted cash (8,617 ) (6,853 ) Cash, cash equivalents and restricted cash at beginning of period 41,448 37,216 Cash and cash equivalents at end of period $ 32,831 $ 30,363 Non-cash Activity Capital expenditures in accounts payable $ 922 $ 472 Dividends declared but not yet paid $ — $ 5,409 Apogee Enterprises, Inc. Components of Changes in Net Sales (Unaudited) Three months ended May 31, 2025, compared with the three months ended June 1, 2024 (In thousands, except percentages) Architectural Metals Architectural Services Architectural Glass Performance Surfaces Intersegment eliminations Consolidated Fiscal 2025 net sales $ 133,172 $ 99,027 $ 86,703 $ 21,204 $ (8,590 ) $ 331,516 Organic business (1) (4,548 ) 7,478 (13,430 ) (982 ) 4,560 (6,922 ) Acquisition (2) — — — 22,028 — 22,028 Fiscal 2026 net sales $ 128,624 $ 106,505 $ 73,273 ... $ 42,250 $ (4,030 ) $ 346,622 Total net sales growth (decline) (3.4 )% 7.6 % (15.5 )% 99.3 % (53.1 )% 4.6 % Organic business (1) (3.4 )% 7.6 % (15.5 )% (4.6 )% (53.1 )% (2.1 )% Acquisition (2) — % — % — % 103.9 % — % 6.6 % (1) Organic business includes net sales associated with acquired product lines or geographies that occur after the first twelve months from the date the product line or business is acquired and net sales from internally developed product lines or businesses. (2) The acquisition of UW Solutions, completed on November 4, 2024. Apogee Enterprises, Inc. Business Segment Information (Unaudited) Three Months Ended (In thousands) May 31, 2025 June 1, 2024 % Change Segment net sales Architectural Metals $ 128,624 $ 133,172 (3.4 )% Architectural Services 106,505 99,027 7.6 % Architectural Glass 73,273 86,703 (15.5 )% Performance Surfaces 42,250 21,204 99.3 % Total segment sales 350,652 340,106 3.1 % Intersegment eliminations (4,030 ) (8,590 ) (53.1 )% Net sales $ 346,622 $ 331,516 4.6 % Segment adjusted EBITDA Architectural Metals $ 9,366 $ 23,840 (60.7 )% Architectural Services 6,067 6,573 (7.7 )% Architectural Glass 13,417 20,231 (33.7 )% Performance Surfaces 7,959 5,642 41.1 % Corporate and Other (2,425 ) (3,664 ) (33.8 )% Adjusted EBITDA $ 34,384 $ 52,622 (34.7 )% Segment adjusted EBITDA margins Architectural Metals 7.3 % 17.9 % Architectural Services 5.7 % 6.6 % Architectural Glass 18.3 % 23.3 % Performance Surfaces 18.8 % 26.6 % Corporate and Other N/M N/M Adjusted EBITDA margin 9.9 % 15.9 % N/M - Indicates calculation is not meaningful. Segment net sales is defined as net sales for a certain segment and includes revenue related to intersegment transactions. Net sales intersegment eliminations are reported separately to exclude these sales from our consolidated total. Adjusted EBITDA represents adjusted net earnings before interest, taxes, depreciation, and amortization. Apogee Enterprises, Inc. Reconciliation of Non-GAAP Financial Measures Adjusted EBITDA and Adjusted EBITDA Margin (Unaudited) Three Months Ended May 31, 2025 (In thousands) Architectural Metals Architectural Services Architectural Glass Performance Surfaces Corporate and Other Consolidated Net (loss) earnings $ 3,669 $ (6,193 ) $ 10,202 $ 4,132 $ (14,498 ) $ (2,688 ) Interest expense (income), net 457 (52 ) (145 ) — 3,586 3,846 Income tax (benefit) expense (44 ) (8 ) 90 — 5,053 5,091 Depreciation and amortization 3,813 1,072 3,270 3,550 731 12,436 EBITDA 7,895 (5,181 ) 13,417 7,682 (5,128 ) 18,685 Acquisition-related costs (1) — — — 277 72 349 Restructuring costs (2) 1,471 11,248 — — 2,631 15,350 Adjusted EBITDA $ 9,366 $ 6,067 $ 13,417 $ 7,959 $ (2,425 ) $ 34,384 EBITDA margin 6.1 % (4.9 )% 18.3 % 18.2 % (1.5 )% 5.4 % Adjusted EBITDA margin 7.3 % 5.7 % 18.3 % 18.8 % (0.7 )% 9.9 % (1) Acquisition-related costs include costs related to one-time expenses incurred to integrate the UW Solutions acquisition. (2) Restructuring charges related to Project Fortify Phase 2. Three Months Ended June 1, 2024 (In thousands) Architectural Metals Architectural Services Architectural Glass Performance Surfaces Corporate and Other Consolidated Net (loss) earnings $ 17,759 $ 5,620 $ 18,050 $ 4,846 $ (15,264 ) $ 31,011 Interest expense (income), net 570 3 (112 ) — (11 ) 450 Income tax expense (benefit) 6 — (717 ) — 10,774 10,063 Depreciation and amortization 4,507 950 3,010 796 713 9,976 EBITDA 22,842 6,573 20,231 5,642 (3,788 ) 51,500 Restructuring costs (3) 998 — — — 124 1,122 Adjusted EBITDA $ 23,840 $ 6,573 $ 20,231 $ 5,642 $ (3,664 ) $ 52,622 EBITDA margin 17.2 % 6.6 % 23.3 % 26.6 % (1.1 )% 15.5 % Adjusted EBITDA margin 17.9 % 6.6 % 23.3 % 26.6 % (1.1 )% 15.9 % (3) Restructuring charges related to Project Fortify Phase 1. Apogee Enterprises, Inc. Reconciliation of Non-GAAP Financial Measures Adjusted diluted earnings per share (Unaudited) Three Months Ended (In thousands) May 31, 2025 June 1, 2024 Net (loss) earnings $ (2,688 ) $ 31,011 Acquisition-related costs (1) 349 — Restructuring charges (2) 15,350 1,122 Income tax impact on above adjustments (3) (1,161 ) (275 ) Adjusted net earnings $ 11,850 $ 31,858 Three Months Ended May 31, 2025 June 1, 2024 Diluted (loss) earnings per share $ (0.13 ) $ 1.41 Acquisition-related costs (1) 0.02 — Restructuring charges (2) 0.72 0.05 Income tax impact on above adjustments (3) (0.05 ) (0.01 ) Adjusted diluted earnings per share $ 0.56 $ 1.44 Weighted average diluted shares outstanding 21,338 22,061 (1) Acquisition-related costs include costs related to one-time expenses incurred to integrate the UW Solutions acquisition. (2) Restructuring charges related to Project Fortify Phase 2. (3) Income tax impact reflects the estimated blended statutory tax rate for the jurisdictions in which the charge or income occurred. Apogee Enterprises, Inc. 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 $ 2.59 $ 3.12 Acquisition-related costs (1) 0.14 0.09 Restructuring charges (2) 1.20 1.11 Income tax impact on above adjustments per share (3) (0.13 ) (0.12 ) Adjusted diluted earnings per share $ 3.80 $ 4.20 (1) Acquisition-related costs include costs related to one-time expenses incurred to integrate the UW Solutions acquisition. (2) Restructuring charges related to Project Fortify Phase 2. (3) Income tax impact reflects the estimated blended statutory tax rate for the jurisdictions in which the charge or income occurred. View source version on Contacts Nicholas ManganaroInvestor Relations857.383.2411apog@ Sign in to access your portfolio
