Apogee Enterprises (NASDAQ: APOG), a leading provider of architectural products and services, reported strong second-quarter results for fiscal year 2025 on October 4, 2024. Here are the key highlights:
- Revenue: $342.4 million, down 3.2% year-over-year but beating analysts' estimates of $335.3 million
- Gross Margin: Improved by 140 basis points to 28.4%, driven by improved pricing, favorable product mix, lower material costs, and reduced insurance expenses
- Adjusted Operating Income: Increased 6.4% to $43.1 million, with adjusted operating margin improving by 110 basis points to 12.6%
- Adjusted EPS: $1.44, up 5.9% year-over-year and beating consensus estimates of $1.23
The company's strong performance was driven by its strategic initiatives, including improved pricing, a favorable project mix in the Architectural Services segment, and cost management efforts. Despite lower volumes due to challenging market conditions, Apogee demonstrated resilience and operational excellence.
Encouraged by the solid results, Apogee raised its full-year adjusted EPS outlook to a range of $4.90 to $5.20, up from the previous guidance of $4.65 to $5.00. However, the company maintained its expectation for a net sales decline of 4% to 7% for fiscal 2025, reflecting the broader economic environment.
Ty R. Silberhorn, Chief Executive Officer, commented, "The momentum we've established in the business, combined with the recently announced acquisition of UW Solutions, position us for continued success as we move forward."
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