Apogee Enterprises raises FY27 adjusted EPS guidance to $3.00-$3.40, reaffirms acquisition strategy

25 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 second quarter of fiscal 2027, ended August 29, 2026. 4 % (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.

“We are pleased with the second-quarter results which exceeded our expectations, driven by strong execution across the business. The benefits of disciplined pricing, productivity initiatives, and ongoing operational improvements helped offset a mixed demand environment," said Don Nolan, Executive Chair and Chief Executive Officer. "The momentum we established in the first half of the year, combined with our confidence in the business, supports our decision to raise full-year guidance. We also advanced our strategic priorities through the acquisitions of Kalwall and Groglass.

4 million contribution from the Kalwall acquisition, price, and favorable mix, partially offset by lower volume. 6%, primarily due to price, productivity improvements, including the net benefit from Project Fortify 2, and the accretive impact of the Kalwall acquisition, partially offset by higher material and manufacturing costs and impacts from lower volume. 0%, primarily due to higher incentive compensation expense, partially offset by cost savings from Fortify Phase 2. 6%.

4%. 1 million, primarily due to a nonrecurring New Markets Tax Credit. 1 million, primarily due to lower average debt balance. 98.

5 million, driven by favorable price, partially offset by lower volume. 8% of net sales. The higher adjusted EBITDA margin was primarily driven by price, improved productivity and cost savings from Fortify Phase 2, and favorable mix, partially offset by the net impact from higher aluminum costs and lower volume. 5 million, primarily due to increased volume.

0% of net sales. The increase in adjusted EBITDA margin was primarily driven by project mix and higher volume. 3 million at the end of fiscal year 2026. 4 million contribution from the Kalwall acquisition and favorable mix, partially offset by lower volume and price.

1% of net sales. The decrease in adjusted EBITDA margin was primarily driven by price, higher manufacturing and freight costs, and lower volume, partially offset by the accretive contribution of the Kalwall acquisition and favorable mix. 3 million due to higher volume and price. 2% of net sales.

The decrease in adjusted EBITDA margin was primarily driven by the impact of higher material costs, partially offset by price and increased volume. 3 million in the prior year. The improvement was primarily due to the benefits from cost savings related to Fortify Phase 2 and lower health insurance costs, partially offset by higher incentive compensation expense. 3 million in the prior year period.

2 million of dividends. 7x at the end of the quarter. ________________________ (1) Backlog is a non-GAAP financial measure. See Use of Non-GAAP Financial Measures later in this press release for more information.

(2) Consolidated Leverage Ratio is a non-GAAP financial measure. See Use of Non-GAAP Financial Measures later in this press release for more information. Fiscal 2027 Outlook Reflecting stronger-than-expected first-half performance, the anticipated contributions from Kalwall and Groglass, and current macroeconomic conditions, the Company is raising its fiscal 2027 outlook. 25.

The Company’s outlook also assumes interest expense of approximately $15 million, an adjusted effective tax rate of approximately 26%, and capital expenditures between $35 million and $40 million. 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 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 part of core operating results, to enhance comparability of results from period to period.

The Company is unable to provide a quantitative reconciliation of its forward-looking adjusted diluted EPS guidance to the most directly comparable GAAP measure without unreasonable effort because it cannot reliably predict the timing and magnitude of certain items, including acquisition-related costs, integration costs, restructuring-related items, and other discrete items that could materially affect GAAP results. Adjusted EBITDA represents adjusted net earnings before interest, taxes, depreciation, and amortization.

The Company uses adjusted EBITDA and adjusted EBITDA margin 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.

All capitalized and undefined terms used in this bullet and not otherwise defined herein are defined in the Company’s credit agreement dated July 19, 2024, which is included as an exhibit to the Company’s most recent Annual Report on form 10-K. 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 without unreasonable effort because management cannot reliably predict all the necessary components of that GAAP measure.

In addition, the Company believes such reconciliation could imply a degree of precision that would be confusing or misleading to investors. 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. Backlog is an operating measure used by management to assess future potential sales revenue. It is most meaningful for the Architectural Services segment, due to the longer-term nature of their projects.

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. 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.

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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) financial and operating results that could differ from market expectations; (H) self-insurance risk related to a material product liability or other events for which the Company is liable; (I) maintaining our information technology systems and potential cybersecurity threats; (J) cost of regulatory compliance, including environmental regulations; (K) 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; (L) the ability to complete announced acquisitions on expected terms and timing; the successful integration and future operating performance of acquired businesses; and the ability to achieve anticipated benefits, including cost synergies, within expected timeframes; (M) our ability to successfully manage and implement our enterprise strategy; (N) our ability to maintain effective internal controls over financial reporting; (O) our judgments regarding accounting for tax positions and resolution of tax disputes; (P) the impacts of cost inflation and interest rates; and (Q) the impact of changes in capital and credit markets on our liquidity and cost of capital.

These factors are not exhaustive. Additional factors that could cause actual results to differ materially from those described in the forward-looking statements may emerge from time to time, and it is not possible for the Company to predict all such factors or assess the impact of each factor, or any combination of factors, on the Company’s business. S. Securities and Exchange Commission.

Apogee Enterprises, Inc. 8 % Apogee Enterprises, Inc.

Consolidated Condensed Balance Sheets (Unaudited) (In thousands) August 29, 2026 February 28, 2026 Assets Current assets Cash and cash equivalents $ 36,529 $ 39,523 Receivables, net 206,327 198,516 Inventories, net 116,760 98,059 Contract assets 68,806 59,512 Other current assets 43,888 43,823 Total current assets 472,310 439,433 Property, plant and equipment, net 277,349 255,032 Operating lease right-of-use assets 42,534 48,736 Goodwill 255,499 236,744 Intangible assets, net 154,383 111,261 Other non-current assets 42,029 31,139 Total assets $ 1,244,104 $ 1,122,345 Liabilities and shareholders' equity Current liabilities Accounts payable $ 89,423 $ 105,478 Accrued compensation and benefits 45,506 39,667 Contract liabilities 59,343 60,903 Operating lease liabilities 14,618 14,729 Other current liabilities 55,749 46,079 Total current liabilities 264,639 266,856 Long-term debt 335,545 232,279 Non-current operating lease liabilities 32,351 39,375 Non-current self-insurance reserves 26,866 24,914 Other non-current liabilities 61,369 47,127 Total shareholders’ equity 523,334 511,794 Total liabilities and shareholders’ equity $ 1,244,104 $ 1,122,345 Apogee Enterprises, Inc.