APOG Reports Q1

Apogee Enterprises (NASDAQ: APOG ) reported first-quarter financial results on Friday. The transcript from the company's first-quarter earnings call has been provided below. APIs provide real-time access to earnings call transcripts and financial data. Visit to learn more.

57, showcasing strong execution in a challenging environment. The company successfully implemented pricing strategies and cost-saving measures, particularly in metals, to counteract rising aluminum costs and other input pressures. The acquisition of Kalwall is expected to enhance Apogee's portfolio with accretive margins and open new market opportunities in education and healthcare sectors. Apogee's services segment achieved its ninth consecutive quarter of revenue growth, while the glass segment faced challenges due to softer market conditions.

43 billion, with potential adjustments reflecting the Kalwall acquisition impact. Full Transcript OPERATOR Good day and thank you for standing by. Welcome to the Apogee Enterprises first quarter earnings conference call. At this time, all participants are in a listen-only mode.

After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again.

As a reminder, this conference is being recorded for replay purposes. I will now turn the conference over to Jeremy Stephan, Vice President, Investor Relations and Communications, to begin. Jeremy, please go ahead. Jeremy Stephan, Vice President, Investor Relations and Communications Thank you.

Good morning and welcome to Apogee Enterprises fiscal 2027 first quarter earnings call. On the call today are Don Nolan, Apogee's Chief Executive Officer, and Mark Ogdahl, our Chief Financial Officer. During this call, the team 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, which are available in the Investor Relations section of our website.

As a reminder, today's call will contain forward-looking statements. These reflect management's expectations based on currently available information. Actual results may differ materially from those expressed today. More information about factors that could affect Apogee's business and financial results can be found in our press release and in the company's SEC filings.

With that, I'll turn the call over to Don. Don Nolan, Chair of the Board Thanks, Jeremy, and good morning, everyone. We're glad you could join us for our first quarter earnings call. 57 in the quarter, demonstrating strong execution across the business.

We effectively navigated a challenging environment marked by rising aluminum costs, a dynamic macroeconomic backdrop, and elevated interest rates. These results were supported by a sustained focus on cost control and thoughtful pricing actions in response to higher input costs across our segments. Results reflected a mix of solid performance and continued variability in end markets. In metals, pricing actions and cost savings from Fortified 2 drove margin expansion, supported by favorable mix and ongoing productivity improvements.

We also made continued progress in operational performance, improving quality and on-time delivery while strengthening customer relationships. Services delivered its ninth consecutive quarter of top-line growth and also increased backlog sequentially, reflecting steady project award wins and improving project flow performance. Services sustained its positive momentum with another quarter of growth supported by healthy demand across key end markets. Margins were impacted by rising input costs, which drove pricing actions during the quarter that we expect to benefit results through the remainder of the fiscal year.

In glass, results remain pressured by softer conditions in new construction and lower demand for premium product offerings. We are implementing an action plan to improve performance, prioritizing initiatives to drive order rates, enhance operational productivity, and strengthen cost management. I'm proud of our team's performance in the quarter and the progress we're making across the business. The team's actions are aligned to improve results, and we remain on track to deliver on our full-year guidance.

As we discussed last quarter, we're actively advancing our strategy, executing on our enhanced three-pillar framework while improving the overall quality and durability of our portfolio. Kalwall is a strong example of this strategy in action, demonstrating how we are building capabilities and expanding into areas that support long-term profitable growth. Our M&A process remains active as we continue to evaluate additional opportunities that align with our growth priorities and financial criteria. Turning to the Kalwall acquisition, this is a highly strategic addition that aligns with the M&A priorities we've outlined over the past several quarters.

Kalwall expands our presence in attractive, faster-growing areas of the building envelope market, particularly in daylighting solutions that are engineered, specification-driven, and aligned with energy efficiency trends. It strengthens our position with architects and specifiers and enhances our ability to deliver differentiated high-performance solutions across key end markets such as education, healthcare, and other institutional applications. From a financial perspective, Kalwall is an attractive addition to our portfolio.