APOG - Earnings call transcript Q4 2024 | Apogee Enterprises, Inc.

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Operator

Good day, and thank you for standing by. Welcome to Q4 2024 Apogee Enterprises, Inc. Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Jeff Huebschen, Vice President, Investor Relations. ahead. go Please

Jeff Huebschen

Osberg, Good accompany Fiscal Gigi. of today and to available there Investor and welcome Ty to the I'd Thank everyone in remarks, remind Fourth morning, website. and Quarter Apogee's Enterprises that Matt Officer; Executive XXXX Apogee's slides me section Financial Earnings Apogee Officer. Silberhorn, like to you, are Chief everyone, Chief today's Call. Relations are are With these

Definitions will available are also During we measures certain reflect earnings reference of this our expectations measures. the measures these morning. like on a financial GAAP differ release materially. Actual we that These everyone provided management's based call to reconciliation I'd information. call, may remind issued this deck and results contain non-GAAP will statements. the currently to and nearest slide in forward-looking

that More turn Ty. can today's found in results information Apogee's filings. about that, financial and SEC factors business to and you, be call our over With release could press affect in the I'll

Ty Silberhorn

you, thanks us quarter and fourth The finish for a Apogee. Good Jeff. strong for today. another was morning, to joining great Thank year everyone,

new and financial on priorities our 'XX, achieved executing Today, team through driving year. our move strategy is our fiscal results. our the our in how comment record business strategy, as foundation improvements Our I'll key our success accomplishments and fiscal strengthening tremendous operational in sustainable into driving we

core, presentation. is customers company. and on strategy today's in with entire of on a quarter outlook. our differentiated provide years on on long-term improving X I'll for strategic a embarked compelling overview turn to 'XX the shown fiscal building growth. our building is Then and At ago, that our more goal Page over foundation for execution operational our for that businesses direction An the it across stronger strategy value X profitable focused Matt we details new of its

deployment progress strong or highlighted on We Management made productivity Slide team X. significant our year, the past delivered on continued as System both the During of the Apogee fronts through AMS. gains

AMS the and our reminder, continuous a is framework As of foundations based improvement. lean operating on

Our exceed to to to service led expectations and improve enabling or and deployment meet has meaningful productivity improvements, customer us delivery. quality, while of AMS cost

the We away of services. highest-performing also And we our continue Architectural products. grow premium, value-added in our portfolio, our products offerings. we mix increased from In we and shift lower-margin differentiated to advanced further of In product less products. differentiated our Large-Scale mix rationalized higher move Systems, completing Framing our Glass, toward Optical,

our core We also progress made towards strengthening capabilities.

the We continue given talent XX% to exceptional operating million. evident increased reflect on in achieving nearly $X.XX. drove approach to results build a management particularly record Page with growth headwinds were XXXX, through our every And 'XX we gains performance income by progress margin Full sales structure, fiscal in out functional this top AMS XX% mix business. impressive the X. on cash fiscal significantly expertise higher in operating led added double-digit year. the results glass premium terrific improved governance We $XXX These Throughout the November were These the improved to a out productivity Glass. record of delivered strategic These of targets the efforts during the our set we further operations net support strengthened and record to and $XXX meaningful to the value-added from year, results. to toward strong to a sales to products. year our sustainability. glass million. Adjusted doubled financial as We transformation segment some faced our segment. last cost of grew made declining financial line our center-led shown we We've 'XX flow to of X%. EPS programs doubled results sales adjusted The delivered were compared year, by our Architectural and segment quarter better our in year. And needs

our to goal Adjusted target, at exceeded to target. Adjusted point basis improved a our XX.X%, our XX% fell ROIC well operating also outgrowing industry. short we improvement revenue above On XX.X%, in of margin compared year. last XXX coming our growth, of

our the initial Some of of our strategy. we emphasized goals. with these purposeful function all growing plan, to X margins great of dollars. We've a ROIC overall our strategic and while improve outset success operating of focus At this was was profit had our that

away product strong headwind are and a last for of As part also growth was was moved we've strategy, by our Revenue year. lower return nonresidential offerings construction with so in all end again Project created revenue. which doing impacted very from some dynamics our the Overall in markets. of and service Fortify,

and of much buildouts. in along data driven warehouse However, this mega growth manufacturing was with by infrastructure center and projects

Apogee decelerating rates, for remain we our market and our Many are the is participation a where our our the to the relatively offerings. cycle shorter growth has of the saw forward. with These play impacted of primary team this business. committed outgrowing product we target of move low current as the We where market, parts focus which market sectors of parts

Page November our In shown which XXXX, targets each for we our segments, financial of in enterprise established addition to X. on are targets margin

of Architectural XX%. Earlier the above X Three year, XX% segments the increased XX% to fiscal margin our a we performed from in X% for range ranges year. range the target to or new target Glass to this adjusted within of

increasing Systems Framing range we January, to in XX%. actions years, With also announced the strong to framings strategic X XX% are we of target along the the past with performance

range, level but did see further fiscal the We this improve year. Architectural target opportunity Services' services was throughout year. in margin progress sequentially the below for the

we As we build positioning intend stronger XXXX, gains the achieved while for move the on to growth. we've into fiscal company long-term

forecasts next remains tighter territory. interest note, sectors appear positive and in impacted by in standards our We The over end as and play. Most markets, the research higher This firms, as and even call on healthcare, market positive the in picture growth XX industry Slide in especially such year market increased projects for as segments key deceleration leading X. for the lending the transportation. mixed retail. On continued rates, been as construction do the headwinds segment This overall for the commercial if nonresidential see infrastructure sectors further has non-resi the in construction of next months, a some office which includes next poised a of the Over some we education, shown over level see market more we do growth such institutional year. and costs. includes

larger across success, macro team market headwinds these driven ourselves improvements a the had our remain into environment, good we strong diversifying Our focus as in us business a for end revenue puts position on mitigate of sustainable will in that we've those has foundation. verticals. year the fiscal our rebound Regardless and segment coming solid business 'XX. This a

well to as positioned would few Our forward. I on strong delivering move like a year. in elaborate company we results of to continue the priorities is coming our

also team margin the XX% on structure, Let In operational builds the gains, more to AMS building clarity on margins higher We management will as focus deployment has company's potential reflected scope mid-single strategy, have further across We page the margin digit It further a margin believe productivity X helping Framing generate on 'XX. of strong focused further Project framing growth. our we of is positions and our fiscal Systems. AMS will for enabling fiscal XX. remain moving the for which target market Fortify further culture me 'XX, years. Project over earlier performance cost range in I from business achieved gains our gains Driving gains incremental productivity will through gains, productivity a and increased the It on positioning higher allowing X. the fiscal Project a Apogee focus operating by opportunities. start of return growth, spoke as to achieved, to and journey, us primarily outlined were Fortify 'XX cost view our continue company. improving success a strategy. brings segment. multiyear Fortify excellence These advances improving past our offset in future broaden on our discussing go-to-market actions we headwinds. for to Framing the about in AMS AMS system. Page

growth, I'd our on increased XX. Next, on which focus outlined is to like Page address

opportunities We for end mindset growth. a set are always growth serve that means in driving a everything do, we we diverse very and are there That markets. given large of

opportunities We to on market. those seizing are outperform overall focused the

differentiated Our deep in combination brands, customer positions fragmented to offerings leading relationships industry. share of and a gain us

of our the particularly Services in and pursuing Framing to are underrepresented we are today. Canada expansions, Systems, reach and where U.S. portions We geographic expanding in

continuing by gains product share for service opportunities and improve see our performance. levels also We to our

derisk already in with the Services seeing projects to with be some seeking our may With flight growth to like by quality industry-leading their suppliers Harmon brand. recent working we backlog, customers

We sectors diversify sales adjacencies, into within particularly Large-Scale mix, This focusing the on also growth continue Optical. attractive of higher our to includes expansion market.

will our progress we we've growth, will Finally, of investment including up, opportunities organic To and the accelerate proud achieved. investments very we continue are evaluate that to that both acquisitions. wrap

for foundation financial performance. our stronger our we a established have significantly and improved We company, have

turn years to gains, let in inorganic focused ahead. it these and Our the our opportunities accelerate team and is on to that, earnings further Matt. organic over growth on me building driving margins With

Matthew Osberg

everyone. morning, Thanks, Ty, and good

with review our of I quarter, year. will of the in begin a then full the results I'll summarize of highlights First, the some

delivered I'll growth quarter strong close EPS to we as 'XX. fiscal expansion, flow. our adjusted outlook continued fiscal to strong a for 'XX margin generate operating Finally, exceptionally was adjusted discuss cash and fourth The

business. growth achieved parts also time our lead longer the backlog We in meaningful of

compared and week As 'XX. to a the fourth of operations reminder, included an year full extra fiscal the quarter

XX% increase to improved of $XX.X initiatives. basis results of or framing. quarter, glass. growth driven net included included million due in fourth sales net SG&A. from Fourth million driven was restructuring charges by was quarter. especially of with last higher associated by $XXX charges, to to the primarily This was was Fortify, in partially million compared SG&A sales. $XX.X $XX.X points, improved at related pricing $X.X increased of grew lower Project charges XX.X% quarter of primarily year's and volumes, sold in increased to and restructuring X% The along Looking and the to which profit million. offset Including benefits gross to expense the cost-saving compensation-related sales income This net cost costs. Operating by in and mix, for XXX Project Fortify million with $X.X was gross by fourth margin XX.X% goods these fourth was included net pricing in quarter mix X% sales of and improved results million

was This primarily operating the margin operating by driven operating to diluted restructuring, higher income was of expanded and EPS improved $X.XX. adjusted This Excluding XXX segment driven Diluted impact X.X%. operating glass. was and income. $X.XX XX% XX% points basis in adjusted primarily grew adjusted grew margin by adjusted EPS to

results for reflecting Turning included results to that due the related quarter, $X Ty the the construction Fortify. of charges sales framing volumes, Framing segment commercial deceleration to in million lower restructuring Project declined net described. activity to X.X%

adjusted X.X%, charges, points primarily million. these sales less third the due contracted to of margin mix volume to basis operating $XXX Excluding the for to Framing X% lower compared favorable framing backlog XXX increased to and of projects. a quarter impact

Project longer of the of segment. phasing the time out a work Fortify, framing part some we As within are lead

for backlog and forward, a in making projects the segment. framing completed the be Going will measure less, of months X less relevant most or

a next backlog we As framing no will segment. result, the report for longer beginning quarter,

while outperform $XXX The for segment and XX% operating pricing margin income continued segment glass grew offset to partially sales operating of to X% our basis operating expanded nearly glass million, XXX by by compensation mix expectations, segment improved by million, and grew $XX.X increased primarily doubled basis by XX.X%. driven points to more points sales a costs. higher X.X%, driven adjusted to margin Net mix. Services favorable to XXX and projects,

significantly in than X% XX% market Services a increased year. above third backlog we've quarter market position backlog challenging This ended higher million. reflects and environment. last is strong even This at the the our $XXX quarter more as

services growth to efforts the our sectors. in reflects with hospitality, backlog and significant wins our in Importantly, diversify project continued the mix healthcare transportation

with year-over-year lower flat essentially were sales offsetting volume. mix improved LSO

to mix. basis operating improved $X.X due by margin higher and increased restructuring in reflecting of to primarily related expenses However, charges to compensation-related improvement the XXX XX.X%, costs. Fortify million Corporate Project points

$XX quarter. to million had Turning operations flow, we generating $XX cash compared in quarter result, from to strong another million last in cash year's of the fourth

down debt. paid million Our X.Xx This to brought of leverage EBITDA. in reduction primary the was $XX our use net of quarter ratio debt as adjusted trailing cash we down XX-month

grew increased year, XX.X%. company's delivered. $XXX Cash Adjusted a proud margin the Adjusted at the in XXX cash points fiscal to flow Looking we best nearly to the very results diluted operating full EPS operations from the we basis are doubled $X.XX. history. to of record flow XX% million,

$XX During a we down our automation. the invested debt other capital LSO capacity expansion productivity enhance million paid in funded and to in year, $XXX expenditures, million which through and by projects

million ROIC as repurchases. and well, Adjusted of $XX through to dividends share returned also We improve to cash reaching continued XX.X%. shareholders

For in line Services sales to range, to sales our X% target Glass we in top 'XX. both by target and XXX% margin almost XX% the sales improvements operating delivered expect bottom X% operating the and X% the range. but by lower of doubling below declined segments, remained segment fiscal margins operating net top and XX% grew while the Framing, margin. income Despite adjusted at

sales XX%. remained at but LSO margins declined, over strong very

Fortify outlook fiscal certain we includes sales product Glass on eliminate X related percentage range as lower-margin in the of Moving to decline approximately 'XX, year decline to market fiscal growth the and of this expect Ty decelerating a point of end and expect to net year X% to Framing offerings. Also, we reverting actions service X%. for pressure pricing discussed, related X our to to XX-week percentage to decline put and This volume points approximately to segments. 'XX Project and

our channel we backlog in expect a sales of be Framing approximately channel new pipeline to offset in retail declines growth. headwinds and Services in LSO Glass projects adjacency We as as offset with partially by strong sales flat growth execute

adjusted approximately our consolidated we expect trends, to at flat Looking margin margin operating fiscal 'XX fiscal remain to 'XX.

to be range improve to new framing elevated expect the target and XX% XX%. margins within We of

the the to year higher We move to XX% with moderate margins progresses. half expect and target sequentially the range year will back in of and fiscal the glass as first the 'XX into compared segment XX% expected declining

improve and to the expect to X% margins We X% will Services' range. target move closer

depreciate We but LSO to we into decline be for begin expect the above new margins target XX% to capital the expand range. expansion, capacity assets as still adjacencies and our

expect 'XX. corporate levels incurred in to what fiscal we to we approximating costs Finally, return

$X.XX, material net adverse EPS of $X.XX to in with of diluted impact to range a to impact adjusted forecasting adjusted by related are approximately We Fortify. with year to the no EPS XX-week the a expected of $X.XX Project expected EPS reduce impact reversion the diluted sales

approximately expect and XX.X% $XX million average anticipate an expenditures to during We rate $XX of capital million tax of the year.

impacted flow to Finally, operations changes we from past the begin as expect that the lower cash years capital normalize. X working

with cadence Looking fourth prior to EPS our by to the fiscal we the level at lowest year the 'XX. week expect additional the sales first be quarterly and being quarter of the the comparison year for of in impacted quarter year,

was this great closing, to quarter a In another finish strong year.

make to that, financial to Over and the a achieved. the continue there have stronger business it opportunities back have believe to I'll are investments in years, what we the for past built to already operational on we and organic concluding and With build turn over remarks. Ty company, for some X we foundation inorganic

Ty Silberhorn

a We've has leverage To I we thank weather solid a our Matt. growth. driven opportunities our excited as performance of team really delivering accomplished what and to as as Execution change volume have improvements any wrap and set quarter. for us to created business differentiated business. for and and our operating more strategy of our achieved slowdown up, creating another led glass productivity in in of Thanks, our cost the fiscal focus systems. These I'm strong importantly, we we've a products for step increases ahead across saw proud about on I'm financial want core sustainable mix and strong foundation to with processes 'XX. and operational a improvements, grown profit of build stronger improvements meaningful

strong us fiscal focused these for successful Our take and while questions. year positioning a fiscal that, on your delivering building team is we're on ready improvements With 'XX another 'XX. to in

Operator

& from Our Julio of Instructions] Romero line question first comes Company, from [Operator the LLC. Sidoti

Julio Romero

some things about the to sales Can the of shorter lead doing a the for you is us refresher stuff wanted within I time a like current post within you're that what and Project give the maybe second quick of looks Fortify and talk between Framing. lead ballpark work longer of longer out Framing, what and cycle within time the work some maybe framing? phasing mix of

Ty Silberhorn

away Yes. kind of Julio, from within let moving services me of kind start Fortify that by and Project with talking that. we're the product about lines just the

So we lot we of from we business a 'XX, if commercial but separate go-to-market. structure kept those end calendar the laid a a out in you X-business-unit units, remember consolidated of at of the kind strategy

our finishing then supply window would small wall business like business. A window our what So manufactured curtain and part window a of our wall for storefront wall look included and of and business and and wall projects.

typically So supply is side that that million projects call wall part projects, some million installation. saw of in all and a line felt $X were That business. $X that's $XX $XX curtain is was to margin-wise, encompassing let's that segment including to and of of $X it, We type doing we margins. we lower we wall window type the doing, but million our Services those product end-to-end, million to million improve $X could end path underperforming for a million,

same get to business have saw improvements, more been margin we some accretive but were overall our goals. being and to that working make on our to to time, get margins really price that. to we those We going made offerings closer it at on and They the have have sustainable

more aggressive start be we As those erode throughout on we volumes we've see and to the as 'XX. down that market saw to fiscal tended pricing, slowing

will move the of made we that's we business from. the decision away that, so that part And

revisit really completely, and to our cost a of of and of to and exit consolidation. to some allowed in do facilities side But framing allowed In that result as the products look take one entity. of run some of opportunity chain kind it open systems We that. a leverage single us already had Wausau, with that, some been us working it synergy as and a operations also some doing from at capacity footprint supply basically to those manufacturing Wisconsin allows this us

Matthew Osberg

to from this percentage terms I'd yes, of how Julio, there's to wall step start that. size Ty phase headwind about out to as X in that called project, of a add are Matt. that as is some continuing out, of on we point longer-term away We And kind those this And that just year to projects. mentioned. that unitized think curtain business you about longer-term

would of that than into phase this we've some headwind less year span will of 'XX, that be By out end it continue kind as So 'XX, of project fiscal the but flow fiscal revenue. of to the that we be our out. that would got

Julio Romero

of could the way you -- us number and track and healthcare Got up stands of I gave believe, then name the just way mix done, showed us you is what help I it. color education Just you maybe towards you of how like help market and about Any can from end cetera. love on Slide the the earlier, will want et much sales there. mix. where think now? X, exposure make of you've tell the us spoke That's work healthcare, about to kind moving the portfolio helpful, really end overall. diversifying any And you kind where maybe years X you market diversification Maybe the [indiscernible] today, moving. us the guys transportation, in education, helping

Ty Silberhorn

is Yes, this Ty.

color. bit Let me little of give a

most So use some the we that chose just data FMI. recent data, to from of

been current the X% a and I've to is widest things, up the wide the down important XX%. 'XX it's of it firms That's range at look pretty from since I at highlight, actually range if projections now. One calendar from years the year. market you seen I've just calendar That's non-resi Apogee construction, for research for think X.X is the anything to

just market, the of it's the for a we've probably think although, I of a it's takes than So segments, in half highlight said, perspective. front some the wanted and be When market in perspective, half, it little more bit probably and that got the our of is quarter one businesses toughest that to back calendar some other first I uncertainty you Framing and puts types. from will line as we bodes from is a those toughest, those things a quarter look top broader Matt think building year, at

We more to have education, recreation. get airports. for is really been to Transportation us healthcare, get to more get working more

types almost step for we've made of that we really that. So been and years those segments focused X nice have in a are now building change to on diversify

the couple with if want wall it and types you of window call a the If kind XXrd maybe curtain you our downside grow FMI of our us of and that still exit just being to kind then And you percentage have to currently of probably little of building full which define wall say kind negative week, further FMI and end we supply we and puts is addressable of market, slightly in the that as going at the that range. at and bit, points. that then some deal look to of addressable play a pull supply, to report looked -- would market

minus XXrd bit uncertainty minus the on So at of with we're these how little out X%. That's kind forecasts, week, might course through X% a of that seeing the kind looking hedging we're a the to just us of, play ex that of some year. in

Matthew Osberg

in us wins. recent that as that project But the think stuff and the only these projects has to of we've segments there the of been we winning tried see, I focus improvements backlog. out more been I very and to Julio, on we're has thing lots would add in call and helping we So backlog diversify, growing mix diverse, to QX continue up in right? Services, obviously in that this market show quarter, of made it that in I our their that in seeing is particular, there's And are really

Ty Silberhorn

share we backlog sequentially huge again, which you before, Services, mean, I But Office, part down ago, was mix our it if that's a across is our this or year. commented and big we've our as competitive easy reason, at Yet award don't X is the to as that, for reports years backlog for of reasons. fiscal look quarter point down significantly, businesses was in actually you the again and to year fiscal the compared and one up. last there, a

a signal. to that us still will in medium We're So us for is positive getting the the diversification allow long business, and the and both term. it grow

Julio Romero

helpful. Got Ty, And the down it. sequentially. on appreciate comment, Really last I Office being

one I that there? just of on the one Maybe talked terms Can about me of expansion the be just us would geographic think in think quick how mix market about expansion westward you in give Services. us a progressing really the is diversifying in for that's of end the terms helps things. you the things last update

Ty Silberhorn

Yes.

had We'll that Framing. want do and to those perspective additional then of Services some a one help started footprint we market, be in capacity pursuing to they from in as west expanding Rockies, we nice current on we very There do have last that. we for of West some be had some win. both quarter, And for -- They working that's And supply There the well. active when one the of things a have some building things us the other of addition the work facility out of the making continue challenges of create on addressable existing backlog. kind came types, investments, So is through was to Texas an talked projects Framing. at Rockies. the are they we with look west what to

I mean last Southwest nice had some and year. growth the the West

really those business without Framing footprint Our out has markets difficulty a there. reaching having

look even So building an to there things X kind likely truly to build those their to to Toronto get pretty we been organic a Framing pretty inorganic. they're play footprint. some today of It's allow look how a really the North footprint either greater all working were of Rockies. has of Canada, that the can east plan or with when and buy across -- or we which today limited at combination limited America, And we of on at have both to area they're

area we're again, make looking So both, that's an to and organic additional in some inorganically. investment

Operator

moment question. One for our next

from comes the question Brent Thielman Davidson. next of line D.A. Our from

Brent Thielman

regardless guess first you slide I outgrow for would the slide have year. of great is the in ability a guess view? deck Ty, the categories moving think in just growth you here market sort be, question forward. in is investments, where focused just, of objectives the that around on among the impactful I capture Congrats in have do to be and on high-growth terms opportunities what share to to fruit your most going low-hanging kind my your And market accelerate you of is to of conditions? And X

Ty Silberhorn

It's good and little that. as know, there, there's tighter stiffer market softening, market softens, see like effort say respect I would to say competition lot take a I of gets I'd to we to question, going bit but because, think it's you fruit Brent. a great with Yes. a the as as the low-hanging

if on seeing, script, really Now up Services, go to sure seen picking we I some seen, they the a they're to flight okay, we developer projects, got make commented we have I'm and in that, want a of to well. maybe like we've what business I've limited contractor, bit that sure a a of make number believe, and little we're quality is

plays signals businesses we some frankly, that we're our all of that Framing. for, seeing that, for think so And of and well Glass, Services

promote Services gain in share opportunity particular. how and to that that that understand And for a more we we're So for digging might strongly. becomes Framing better and

that could So to in I see area we think we're that. benefits focused some that's short-term the with respect that one potentially

in pipeline, geographically, really fiscal we've a And reach build, I the can slow, to active in step private been we active because because as rates, focus. look for a data, see opportunities, But of that. and that term that's more either or us a being acquisitions diligent think and part bit can number talked read as very were get of M&A about, we combination at and long a doesn't bit of relatively being a though going market we'll year. sidelined, do we being the the interest medium with that's also didn't mean a footprint to you very that take deeply we're Even into more equity able and to strategic that. that of of that, has buy to continue very of engage our

great accomplish add has fit, that that's our the going we're and value growth owning over goals, generate our financial term. something help more we confident to and long a that value including asset strategic objectives us want we So that can

Brent Thielman

Okay. underlevered clearly leverage some that right I with picture pipeline? around can you in then indications all you That's And and continue to macro corners as to the if the looking changed kind of coming views helpful. the your in now, at you same monitor guys the of murkiness are but time, what today, capital, deploy at potentially some market guess you're see

Matthew Osberg

No.

some some as in investments them like you're mentioned, find an very to love in capacity we'd Ty growth -- Ty online of made M&A services initiatives. Like expanding Ty there. LSO think as move the And this Brent. be market, help growth, come and to to west both active able opportunity to like mean, in that fiscal said, 'XX in in to invest our we're to year. and we'd should we some capabilities continue right, invested I for I said, obviously, we've invest more

from in asset. So make we're like growth and the that be that try going that able looking and put are to us we'd leverage definitely add right some path do a perspective to help some to would investments to a good with and

Ty Silberhorn

ROIC. Yes. mean years was business. XX% ago, I it mean, our capital. -- We've got the cost X%, at I of that's Three below well

So we're opportunities. for for we looking to shareholders those drive see investment and value those opportunities our do

of offerings, not to organization our managing That's product is the some the profile focus the to So especially to growth that's that say and cash. off that doing. of really really of the market kind last ball margin drive of we're tail mode we're in area terms generating going up and in But what our take to. the we're going of eye Fortify the regardless with of cleaning

into the It's and that growth, been wise, to get the last team outperform market. the So stepped fiscal organic the months in we as go couple has message go acquisition of 'XX. both

if the got the market or being end a less up to market. outgrow we've that path does market down down, is we as So and grow to find a to be find got to path up,

the team And the message for so our for fiscal is that and focus 'XX. the

Operator

next moment One our for question.

B.J. Research. of Singular Our comes from next line the Cook from question

B.J. Cook

some QX. You guys announced pricing in higher

Just is wondering correlated some Or there's lower-margin more some it of an pricing indicator eliminating if power? to projects.

Matthew Osberg

Yes.

any take price. and of think in year pricing especially we B.J., the earlier of we in some shift QX. strategies, as that the didn't the initiatives benefits value-add place the we the to We mix got were from I the to in and put pricing QX, so some glass, higher as, just way specific had well actions in are in improving trying

think a that I of put carryforward the earlier were is of year. place a in in lot it things

at we in well. both 'XX. called you see have pressure in on we coming we as fiscal looked on why pressure -- do our will and probably X fiscal And revenue 'XX, some down volumes, then price those some Glass And and to that's from have as looked Framing perspective

pricing in no place we in initiatives put that QX. So new

B.J. Cook

it. Got it. Appreciate

what are currently into to about you expanding strategy, guys some additional that there's you I markets. could your mentioned doing just wondered investment talk a or You changes any there? if any bit maybe adjacent significant

Ty Silberhorn

front the both start that for online pursuing leverage those where some applications. at ability later our acrylic adjacent and will in Optical offer coming aggressive allow I'd be they glass offerings can market this Yes. product the capabilities the that Large-Scale to That year, coding them new coder have for different differentiated applications with with is on some more markets. they really strong we see to immediate

go going but they into those starting and nice build they're So us that a as look beyond, we 'XX the as it to pipeline needle to will but healthy that's not fiscal move adjacencies. at fiscal in got we've up 'XX, set

our further geographic, again, inorganic we've our again, and to And that service organic can of to has then focus that. our looking approach then And are that's further then to and building in so goals that avenue that. reach our for just us business look that offering, be margin materials And a that products, pipeline, on another done, certainly, long-term at that out allow project diversify as we we in some we we'll the in kind kind well, our right, portfolio, adjacencies And acquisition about the as doing west. at well. as backlogs but our how product continue move diversify talked of for or becomes different us to to accretive way expands trying team and types into strengthen current our

Operator

next One question. our moment for

the line Jon Our Braatz KCCA. of next from from comes question

Jon Braatz

especially guess, cycle? able regarding across of Project the All taking to level doing and things the What you goal? doing, question you're segment, Fortify. that in the -- how margins help within things segment actions I that, out will would that Architectural you're the achieve will Framing some that be the Ty, the you're are

Ty Silberhorn

the for thanks there's Jon. things. of a Well, say I'd question, couple

yes, we we're it one, years decided felt the the in to it look get in makes I wanted X it some demonstrates we from say portfolio transparent. at able would from we haven't even there. that And teams path because where really our fully we difficult. isn't just perspective, more been if being a leadership had a margin softens, market products to business and that a took think that. achieve to path good we we And it keep that and So hard We saw that ago there

piece we that had reset us to At is of kind take time, last where it margin want off to kind kind the in the up of clean floor. of what bandage to out. on let's cost of then for ground move same us peel our solid So be forward. That, do the of to put allows and kind we portfolio and me, to

for digit have probably double in not down has QX, would had -- in -- Framing if So would XXrd week QX. pull-through and have been probably order some

looking with at over QX something going QX look that's together. gives cost some for that additional so they're But Framing us gives and a confidence softer of bit kind of in to we're And going stay that us them QX even did XX% some still setting to those to perform as probably by at it volumes taking and a rougher to up actions, it opportunity manage how XX% we're range.

to result. in bottom to a is. even consolidate much XX% -- get flow fair have feel we good drop or the something saw new exceed way really a the volume our position XX% like as to of expect to pushes same quarter start in yes, as And then And them that us really footprint, which the to dollars expect then starting that that there, range. about we that line through that going some we Glass, business they a leverage, as maybe of might summer, volume the we that we We're strong and And to by as But we're positioning done Glass, through amount to confident. end feel in they that. a they see puts which meaningful top where flow be in to great business

Jon Braatz

Okay.

more about schedule, you you of annualized a in that? in stand can $XX Okay. And you announced $XX XX% those remainder when cost and than talked you savings? Fortify, think ahead Can 'XX talk million in little you're then whether you Project January bit to 'XX. of actions, about a Where million, on do you do these cost secondly, savings little back annualized bit

Matthew Osberg

Jon, savings. Yes, total on for the of amount of it's related charges and of annualized amount both we're to Fortify track cost Matt. kind the

Operator

Silberhorn, At the Ty you. now I to would this back remarks. like CEO, time, Thank turn over to conference for closing

Ty Silberhorn

us upcoming for our Everyone, day. next to at or conference today. earnings great investor connecting call. thanks Well, at forward look a We right. joining All have an

Operator

This concludes you today's for Thank participating. conference call.

disconnect. may You now

Apogee Enterprises (APOG) 18 Apr 242024 Q4 Earnings call transcript