アポジー・エンタープライジズ（APOG）2027年度第2四半期決算説明会：業績予想を上方修正

主要なポイント

• 2027年会計年度第2四半期の売上高は、金属およびガラス製品の販売数量減少により一部相殺されたものの、CalWall、価格改定、良好な製品ミックスに支えられ、前年同期比9.2%増の3億9,110万ドルとなりました。
• 調整後希薄化後EPSは19%以上増加して1.17ドルとなり、調整後EBITDAマージンは30ベーシスポイント拡大して12.7%となりました。
• アポジーは、2027年会計年度の業績見通しを、売上高14億6,000万ドル〜15億ドル、調整後希薄化後EPS 3.00ドル〜3.40ドルに引き上げました。
• サービス部門は10四半期連続の売上増加を記録しました。受注残高は前年同期比5%増、前四半期比13%増の8億3,300万ドルに達しました。
• ガラス部門の売上高は、CalWallからの1,640万ドルを含め、21%以上増加して8,740万ドルとなりました。セグメントマージンは前四半期比で改善したものの、前年同期の水準を下回ったままです。
• 経営陣は、価格改定、生産性の向上、Fortify Phase 2のコスト削減が業績を支えた一方で、原材料のインフレ、製造コスト、軟調な市場需要が引き続き圧迫要因となったと述べました。

主要財務データ

事業および業績の動向

金属部門：売上高は1.8%増加し、約1億4,400万ドルとなりました。販売数量の減少を良好な価格設定が補いました。調整後EBITDAマージンは、価格改定、生産性、良好なミックス、Fortify Phase 2のコスト削減に支えられ、15.4%拡大しました。アルミニウムコストの上昇と販売数量の減少が相殺要因となりました。

サービス部門：主として販売数量の増加により、売上高は8%近く増加しました。調整後EBITDAマージンは、プロジェクトミックスと販売数量の貢献により5.8%に上昇しました。受注残高は四半期末時点で8億3,300万ドルとなり、競争環境にもかかわらず継続的に案件を受注していることを示しています。

ガラス部門：売上高は、CalWallからの1,640万ドルの寄与と良好なミックスを含め、21%以上増加して8,740万ドルとなりました。販売数量と価格の減少は、需要の軟調さが続いていることを反映しています。調整後EBITDAマージンは14.9%となり、前年同期比では低下したものの、第1四半期の8.7%からは上昇しました。経営陣は、前四半期比での改善の要因として、執行力の強化、受注率の上昇、生産性の向上、厳格なコスト管理を挙げています。

高性能表面材料部門：販売数量の増加と良好な価格設定が牽引し、売上高は14%以上増加して約5,500万ドルとなりました。調整後EBITDAマージンは、原材料コストの上昇がこれらのプラス要因の一部を大きく相殺したため、22.5%に低下しました。

CalWallは引き続き経営陣の買収時の予想に沿った業績を上げています。アポジーは、最初の12か月間で約8,500万ドルの売上高と15%の調整後EBITDAマージンの達成に向けて順調に進んでいます。

アポジーはGroGlassも買収し、差別化された技術を獲得するとともに、欧州および高付加価値エンド市場でのプレゼンスを拡大しました。経営陣は現在、GroGlassが最初の12か月間で約3,000万ドルの売上高と25%の調整後EBITDAマージンを創出すると予想しています。

業績見通し

アポジーは、上半期の業績、全社的な施策の実行、並びにCalWallおよびGroGlassからの見込まれる寄与に基づき、2027年会計年度の通期業績見通しを引き上げました。

経営陣は、売上高および調整後希薄化後EPSが第3四半期と第4四半期の間でほぼ均等になると見込んでいます。CalWallとGroGlassは売上成長に大きく貢献すると見込まれますが、2027年会計年度の調整後EPSへの貢献度は限定的となる見通しです。

リスクおよび注視すべき点

• ガラス市場の環境は引き続き軟調であり、対象プロジェクトの減少、販売数量の低下、プロジェクトの遅延が見られます。
• 金属およびガラス製品の販売数量減少が、当四半期の連結業績の重荷となりました。
• アルミニウム、原材料、製造、輸送コストの上昇が、引き続きセグメントマージンを圧迫しました。
• 高性能表面材料部門における価格改定の取り組みは、原材料・投入コストのインフレを相殺することを目的としていますが、経営陣はマージンの回復には生産性の向上やコスト削減も不可欠であると強調しました。
• 同社は1.7倍のレバレッジ比率を維持しながら2件の買収の統合を進めています。追加の買収が行われない場合、経営陣はキャッシュ創出によってレバレッジが低下すると見込んでいます。

アナリスト質疑応答の要点

ガラス事業について、経営陣は市場環境が著しく改善したわけではないと述べました。好調な結果は、第1四半期後に導入されたアクションプランの実行を反映したものであり、受注率の上昇、生産性の向上、コスト管理の強化などが寄与したとしています。

金属の価格設定について、同社はアルミニウムコストの上昇は主にサーチャージで対応するのではなく、全体的な価格体系に組み込まれるのが一般的であると説明しました。経営陣はまた、生産性とFortify Phase 2による削減がマージンの重要な推進要因であると指摘しました。

資本配分に関して、経営陣は貸借対照表および今後のキャッシュ創出に自信を示しました。買収パイプラインは引き続き活発ですが、同社は厳選して取り組み、統合、営業実績、キャッシュフローに重点を置くと述べました。

決算説明会文字起こし全文

決算説明会の完全なトランスクリプト

経営陣による説明

Operator

Thank you. Good day and thank you for standing by. Welcome to Apogee Enterprises' second quarter earnings conference call. [Operator Instructions] A reminder, this conference is being recorded for replay purposes. I will now turn the conference over to Jeremy Steffan, Vice President, Investor Relations and Communications, to begin. Jeremy, please go ahead.

Jeremy Steffan

Thank you. Good morning and welcome to Apogee Enterprises' fiscal 2027 second quarter earnings call. On call today are Donald Nolan, Apogee's Chief Executive Officer, and Mark A. Augdahl, 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.

Donald Nolan

Thanks, Jeremy, and good morning, everyone. We appreciate you joining us today. I'm pleased to report strong second quarter results that exceeded our expectations and continued the momentum we established in the first quarter. Revenue was $391 million, up more than 9%, and adjusted EPS was $1.17, reflecting disciplined execution across the business. We benefited from swift pricing actions, productivity improvements, and the favorable contribution from our recent acquisition of CalWall. Based on our stronger than expected first half performance, we are raising our fiscal 2027 outlook for both net sales and adjusted diluted earnings per share. Across our segments, we continue to make meaningful progress on pricing disciplines, productivity, and operating improvements, demonstrating our ability to execute effectively despite evolving macroeconomic conditions.

We are advancing our strategic priorities through the acquisitions of CalWall and GroGlass, expanding our differentiated product offerings and technical capabilities while increasing our exposure to attractive end markets. We are also building on the successful integration of UW Solutions and the first-year performance as Apogee delivered on our deal model targets. This proven execution strengthens our confidence in successfully integrating these businesses and achieving their first-year financial objectives. In metals, revenue and profitability improved year over year as pricing actions, productivity initiatives, and Fortify Phase 2 cost savings continued to gain traction. We also continue to enhance operational execution through improvements in quality, on-time delivery, and customer engagement. Services delivered their 10th consecutive quarter of top-line growth while increasing their backlog again this fiscal year. Strong award activity resulting in continued backlog expansion demonstrates our ability to consistently win new business and support our confidence in the segment's long-term growth potential.

Performance services delivered another strong quarter of revenue growth, reflecting continued demand for our differentiated products and reflects positively on our strategic initiative to acquire businesses that have a greater growth profile. As material inflation increased, we maintained pricing discipline and realized the benefits of pricing actions implemented earlier this year. We will continue to actively manage pricing to preserve margins and offset inflationary pressures. In our legacy glass business, while market conditions remain challenging, we made meaningful progress during the quarter against the action plan we outlined previously. We have advanced several commercial initiatives aimed at increasing demand, implemented productivity improvements across our operations, and remained disciplined on cost. While we still have work to do and the broader market remains pressured, we are encouraged by the progress achieved to date and believe the actions underway are helping position the business for improved performance and stronger profitability over time. Across the company, we are seeing the benefits of the actions we've taken over the last year reflected in our results.

While market conditions remain mixed, our focus on pricing, productivity, operational execution, and disciplined cost management continues to strengthen the business and supports our confidence in the increased outlook we announced today. In September, we announced our second acquisition of the fiscal year as we continue to execute our growth strategy while maintaining a disciplined approach to capital allocation. With GroGlass, we are adding a highly differentiated business with leading technology, strong customer relationships, and compelling growth opportunities. Acquisition supports our strategy of investing in higher value products and capabilities that improve the quality and durability of our portfolio, and we are excited about the opportunities ahead as we welcome the GroGlass team to Apogee. As part of performance services, GroGlass will expand our technical capabilities and further increase our exposure to attractive, higher value end markets. This will strengthen our presence in Europe while supporting broader global opportunities. We believe the business will enhance our profitability profile and accelerate value creation over time.

As we begin integrating GroGlass, our focus will be on disciplined execution and delivering the strategic and financial benefits that supported our investment thesis. Turning to CalWall, I continue to be pleased with our progress following the acquisition. As discussed last quarter, our focus has been on preserving the strengths that made CalWall successful while thoughtfully integrating the business into Apogee. Integration activities across finance, human resources, sales and marketing, and other key functions are progressing as planned, and collaboration between CalWall and Apogee teams has been very strong. Importantly, our confidence in the strategic and financial rationale remains high. CalWall continues to perform in line with our expectations, and we remain on track to achieve the first 12-month financial targets. We continue to see opportunities to leverage CalWall's differentiated daylighting solutions and specification-driven business model, while expanding relationships with architects, designers, and glazing contractors across the broader Apogee portfolio.

Overall, I'm encouraged by the progress we're making across the organization. Strong execution, continued advancement of our strategic priorities, and disciplined capital allocation are strengthening Apogee's growth and profitability profile and positioning us well to create long-term shareholder value. With that, I'll turn the call over to Mark to provide additional detail on our financial results and outlook.

Unknown Speaker

Thanks, Don, and good morning, everyone. Let me begin with a review of our second quarter performance and then discuss our updated outlook for the remainder of fiscal 2027, which reflects our strong first half performance and confidence in the business. Beginning with our consolidated results, net sales increased 9.2% to $391.1 million. Improvement was primarily driven by inorganic growth from the CalWall acquisition, price across most segments, and positive mix. This was partially offset by lower volume in metals and glass as challenging market conditions persisted during the quarter. Adjusted EBITDA margin increased to 12.7% from 12.4% a year ago, driven by favorable price, productivity improvements, Fortify Phase 2 cost savings, and the accretive impact of the CalWall acquisition. Those were partially offset by higher material and manufacturing costs and the impacts from lower volume. Adjusted diluted EPS improved over 19% to $1.17, exceeding our own expectations, and reflecting improved operating performance across the business along with lower interest expense.

Turning to our segment results, metals net sales increased 1.8% to approximately $144 million, largely due to favorable price partially offset by lower volume. Adjusted EBITDA margin expanded to 15.4%, driven by favorable price, increased productivity, cost savings from Fortify Phase 2, and favorable mix. Offsetting these benefits were higher aluminum costs and lower volume. The services segment delivered its 10th consecutive quarter of net sales growth, improving by almost 8%, primarily driven by volume. Adjusted EBITDA margin increased to 5.8% due to project mix and higher volume. Backlog ended the quarter at $833 million, up 5% year-over-year and 13% sequentially, reflecting continued success with project awards in a highly competitive environment. Glass net sales increased over 21% to $87.4 million, primarily driven by a $16.4 million contribution from the CalWall acquisition and favorable mix. That was partially offset by lower volume and price as in-market demand softness persisted. Adjusted EBITDA margin declined to 14.9%, but greatly improved sequentially from 8.7% in the first quarter. The year-over-year change was due to lower price, higher manufacturing and freight costs, and lower volume, partially offset by the accretive contribution of the CalWall acquisition and favorable mix.

As Don mentioned, we are pleased with the progress of the CalWall integration and the business continues to perform in line with our acquisition expectations. We remain on track to deliver the first 12-month financial targets of approximately $85 million in revenue and a 15% adjusted EBITDA margin. Turning to performance surfaces, the segment delivered another strong quarter with net sales increasing by over 14% to approximately $55 million, driven by higher volume and favorable price. Adjusted EBITDA margin decreased to 22.5% due to higher material costs partially offset by price and higher volume. Looking at cash flow in the balance sheet. Year to date net cash provided by operating activities was $43.3 million compared to $37.3 million a year ago. In the second quarter, we repurchased $6.4 million of stock and returned $5.5 million to shareholders through dividends. Our balance sheet at the end of the quarter was strong, with consolidated leverage ratio of 1.7 times, no near-term debt maturities, and significant capital available for the GroGlass acquisition and other future deployments.

Before turning to the outlook, I'd like to briefly comment on our recent acquisition of GroGlass. We are excited about the opportunities this acquisition creates for Apogee, adding highly differentiated technology, broadening our reach into attractive end markets, and further expanding the capabilities of our performance surfaces segment. Based on our current expectations, we anticipate approximately $30 million in revenue and a 25% adjusted EBITDA margin in the first 12 months. We believe GroGlass is a highly complimentary addition that will enhance our long-term growth and profitability profile of both performance surfaces and Apogee as a whole. Turning to our outlook, we are raising our fiscal 2027 net sales and adjusted diluted EPS guidance. These revised expectations reflect our strong first half performance, continued execution across the business, the anticipated contributions from CalWall and GroGlass, and current market conditions. We now expect net sales between $1.46 billion and $1.5 billion and adjusted diluted EPS in the range of $3 to $3.40.

CalWall and GroGlass are expected to contribute meaningfully to revenue growth. While their impact on adjusted diluted EPS is expected to be modest in fiscal 2027, we anticipate both businesses will further strengthen Apogee's strong cash flow generation profile this year and beyond. Additionally, we now expect interest expense of approximately $15 million, an adjusted effective tax rate of approximately 26%, with capital expenditures between $35 million and $40 million. Looking ahead to the second half, we expect both net sales and adjusted diluted EPS to be relatively balanced across the third and fourth quarters. Overall, we are pleased with our first half performance and the progress we continue to make across the business. The momentum we have built together with the continued execution of our strategic priorities, reinforces our confidence in the increased fiscal 2027 outlook we are providing today. We will now open the call to questions. Operator, please go ahead.

Operator

Thank you. [Operator Instructions] Please stand by while we compile the Q&A roster. Our first question coming from the line of Julio Romero with Sidoti & Company. Your line is now open.

質疑応答

Julio Romero

Good morning, Don, Mark, and Jeremy. To start, maybe on the glass segment, it held up a little bit better than we expected. The organic sales declined to a much lesser degree than the previous two quarters. Can you speak to how that segment's performing? You know, some of that related to the new segment president that I believe installed a couple of months ago, you know, how much is related to improving mix or any other segment initiatives there?

Donald Nolan

Yeah, sure. Yes. The conditions haven't changed, quite frankly, in the marketplace. We continue to see soft conditions out there. And, you know, there's fewer jobs at lower volumes, you know, to chase. So, and we're also seeing some delay in projects, but, you know, I would attribute this to significantly improved execution. At the end of Q1, we talked a little bit about an action plan that we put in place. Well, as a result of that, we are seeing increased order rates, enhanced operational productivity, and certainly strengthened cost management. And all those contributed to the improved performance in the segment. I mean, don't get me wrong. We have some work to do yet, but we're making progress. I'm happy with that progress.

Julio Romero

Excellent, very helpful there. And on the metals segment, can you help us think about the split between structural price increases and the surcharges you've implemented to date and then how much does the updated adjusted guidance range embed any give back as some of those surcharges unwind?

Unknown Speaker

We'll start off. So first of all, within the metal segment, the impact of surcharges is probably a little bit less. What we typically do from a pricing perspective is as aluminum prices go up, we build those actually into our pricing structure, not our surcharges. So it is built into the overall price. I would tell you that metals performed well in the quarter. We were really pleased with their operational performance. And then if you kind of look at it from a year-over-year perspective, certainly the impact of Project Fortify Phase 2 has had a significant impact on its overall, uh, on the overall cost structure.

Donald Nolan

Yes, I mean, just to emphasize, look, very happy with the pricing actions that they took. Contributed significantly to the quarter. Productivity improvement, though, is also a big part of the story. And as Mark mentioned, Fortify Phase 2 cost actions. The other thing we think we had as a result of the pricing actions, we think we pulled some of the volume. So that's also a contributor.

Julio Romero

Great, that's helpful there. And then, you know, just thinking about where you are in the leverage here. A little bit above, I think, your historical, your 1.5 times target. You've been active with the portfolio here. You've repurchased some shares, I believe $16 million year to date. Just help us think about how you rank your capital allocation priorities. And does the M&A pipeline remain active here?

Unknown Speaker

You had a couple of points there, Julio. I'll start off. You know, first and foremost, we feel really confident about where we're at from a leverage perspective. I don't think there's any issues there yet. We might be a little bit higher, but obviously that came with a couple of acquisitions in the quarter. We're confident in the amount of cash that we're going to be able to derive over the remainder of the year. To the extent that we don't identify another acquisition, we feel like that's going to be coming down throughout the remainder of the year. To the M&A point, you know, our pipeline remains active and we believe there's still a very full funnel to do any kind of acquisition, but obviously we're going to be very selective at this point. If the right acquisition comes around at the right price, we'll have to consider executing on that. But as of right now, we're really focused on delivering our results, delivering that cash flow.

Julio Romero

Excellent.

Operator

Thank you. Our next question coming from the line of Bhargav Joshi with Singular Research. Your line is now open.

Unknown Speaker

Hi, I'm Bhargav with Anthony Gikas, from Singular Research. My question is on the performance surfaces segment, just trying to understand the margin trajectory here. Are you seeing sort of margins recover as you pass on the input costs or are the customers pushing back?

Unknown Speaker

Joshi, would you mind repeating the question? Maybe we didn't, I'm not sure we caught the whole thing.

Unknown Speaker

All right. I was just trying to understand the price increases that have taken in services segment. So are you seeing sort of margins recover as you pass on the input costs or are the customers pushing back?

Donald Nolan

Yes, so we have been implementing pricing now for a couple of quarters, and I would say doing what we needed to do in order to recover margins. So it's a balance, though. We mentioned in metals, for instance, it's a combination of productivity, cost out and pricing, and between the three, using that to drive margin recovery. But it's not all pricing.

Unknown Speaker

Understood. Okay.

Operator

Thank you. And I'm showing no further questions in the queue at this time. I will now turn the call back over to Mr. Nolan for any closing comments.

Donald Nolan

Thank you, everybody. In closing, I continue to be encouraged by the progress we are making across the business. Our strong first half performance reflects the dedication of our employees, whose commitment to our customers and operational excellence drives our success every day. We're delivering strong results in the current environment while continuing to strengthen our business through digital and strategic investments. The progress we've made this year, including the acquisitions of CalWall and GroGlass and the continued execution of our strategic priorities, reinforces our confidence in the path ahead and our ability to create sustainable, long-term value for shareholders. Thank you for your continued interest and support.

Operator

This concludes today's conference call. Thank you for your participation and you may now disconnect.

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