아포지 엔터프라이즈(APOG) 2027 회계연도 2분기 실적 발표 컨퍼런스 콜: 가이던스 상향

핵심 요약

• 2027 회계연도 2분기 순매출액은 CalWall의 기여, 가격 인상, 우호적인 제품 믹스에 힘입어 전년 동기 대비 9.2% 증가한 3억 9,110만 달러를 기록했으며, 금속 및 글래스 부문의 물량 감소가 이를 일부 상쇄했습니다.
• 조정 희석 EPS는 19% 이상 증가한 1.17달러를 기록했으며, 조정 EBITDA 마진은 30bp 확대된 12.7%를 나타냈습니다.
• 아포지는 2027 회계연도 실적 전망치를 순매출액 14억 6,000만 달러~15억 달러, 조정 희석 EPS 3.00달러~3.40달러로 상향 조정했습니다.
• 서비스 부문은 10개 분기 연속 매출 성장을 기록했습니다. 수주잔고는 전년 동기 대비 5%, 전분기 대비 13% 증가한 8억 3,300만 달러에 달했습니다.
• 글래스 부문 매출은 CalWall의 기여금 1,640만 달러를 포함해 전년 동기 대비 21% 이상 증가한 8,740만 달러를 기록했습니다. 부문 마진은 전분기 대비 개선되었으나 전년 동기 수준에는 미치지 못했습니다.
• 경영진은 가격 인상, 생산성 향상, 포티파이 2단계(Fortify Phase 2) 비용 절감이 실적을 뒷받침한 반면, 원자재 가격 상승, 제조 비용 및 약한 시장 수요는 여전히 부담 요인으로 작용했다고 밝혔습니다.

주요 재무 데이터

사업 및 영업 실적

금속 부문: 순매출액은 1.8% 증가한 약 1억 4,400만 달러를 기록했습니다. 가격 상승 효과가 물량 감소를 상쇄했습니다. 조정 EBITDA 마진은 가격 정책, 생산성, 우호적인 믹스 및 포티파이 2단계 비용 절감에 힘입어 15.4%로 확대되었습니다. 알루미늄 비용 상승과 물량 감소는 이를 일부 상쇄했습니다.

서비스 부문: 순매출액은 주로 물량 증가에 힘입어 8% 가까이 증가했습니다. 조정 EBITDA 마진은 프로젝트 믹스와 물량 효과로 5.8%로 상승했습니다. 수주잔고는 경쟁적인 환경에도 불구하고 지속적인 프로젝트 수주를 반영해 8억 3,300만 달러로 분기를 마감했습니다.

글래스 부문: 순매출액은 CalWall의 기여금 1,640만 달러와 우호적인 믹스에 힘입어 21% 이상 증가한 8,740만 달러를 기록했습니다. 물량 감소와 가격 하락은 지속적인 수요 둔화를 반영했습니다. 조정 EBITDA 마진은 14.9%로 전년 동기 대비 하락했으나 1분기 8.7%보다는 상승했습니다. 경영진은 전분기 대비 개선의 원인을 강화된 실행력, 신규 주문율 증가, 생산성 향상 및 엄격한 비용 관리 덕분으로 돌렸습니다.

고성능 표면 부문: 순매출액은 물량 증가와 우호적인 가격 정책에 힘입어 14% 이상 증가한 약 5,500만 달러를 기록했습니다. 조정 EBITDA 마진은 원자재 비용 상승이 이러한 이점 중 일부를 상쇄하면서 22.5%로 하락했습니다.

CalWall은 인수 당시 경영진의 기대치에 부합하는 실적을 이어갔습니다. 아포지는 인수 후 첫 12개월 동안 약 8,500만 달러의 매출과 15%의 조정 EBITDA 마진 목표를 순조롭게 달성 중입니다.

또한 아포지는 차별화된 기술력을 확보하고 유럽 및 고부가가치 최종 시장에서의 입지를 확대하기 위해 GroGlass를 인수했습니다. 경영진은 현재 GroGlass가 인수 후 첫 12개월 동안 약 3,000만 달러의 매출과 25%의 조정 EBITDA 마진을 창출할 것으로 예상하고 있습니다.

경영진 실적 전망(가이던스)

아포지는 상반기 실적, 전사적 사업 실행력, CalWall 및 GroGlass의 예상 기여도를 바탕으로 2027 회계연도 실적 전망치를 상향 조정했습니다.

경영진은 순매출액과 조정 희석 EPS가 3분기와 4분기 사이에 비교적 균등하게 분포될 것으로 예상합니다. CalWall과 GroGlass는 매출 성장에 유의미하게 기여할 것으로 보이나, 2027 회계연도 조정 EPS 기여도는 완만할 것으로 전망됩니다.

리스크 및 관전 포인트

• 글래스 시장 여건은 프로젝트 감소, 물량 감소 및 프로젝트 지연으로 인해 여전히 둔화된 상태입니다.
• 이번 분기 동안 금속 및 글래스 부문의 물량 감소가 연결 실적에 부담을 주었습니다.
• 알루미늄, 원재료, 제조 및 운반 비용 상승이 부문 마진을 지속적으로 압박했습니다.
• 고성능 표면 부문의 가격 인상 조치는 투입 원가 인상을 상쇄하기 위한 것이지만, 경영진은 마진 회복이 생산성 및 비용 절감에도 달려 있다고 강조했습니다.
• 회사는 1.7배의 레버리지 비율을 유지하면서 2건의 인수를 통합하는 작업을 진행하고 있습니다. 경영진은 추가 인수가 이뤄지지 않을 경우 현금 창출을 통해 레버리지 비율을 낮출 수 있을 것으로 기대합니다.

애널리스트 Q&A 하이라이트

글래스 부문과 관련해 경영진은 시장 환경이 실질적으로 개선되지 않았다고 지적했습니다. 대신 1분기 이후 도입된 실행 계획(주문율 증가, 생산성 향상, 비용 통제 강화 포함)의 이행이 실적 개선에 반영되었습니다.

금속 부문 가격 책정과 관련해 회사는 알루미늄 비용 상승이 주로 할증료를 통해 처리되기보다는 전반적인 가격 구조에 반영되는 것이 일반적이라고 설명했습니다. 경영진은 또한 생산성과 포티파이 2단계 비용 절감이 마진의 주요 동인이라고 언급했습니다.

자본 배분과 관련해 경영진은 재무제표와 예상 현금 창출 능력에 대한 자신감을 나타냈습니다. 인수 파이프라인은 여전히 활발하지만, 회사는 신중한 태도를 유지하면서 통합, 영업 실적 및 현금 흐름에 집중할 것이라고 밝혔습니다.

실적발표 컨퍼런스 콜 전문

전체 실적 발표 컨퍼런스 콜 녹취록

경영진 발표

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.

질의응답

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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