Apogee Enterprises Reports Fiscal 2026 Fourth Quarter and Full Year Results

• Fourth-quarter net sales increased 1.6% to $351.4 million
• Fourth-quarter diluted EPS of $0.78 and adjusted diluted EPS of $0.92
• Full-year net sales increased 3.2% to $1.40 billion
• Full-year diluted EPS of $2.52 and adjusted diluted EPS of $3.47
• Company provides fiscal 2027 guidance

MINNEAPOLIS--(BUSINESS WIRE)--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 fourth quarter and full year of fiscal 2026, ended February 28, 2026. The Company reported the following selected financial results:

	Three Months Ended
(Unaudited, $ in thousands, except per share amounts)	February 28, 2026			March 1, 2025			% Change
Net sales	$	351,354		$	345,694		1.6	%
Net earnings	$	16,620		$	2,485		568.8	%
Diluted earnings per share	$	0.78		$	0.11		609.1	%
Non-GAAP Measures^1
Adjusted EBITDA	$	42,418		$	41,105		3.2	%
Adjusted EBITDA margin		12.1	%		11.9	%
Adjusted diluted earnings per share	$	0.92		$	0.89		3.4	%

(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 delivered fourth‑quarter results ahead of our expectations and closed out the fiscal year strongly. The teams executed well as they continued to serve our customers in a dynamic operating environment,” said Donald Nolan, Executive Chair and CEO. “Throughout the fiscal year, we continued to focus on our priorities while actively managing our cost structure and returning cash to shareholders through dividends and share buybacks. This, along with generating strong cash flow, supports a resilient and flexible balance sheet for future growth opportunities."

"As we enter the new fiscal year, we are mindful of ongoing market conditions and are navigating the environment with an emphasis on serving our customers and executing across our operations,” Nolan added. “We intend to maintain prudent and disciplined cost management while being thoughtful and selective in pursuing growth investments, prioritizing opportunities with clear strategic alignment and financial returns that support long‑term value creation."

Fourth-Quarter Consolidated Results (Fourth Quarter Fiscal 2026 compared to Fourth Quarter Fiscal 2025)

• Net sales increased 1.6% to $351.4 million, driven by favorable price and mix, partially offset by lower volume.

• Gross margin rose 80 basis points to 22.4%, primarily due to a non-recurring $9.4 million arbitration decision expensed in the prior year, productivity improvements including savings from Project Fortify 2, and lower risk-related insurance expenses, partially offset by higher aluminum costs, impacts from lower volume, and higher health insurance costs.

• Selling, general and administrative (SG&A) expenses as a percentage of net sales decreased 470 basis points to 15.1%, primarily due to a non-recurring impairment charge in the Metals segment in the prior year, lower incentive compensation, acquisition-related expenses incurred in the prior year, and benefits from cost savings of Fortify Phase 2, partially offset by restructuring related expenses.

• Operating income increased to $25.8 million from $6.1 million, and operating margin increased 550 basis points to 7.3%.

• Adjusted EBITDA increased to $42.4 million, compared to $41.1 million, and adjusted EBITDA margin increased to 12.1%, compared to 11.9%. The increase in adjusted EBITDA margin was primarily driven by lower incentive compensation and risk-related insurance expenses, productivity improvements, and benefits from cost savings of Fortify Phase 2, partially offset by higher aluminum costs, reduction in volume, and higher health insurance costs.

• Interest expense decreased to $2.8 million, compared to $3.5 million, primarily due to lower debt.

• Diluted earnings per share (EPS) were $0.78, compared to $0.11, and adjusted diluted EPS increased to $0.92, compared to $0.89.

Full-Year Consolidated Results (Fiscal 2026 compared to Fiscal 2025)

• Net sales increased 3.2% to $1.40 billion, driven by $65.3 million of inorganic sales contribution from the acquisition of UW Solutions, partially offset by lower volume.

• Operating income declined to $84.5 million from $118.1 million, and operating margin decreased by 270 basis points to 6.0%.

• Adjusted EBITDA decreased to $167.3 million, compared to $192.7 million, and adjusted EBITDA margin decreased to 11.9%, compared to 14.2%. The decrease was primarily due to higher aluminum costs, impacts from lower volume, and health insurance costs, partially offset by lower incentive compensation and risk-related insurance expenses, and benefits from cost savings of Fortify Phase 2.

• Diluted EPS was $2.52, compared to $3.89. Adjusted diluted EPS declined to $3.47 from $4.97.

Fourth Quarter Segment Results (Fourth Quarter Fiscal 2026 Compared to Fourth Quarter Fiscal 2025)

Architectural Metals

Net sales declined 1.9% to $110.0 million, driven by lower volume, partially offset by favorable price and product mix. Adjusted EBITDA was $7.2 million, or 6.5% of net sales, compared to $7.0 million, or 6.3% of net sales. The higher adjusted EBITDA margin was primarily driven by favorable productivity from Fortify Phase 2, and product mix, partially offset by higher aluminum costs and impact from lower volume.

Architectural Services

Net sales increased 7.8% to $127.1 million, primarily due to increased volume, partially offset by price. Adjusted EBITDA was $9.6 million, or 7.5% of net sales, compared to $9.6 million, or 8.2% of net sales. The decrease in adjusted EBITDA margin was primarily driven by lower price, partially offset by the impact from higher volume and improved productivity. Segment backlog¹ at the end of the quarter was $693.8 million compared to $774.7 million at the end of the third quarter.

Architectural Glass

Net sales declined 10.4% to $67.4 million, driven by lower volume and price. Adjusted EBITDA was $9.1 million, or 13.5% of net sales, compared to $14.1 million, or 18.8% of net sales. The decrease in adjusted EBITDA margin was primarily driven by impact from lower volume and price and higher material and freight costs, partially offset by productivity improvements, lower incentive compensation and warranty-related expenses.

Performance Surfaces

Net sales increased 13.5% to $54.3 million due to increased volume. Adjusted EBITDA was $10.5 million, or 19.4% of net sales compared to $12.8 million, or 26.8% of net sales. The decrease in adjusted EBITDA margin was primarily driven by higher manufacturing and materials costs, partially offset by impact from higher volume.

Corporate and Other

Corporate and other adjusted EBITDA increased to $6.0 million, compared to expense of $2.5 million, primarily due to lower incentive compensation and risk-related insurance expenses, partially offset by higher health insurance costs.

Financial Condition

Net cash provided by operating activities in the fourth quarter was $55.8 million, compared to $30.0 million in the prior year period. For the full year, net cash provided by operating activities was $122.5 million, compared to $125.2 million last year. Capital expenditures for the full year were $27.3 million, compared to $35.6 million last year.

For the full year, the Company returned $37.2 million of cash to shareholders, through $15.0 million of share repurchases and $22.2 million of dividends.

Quarter-end long-term debt decreased to $232.3 million, an improvement of $52.7 million, bringing the Consolidated Leverage Ratio² (as defined in the Company’s credit agreement) to 1.3x at the end of the quarter.

Project Fortify

The Company substantially completed Project Fortify Phase 2 during the fourth quarter and incurred $3.9 million of pre-tax charges. Total pre-tax charges incurred under the program were $27.4 million. The Company estimates annualized cost savings of approximately $26 million as a result of the Project Fortify program.

^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

Based on current macroeconomic conditions, the Company expects net sales to be in the range of $1.38 billion to $1.43 billion, and adjusted diluted EPS in the range of $2.70 to $3.25. The Company’s outlook assumes interest expense of approximately $10 million, an adjusted effective tax rate of 26% to 27%, and capital expenditures between $35 million to $40 million.

Conference Call Information

The Company will host a conference call today at 8:00 a.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 https://www.apog.com/events-and-presentations. 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 www.apog.com.

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 operating income, adjusted operating margin, 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.

• Adjusted EBITDA represents adjusted net earnings before interest, taxes, depreciation, and amortization. The Company believes adjusted EBITDA and adjusted EBITDA margin metrics provide useful information to investors and analysts about the Company’s core operating 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 are defined in the Company’s credit agreement dated July 19, 2024, and defined as an exhibit to our form 10-K for the year ended March 1, 2025. 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 because such information is not available, and management cannot reliably predict all the necessary components of such GAAP financial measure without unreasonable effort or expense. In addition, the Company believes such reconciliation would 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. Backlog is not a term defined under U.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.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.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. All forward-looking statements are qualified by factors that may affect the results, performance, financial condition, prospects and opportunities of the Company, including the following: (A) North American and global economic conditions, including the cyclical nature of the North American and Latin American non-residential construction industries and the potential impact of an economic downturn or recession; (B) U.S. 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) integration and future operating results of acquisitions, including but not limited to the acquisition of UW Solutions, and management of acquired contracts; (M) impairment of goodwill or indefinite-lived intangible assets; (N) our ability to successfully manage and implement our enterprise strategy; (O) our ability to maintain effective internal controls over financial reporting; (P) our judgments regarding accounting for tax positions and resolution of tax disputes; (Q) the impacts of cost inflation and interest rates; and (R) the impact of changes in capital and credit markets on our liquidity and cost of capital. The Company cautions investors that actual future results could differ materially from those described in the forward-looking statements and that other factors may in the future prove to be important in affecting the Company’s results, performance, prospects, or opportunities. New factors emerge from time to time, and it is not possible for management to predict all such factors, nor can it assess the impact of each factor on the business or the extent to which any factor, or a combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. More information concerning potential factors that could affect future financial results is included in the Company’s Annual Report on Form 10-K and in subsequent filings with the U.S. Securities and Exchange Commission.

Apogee Enterprises, Inc.
Consolidated Statements of Income
(Unaudited)
	Three Months Ended								Twelve Months Ended
(In thousands, except per share amounts)	February 28, 2026			March 1, 2025			% Change		February 28, 2026			March 1, 2025			% Change
Net sales	$	351,354		$	345,694		1.6	%	$	1,404,733		$	1,360,994		3.2	%
Cost of sales		272,605			271,127		0.5	%		1,085,259			1,001,101		8.4	%
Gross profit		78,749			74,567		5.6	%		319,474			359,893		(11.2	)%
Selling, general and administrative expenses		52,974			68,433		(22.6	)%		235,000			241,783		(2.8	)%
Operating income		25,775			6,134		320.2	%		84,474			118,110		(28.5	)%
Interest expense, net		2,828			3,525		(19.8	)%		13,976			6,159		126.9	%
Other (income) expense, net		(42	)		(130	)	(67.7	)%		(6,958	)		(623	)	1,016.9	%
Earnings before income taxes		22,989			2,739		739.3	%		77,456			112,574		(31.2	)%
Income tax expense		6,369			254		2,407.5	%		23,325			27,522		(15.2	)%
Net earnings	$	16,620		$	2,485		568.8	%	$	54,131		$	85,052		(36.4	)%
Basic earnings per share	$	0.79		$	0.12		558.3	%	$	2.54		$	3.91		(35.0	)%
Diluted earnings per share	$	0.78		$	0.11		609.1	%	$	2.52		$	3.89		(35.2	)%
Weighted average basic shares outstanding		21,130			21,539		(1.9	)%		21,295			21,726		(2.0	)%
Weighted average diluted shares outstanding		21,454			21,793		(1.6	)%		21,517			21,891		(1.7	)%
Cash dividends per common share	$	0.27		$	0.26		3.8	%	$	1.05		$	1.01		4.0	%
% of Sales
Gross margin		22.4	%		21.6	%				22.7	%		26.4	%
Selling, general and administrative expenses		15.1	%		19.8	%				16.7	%		17.8	%
Operating margin		7.3	%		1.8	%				6.0	%		8.7	%

Apogee Enterprises, Inc.
Consolidated Condensed Balance Sheets
(Unaudited)
(In thousands)	February 28, 2026		March 1, 2025
Assets
Current assets
Cash and cash equivalents	$	39,523	$	41,448
Receivables, net		198,516		185,590
Inventories, net		98,059		92,305
Contract assets		59,512		71,842
Other current assets		43,823		50,919
Total current assets		439,433		442,104
Property, plant and equipment, net		255,032		268,139
Operating lease right-of-use assets		48,736		62,314
Goodwill		236,744		235,775
Intangible assets, net		111,261		128,417
Other non-current assets		31,139		38,520
Total assets	$	1,122,345	$	1,175,269
Liabilities and shareholders' equity
Current liabilities
Accounts payable	$	105,478	$	98,804
Accrued compensation and benefits		39,667		48,510
Contract liabilities		60,903		35,193
Operating lease liabilities		14,729		15,290
Other current liabilities		46,079		87,659
Total current liabilities		266,856		285,456
Long-term debt		232,279		285,000
Non-current operating lease liabilities		39,375		51,632
Non-current self-insurance reserves		24,914		30,382
Other non-current liabilities		47,127		34,901
Total shareholders’ equity		511,794		487,898
Total liabilities and shareholders’ equity	$	1,122,345	$	1,175,269

Apogee Enterprises, Inc.
Consolidated Statement of Cash Flows
(Unaudited)
	Twelve Months Ended
	February 28, 2026			March 1, 2025
(In thousands)
Operating Activities
Net earnings	$	54,131		$	85,052
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		49,998			44,608
Share-based compensation		8,246			10,725
Deferred income taxes		15,483			3,836
Impairment of long-lived assets		11,477			7,634
Settlement of New Markets Tax Credit transaction		(6,740	)		—
Non-cash lease expense		6,574			13,749
Other, net		(1,671	)		(1,247	)
Changes in operating assets and liabilities:
Receivables		(12,409	)		(508	)
Inventories		(5,340	)		(5,810	)
Contract assets		12,583			(22,625	)
Accounts payable		5,515			9,595
Accrued compensation and benefits		(9,117	)		(11,793	)
Contract liabilities		25,649			598
Operating lease liability		(9,706	)		(12,703	)
Accrued income taxes		3,858			(5,120	)
Other current assets and liabilities		(26,066	)		9,171
Net cash provided by operating activities		122,465			125,162
Investing Activities
Capital expenditures		(27,308	)		(35,593	)
Proceeds from sales of property, plant and equipment		1,632			693
Purchases of marketable securities		(9,670	)		(2,394	)
Sales/maturities of marketable securities		4,820			3,570
Acquisition of business, net of cash acquired		—			(232,169	)
Net cash used by investing activities		(30,526	)		(265,893	)
Financing Activities
Proceeds from revolving credit facilities		93,000			77,201
Repayment on revolving credit facilities		(143,000	)		(57,201	)
Proceeds from term loans		—			250,000
Repayment of term loans		(2,722	)		(47,000	)
Payments of debt issuance costs		—			(3,798	)
Repurchase of common stock		(15,000	)		(45,364	)
Dividends paid		(22,216	)		(21,737	)
Other, net		(6,241	)		(6,052	)
Net cash (used by) provided by financing activities		(96,179	)		146,049
Effect of exchange rates on cash		2,315			(1,086	)
(Decrease) increase in cash and cash equivalents		(1,925	)		4,232
Cash and cash equivalents at beginning of period		41,448			37,216
Cash and cash equivalents at end of period	$	39,523		$	41,448

Apogee Enterprises, Inc.
Components of Changes in Net Sales
(Unaudited)
Three months ended February 28, 2026, compared with the three months ended March 1, 2025
(In thousands, except percentages)	Architectural Metals			Architectural Services			Architectural Glass			Performance Surfaces			Intersegment eliminations			Consolidated
Fiscal 2025 net sales	$	112,148		$	117,895		$	75,157		$	47,899		$	(7,405	)	$	345,694
Organic business ^(1)		(2,111	)		9,175			(7,804	)		6,447			(47	)		5,660
Fiscal 2026 net sales	$	110,037		$	127,070		$	67,353		$	54,346		$	(7,452	)	$	351,354
Total net sales growth (decline)		(1.9	)%		7.8	%		(10.4	)%		13.5	%		0.6	%		1.6	%
Twelve months ended February 28, 2026 , compared with the twelve months ended March 1, 2025
(In thousands, except percentages)	Architectural Metals			Architectural Services			Architectural Glass			Performance Surfaces			Intersegment eliminations			Consolidated
Fiscal 2025 net sales	$	524,709		$	419,861		$	322,197		$	122,131		$	(27,904	)	$	1,360,994
Organic business ^(1)		(20,681	)		19,371			(38,538	)		10,564			7,752			(21,532	)
Acquisition ^(2)		—			—			—			65,271			—			65,271
Fiscal 2026 net sales	$	504,028		$	439,232		$	283,659		$	197,966		$	(20,152	)	$	1,404,733
Total net sales growth (decline)		(3.9	)%		4.6	%		(12.0	)%		62.1	%		(27.8	)%		3.2	%
Organic business ^(1)		(3.9	)%		4.6	%		(12.0	)%		8.6	%		(27.8	)%		(1.6	)%
Acquisition ^(2)		—	%		—	%		—	%		53.4	%		—	%		4.8	%

(1)	Organic business is defined as (declines) growth in net sales from legacy businesses and from acquired businesses, twelve months after the acquisition date.
(2)	The acquisition of UW Solutions, completed on November 4, 2024.

Apogee Enterprises, Inc.
Business Segment Information
(Unaudited)
	Three Months Ended								Twelve Months Ended
(In thousands)	February 28, 2026			March 1, 2025			% Change		February 28, 2026			March 1, 2025			% Change
Segment net sales
Architectural Metals	$	110,037		$	112,148		(1.9	)%	$	504,028		$	524,709		(3.9	)%
Architectural Services		127,070			117,895		7.8	%		439,232			419,861		4.6	%
Architectural Glass		67,353			75,157		(10.4	)%		283,659			322,197		(12.0	)%
Performance Surfaces		54,346			47,899		13.5	%		197,966			122,131		62.1	%
Intersegment eliminations		(7,452	)		(7,405	)	0.6	%		(20,152	)		(27,904	)	(27.8	)%
Net sales	$	351,354		$	345,694		1.6	%	$	1,404,733		$	1,360,994		3.2	%
Segment adjusted EBITDA
Architectural Metals	$	7,163		$	7,039		1.8	%	$	54,109		$	70,591		(23.3	)%
Architectural Services		9,575			9,624		(0.5	)%		30,856			33,533		(8.0	)%
Architectural Glass		9,101			14,114		(35.5	)%		45,699			71,664		(36.2	)%
Performance Surfaces		10,544			12,834		(17.8	)%		41,643			30,886		34.8	%
Corporate and other		6,035			(2,506	)	(340.8	)%		(5,004	)		(14,021	)	(64.3	)%
Adjusted EBITDA	$	42,418		$	41,105		3.2	%	$	167,303		$	192,653		(13.2	)%
Segment adjusted EBITDA margins
Architectural Metals		6.5	%		6.3	%				10.7	%		13.5	%
Architectural Services		7.5	%		8.2	%				7.0	%		8.0	%
Architectural Glass		13.5	%		18.8	%				16.1	%		22.2	%
Performance Surfaces		19.4	%		26.8	%				21.0	%		25.3	%
Adjusted EBITDA margin		12.1	%		11.9	%				11.9	%		14.2	%

• Segment net sales is defined as net sales of the segment including revenue related to intersegment transactions.

• Intersegment net sales eliminations are presented separately to exclude these sales from our consolidated total.

Apogee Enterprises, Inc.
Reconciliation of Non-GAAP Financial Measures
Adjusted EBITDA and Adjusted EBITDA Margin
(Unaudited)
	Three Months Ended February 28, 2026
(In thousands)	Architectural Metals			Architectural Services			Architectural Glass			Performance Surfaces			Corporate and Other			Consolidated
Net earnings (loss)	$	968		$	9,339		$	5,782		$	6,533		$	(6,002	)	$	16,620
Interest expense (income), net		401			(83	)		(249	)		—			2,759			2,828
Income tax expense		—			—			97			—			6,272			6,369
Depreciation and amortization		3,584			802			3,471			3,904			777			12,538
EBITDA		4,953			10,058			9,101			10,437			3,806			38,355
Acquisition-related costs ^(1)		—			—			—			107			65			172
Restructuring costs ^(2)		2,210			(483	)		—			—			2,164			3,891
Adjusted EBITDA	$	7,163		$	9,575		$	9,101		$	10,544		$	6,035		$	42,418
EBITDA margin		4.5	%		7.9	%		13.5	%		19.2	%		N/M			10.9	%
Adjusted EBITDA margin		6.5	%		7.5	%		13.5	%		19.4	%		N/M			12.1	%

	Three Months Ended March 01, 2025
(In thousands)	Architectural Metals			Architectural Services			Architectural Glass			Performance Surfaces			Corporate and Other			Consolidated
Net earnings (loss)	$	(6,163	)	$	8,575		$	11,109		$	6,129		$	(17,165	)	$	2,485
Interest expense (income), net		441			(13	)		(91	)		—			3,187			3,524
Income tax expense		—			—			(22	)		—			276			254
Depreciation and amortization		3,859			1,092			3,118			5,041			701			13,811
EBITDA		(1,863	)		9,654			14,114			11,170			(13,001	)		20,074
Acquisition-related costs ^(1)		—			—			—			1,664			1,230			2,894
Restructuring costs ^(2)		1,268			(30	)		—			—			(128	)		1,110
Impairment expense ^(3)		7,634			—			—			—			—			7,634
Arbitration award expense ^(4)		—			—			—			—			9,393			9,393
Adjusted EBITDA	$	7,039		$	9,624		$	14,114		$	12,834		$	(2,506	)	$	41,105
EBITDA margin		(1.7	%)		8.2	%		18.8	%		23.3	%		N/M			5.8	%
Adjusted EBITDA margin		6.3	%		8.2	%		18.8	%		26.8	%		N/M			11.9	%

(1)	Acquisition-related costs relate to one-time expenses incurred to integrate the UW Solutions acquisition. In fiscal year 2025, it excludes $1.5 million of backlog amortization added back as part of the depreciation and amortization above.
(2)	Restructuring costs related to Project Fortify. Costs incurred in fiscal year 2025 were associated with Phase 1 and costs incurred in fiscal year 2026 are associated with Phase 2, including $0.6 million of asset impairment charges in fiscal 2026.
(3)	Impairment expense on intangible assets in the Architectural Metals Segment.
(4)	Expense related to an arbitration award, which represents the impact of the award amount net of existing reserves and estimated insurance proceeds.

Apogee Enterprises, Inc.
Reconciliation of Non-GAAP Financial Measures
Adjusted EBITDA and Adjusted EBITDA Margin
(Unaudited)
	Twelve Months Ended February 28, 2026
(In thousands)	Architectural Metals			Architectural Services			Architectural Glass			Performance Surfaces			Corporate and Other			Consolidated
Net earnings (loss)	$	37,775		$	12,193		$	32,661		$	24,659		$	(53,157	)	$	54,131
Interest expense (income), net		1,733			(310	)		(699	)		—			13,252			13,976
Income tax (benefit) expense		(43	)		(8	)		295			—			23,081			23,325
Depreciation and amortization		14,813			3,593			13,442			15,153			2,997			49,998
EBITDA		54,278			15,468			45,699			39,812			(13,827	)		141,430
Acquisition-related costs ^(1)		—			—			—			1,831			313			2,144
Restructuring costs ^(2)		6,571			15,388			—			—			5,484			27,443
CEO transition costs ^(3)		—			—			—			—			3,026			3,026
NMTC settlement gain ^(4)		(6,740	)		—			—			—			—			(6,740	)
Adjusted EBITDA	$	54,109		$	30,856		$	45,699		$	41,643		$	(5,004	)	$	167,303
EBITDA margin		10.8	%		3.5	%		16.1	%		20.1	%		N/M			10.1	%
Adjusted EBITDA margin		10.7	%		7.0	%		16.1	%		21.0	%		N/M			11.9	%

	Twelve Months Ended March 01, 2025
(In thousands)	Architectural Metals			Architectural Services			Architectural Glass			Performance Surfaces			Corporate and Other			Consolidated
Net earnings (loss)	$	40,345		$	30,035		$	60,451		$	19,611		$	(65,390	)	$	85,052
Interest expense (income), net		2,113			10			(408	)		—			4,444			6,159
Income tax expense (benefit)		7			—			(653	)		—			28,168			27,522
Depreciation and amortization		16,471			3,978			12,274			9,086			2,799			44,608
EBITDA		58,936			34,023			71,664			28,697			(29,979	)		163,341
Acquisition-related costs ^(1)		—			—			—			2,189			5,773			7,962
Restructuring costs ^(2)		4,021			(490	)		—			—			792			4,323
Impairment expense ^(5)		7,634			—			—			—			—			7,634
Arbitration award expense ^(6)		—			—			—			—			9,393			9,393
Adjusted EBITDA	$	70,591		$	33,533		$	71,664		$	30,886		$	(14,021	)	$	192,653
EBITDA margin		11.2	%		8.1	%		22.2	%		23.5	%		N/M			12.0	%
Adjusted EBITDA margin		13.5	%		8.0	%		22.2	%		25.3	%		N/M			14.2	%

(1)	Acquisition-related costs include one-time expenses incurred to integrate the UW Solutions acquisition. In fiscal year 2025, it excludes $2.3 million of backlog amortization added back as part of depreciation and amortization above.
(2)	Restructuring costs related to Project Fortify. Costs incurred in fiscal year 2025 were associated with Phase 1 and costs incurred in fiscal year 2026 are associated with Phase 2, including $11.5 million of asset impairment charges in fiscal 2026.
(3)	Transition costs related to departure of Chief Executive Officer during the third quarter of fiscal 2026.
(4)	Gain related to the settlement of a New Market Tax Credit transaction.
(5)	Impairment expense on intangible assets in the Architectural Metals Segment.
(6)	Expense related to an arbitration award, which represents the impact of the award amount net of existing reserves and estimated insurance proceeds.

Apogee Enterprises, Inc.

Reconciliation of Non-GAAP Financial Measures

Adjusted net earnings and adjusted diluted earnings per share

(Unaudited)

			Three Months Ended						Twelve Months Ended
(In thousands)			February 28, 2026			March 1, 2025			February 28, 2026			March 1, 2025
Net earnings			$	16,620		$	2,485		$	54,131		$	85,052
Acquisition-related costs ^(1)				172			4,429			2,144			10,302
Restructuring costs ^(2)				3,891			1,110			27,443			4,323
CEO transition costs ^(3)				—			—			3,026			—
NMTC settlement gain ^(4)				—			—			(6,740	)		—
Impairment expense ^(5)				—			7,634			—			7,634
Arbitration award expense ^(6)				—			9,393			—			9,393
Income tax impact on above adjustments ^(7)				(979	)		(5,614	)		(5,321	)		(7,832	)
Adjusted net earnings			$	19,704		$	19,437		$	74,683		$	108,872
			Three Months Ended						Twelve Months Ended
			February 28, 2026			March 1, 2025			February 28, 2026			March 1, 2025
Diluted earnings per share			$	0.77		$	0.11		$	2.52		$	3.89
Acquisition-related costs ^(1)				0.01			0.20			0.10			0.47
Restructuring costs ^(2)				0.18			0.05			1.28			0.20
CEO transition costs ^(3)				—			—			0.14			—
NMTC settlement gain ^(4)				—			—			(0.31	)		—
Impairment expense ^(5)				—			0.35			—			0.35
Arbitration award expense ^(6)				—			0.43			—			0.43
Income tax impact on above adjustments ^(7)				(0.05	)		(0.26	)		(0.25	)		(0.36	)
Adjusted diluted earnings per share			$	0.92		$	0.89		$	3.47		$	4.97
Weighted average diluted shares outstanding				21,454			21,793			21,517			21,891
(1	)	Acquisition-related costs include one-time expenses incurred to integrate the UW Solutions acquisition.
(2	)	Restructuring costs related to Project Fortify. Costs incurred in fiscal year 2025 were associated with Phase 1 and costs incurred in fiscal year 2026 are associated with Phase 2, including $11.5 million of asset impairment charges in fiscal 2026.
(3	)	Transition costs related to departure of Chief Executive Officer during the third quarter of fiscal 2026.
(4	)	Gain related to the settlement of a New Market Tax Credit transaction.
(5	)	Impairment expense on intangible assets in the Architectural Metals Segment.
(6	)	Expense related to an arbitration award, which represents the impact of the award amount net of existing reserves and estimated insurance proceeds.
(7	)	Income tax impact reflects the estimated blended statutory tax rate for the jurisdictions in which the charge or income occurred.