Apogee Enterprises, Inc. reported its financial results for the second quarter and first half of fiscal 2025, revealing a mixed performance in revenue and profitability compared to the previous fiscal period. For the three months ended August 31, 2024, net sales totaled $342.4 million, a decrease of 3.2% from $353.7 million in the same period last year. For the six months, net sales were $674.0 million, down 5.8% from $715.4 million. The decline in revenue was primarily attributed to lower volume across several product lines, particularly in the Architectural Framing Systems segment, which saw a 11.0% drop in sales for the quarter.

Despite the revenue decline, Apogee reported an increase in gross profit for both the three-month and six-month periods. Gross profit for the quarter was $97.3 million, up from $95.4 million, while for the six months, it rose to $196.2 million from $188.4 million. This improvement in gross profit was driven by enhanced pricing strategies and a favorable project mix, resulting in a gross margin increase to 28.4% for the quarter and 29.1% for the six months.

Operating income also showed positive growth, with $42.0 million for the quarter, up from $40.6 million, and $83.3 million for the six months, compared to $74.3 million in the prior year. The operating margin improved to 12.3% for the quarter and 12.4% for the six months. However, net earnings for the quarter decreased to $30.6 million from $33.3 million, while for the six months, net earnings increased to $61.6 million from $56.9 million.

Strategically, Apogee has been active in restructuring efforts through its "Project Fortify," incurring pre-tax costs of $2.3 million in the second quarter, with expected total charges of approximately $15.0 million to $16.0 million. The project aims to yield annualized cost savings of $13 million to $14 million. Additionally, the company announced the acquisition of UW Interco, LLC for $240 million, which will be funded through cash and existing credit facilities.

As of August 31, 2024, Apogee's total assets increased to $917.1 million from $884.1 million, while total shareholders' equity rose to $506.4 million from $471.0 million. The company also reported a significant increase in cash and cash equivalents, reaching $51.0 million compared to $37.2 million at the end of the previous fiscal period. The company remains compliant with its financial covenants under a new $700 million credit agreement established in July 2024, which includes provisions for acquisitions.