Apogee Enterprises Inc (NASDAQ:APOG) reported fourth-quarter FY24 sales growth of 5.2% year-on-year to $361.84 million, beating the analyst consensus estimate of $337.83 million.
Gross profit increased 13.3% to $88.5 million, and gross margin improved by 170 bps to 24.4%, primarily driven by higher pricing, improved product mix, and the impact of cost saving initiatives.
The operating income for the quarter declined 15% to $21.8 million and the operating margin contracted 150 basis points to 6%.
Adjusted EBITDA for the quarter increased 17.1% to $43 million with an adjusted EBITDA margin of 11.9%.
In the fourth quarter, the company incurred $12.4 million of pre-tax charges related to Project Fortify, an initiative to streamline its business operations, enable a more efficient cost model, and better position it for profitable growth.
Adjusted EPS of $1.14 beat the consensus estimate of $1.01.
Apogee held $37.2 million in cash and equivalents as of March 2, 2024.
Outlook: Apogee expects a FY25 net sales decline of 4% to 7%. It sees FY25 adjusted EPS of $4.35 to $4.75 against the consensus estimate of $4.45.
Price Action: APOG shares closed lower by 0.50% at $55.92 on Wednesday.