Apogee Enterprises, Inc.

Good day and thank you for standing by. Welcome to the Q1 2025 Apogee Enterprises Earnings Conference Call. At this time, all participants are in a listen-only mode. Please be advised that today's conference is being recorded. After the speaker's presentation, there will be a question and answer session. To ask a question, please press star 1 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 1 again. I would now like to hand the conference over to your speaker today. Jeff Hibschen, Vice President of Investor Relations.

Thank you, Josh. Good morning, everyone, and welcome to Apogee Enterprises' fiscal 2025 first quarter earnings call. With me today are Ty Silberhorn, Apogee's Chief Executive Officer, and Matt Osberg, Chief Financial Officer. I'd like to remind everyone that there are slides to accompany today's remarks. These are available in the Investor Relations section of Apogee's website. During this call, we will reference certain non-GAAP financial measures. Definitions of these measures and reconciliation to the nearest GAAP measures are provided in the earnings release and slide deck we issued this morning. I'd also like to remind everyone that our call will contain forward-looking statements. These reflect management's expectations based on currently available information. Actual results may differ materially. More information about factors that could affect Apogee's business and financial results can be found in today's press release and in our SEC filings. With that, I'll turn the call over to you, Ty.

Good morning, everyone. Thanks for joining us today. We had a good start to our fiscal year, with our team continuing to build on the progress we've achieved through our strategic initiatives. We drove operational execution across the business and achieved significant adjusted operating margin expansion and EPS growth. Today I'll discuss a few highlights from the quarter and comment on how we are continuing to position the company for growth. Then Matt will provide details on the quarter and our updated outlook. As expected, we saw lower volume and revenue in both framing systems and architectural glass this quarter. This was partly due to continued deceleration in some of the end markets we serve, and partly due to our strategic shift away from less differentiated, lower margin products. Even with the lower revenue, both framing and glass delivered strong profitability. Both segments improved their adjusted operating margins due in part to good cost management and productivity gains. Architectural services was also a meaningful contributor to our year-over-year profit improvement. Services delivered double-digit sales growth and significant margin expansion compared to last year's first quarter. These positives enabled us to achieve adjusted operating margin of 12.8%, the highest in our company's 75-year history. When we first embarked on our new strategic direction, we had confidence that our company could achieve operating margins above 10%. We were proud to be able to deliver margins above 10% in fiscal 24, and we expect to improve on that in fiscal 25. We remain focused on maximizing profit dollars within our segment margin target ranges. And in the first quarter, we were able to increase adjusted operating income by 26%. With this strong earnings result, we are increasing our EPS outlook for the full year. Our performance this quarter demonstrates the sustainable operating improvements we've achieved through executing our strategy. Each of our four segments has made progress toward becoming an economic leader in the markets they serve. Our goal is to be a top margin generator in each of our target markets. To achieve this, we've established a much more competitive cost structure, developed a relentless focus on operational execution and productivity, and we've increased our mix of differentiated product and service offerings with an effort to deliver more value for our customers, allowing us to capture some of that value and allow us to gain share in our markets. The recent actions of Project Fortify continue to build on this progress, further improving our cost structure and better positioning the business for long-term, more profitable growth. We've also had great success strengthening our core capabilities. The foundation of this is our Apigee Management System, or AMS, which has helped us achieve meaningful productivity improvements. We've continued our shift from a decentralized operating model, building center-led functional capabilities that better support the business. And we made significant strides in improving talent management and leadership development across the company. These strategic actions have laid the foundation for the profitability improvements that we are achieving. It also positions us well to integrate future acquisitions to drive both cost and growth synergy, delivering more value for our customers and our shareholders. Looking ahead to the rest of the fiscal year, we continue to see a mixed picture for our end markets, as shown on slide six. We expect continued headwinds in some construction market verticals, including office and commercial. Declines in the architectural billing index point to a slowdown in construction activity. This will likely pressure volumes and or pricing in our architectural segments. On the positive side, we anticipate continued growth in institutional and infrastructure projects supported by significant government funding. Regardless of the macro environment, our team is focused on delivering results. while positioning the company for long-term growth. We are managing what we can control, working with a growth mindset, continuing to drive productivity gains, and prudently managing our costs. Our company is also positioned to gain share in our core markets. The combination of leading brands, deep customer relationships, and differentiated offerings provides a meaningful competitive advantage. We are also making investments to accelerate our growth. This includes the capacity expansion and large scale optical, which we expect to be completed this fiscal year and will allow LSO to expand into attractive market adjacencies. We're also investing to add capabilities in our architectural segments and to enable further geographic expansion in both framing and services. Finally, We continue to work our acquisition pipeline, evaluating opportunities that complement our strategy and would be accretive to our financial performance. With that, let me turn it over to Matt.