Apogee Enterprises, Inc. (NASDAQ:APOG) Q2 2025 Earnings Conference Call October 4, 2024 9:00 AM ET

Company Participants

Jeff Huebschen - VP, IR
Ty Silberhorn - CEO
Matthew Osberg - CFO

Conference Call Participants

Brent Thielman - D.A. Davidson
Julio Romero - Sidoti & Company
Jon Braatz - KCCA
Gowshi Sriharan - Singular Research

Operator

Good day and thank you for standing by. Welcome to the Q2 2025 Apogee Enterprises' Earnings Conference Call. [Operator Instructions] Please be advised today's conference is being recorded.

I would now like to turn the call over to your speaker today, Jeff Huebschen, Vice President of Investor Relations. Please go ahead.

Jeff Huebschen

Thank you, Kevin. Good morning, everyone. And welcome to Apogee Enterprises fiscal 2025 second 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 a 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.

And with that, I will turn the call over to you, Ty.

Ty Silberhorn

Thanks, Jeff. Good morning, everyone.

I'm very excited to share the highlights from another solid quarter and provide further insights into our recently announced acquisition of UW Solutions. I'll then hand it over to Matt, to provide more details on the quarter and our outlook.

Let's start with the quarter highlights on Page 5, of our presentation. As we expected, revenue declined compared to last year. Similar to the first quarter, this was partly due to our strategic shift away from less differentiated lower-margin product lines and a reflection of the continued softness in some of the end markets that we serve, particularly non-residential construction. Even with the lower volume, our team continued to drive strong adjusted operating margin expansion and delivered adjusted EPS growth. Adjusted operating margin was 12.6% our second consecutive quarter with margins above 12%. And we had exceptionally strong cash flow from operations in the quarter.