APOGEE ENTERPRISES, INC. 10-K

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA Management's Annual Report on Internal Control over Financial Reporting Management of Apogee Enterprises, Inc. and its subsidiaries (the Company) is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rules 13a-15(f) of the Securities Exchange Act of 1934. The Company's internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. The Company's internal control over financial reporting includes those policies and procedures that (1) pertain to maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of the financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company's assets that could have a material effect on the financial statements. Because of inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of the effectiveness of internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. The Company's management assessed the effectiveness of the Company's internal control over financial reporting as of March 1, 2025, using criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control - Integrated Framework (2013) . On November 4, 2024, we completed our acquisition of UW Solutions. In accordance with Securities Exchange Commission guidance permitting a company to exclude an acquired business from management’s assessment of the effectiveness of internal control over financial reporting for the year in which the acquisition is completed, we have excluded UW Solutions from our assessment of the effectiveness of internal control over financial reporting as of March 1, 2025. The assets and net sales revenue of UW Solutions that were excluded from our assessment constituted approximately 21.5% and 2.4%, respectively, of the related consolidated financial statement amounts as of and for the year ended March 1, 2025. The scope of management’s assessment of the effectiveness of the design and operation of our disclosure controls and procedures as March 1, 2025 includes all of our consolidated operations except for those disclosure controls and procedures of UW Solutions. See Note 17 for additional information regarding the UW Solutions acquisition. Based on our assessment, the Company's management believes that, as of March 1, 2025, the Company's internal control over financial reporting was effective based on those criteria. Following this report are reports from the Company's independent registered public accounting firm, Deloitte & Touche LLP, on the Company's consolidated financial statements and on the effectiveness of the Company's internal control over financial reporting as of March 1, 2025. 38 Table of Contents REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the shareholders and the Board of Directors of Apogee Enterprises, Inc. Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Apogee Enterprises, Inc. and subsidiaries (the "Company") as of March 1, 2025 and March 2, 2024, and the related consolidated results of operations, statements of comprehensive earnings, cash flows, and shareholders' equity, for each of the three years in the period ended March 1, 2025, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of March 1, 2025 and March 2, 2024, and the results of its operations and its cash flows for each of the three years in the period ended March 1, 2025, in conformity with accounting principles generally accepted in the United States of America. We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of March 1, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated April 24, 2025, expressed an unqualified opinion on the Company's internal control over financial reporting. Basis for Opinion These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing separate opinions on the critical audit matter or on the accounts or disclosures to which it relates. Net Sales — Revenue Recognition for Long-Term Contracts in the Architectural Services Segment — Refer to Notes 1, 2, and 16 to the consolidated financial statements The Architectural Services Segment, which provides building glass and curtainwall installation services and operates under long-term, fixed-price contracts, accounted for approximately $419.9 million, or 31 percent of total net sales for the year ended March 1, 2025. The contracts for this business typically have a single, bundled performance obligation, as the business generally provides interrelated products and services and integrates these products and services into a combined output specified by the customer. The customer obtains control of this combined output, generally integrated window systems or installed window and curtainwall systems, over time. The Company measures progress on these contracts following an input method, by comparing total costs incurred to-date to the total estimated costs for the contract and recording that proportion of the total contract price as revenue. Given the judgments necessary to estimate total costs and profit for the contract performance obligations used to recognize revenue for long-term, fixed-price contracts in the Architectural Services Segment, auditing such estimates required extensive audit effort due to the complexity of long-term contracts and a high degree of auditor judgment when performing audit procedures and evaluating the results of those procedures. 39 Table of Contents How the Critical Audit Matter Was Addressed in the Audit Our audit procedures related to management’s estimates of total costs and profit for the contract performance obligations used to recognize revenue for certain long-term contracts in the Architectural Services Segment included, but were not limited to the following: • We tested the effectiveness of controls over long-term contract revenue, including those over the estimates of total costs and profit for performance obligations. • We developed an expectation of the amount of total long-term contract revenue based on prior year margins applied to cost of sales in the current year and compared our expectation to the amount of long-term contract revenue ultimately recorded by management. • We evaluated management’s ability to estimate total costs and profit by comparing actual costs and profit to management’s historical estimates for performance obligations that have been fulfilled. • We selected a sample of long-term contracts from the contract portfolio and performed the following procedures: ◦ Evaluated whether the long-term contracts were properly included in management’s calculation of long-term contract revenue based on the terms and conditions of each contract, including whether continuous transfer of control to the customer occurred as progress was made toward fulfillment of the performance obligations. ◦ Compared the transaction prices to the consideration expected to be received based on current rights and obligations under the long-term contracts and any modifications that were agreed upon with the customers. ◦ Tested management’s identification of distinct performance obligations by evaluating whether the underlying services are highly interdependent and interrelated. ◦ Tested the accuracy and completeness of the costs incurred to date for the performance obligations. ◦ Tested the mathematical accuracy of management’s calculation of long-term contract revenue for the performance obligation. • Evaluated the estimates of total cost and profit for the performance obligations by: ◦ Comparing costs incurred to date to the costs management estimated to be incurred to date. ◦ Evaluating management’s ability to achieve the estimates of total cost and profit by performing corroborating inquiries with the Company’s project managers and engineers, and comparing the estimates to management’s work plans, engineering specifications, and supplier contracts. /s/ Deloitte & Touche LLP Minneapolis, MN April 24, 2025 We have served as the Company's auditor since fiscal 2003. 40 Table of Contents REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the shareholders and the Board of Directors of Apogee Enterprises, Inc. Opinion on Internal Control over Financial Reporting We have audited the internal control over financial reporting of Apogee Enterprises, Inc. and subsidiaries (the “Company”) as of March 1, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of March 1, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO. We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the year ended March 1, 2025, of the Company and our report dated April 24, 2025, expressed an unqualified opinion on those financial statements. As described in Management's Annual Report on Internal Control over Financial Reporting, management excluded from its assessment the internal control over financial reporting at UW Solutions, which was acquired on November 4, 2024, and whose financial statements constitute approximately 21.5% and 2.4% of assets and net sales revenue, respectively, of the consolidated financial statement amounts as of and for the year ended March 1, 2025. Accordingly, our audit did not include the internal control over financial reporting at UW Solutions. Basis for Opinion The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Annual Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Definition and Limitations of Internal Control over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ Deloitte & Touche LLP Minneapolis, MN April 24, 2025 41 Table of Contents CONSOLIDATED BALANCE SHEETS (In thousands, except per share data) March 1, 2025 March 2, 2024 Assets Current assets Cash and cash equivalents $ 41,448 $ 37,216 Receivables, net 185,590 173,557 Inventories, net 92,305 69,240 Contract assets 71,842 49,502 Other current assets 50,919 29,124 Total current assets 442,104 358,639 Property, plant and equipment, net 268,139 244,216 Operating lease right-of-use assets 62,314 40,221 Goodwill 235,775 129,182 Intangible assets, net 128,417 66,114 Other non-current assets 38,520 45,692 Total assets $ 1,175,269 $ 884,064 Liabilities and Shareholders’ Equity Current liabilities Accounts payable $ 98,804 $ 84,755 Accrued compensation and benefits 48,510 53,801 Contract liabilities 35,193 34,755 Operating lease liabilities 15,290 12,286 Other current liabilities 87,659 59,108 Total current liabilities 285,456 244,705 Long-term debt 285,000 62,000 Non-current operating lease liabilities 51,632 31,907 Non-current self-insurance reserves 30,382 30,552 Other non-current liabilities 34,901 43,875 Commitments and contingent liabilities (Note 10) Shareholders’ equity Junior preferred stock of $ 1.00 par value; authorized 200,000 shares; zero issued and outstanding — — Common stock of $ 0.33 -1/3 par value; authorized 50,000,000 shares; issued and outstanding 21,417,631 and 22,089,265 shares, respectively 7,139 7,363 Additional paid-in capital 156,075 152,818 Retained earnings 359,976 340,375 Accumulated other comprehensive loss ( 35,292 ) ( 29,531 ) Total shareholders’ equity 487,898 471,025 Total liabilities and shareholders’ equity $ 1,175,269 $ 884,064 See accompanying notes to consolidated financial statements. 42 Table of Contents CONSOLIDATED RESULTS OF OPERATIONS Year-Ended March 1, 2025 March 2, 2024 February 25, 2023 (In thousands, except per share data) (52 weeks) (53 weeks) (52 weeks) Net sales $ 1,360,994 $ 1,416,942 $ 1,440,696 Cost of sales 1,001,101 1,049,814 1,105,423 Gross profit 359,893 367,128 335,273 Selling, general and administrative expenses 241,783 233,295 209,485 Operating income 118,110 133,833 125,788 Interest expense, net 6,159 6,669 7,660 Other (income) expense, net ( 623 ) ( 2,089 ) 1,507 Earnings before income taxes 112,574 129,253 116,621 Income tax expense 27,522 29,640 12,514 Net earnings $ 85,052 $ 99,613 $ 104,107 Basic earnings per share $ 3.91 $ 4.55 $ 4.73 Diluted earnings per share $ 3.89 $ 4.51 $ 4.64 Weighted average basic shares outstanding 21,726 21,871 22,007 Weighted average diluted shares outstanding 21,891 22,091 22,416 See accompanying notes to consolidated financial statements. 43 Table of Contents CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS Year-Ended March 1, 2025 March 2, 2024 February 25, 2023 (In thousands) (52 weeks) (53 weeks) (52 weeks) Net earnings $ 85,052 $ 99,613 $ 104,107 Other comprehensive (loss) earnings: Unrealized gain (loss) on marketable securities, net of $ 49 , $ 59 and $( 131 ) of tax expense (benefit), respectively 184 222 ( 492 ) Unrealized loss on derivative instruments, net of $( 135 ), $( 22 ) and $( 672 ) of tax benefit, respectively ( 442 ) ( 72 ) ( 2,205 ) Unrealized gain on pension obligation, net of $ 23 , $ 261 and $ 222 of tax expense, respectively 79 857 726 Foreign currency translation adjustments ( 5,582 ) 1,018 ( 3,345 ) Other comprehensive (loss) earnings ( 5,761 ) 2,025 ( 5,316 ) Total comprehensive earnings $ 79,291 $ 101,638 $ 98,791 See accompanying notes to consolidated financial statements. 44 Table of Contents CONSOLIDATED STATEMENTS OF CASH FLOWS Year-Ended March 1, 2025 March 2, 2024 February 25, 2023 (In thousands) (52 weeks) (53 weeks) (52 weeks) Operating Activities Net earnings $ 85,052 $ 99,613 $ 104,107 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 44,608 41,588 42,403 Share-based compensation 10,725 9,721 8,656 Deferred income taxes 3,836 ( 9,748 ) ( 7,185 ) Asset impairment on property, plant and equipment — 6,195 — Loss (gain) on disposal of property, plant and equipment 408 826 ( 3,815 ) Impairment on intangible assets 7,634 — — Proceeds from New Markets Tax Credit transaction, net of deferred costs — — 18,390 Settlement of New Markets Tax Credit transaction — ( 4,687 ) ( 19,523 ) Non-cash lease expense 13,749 11,721 11,878 Other, net ( 1,247 ) 4,615 5,399 Changes in operating assets and liabilities: Receivables ( 508 ) 23,993 ( 62,304 ) Inventories ( 5,810 ) 9,366 1,731 Contract assets ( 22,625 ) 9,880 ( 3,380 ) Accounts payable 9,595 ( 2,655 ) ( 5,491 ) Accrued compensation and benefits ( 11,793 ) 2,102 ( 1,810 ) Contract liabilities 598 6,590 20,952 Operating lease liability ( 12,703 ) ( 12,632 ) ( 12,149 ) Accrued income taxes ( 5,120 ) 6,523 ( 6,976 ) Other current assets and liabilities 8,763 1,143 11,813 Net cash provided by operating activities 125,162 204,154 102,696 Investing Activities Capital expenditures ( 35,593 ) ( 43,180 ) ( 45,177 ) Proceeds from sales of property, plant and equipment 693 293 7,755 Purchases of marketable securities ( 2,394 ) ( 2,953 ) — Sales/maturities of marketable securities 3,570 2,165 9,712 Acquisition of business, net of cash acquired ( 232,169 ) — — Net cash used in investing activities ( 265,893 ) ( 43,675 ) ( 27,710 ) Financing Activities Proceeds from revolving credit facilities 77,201 196,964 485,879 Repayment on revolving credit facilities ( 57,201 ) ( 304,817 ) ( 327,865 ) Proceeds from term loans 250,000 — — Repayment of debt ( 47,000 ) — ( 151,000 ) Payments of debt issuance costs ( 3,798 ) — — Repurchase of common stock ( 45,364 ) ( 11,821 ) ( 74,312 ) Dividends paid ( 21,737 ) ( 21,133 ) ( 19,670 ) Other, net ( 6,052 ) ( 3,800 ) ( 4,055 ) Net cash provided by (used in) financing activities 146,049 ( 144,607 ) ( 91,023 ) Effect of exchange rates on cash ( 1,086 ) ( 129 ) ( 73 ) Increase in cash, cash equivalents and restricted cash 4,232 15,743 ( 16,110 ) Cash, cash equivalents and restricted cash at beginning of period 37,216 21,473 37,583 Cash and cash equivalents at end of period $ 41,448 $ 37,216 $ 21,473 Non-cash Activity Capital expenditures in accounts payable $ 3,313 $ 3,588 $ 2,909 See accompanying notes to consolidated financial statements. 45 Table of Contents Consolidated Statements of Shareholders' Equity (In thousands, except per share data) Common Shares Outstanding Common Stock at Par Value Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive (Loss) Income Total Shareholders' Equity Balance at February 26, 2022 23,701 $ 7,901 $ 149,713 $ 254,825 $ ( 26,240 ) $ 386,199 Net earnings — — — 104,107 — 104,107 Other comprehensive income, net of tax — — — — ( 5,316 ) ( 5,316 ) Issuance of stock, net of cancellations 113 37 153 35 — 225 Share-based compensation — — 8,656 — — 8,656 Exercise of stock options 36 12 ( 954 ) — — ( 942 ) Share repurchases ( 1,571 ) ( 524 ) ( 10,350 ) ( 63,438 ) — ( 74,312 ) Other share retirements ( 55 ) ( 18 ) ( 402 ) ( 2,119 ) — ( 2,539 ) Cash dividends ($ 0.9000 per share) — — — ( 19,670 ) — ( 19,670 ) Balance at February 25, 2023 22,224 $ 7,408 $ 146,816 $ 273,740 $ ( 31,556 ) $ 396,408 Net earnings — — — 99,613 — 99,613 Other comprehensive income, net of tax — — — — 2,025 2,025 Issuance of stock, net of cancellations 171 58 ( 150 ) ( 40 ) — ( 132 ) Share-based compensation — — 9,721 — — 9,721 Exercise of stock options 25 8 ( 840 ) — — ( 832 ) Share repurchases ( 280 ) ( 93 ) ( 1,989 ) ( 9,739 ) — ( 11,821 ) Other share retirements ( 51 ) ( 18 ) ( 740 ) ( 2,066 ) — ( 2,824 ) Cash dividends ($ 0.9700 per share) — — — ( 21,133 ) — ( 21,133 ) Balance at March 2, 2024 22,089 $ 7,363 $ 152,818 $ 340,375 $ ( 29,531 ) $ 471,025 Net earnings — — — 85,052 — 85,052 Other comprehensive income, net of tax — — — — ( 5,761 ) ( 5,761 ) Issuance of stock, net of cancellations 214 71 ( 312 ) 241 — — Share-based compensation — — 10,725 — — 10,725 Share repurchases ( 787 ) ( 263 ) ( 6,415 ) ( 38,686 ) — ( 45,364 ) Other share retirements ( 98 ) ( 32 ) ( 741 ) ( 5,269 ) — ( 6,042 ) Cash dividends ($ 1.0100 per share) — — — ( 21,737 ) — ( 21,737 ) Balance at March 1, 2025 21,418 $ 7,139 $ 156,075 $ 359,976 $ ( 35,292 ) $ 487,898 See accompanying notes to consolidated financial statements. 46 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. Summary of Significant Accounting Policies and Related Data Basis of consolidation The consolidated financial statements include the balances of Apogee Enterprises, Inc. and its subsidiaries (Apogee, we, us, our or the Company) after elimination of intercompany balances and transactions. We consolidate variable interest entities related to our New Markets Tax Credit transactions as it has been determined that the Company is the primary beneficiary of those entities' operations (refer to Note 10 for more information). Fiscal year Our fiscal year ends on the Saturday closest to the last day of February. Fiscal 2025 and fiscal 2023 each consisted of 52 weeks, while fiscal 2024 consisted of 53 weeks. Accounting estimates The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ significantly from those estimates. Cash equivalents Highly liquid investments with an original maturity of three months or less are included in cash equivalents and are stated at cost, which approximates fair value. Restricted cash Cash held that is specifically dedicated to fund each capital project related to our New Markets Tax Credit transactions. Marketable securities To the extent the amortized cost basis of the available-for-sale securities exceeds the fair value, we assess the debt securities for credit loss. When assessing the risk of credit loss, we consider factors such as the severity and the reason of the decline in value, including any changes to the rating of the security by a rating agency or other adverse conditions specifically related to the security, and management's intended holding period and time horizon for selling. During fiscal 2025, 2024, and 2023, the Company did not recognize any credit losses related to its available-for-sale securities. Further, as of March 1, 2025 and March 2, 2024, the Company did not record an allowance for credit losses related to its available-for-sale securities. Marketable securities are included in other current and non-current assets on the consolidated balance sheets and gross realized gains and losses are included in other (income) expense, net in our consolidated results of operations. Inventories Inventories, which consist primarily of purchased glass and aluminum, are valued at lower of cost or net realizable value using the first-in, first-out (FIFO) method. Property, plant and equipment Property, plant and equipment (PP&E) is recorded at cost. Significant improvements and renewals that extend the useful life of the asset are capitalized. Repairs and maintenance items are generally charged to expense when incurred. When an asset is retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and any related gains or losses are included in selling, general and administrative expenses. Long-lived assets to be held and used, such as PP&E, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Depreciation is computed on a straight-line basis, based on estimated useful lives of 10 to 45 years for buildings and improvements; 3 to 15 years for machinery and equipment; and 3 to 10 years for computer and office equipment and furniture. 47 Table of Contents Impairment of long-lived assets Long-lived assets or asset groups, including definite-lived intangible assets subject to amortization and property and equipment, are reviewed for impairment whenever events or changes in circumstances such as asset utilization, physical change, legal factors or other matters indicate that the carrying value of those assets may not be recoverable. When this review indicates the carrying value of an asset or asset group exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset or asset group, an asset impairment expense is recognized in earnings in the period such a determination is made. The amount of the impairment expense recorded is the amount by which the carrying value of the impaired asset or asset group exceeds its fair value based on discounted cash flows. As a result of restructuring plans announced during the fourth quarter of fiscal 2024, asset impairments on property, plant and equipment and leases in the amount of $ 6.2 million were recorded for the year ended March 2, 2024. Goodwill and intangible assets Goodwill Goodwill represents the excess of the cost over the net tangible and identified intangible assets of acquired businesses. We evaluate goodwill for impairment annually on the first day in our fiscal fourth quarter, or more frequently if events or changes in circumstances indicate the carrying value of the goodwill may not be recoverable. Evaluating goodwill for impairment involves the determination of the fair value of each reporting unit in which goodwill is recorded using a qualitative or quantitative analysis. A reporting unit is an operating segment or a component of an operating segment for which discrete financial information is available and reviewed by segment management on a regular basis. During the third quarter of fiscal 2025, we acquired UW Interco, LLC (UW Solutions). As a result, we reassessed our reporting units. The reporting units for our fiscal 2025 annual impairment test align with our reporting segments for Architectural Metals, Architectural Services, and Architectural Glass. The Performance Surfaces reporting segment consists of the Tru Vue and UW Solutions reporting units. No qualitative indicators of impairment were identified during the fourth quarter of fiscal 2025. We estimate the fair value of a reporting unit using both the income approach and the market approach. The income approach uses a discounted cash flow methodology that involves significant judgment and projections of future performance. Assumptions about future revenues and future operating expenses, capital expenditures and changes in working capital are based on the annual operating plan and other business plans for each reporting unit. These plans take into consideration numerous factors, including historical experience, current and future operational plans, anticipated future economic conditions and growth expectations for the industries and end markets in which we participate. These projections are discounted using a weighted-average cost of capital, which considers the risk inherent in our projections of future cash flows. We determine the weighted-average cost of capital for this analysis by weighting the required returns on interest bearing debt and common equity capital in proportion to their estimated percentages in an expected capital structure, using published data where possible. We used discount rates that are commensurate with the risks and uncertainties inherent in the respective businesses and in the internally developed forecasts. The market approach uses a multiple of earnings and revenue based on guidelines for publicly traded companies. Intangible assets We have intangible assets for certain acquired trade names and trademarks which are determined to have indefinite useful lives. We test indefinite-lived intangible assets for impairment annually at the same measurement date as goodwill, the first day of our fiscal fourth quarter, or more frequently if events or changes in circumstances indicate that it is more likely than not that the asset is impaired. If the carrying amount of an indefinite-lived intangible asset exceeds its fair value, an impairment expense is recognized in an amount equal to that excess. If an impairment expense is recognized, the adjusted carrying amount becomes the asset's new accounting basis. Fair value of indefinite-lived intangible assets is measured using the relief-from-royalty method. This method assumes the trade name or trademark has value to the extent that the owner is relieved of the obligation to pay royalties for the benefits received from the asset. This method requires estimation of future revenue from the related asset, the appropriate royalty rate, and the weighted average cost of capital. The assessment of fair value involves significant judgment and projections about future performance. Based on our annual impairment analysis and changes to our branding strategies in the fourth quarter of fiscal 2025, the carrying amount for certain of our trade names exceeded the fair value. As a result, we recorded a non-cash impairment charge of $ 7.6 million in the fourth quarter of fiscal 2025. Definite-lived intangible assets are amortized based on estimated useful lives ranging from 18 months to 30 years and are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. We use undiscounted cash flows to determine whether impairment exists and measure any impairment loss using discounted cash flows to determine the fair value of long-lived assets. 48 Table of Contents The estimated useful lives of all intangible assets are reviewed annually, and we have determined that the remaining lives were appropriate. Refer to Note 6 for additional information. Leases We have commercially negotiated leases where we recognize a right-of-use asset and lease liability on our consolidated balance sheet at lease commencement for leases with terms greater than twelve months. The initial lease liability is recognized at the present value of remaining lease payments over the lease term. Leases with an initial term of twelve months or less are not recorded on our consolidated balance sheet. We recognize lease expense for operating leases on a straight-line basis over the lease term. We combine lease and non-lease components, such as common area maintenance costs, in calculating the related asset and lease liabilities for all underlying asset groups. Refer to Note 8 for additional information. Self-Insurance We obtain commercial insurance to provide coverage for potential losses in areas such as employment practices, workers' compensation, directors and officers, automobile, architect's and engineer's errors and omissions, product rework and general liability. A substantial portion of this risk is retained on a self-insured basis through our wholly-owned insurance subsidiary. We establish a reserve for estimated ultimate losses on reported claims and those incurred but not yet reported utilizing actuarial projections. Reserves are classified within other current liabilities or non-current self-insurance reserves based on expectations of when the estimated loss will be paid. Additionally, we maintain a self-insurance reserve for health insurance programs offered to eligible employees, included within other current liabilities on the consolidated balance sheets. The reserve includes an estimate for losses on reported claims as well as for amounts incurred but not yet reported, based on historical trends. Warranty and project-related contingencies We are subject to claims associated with our products and services, principally as a result of disputes with our customers involving the performance or aesthetics of our architectural products and services. We reserve estimated exposures on known claims, as well as on a portion of anticipated claims for product warranty and rework costs, based on historical product liability claims as a ratio of sales. We also reserve for estimated backcharge exposures or other claims as they are known and reasonably estimable. Reserves are included in other current and non-current liabilities based on the estimated timing of dispute resolution. Foreign currency Local currencies are considered the functional currencies for our subsidiaries outside of the United States. Assets and liabilities of these subsidiaries are translated at the exchange rates at the balance sheet date. Income and expense items are translated using average monthly exchange rates. Translation adjustments are included in accumulated other comprehensive loss in the consolidated balance sheets. Derivatives and hedging activities We are exposed to, among other risks, the impact of changes in aluminum prices, foreign currency exchange rates, and interest rates in the normal course of business. In order to manage the exposure and volatility arising from these risks, we may utilize derivative financial instruments to offset a portion of these risks. We use derivative financial instruments to hedge identified business risks, and do not hold or issue derivative financial instruments for trading purposes and are not a party to leveraged derivatives. All derivative instruments within the scope of ASC 815, Derivatives and Hedging , are recorded as either assets or liabilities at fair value on the consolidated balance sheets. All hedging instruments that qualify for hedge accounting are designated and effective as hedges with changes recognized in other comprehensive earnings (loss). Instruments that do not qualify for hedge accounting are marked to market with changes recognized directly in net earnings. Cash flows from derivative instruments are classified in the statements of cash flows in the same category as the cash flows from the items subject to designated hedge or undesignated (economic) hedge relationships. Refer to Note 4 for additional information. Revenue recognition Our accounting policy for revenue recognition follows ASC 606, Revenue from Contracts with Customers . We generate revenue from the design, engineering and fabrication of architectural glass, curtainwall, window, storefront and entrance systems, and from installing those products on non-residential buildings. We also coat and fabricate value-added glass, aluminum, acrylic and medium-density fiberboard products. Due to the diverse nature of our operations and various types of arrangements with customers, we have businesses that recognize revenue at shipment, businesses that recognize revenue following an over-time input method and businesses that recognize revenue following an over-time output method. 49 Table of Contents Approximately 42 % of our fiscal 2025 revenue was recognized at the time products were shipped from our manufacturing facilities, which is when control is transferred to our customer. These businesses do not generate contract-related assets or liabilities. Variable consideration associated with these contracts and orders, generally related to early pay discounts or volume rebates, is not considered significant. Approximately 36 % of our fiscal 2025 revenue was from fixed-price contracts, following an over-time input method. The contracts for these businesses have a single, bundled performance obligation, as these businesses generally provide interrelated products and services and integrate these products and services into a combined output specified by the customer. The customer obtains control of this combined output, generally integrated window systems or installed window and curtainwall systems, over time. We measure progress on these contracts following an input method, by comparing total costs incurred to-date to the total estimated costs for the contract, and record that proport ion of the total contract price as revenue in the period. Contract costs include materials, labor and other direct costs related to contract performance. We believe this method of recognizing revenue is consistent with our progress in satisfying our contract obligations. Due to the nature of the work required under these long-term contracts, the estimation of total revenue and costs incurred throughout a project is subject to many variables and requires significant judgment. It is common for these contracts to contain potential bonuses or penalties which are generally awarded or charged upon certain project milestones or cost or timing targets, and these can be based on customer discretion. We estimate variable consideration at the most likely amount to which we expect to be entitled. We include estimated amounts in the transaction price to the extent that it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on our assessments of anticipated performance and all information (historical, current and forecasted) that is reasonably available to us. Long-term contracts are often modified to account for changes in contract specifications and requirements of work to be performed. We consider contract modifications to exist when the modification, generally through a change order, either creates new or changes existing enforceable rights and obligations, and we evaluate these types of modifications to determine whether they may be considered distinct performance obligations. In most cases, these contract modifications are for goods or services that are not distinct from the existing contract, due to the significant integration service provided in the context of the contract. Therefore, these modifications are accounted for as part of the existing contract. The effect of a contract modification on the transaction price and our measure of progress is recognized as an adjustment to revenue, generally on a cumulative catch-up basis. The net cumulative catch-up adjustments on our longer-term contracts for changes in estimates had the following effect on the respective periods shown: (in thousands, except earnings per share data) Year Ended March 1, 2025 March 2, 2024 February 25, 2023 (52 weeks) (53 weeks) (52 weeks) Operating income $ 16,307 $ 5,760 $ 13,422 Earnings per share: Basic $ 0.57 $ 0.20 $ 0.46 Diluted $ 0.56 $ 0.20 $ 0.45 Typically, under these fixed-price contracts, we bill our customers following an agreed-upon schedule based on work performed. Because the progress billings do not generally correspond to our measurement of revenue on a contract, we generate contract assets when we have recognized revenue in excess of the amount billed to the customer. We generate contract liabilities when we have billed the customer in excess of revenue recognized on a contract. A pproximately 22 % of our fiscal 2025 revenue was recognized following an over-time output method based upon units produced. The customer is considered to have control over the products at the time of production, as the products are highly customized with no alternative use, and we have an enforceable right to payment for performance completed over the production p eriod. We believe this over-time output method of recognizing revenue reasonably depicts the fulfillment of our performance obligations under our contracts. Billings still occur upon shipment. Therefore, contract assets are generated for the unbilled amounts on contracts when production is complete. Variable consideration associated with these orders, generally related to early pay discounts, is not considered significant. 50 Table of Contents Additionally, we have made the following policy elections associated with revenue recognition: • We account for shipping and handling activities that occur after control of the related goods transfers to the customer as fulfillment activities, instead of assessing such activities as performance obligations. • We exclude from the transaction price all sales taxes related to revenue-producing transactions that are collected from the customer for a government authority. We are considered a pass-through conduit for collecting and remitting sales taxes. • We generally expense incremental costs of obtaining a contract when incurred because the amortization period would be less than one year. These costs primarily relate to sales commissions and are included in selling, general and administrative expenses. • We do not adjust contract price for a significant financing component, as we expect the period between when our goods and services are transferred to the customer and when the customer pays for those goods and services to be less than a year. Shipping and handling Amounts billed to a customer in a sales transaction related to shipping and handling are reported as revenue. Costs we incur for shipping and handling are reported as cost of sales. Restructuring Restructuring charges are recorded as a result of fundamental changes in the manner in which certain business functions are conducted, including initiatives to drive earnings and cash flow growth and to realign and simplify our business structure. These charges primarily consist of employee severance benefits, asset impairments on property, plant and equipment and operating lease assets and termination penalties for facility closures and consolidations. We record restructuring accruals when it is probable that a liability has been incurred and the amount of the liability is reasonably estimable. To the extent our assumptions and estimates differ from our actual costs, subsequent adjustments to restructuring accruals have been, and will be, required. Restructuring accruals for severance-related costs are included in accrued compensation and related benefits and accruals for remaining obligations and termination penalties are included in other current liabilities in our consolidated balance sheets. Refer to Note 18 for additional information. Research and development Research and development activities include the development of new products, the modification of existing product designs, and research related to process improvements. Our research and development expenses were $ 29.0 million, $ 30.3 million and $ 25.5 million for fiscal 2025, 2024 and 2023, respectively. These costs are expensed as incurred. Advertising Advertising costs are expensed as incurred within selling, general and administrative expenses , and were $ 1.0 million in fiscal 2025, $ 1.3 million in fiscal 2024, and $ 1.2 million in fiscal 2023. Income taxes The Company recognizes deferred tax assets and liabilities based upon the future tax consequences of temporary differences between financial statement carrying amounts of assets and liabilities and their respective tax bases. Refer to Note 14 for additional information. Subsequent events We have evaluated subsequent events for potential recognition and disclosure through the date of this filing and determined that an arbitration award (refer to Note 10) is a subsequent event that required recognition and disclosure in our fiscal 2025 consolidated financial statements and that the announcement of the extension of our restructuring program, Project Fortify Phase 2, (refer to Note 18) required disclosure in the consolidated financial statements. There were no other events that required recognition or disclosure. Adoption of new accounting standards In the fourth quarter of fiscal 2025, we adopted the guidance in ASU 2023-07, Improvements to Reportable Segment Disclosures , which expands the required disclosure for reportable segments. This guidance requires entities to disclose significant segment expenses and other segment items on an annual and interim basis and to provide in interim periods all segment disclosures which are currently required annually. This ASU additionally requires entities to disclose the title and position of the individual or the name of the group or committee identified as its chief operating decision-maker. At the beginning of fiscal 2024, we adopted the guidance in ASU 2022-04, Liabilities – Supplier Finance Programs, Disclosure of Supplier Finance Program Obligations. The guidance requires that entities that use supplier finance programs disclose 51 Table of Contents information about the nature and potential magnitude of the programs, activity during the period, and changes from period to period. The adoption of this ASU did not have a significant impact on the consolidated financial statements. Accounting standards not yet adopted In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures , intended to enhance the transparency and decision-usefulness of income tax disclosures. Such guidance requires entities to provide additional information within their income tax rate reconciliation, including further disclosure of federal, state, and foreign income taxes and to provide more details about these reconciling items if a quantitative threshold is met. This guidance additionally requires expanded disclosure of income taxes paid, including amounts paid for federal, state, and foreign taxes. This ASU, which is required to be applied prospectively, is effective for fiscal years beginning after December 15, 2024, although early adoption and retrospective application is permitted. While the adoption of this ASU will not have an impact on our financial position and/or results of operations, we are currently evaluating the impact on our income tax disclosures, including the processes and controls around the collection of this information. In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses . This guidance requires entities to disclose more detailed information about the types of expenses, including purchases of inventory, employee compensation, depreciation, amortization, and depletion in commonly presented expense captions such as cost of sales and selling, general and administrative expenses. Such guidance is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, although early adoption is permitted. This guidance should be applied either prospectively to financial statements issued for reporting periods after the effective date of this ASU or retrospectively to any or all prior periods presented in the financial statements. While the adoption of this ASU will not have an impact on our financial position and/or results of operations, we are currently evaluating the impact this ASU may have on our consolidated financial statement disclosures, including the processes and controls around the collection of this information. 2. Revenue, Receivables and Contract Assets and Liabilities Revenue The following table disaggregates total revenue by timing of recognition (see Note 16 for disclosure of revenue by segment): (In thousands) 2025 2024 2023 Recognized at shipment $ 571,140 $ 596,270 $ 649,792 Recognized over time (input method) 495,562 483,109 514,826 Recognized over time (output method) 294,292 337,563 276,078 Total $ 1,360,994 $ 1,416,942 $ 1,440,696 Receivables Receivables reflected in the financial statements represent the net amount expected to be collected. An allowance for credit losses is established based on expected losses. Expected losses are estimated by reviewing individual accounts, considering aging, financial condition of the debtor, recent payment history, current and forecast economic conditions and other relevant factors. Upon billing, aging of receivables is monitored until collection. An account is considered current when it is within agreed upon payment terms. An account is written off when it is determined that the asset is no longer collectible. (In thousands) March 1, 2025 March 2, 2024 Trade accounts $ 117,533 $ 115,061 Construction contracts 70,724 61,879 Total receivables 188,257 176,940 Less: allowance for credit losses 2,667 3,383 Receivables, net $ 185,590 $ 173,557 52 Table of Contents The following table summarizes the activity in the allowance for credit losses: (In thousands) 2025 2024 Beginning balance $ 3,383 $ 1,796 (Credits) charges against costs and expenses ( 1,376 ) 2,473 Deductions from allowance, net of recoveries ( 122 ) ( 901 ) Allowance for credit losses from acquisitions 853 — Other adjustments ( 71 ) 15 Ending balance $ 2,667 $ 3,383 Contract assets and liabilities Contract assets consist of retainage, costs and earnings in excess of billings and other unbilled amounts typically generated when revenue recognized exceeds the amount billed to the customer. Retainage on construction contracts represents amounts withheld by our customers on long-term projects until the project reaches a level of completion where amounts are released to us from the customer. Contract liabilities consist of billings in excess of costs and earnings and other unearned revenue on contracts. The time period between when performance obligations are complete and when payment is due is not significant. In certain of our businesses that recognize revenue over time, progress billings follow an agreed-upon schedule of values. (In thousands) March 1, 2025 March 2, 2024 Contract assets $ 71,842 $ 49,502 Contract liabilities 35,193 34,755 The change in contract assets and contract liabilities was due to timing of project activity from businesses that operate under long-term contracts. Other contract-related disclosures (In thousands) 2025 2024 Revenue recognized related to contract liabilities from prior year-end $ 30,785 $ 25,342 Revenue recognized related to prior satisfaction of performance obligations 16,202 9,257 Some of our contracts have an expected duration of longer than a year, with performance obligations extending over that time frame. Generally, these contracts are found in our businesses that typically operate with long-term contracts, which recognize revenue over time. The transaction price associated with unsatisfied performance obligations at March 1, 2025 are expected to be satisfied, and the corresponding revenue to be recognized, over the following estimated time periods: (In thousands) 2025 Within one year $ 555,900 More than one but less than two years 238,754 Beyond two years 81,331 Total $ 875,985 3. Supplemental Balance Sheet Information Inventories (In thousands) March 1, 2025 March 2, 2024 Raw materials $ 36,804 $ 31,363 Work-in-process 15,554 12,291 Finished goods 39,947 25,586 Total inventories, net $ 92,305 $ 69,240 53 Table of Contents Other current liabilities (In thousands) March 1, 2025 March 2, 2024 Arbitration award payable $ 20,182 $ — Accrued self-insurance reserves 18,240 17,592 Warranties and backcharges 17,557 18,874 Deferred benefit from New Markets Tax Credit transactions 9,250 — Income and other taxes 5,813 7,202 Other 16,617 15,440 Total other current liabilities $ 87,659 $ 59,108 Other non-current liabilities (In thousands) March 1, 2025 March 2, 2024 Deferred warranty revenue $ 10,154 $ 10,274 Deferred compensation plan 5,590 5,938 Retirement plan obligations 4,640 4,769 Deferred tax liabilities 1,256 1,456 Deferred benefit from New Markets Tax Credit transactions — 9,250 Other 13,261 12,188 Total other non-current liabilities $ 34,901 $ 43,875 4. Financial Instruments Marketable Securities Through our wholly-owned insurance subsidiary, Prism Assurance, Ltd. (Prism), we hold the following available-for-sale marketable securities, made up of municipal and corporate bonds: (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value March 1, 2025 $ 10,148 $ 33 $ 222 $ 9,959 March 2, 2024 11,327 15 437 10,905 Prism insures a portion of our general liability, workers' compensation and automobile liability risks using reinsurance agreements to meet statutory requirements. The reinsurance carrier requires Prism to maintain fixed-maturity investments, for the purpose of providing collateral for Prism's obligations under the reinsurance agreements. The amortized cost and estimated fair values of our municipal and corporate bonds at March 1, 2025, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities, as borrowers may have the right to call or prepay obligations with or without penalty. Investments that are due within one year are included in other current assets while those due after one year are included as other non-current assets. Gross realized gains and losses were insignificant for all periods presented. (In thousands) Amortized Cost Estimated Fair Value Due within one year $ 4,829 $ 4,798 Due after one year through five years 5,319 5,161 Total $ 10,148 $ 9,959 Derivative instruments We may use interest rate swaps, currency put options, forward purchase contracts, or other instruments to manage risks generally associated with foreign exchange rate, interest rate and commodity price fluctuations. The information that follows explains the various types of derivatives and financial instruments used, how such instruments are accounted for, and how such instruments impact our financial position and performance. 54 Table of Contents In fiscal 2020, we entered into an interest rate swap with a notional value of $ 30 million with an expiration date of February 5, 2026, to hedge a portion of our exposure to variability in cash flows from interest payments on our floating-rate revolving credit facility. In fiscal 2025, we entered into an interest rate swap with a notional value of $ 75 million with an expiration date of January 5, 2027, to hedge a portion of our exposure to variability in cash flows from interest payments on our floating-rate revolving credit facility. We periodically enter into forward purchase contracts to manage the risk associated with fluctuations in foreign currency rates (primarily related to the Canadian dollar and Euro) and aluminum prices, generally with an original maturity date of less than one year. As of March 1, 2025, we held foreign exchange option contracts with U.S. dollar notional values of $ 1.5 million. The mark to market adjustments on these derivative instruments are recorded within our consolidated balance sheets within other current assets and other current liabilities. Gains or losses associated with these instruments are recorded as a component of accumulated other comprehensive loss until which time the hedged transaction is settled and gains or losses are reclassified to earnings. Fair value measurements Financial assets and liabilities are classified in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement: Level 1 (unadjusted quoted prices in active markets for identical assets or liabilities); Level 2 (observable market inputs, other than quoted prices included in Level 1); and Level 3 (unobservable inputs that cannot be corroborated by observable market data). We do not have any Level 3 assets or liabilities. Financial assets and liabilities measured at fair value on a recurring basis were: (In thousands) Quoted Prices in Active Markets (Level 1) Other Observable Inputs (Level 2) Total Fair Value March 1, 2025 Assets: Money market funds $ 20,758 $ — $ 20,758 Municipal bonds — 9,959 9,959 Foreign currency option contract — 29 29 Interest rate swap contracts — 539 539 Liabilities: Interest rate swap contracts — 540 540 March 2, 2024 Assets: Money market funds $ 26,529 $ — $ 26,529 Municipal bonds — 10,905 10,905 Foreign currency option contracts — 3 3 Interest rate swap contracts — 1,292 1,292 Liabilities: Aluminum hedging contracts — 529 529 Money market funds Fair value of money market funds was determined based on quoted prices for identical assets in active markets. These assets are included within cash and cash equivalents on our consolidated balance sheets. Municipal bonds Municipal bonds were measured at fair value based on market prices from recent trades of similar securities and are classified within our consolidated balance sheets as other current or other non-current assets based on maturity date. Derivative instruments The interest rate swaps are measured at fair value using other observable market inputs, based off benchmark interest rates. Forward foreign exchange and forward purchase aluminum contracts are measured at fair value using other observable market inputs, such as quotations on forward foreign exchange points, foreign currency exchange rates and forward purchase aluminum prices. Derivative positions are primarily valued using standard calculations and models that use as their basis readily 55 Table of Contents observable market parameters. Industry standard data providers are our primary source for forward and spot rate information for interest and currency rates and aluminum prices. Nonrecurring fair value measurements We measure certain financial instruments at fair value on a nonrecurring basis including goodwill, intangible assets, property and equipment and right-of-use lease assets. These assets were initially measured and recognized at amounts equal to the fair value determined as of the date of acquisition or purchase, subject to changes in value only for foreign currency translation. Periodically, these assets are tested for impairment, by comparing their respective carrying values to the estimated fair value of the reporting unit or asset group in which they reside. In the event any of these assets were to become impaired, we would recognize an impairment expense equal to the amount by which the carrying value of the reporting unit, impaired asset or asset group exceeds its estimated fair value. Fair value measurements of reporting units are estimated using an income approach involving discounted cash flow models that contain certain Level 3 inputs requiring significant management judgment, including projections of economic conditions, customer demand and changes in competition, revenue growth rates, gross profit margins, operating margins, capital expenditures, working capital requirements, terminal growth rates and discount rates. Fair value measurements of the reporting units associated with our goodwill balances and our indefinite-lived intangible assets are estimated at least annually in the fourth quarter of each fiscal year for purposes of impairment testing if a quantitative analysis is performed. Fair value measurements for long-lived assets or asset groups, including intangible assets subject to amortization, property and equipment and right-of-use lease assets, are valued using undiscounted cash flows to determine whether impairment exists and measure any impairment loss using discounted cash flows to determine the fair value of long-lived assets. 5. Property, Plant and Equipment (In thousands) March 1, 2025 March 2, 2024 Land $ 3,460 $ 3,637 Buildings and improvements 195,205 189,675 Machinery and equipment 428,015 391,236 Computer and office equipment and furniture 61,926 62,586 Construction in progress 49,013 42,099 Total property, plant and equipment 737,619 689,233 Less: accumulated depreciation 469,480 445,017 Net property, plant and equipment $ 268,139 $ 244,216 Depreciation expense was $ 35.7 million, $ 37.6 million, and $ 38.2 million in fiscal 2025, 2024, and 2023, respectively. 6. Goodwill and Other Intangible Assets Goodwill Refer to Note 1 for a description of the Accounting Policy related to Goodwill. Goodwill represents the excess of the cost over the net tangible and identified intangible assets of acquired businesses. We evaluate goodwill for impairment annually as of the first day of our fiscal fourth quarter, or more frequently if events or changes in circumstances indicate the carrying value of goodwill may not be recoverable, as described in Note 1. Based on the impairment analysis performed in the fourth quarter, estimated fair value was in excess of carrying value at all of our reporting units. The carrying amount of goodwill attributable to each reportable segment was: (In thousands) Architectural Metals Architectural Services Architectural Glass Performance Surfaces Total Balance at February 25, 2023 $ 90,137 $ 3,031 $ 25,301 $ 10,557 $ 129,026 Foreign currency translation 49 7 100 — 156 Balance at March 2, 2024 90,186 3,038 25,401 10,557 129,182 Goodwill acquired — — — 107,826 107,826 Foreign currency translation ( 852 ) ( 117 ) ( 264 ) — ( 1,233 ) Balance at March 1, 2025 $ 89,334 $ 2,921 $ 25,137 $ 118,383 $ 235,775 56 Table of Contents Intangible assets Indefinite-lived intangible assets We have intangible assets for certain acquired trade names and trademarks which are determined to have indefinite useful lives. We test indefinite-lived intangible assets for impairment annually at the same measurement date as goodwill, the first day of our fiscal fourth quarter, or more frequently if events or changes in circumstances indicate that it is more likely than not that the asset is impaired as described in Note 1. Based on our annual analysis and changes to our strategic branding in the 4th quarter of fiscal 2025, we recorded impairment expense of $ 7.6 million related to trademarks within Selling, general and administrative expenses (SG&A) in the Architectural Metals Segment. Definite-lived intangible assets Long-lived assets or asset groups, including intangible assets subject to amortization and property and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of those assets may not be recoverable, as described in Note 1. In fiscal 2025, $ 79.7 million of intangible assets were acquired as part of the UW Interco, LLC (UW Solutions) acquisition. The gross carrying amount of our intangible assets and related accumulated amortization was: (In thousands) Gross Carrying Amount Accumulated Amortization Impairment Expense Foreign Currency Translation Net March 1, 2025 Definite-lived intangible assets: Customer relationships $ 134,402 $ ( 56,193 ) $ — $ ( 2,655 ) $ 75,554 Other intangibles 66,832 ( 31,768 ) — ( 1,197 ) 33,867 Total 201,234 ( 87,961 ) — ( 3,852 ) 109,421 Indefinite-lived intangible assets: Trademarks 26,865 — ( 7,634 ) ( 235 ) 18,996 Total intangible assets $ 228,099 $ ( 87,961 ) $ ( 7,634 ) $ ( 4,087 ) $ 128,417 March 2, 2024 Definite-lived intangible assets: Customer relationships $ 86,798 $ ( 53,200 ) $ — $ 246 $ 33,844 Other intangibles 37,505 ( 32,250 ) — 150 5,405 Total 124,303 ( 85,450 ) — 396 39,249 Indefinite-lived intangible assets: Trademarks 26,851 — — 14 26,865 Total intangible assets $ 151,154 $ ( 85,450 ) $ — $ 410 $ 66,114 Amortization expense on finite-lived intangible assets was $ 8.9 million, $ 4.9 million and $ 4.2 million in fiscal 2025, 2024 and 2023, respectively. All amortization expense is included within selling, general and administrative expenses. Estimated future amortization expense for finite-lived intangible assets is: (In thousands) 2026 2027 2028 2029 2030 Estimated amortization expense $ 5,236 $ 5,236 $ 5,184 $ 4,968 $ 4,928 7. Debt On July 19, 2024, we entered into a Credit Agreement (the Credit Agreement) with Bank of America, N.A., as administrative agent, and other lenders. The Credit Agreement provides for an unsecured senior credit facility in an aggregate principal amount of up to $ 700.0 million, in which commitments were made through a $ 450.0 million, five-year revolving credit facility and a committed $ 250.0 million delayed draw term loan facility. Borrowings under the revolving credit facility can be in Canadian dollars (CAD) limited to $ 25.0 million USD. The term loan facility may be utilized in up to two draw downs, which are available to be made within one year after the closing date. The senior credit facility has a term of five years with a maturity date of July 19, 2029. The Credit Agreement replaces the previous revolving credit facility with Wells Fargo Bank, N.A., as administrative agent, and other lenders, with maximum borrowings up to $ 385.0 million, and the two Canadian credit facilities with Bank of Montreal totaling $ 25.0 million USD. 57 Table of Contents As a result of the execution of the Credit Agreement in fiscal 2025, we recognized a loss, within interest expense, of $ 0.5 million for the write-off of unamortized financing fees related to the previous revolving credit facility. Additionally, we capitalized $ 3.0 million of lender fees and $ 0.8 million of third-party fees incurred in connection with the Credit Agreement, which were recorded as other non-current assets and will be amortized over the term of the credit facility as interest expense. The Credit Agreement contains two maintenance financial covenants that require our Consolidated Leverage Ratio (as defined in the Credit Agreement) to be less than 3.50 and our Consolidated Interest Coverage Ratio (as defined in the Credit Agreement) to exceed 3.00 . At March 1, 2025, we were in compliance with all covenants as defined under the terms of the Credit Agreement. The Credit Agreement also contains an acquisition "holiday." In the event we make an acquisition for which the purchase price is greater than $ 75 million, we can elect to increase the maximum Consolidated Leverage Ratio (as defined in the Credit Agreement) to 4.00 for a period of four consecutive fiscal quarters, commencing with the fiscal quarter in which a qualifying acquisition occurs. No more than two acquisition holidays can occur during the term of the Credit Agreement, and at least two fiscal quarters must separate qualifying acquisitions. Borrowings under the Credit Agreement bear floating interest at either the Base Rate or Term Secured Overnight Financing Rate (SOFR), or, for CAD borrowings, Canadian Overnight Repo Rate Average (CORRA), plus a margin based on the Consolidated Leverage Ratio (as defined in the Credit Agreement). For Base Rate borrowings, the margin ranges from 0.25 % to 0.75 %. For Term SOFR and CORRA borrowings, the margin ranges from 1.25 % to 1.75 %, with an incremental Term SOFR and CORRA adjustment of 0.10 % and 0.29547 %. The Credit Agreement also contains an "accordion" provision. Under this provision, we can request that the senior credit facility be increased unlimited additional amounts. Any lender may elect or decline to participate in the requested increase at their sole discretion. On November 4, 2024, as part of the acquisition of UW Solutions, and for working capital and general corporate purposes, we executed a drawdown against the delayed draw term loan facility for 250.0 million. Outstanding borrowings under the term loan facility were $ 215.0 million as of March 1, 2025. Outstanding borrowings under the current revolving credit facility were $ 70.0 million as of March 1, 2025. Outstanding borrowings under the previous revolving credit facility were $ 50.0 million as of March 2, 2024. We had no outstanding borrowings under the Canadian facilities as of March 2, 2024. At March 2, 2024, debt included $ 12.0 million of industrial revenue bonds. We had no outstanding industrial revenue bonds as of March 1, 2025 as in the fourth quarter of fiscal 2025 we paid the remaining balance of these bonds, including principal and interest outstanding, without penalty. At March 1, 2025, we had a total of $ 15.0 million of ongoing letters of credit related to the senior credit facility, amounts that remained on the industrial revenue bonds that were not extinguished when payment was made, construction contracts and insurance collateral that expire in fiscal year 2026 and reduce borrowing capacity under the revolving credit facility. As of March 1, 2025, the amount available for revolving borrowings was $ 365.0 million. The fair value of our senior credit facility approximated carrying values at March 1, 2025, and would be classified as Level 2 within the fair value hierarchy described in Note 4, due to the variable interest rates on these instruments. 58 Table of Contents Debt maturities and other selected information follows: (In thousands) 2026 2027 2028 2029 2030 Thereafter Total Maturities $ — $ — $ — $ — $ 285,000 $ — $ 285,000 (In thousands, except percentages) 2025 2024 Average daily borrowings during the year $ 134,565 $ 130,939 Weighted average interest rate during the year 6.28 % 6.03 % The weighted average interest rates on borrowings outstanding, inclusive of the impact of our interest rate swap as of March 1, 2025 and March 2, 2024 were 4.32 % and 4.90 %, respectively. (In thousands) 2025 2024 2023 Interest on debt $ 8,803 $ 8,704 $ 8,558 Interest rate swap gain ( 822 ) ( 893 ) ( 418 ) Other interest expense 815 178 294 Interest income ( 2,637 ) ( 1,320 ) ( 774 ) Interest expense, net $ 6,159 $ 6,669 $ 7,660 Interest payments were $ 8.1 million in fiscal 2025, $ 9.3 million in fiscal 2024 and $ 8.2 million in fiscal 2023. 59 Table of Contents 8. Leases We have operating leases for certain buildings and equipment used in our operations. We determine if an arrangement contains a lease at inception. Under ASU 2016-20, Leases , we have elected the package of practical expedients permitted under the transition guidance in adopting ASC 842, which, among other things, allowed us to carry forward our historical lease classification. Operating lease assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. Lease expense is recognized on a straight-line basis over the lease term. Our leases have remaining lease terms of one to seventeen years , some of which include renewal options that can extend the lease for up to an additional ten years , at our sole discretion. We have made an accounting policy election not to record leases with an original term of twelve months or less on our consolidated balance sheet; such leases are expensed on a straight-line basis over the lease term. In determining lease asset value, we consider fixed or variable payment terms, prepayments, incentives, and options to extend, terminate or purchase. Renewal, termination or purchase options affect the lease term used for determining lease asset value only if the option is reasonably certain to be exercised. We use a discount rate for each lease based upon an estimated incremental borrowing rate over a similar term. We have elected the practical expedient to account for lease and non-lease components (e.g., common-area maintenance costs) as a single lease component. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The components of lease expense were as follows: (In thousands) 2025 2024 Operating lease cost $ 14,587 $ 14,312 Short-term lease cost 688 1,349 Variable lease cost 3,984 2,629 Sublease income ( 1,533 ) ( 1,479 ) Total lease cost $ 17,726 $ 16,811 Other supplemental information related to leases are as follows: (In thousands) 2025 2024 Cash paid for amounts included in the measurement of operating lease liabilities $ 16,467 $ 14,656 Lease assets obtained in exchange for new operating lease liabilities $ 21,810 $ 11,883 Weighted-average remaining lease term - operating leases 5.7 years 4.0 years Weighted-average discount rate - operating leases 4.5 % 3.2 % Future maturities of lease liabilities are as follows: (In thousands) 2025 Fiscal 2026 $ 17,669 Fiscal 2027 17,123 Fiscal 2028 12,818 Fiscal 2029 7,856 Fiscal 2030 6,615 Thereafter 14,781 Total lease payments 76,862 Less: Amounts representing interest 9,940 Present value of lease liabilities $ 66,922 60 Table of Contents 9. Employee Benefit Plans 401(k) Retirement Plan We sponsor a single 401(k) retirement plan covering substantially all full-time, non-union employees, as well as union employees at two of our manufacturing facilities. Under the plan, employees are allowed to contribute up to 60 % of eligible earnings to the plan, up to statutory limits. On January 1, 2023, we began matching 100 % of the first two percent contributed and 50 % of the next four percent contributed on eligible compensation that non-union employees contribute. Previously, we matched 100 % of the first one percent contributed and 50 % of the next five percent contributed on eligible compensation that non-union employees contribute. We contribute to the union plans based on the contractual terms. In total, our matching contributions were $ 9.1 million in fiscal 2025, $ 9.6 million in fiscal 2024 and $ 8.6 million in fiscal 2023. Deferred Compensation Plan We maintain a plan that allows participants to defer compensation. The deferred compensation liability was $ 5.6 million and $ 5.9 million at March 1, 2025 and March 2, 2024, respectively. We have investments in corporate-owned life insurance policies (COLI) of $ 9.5 million and money market funds (classified as cash equivalents) of $ 0.3 million with the intention of utilizing them as long-term funding sources for this plan. The COLI assets are recorded at their net cash surrender values and are included in other non-current assets in the consolidated balance sheets. Plans under Collective Bargaining Agreements We contribute to a number of multi-employer union retirement plans, which provide retirement benefits to the majority of our union-represented employees; none of the plans are considered significant. However, the risks of participating in these multi-employer plans are different from single-employer plans in the following aspects: • Assets contributed to these plans by one employer may be used to provide benefits to employees of other participating employers • If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers • If we choose to stop participating in some of these plans, we may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability Under the Pension Protection Act, multiemployer pension plans are categorized into zones (green, yellow, red, and deep red) . Among other factors, plans in the red zone are generally less than 65% funded, plans in the yellow zone are between 65% and 80% funded, and plans in the green zone are at least 80% funded. The most recent Pension Protection Act zone status available for fiscals 2025 and 2024 relates to the plan years ending December 31, 2024 and December 31, 2023, respectively. Our participation in these plans is outlined in the following table. 61 Table of Contents Pension Protection Act Zone Status Contributions (In thousands) Pension Fund EIN/Pension Plan Number 2025 2024 2025 2024 2023 FIP/RP Status Pending/Implemented (2) Minimum Contribution Surcharge Imposed Expiration Date of Collective Bargaining Agreement (1) Iron Workers Local Union No. 5 and Iron Workers Employers Association Employees Pension Trust Fund 521075473 Green Green $ 722 $ 1,015 $ 1,359 No No No 5/31/2017 International Painters and Allied Trades Industry Pension Fund 526073909 Red Red 730 971 869 Implemented No No 11/30/2017 Ironworkers Local 580 Pension Fund 136178514 Green Green 2,121 883 596 Implemented No Yes 6/30/2023 Western Glaziers Retirement Plan (Washington) 916123685 Green Green 365 423 815 No No No 6/30/2017 Iron Workers Mid-America Pension Fund 366488227 Green Green 320 237 429 No No No 5/31/2017 Western Glaziers Retirement Fund (Oregon and Southwest Washington) 936074376 Green Green — 22 441 No No No 11/30/2017 Glazier's Union Local 27 Pension and Retirement Plan 366034076 Green Green 80 145 174 No No No 5/31/2017 Atlanta Ironworkers Local Union 387 Pension Plan 586051152 Green Green 131 109 125 No No No 1/31/2017 Other funds 603 801 493 Total contributions $ 5,072 $ 4,606 $ 5,301 (1) Plans include contributions required by collective bargaining agreements which have expired, but contain provisions automatically renewing their terms in the absence of a subsequent negotiated agreement. (2) FIP is defined as Funding Improvement Plan; RP is defined as Rehabilitation Plan The Company was listed in the plans' Forms 5500 as providing more than 5% of the total contributions for the following plans and plan years: Pension Fund Year contributions to Plan Exceeded More Than 5 Percent of Total Contributions Iron Workers Local Union No. 5 and Iron Workers Employers Association Employees Pension Trust Fund 2025, 2024 and 2023 Western Glaziers Retirement Fund (Oregon and Southwest Washington) 2025 Iron Workers Mid-America Pension Fund 2023 Atlanta Ironworkers Local Union 387 Pension Plan 2023 Amounts contributed in fiscal 2025, 2024, and 2023 to defined contribution multiemployer plans were $ 3.6 million, $ 2.2 million and $ 2.2 million, respectively. Obligations and Funded Status of Defined-Benefit Pension Plans We sponsor the Tubelite Inc. Hourly Employees' Pension Plan, a defined-benefit pension plan that was frozen to new entrants in fiscal 2004, with no additional benefits accruing to plan participants after such time. We also sponsor an unfunded Supplemental Executive Retirement Plan (SERP), a defined-benefit pension plan that was frozen to new entrants in fiscal 2009, with no additional benefits accruing to plan participants after such time. 62 Table of Contents The following tables present reconciliations of the benefit obligation and the funded status of these plans. The Tubelite plan uses a measurement date as of the calendar month-end closest to our fiscal year-end, while the SERP uses a measurement date aligned with our fiscal year-end. (In thousands) March 1, 2025 March 2, 2024 Change in projected benefit obligation Benefit obligation beginning of period $ 8,897 $ 10,260 Interest cost 437 497 Actuarial loss (gain) 39 ( 973 ) Benefits paid ( 781 ) ( 887 ) Benefit obligation at measurement date 8,592 8,897 Change in plan assets Fair value of plan assets beginning of period $ 3,793 $ 3,992 Actual return on plan assets 124 53 Company contributions 446 635 Benefits paid ( 781 ) ( 887 ) Fair value of plan assets at measurement date 3,582 3,793 Underfunded status $ ( 5,010 ) $ ( 5,104 ) The funded status was recognized in the consolidated balance sheets as follows: (In thousands) March 1, 2025 March 2, 2024 Other non-current assets $ 76 $ 111 Current liabilities ( 446 ) ( 446 ) Other non-current liabilities ( 4,640 ) ( 4,769 ) Total $ ( 5,010 ) $ ( 5,104 ) The following was included in accumulated other comprehensive loss and has not yet been recognized as a component of net periodic benefit cost: (In thousands) 2025 2024 Net actuarial loss $ 2,748 $ 2,851 The net actuarial gain recognized in comprehensive earnings, net of tax expense, was $ 0.1 million in fiscal 2025, and $ 0.9 million in fiscal 2024. Components of the defined-benefit pension plans' net periodic benefit cost: (In thousands) 2025 2024 2023 Interest cost $ 437 $ 497 $ 380 Expected return on assets ( 115 ) ( 120 ) ( 84 ) Amortization of unrecognized net loss 66 62 254 Net periodic benefit cost $ 388 $ 439 $ 550 Total net periodic pension benefit cost is expected to be approximately $ 0.5 million in fiscal 2026. The estimated net actuarial gain for the defined-benefit pension plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost for fiscal 2026 is $ 0.2 million, net of tax expense. 63 Table of Contents Additional Information Assumptions Benefit Obligation Weighted-Average Assumptions 2025 2024 2023 Discount rate 5.10 % 5.15 % 5.10 % Net Periodic Benefit Expense Weighted-Average Assumptions 2025 2024 2023 Discount rate 5.15 % 5.10 % 3.20 % Expected long-term rate of return on assets 4.60 % 4.50 % 2.75 % Discount rate. The discount rate reflects the current rate at which the defined-benefit plans' pension liabilities could be effectively settled at the end of the year based on the measurement date. The discount rate was determined by matching the expected benefit payments to payments from the Principal Discount Yield Curve. Expected return on assets. The expected long-term rate of return on assets is based on historical long-term rates of return achieved by the plan investments, the plan's investment strategy, and current and projected market conditions. During fiscal 2019, the assets of the Tubelite plan were moved from investment in a short-term bond fund to various duration fixed income funds. The investments are carried at fair value based on prices from recent trades of similar securities, which would be classified as Level 2 in the valuation hierarchy. We do not maintain assets intended for the future use of the SERP. Contributions Company contributions to the plans for fiscal 2025 were $ 0.4 million and fiscal 2024 were $ 0.6 million, which equaled or exceeded the minimum funding requirements. Estimated Future Benefit Payments The following benefit payments, which reflect expected future service, are expected to be paid by the plans: (In thousands) 2026 2027 2028 2029 2030 2031-2035 Estimated future benefit payments $ 816 $ 784 $ 782 $ 770 $ 746 $ 3,416 10. Commitments and Contingent Liabilities Bond commitments In the ordinary course of business, predominantly in the Architectural Services and Architectural Metals Segments, we are required to provide surety or performance bonds that commit payments to our customers for any non-performance. At March 1, 2025, $ 1.2 billion of these types of bonds were outstanding, of which, $ 394.1 million is on our backlog. These bonds have expiration dates that align with completion of the purchase order or contract. We have never been required to make payments under surety or performance bonds with respect to our existing businesses. Warranty and project-related contingencies We reserve estimated exposures on known claims, as well as on a portion of anticipated claims, for product warranty and rework costs, based on historical product liability claims as a ratio of sales. Claim costs are deducted from the accrual when paid. Factors that could have an impact on the warranty accrual in any given period include the following: changes in manufacturing quality, changes in product mix, and any significant changes in sales volume. (In thousands) 2025 2024 Balance at beginning of period $ 21,362 $ 17,893 Additional accruals 7,336 15,775 Claims paid ( 10,237 ) ( 12,306 ) Balance at end of period $ 18,461 $ 21,362 Additionally, we are subject to project management and installation-related contingencies as a result of our fixed-price material supply and installation service contracts, primarily in our Architectural Services Segment and certain of our Architectural Metals businesses. We manage the risk of these exposures through contract negotiations, proactive project management and insurance coverages. 64 Table of Contents Letters of credit At March 1, 2025, we had $ 15.0 million of ongoing letters of credit, all of which have been issued under our revolving credit facility, as discussed in Note 7. Purchase obligations Purchase obligations for raw material commitments and capital expenditures totaled $ 10.2 million as of March 1, 2025. Environmental liability In fiscal 2008, we acquired one manufacturing facility which has certain historical environmental conditions. Remediation of these conditions is ongoing without significant disruption to our operations. The estimated remaining liability for these remediation activities was $ 0.1 million and $ 0.4 million at March 1, 2025 and March 2, 2024, respectively. New Markets Tax Credit (NMTC) transactions We have two outstanding NMTC arrangements which help to support operational expansion. Proceeds received from investors on these transactions are included within other current liabilities on our consolidated balance sheets. The NMTC arrangements are subject to 100% tax credit recapture for a period of seven years from the date of each respective transaction. Upon the termination of each arrangement, these proceeds will be recognized in earnings in exchange for the transfer of tax credits. The direct and incremental costs incurred in structuring these arrangements have been deferred and are included in other current assets on our consolidated balance sheets. These costs will be recognized in conjunction with the recognition of the related proceeds on each arrangement. During the construction phase or for working capital purposes for each project, we are required to hold cash dedicated to fund each capital project which is classified as restricted cash on our consolidated balance sheets. Variable-interest entities, which have been included within our consolidated financial statements, have been created as a result of the structure of these transactions, as investors in the programs do not have a material interest in their underlying economics. During fiscal 2024, one NMTC transaction was settled as expected and resulted in a $ 4.7 million benefit, which was recorded in other (income) expense, net. The table below provides a summary of our outstanding NMTC transactions (in thousands): Inception date Termination date Proceeds received Deferred costs Net benefit May 2022 (1) August 2025 $ 6,052 $ 1,891 $ 4,161 September 2018 September 2025 3,198 1,031 2,167 Total $ 9,250 $ 2,922 $ 6,328 (1) Continuation of the August 2018 NMTC financing transaction Litigation The Company is a party to various legal proceedings incidental to its normal operating activities. In particular, like others in the construction supply and services industry, the Company is routinely involved in various disputes and claims arising out of construction projects, sometimes involving significant monetary damages or product replacement. We have in the past and are currently subject to product liability and warranty claims, including certain legal claims related to a commercial sealant product formerly incorporated into our products. In December 2022, the claimant in an arbitration of one such claim was awarded $ 20 million by an arbitration panel. The claimant then sought to confirm this award in Los Angeles Superior Court in March 2023. In response, the Company moved to vacate the award. Later in March 2023, the Superior Court confirmed the award, which the Company appealed in June 2023. The appeal was argued before the California Court of Appeals, Second Appellate District, Division Seven, on March 7, 2025. The California Court of Appeals confirmed the judgment of the Superior Court on March 25, 2025. The Company paid the final arbitration award, including accrued post-judgment interest, in the amount of $ 24.7 million, on April 7, 2025. As a result of the judgment, we recorded expense of $ 9.4 million, which represents the impact of the award amount net of existing reserves and estimated insurance proceeds. This impact was recorded in cost of goods sold in the fourth quarter of fiscal 2025. The Company is also subject to litigation arising out of areas such as employment practices, workers compensation and general liability matters. Although it is very difficult to accurately predict the outcome of any such proceedings, facts currently available indicate that no matters will result in losses that would have a material adverse effect on the results of operations, cash flows or financial condition of the Company. 65 Table of Contents 11. Supplier Finance Program Obligations The Company has a supplier financing arrangement that enables select suppliers, at their sole discretion, to sell our receivables (i.e., our payment obligations to the suppliers) on a non-recourse basis in order to be paid earlier than our payment terms provide. These suppliers’ voluntary inclusion of invoices in the supplier financing arrangement has no bearing on our payment terms, the amounts we pay, or our liquidity. We have no economic interest in the supplier’s decision to participate in the supplier financing program, and we do not provide any guarantees in connection with it. The balances owed are reflected in accounts payable in the consolidated balance sheets and are reflected in net cash provided by operating activities in our consolidated statements of cash flows when settled. The following table summarizes the obligation activity for the years ended March 1, 2025 and March 2, 2024 and outstanding balance as of March 1, 2025 and March 2, 2024 that we have confirmed as valid to the administrators of our program: (In thousands) 2025 2024 Balance at beginning of period $ 6,527 $ — Obligations added to the program 47,226 33,133 Obligations settled ( 46,907 ) ( 26,606 ) Balance at end of period $ 6,846 $ 6,527 66 Table of Contents 12. Shareholders' Equity We paid dividends totaling $ 21.7 million ($ 1.01 per share) in fiscal 2025, $ 21.1 million ($ 0.97 per share) in fiscal 2024 and $ 19.7 million ($ 0.90 per share) in fiscal 2023. Share Repurchases During fiscal 2004, the Board of Directors authorized a share repurchase program, with subsequent increases in authorization. We repurchased 786,690 shares under the program during fiscal 2025, for a total cost of $ 45.4 million. We repurchased 279,916 shares under the program, for a total cost of $ 11.8 million, in fiscal 2024, and repurchased 1,571,139 shares under the program, for a total cost of $ 74.3 million, in fiscal 2023. We have repurchased a total of 12,063,207 shares, at a total cost of $ 438.5 million, since the inception of this program. On October 6, 2023, the Board of Directors increased the share repurchase authorization by 2 million shares. We have remaining authority to repurchase 2,186,793 shares under this program, which has no expiration date. In addition to the shares repurchased under this repurchase plan, during fiscal 2025, 2024 and 2023, the Company also withheld $ 6.1 million, $ 2.5 million and $ 2.3 million, respectively, of Company stock from employees in order to satisfy stock-for-stock option exercises or tax obligations related to stock-based compensation, pursuant to terms of Board and shareholder-approved compensation plans. Accumulated Other Comprehensive Loss The following summarizes the accumulated other comprehensive loss, net of tax, at March 1, 2025 and March 2, 2024: (In thousands) 2025 2024 Net unrealized loss on marketable securities $ ( 149 ) $ ( 328 ) Net unrealized gain on derivative instruments — 440 Pension liability adjustments ( 2,106 ) ( 2,187 ) Foreign currency translation adjustments ( 33,037 ) ( 27,456 ) Total accumulated other comprehensive loss $ ( 35,292 ) $ ( 29,531 ) 13. Share-Based Compensation We have a 2019 Stock Incentive Plan and a 2019 Non-Employee Director Stock Plan (the Plans) that provide for the issuance of 1,150,000 and 300,000 shares, respectively, for various forms of stock-based compensation to employees and non-employee directors. Awards under these Plans may be in the form of incentive stock options (to employees only), non-statutory options, stock-settled stock appreciation rights (SARs), or nonvested share awards and units, all of which are granted at a price or with an exercise price equal to the fair market value of the Company’s stock at the date of award. We also have 2009 Non-Employee Director Stock Incentive Plan under which deferred restricted stock units were allocated, in addition to deferred restricted stock units acquired pursuant to a dividend equivalent reinvestment feature. As of June 23, 2019, no additional awards can be made under the 2009 Non-Employee Director Stock Incentive Plan. We recorded share-based compensation expense, in which we account for any forfeitures as they occur, as follows: (In thousands) 2025 2024 2023 Restricted stock awards and restricted stock units $ 8,040 $ 6,753 $ 5,607 Performance share units 2,685 2,714 2,389 Stock options — 254 660 Share-based compensation expense 10,725 9,721 8,656 Stock Options For fiscal 2024, there were no cash proceeds from the exercise of stock options as all stock options were exercised on a stock-for-stock basis. The aggregate intrinsic value of securities exercised (the amount by which the stock price on the date of exercise exceeded the stock price of the award on the date of grant) was $ 1.8 million. Service Condition Awards Nonvested share awards and units generally vest over a two , three or four-year period. The following table summarizes nonvested restricted stock awards and restricted stock units activity for fiscal 2025: 67 Table of Contents Number of Shares and Units Weighted Average Grant Date Fair Value Awards outstanding at March 2, 2024 384,461 $ 40.28 Granted 137,227 63.59 Vested ( 160,028 ) 42.67 Forfeited and cancelled ( 13,441 ) 51.37 Awards outstanding at March 1, 2025 348,219 $ 48.53 Performance Condition Awards In fiscal 2022, the Compensation Committee of the Board of Directors implemented an executive compensation program for certain key employees. In each of the first quarters of fiscal 2025, fiscal 2024 and fiscal 2023, we issued performance shares in the form of nonvested share unit awards, which give the recipient the right to receive shares earned at the end of the respective three -fiscal-year performance period. The number of share units issued at grant is equal to the target number of performance shares and allows for the right to receive a variable number of shares, ranging from 0 % to 200 % of target, dependent on achieving defined performance goals and being employed at the end of the performance period. The following table summarizes nonvested performance share units granted and outstanding for which plans are at 100 % to 200 % of target: Number of Shares and Units Weighted Average Grant Date Fair Value Awards outstanding at March 2, 2024 115,104 $ 41.89 Granted (1) 76,914 48.37 Vested (1) ( 79,526 ) 34.90 Forfeited and cancelled ( 11,372 ) 52.46 Awards outstanding at March 1, 2025 101,120 $ 51.13 (1) Includes 39,763 shares for performance goals component of the fiscal 2022-2024 performance period. At March 1, 2025, there was $ 11.8 million of total unrecognized compensation cost related to nonvested share and nonvested share unit awards, which is expected to be recognized over a weighted average period of approximately 21 months. The total fair value of shares vested during fiscal 2025 was $ 10.0 million. 14. Income Taxes Earnings before income taxes consisted of the following: (In thousands) 2025 2024 2023 United States $ 111,029 $ 133,185 $ 126,859 International 1,545 ( 3,932 ) ( 10,238 ) Earnings before income taxes $ 112,574 $ 129,253 $ 116,621 68 Table of Contents The components of income tax (benefit) expense for each of the last three fiscal years are as follows: (In thousands) 2025 2024 2023 Current Federal $ 19,979 $ 32,900 $ 9,621 State and local 3,546 6,172 7,670 International ( 586 ) 286 231 Total current 22,939 39,358 17,522 Deferred Federal 3,190 ( 8,361 ) ( 5,120 ) State and local 691 ( 1,387 ) ( 2,487 ) International ( 45 ) — 422 Total deferred 3,836 ( 9,748 ) ( 7,185 ) Total non-current tax expense 747 30 2,177 Total income tax expense $ 27,522 $ 29,640 $ 12,514 Income tax payments, net of refunds, were $ 29.6 million, $ 33.0 million and $ 27.4 million in fiscal 2025, 2024 and 2023, respectively. The following table provides a reconciliation of the statutory federal income tax rate to our consolidated effective tax rates: 2025 2024 2023 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % State and local income taxes, net of federal tax benefit 2.9 2.4 3.5 Foreign tax rate differential ( 0.8 ) ( 0.2 ) ( 0.2 ) Valuation allowance ( 0.3 ) 1.0 ( 4.7 ) Nontaxable (loss) gain on life insurance policies ( 0.2 ) — 0.2 Deduction for foreign derived intangible income ( 0.4 ) ( 0.3 ) ( 0.2 ) Research & development tax credit ( 1.5 ) ( 1.3 ) ( 1.5 ) §162(m) Executive Compensation Limitation 3.4 0.8 0.8 Tax benefit of share based awards ( 1.0 ) ( 0.6 ) ( 0.8 ) Worthless stock deduction — — ( 6.0 ) Other, net 1.3 0.1 ( 1.4 ) Consolidated effective income tax rate 24.4 % 22.9 % 10.7 % The effective tax rate for fiscal 2025 increased 1.5 percentage points from fiscal 2024, primarily due to an increase in taxes for nondeductible executive compensation in fiscal 2025. The effective tax rate for fiscal 2024 increased 12.2 percentage points from fiscal 2023, primarily due to the impact of discrete items in fiscal 2023. 69 Table of Contents Deferred tax assets and deferred tax liabilities at March 1, 2025 and March 2, 2024 were: (In thousands) 2025 2024 Deferred tax assets Accrued expenses $ 3,743 $ 4,565 Deferred compensation 9,794 11,138 Section 174 capitalized costs 15,675 12,450 Goodwill and other intangibles 3,127 2,342 Liability for unrecognized tax benefits 2,651 2,122 Unearned income — 7,467 Operating lease liabilities 14,898 13,064 Net operating losses and tax credits 11,679 12,332 Other 4,665 4,773 Total deferred tax assets 66,232 70,253 Less: valuation allowance ( 9,582 ) ( 10,803 ) Deferred tax assets, net of valuation allowance 56,650 59,450 Deferred tax liabilities Depreciation 22,401 20,510 Operating lease, right-of-use assets 13,605 11,955 Bad debt 7,785 8,291 Prepaid expenses 1,697 2,131 Other 3,923 2,520 Total deferred tax liabilities 49,411 45,407 Net deferred tax assets (liabilities) $ 7,239 $ 14,043 The Company has state and foreign net operating loss carryforwards with a tax effect of $ 11.7 million. A valuation allowance of $ 8.7 million has been established for these net operating loss carryforwards due to the uncertainty of the use of the tax benefits in future periods. Management assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of the existing Deferred Tax Assets. This has resulted in valuation allowances being recorded against Deferred Tax Assets in prior years in Brazil, Canada and various states. The Company files income tax returns in the U.S. federal jurisdiction, various U.S. state jurisdictions, Canada, Brazil and other international jurisdictions. The Company is no longer subject to U.S. federal tax examinations or state and local tax examinations for years prior to fiscal 2022, or state and local tax examinations for years prior to fiscal 2021. The Company is not currently under U.S. federal examination for years subsequent to fiscal 2021. The Company considers the earnings of its non-U.S. subsidiaries to be indefinitely invested outside of the United States on the basis of estimates that future domestic cash generation will be sufficient to meet future domestic cash needs and specific plans for reinvestment of those subsidiary earnings. Should the Company decide to repatriate the foreign earnings, it would need to adjust the income tax provision in the period it was determined that the earnings will no longer be indefinitely invested outside the U.S. If we were to prevail on all unrecognized tax benefits recorded, $ 3.8 million, $ 3.3 million and $ 3.8 million for fiscal 2025, 2024 and 2023, respectively, would benefit the effective tax rate. Also included in the balance of unrecognized tax benefits for fiscal 2025, 2024 and 2023 are $ 2.2 million, $ 1.8 million, and $ 1.5 million, respectively, of tax benefits that, if recognized, would result in decreases to deferred taxes. Penalties and interest related to unrecognized tax benefits are recorded in income tax expense. For fiscal 2025, 2024 and 2023, we accrued penalties and interest related to unrecognized tax benefits of $ 1.0 million, $ 0.6 million, and $ 0.4 million, respectively. 70 Table of Contents The following table provides a reconciliation of the total amounts of gross unrecognized tax benefits: (In thousands) 2025 2024 2023 Gross unrecognized tax benefits at beginning of year $ 5,053 $ 5,312 $ 3,321 Gross increases in tax positions for prior years 347 91 2,298 Gross decreases in tax positions for prior years ( 11 ) ( 65 ) ( 255 ) Gross increases based on tax positions related to the current year 886 579 291 Gross decreases based on tax positions related to the current year — — ( 27 ) Settlements — ( 354 ) — Statute of limitations expiration ( 308 ) ( 510 ) ( 316 ) Gross unrecognized tax benefits at end of year $ 5,967 $ 5,053 $ 5,312 In December 2021, the OECD issued model rules for a new global minimum tax framework (“Pillar Two”), and various governments around the world have issued, or are in the process of issuing, legislation to implement these rules. The Company is within the scope of the OECD Pillar Two model rules and has assessed the impact thereof. Based on available legislation, we concluded there was no material impact on income taxes with respect to Pillar Two for the year ended March 1, 2025. We will continue to evaluate the potential future impacts and will monitor and review the issuance of additional guidance. 15. Earnings per Share Basic earnings per share is computed by dividing net earnings by the weighted average number of common shares outstanding. Diluted earnings per share is computed by dividing net earnings by the weighted average number of common shares outstanding, including the dilutive effects of stock options, SARs and nonvested shares. The following table presents a reconciliation of the share amounts used in the computation of basic and diluted earnings per share: (In thousands) 2025 2024 2023 Basic earnings per share - weighted average common shares outstanding 21,726 21,871 22,007 Weighted average effect of nonvested share grants and assumed exercise of stock options 165 220 409 Diluted earnings per share - weighted average common shares and potential common shares outstanding 21,891 22,091 22,416 Stock awards excluded from the calculation of earnings per share because the award price was greater than the average market price of the common shares 23 31 97 16. Business Segment Data We have four operating segments which are also reportable segments. Each of our four segments have distinct economic characteristics, including products and services provided, production processes and varying ranges in performance and results: • The Architectural Metals Segment designs, engineers, fabricates and finishes aluminum window, curtainwall, storefront and entrance systems used primarily in non-residential construction. • The Architectural Services Segment integrates technical services, project management, and field installation services to design, engineer, fabricate, and install architectural curtainwall and other façade-related systems primarily in non-residential construction. • The Architectural Glass Segment cuts, treats, coats and fabricates high-performance glass used in custom window and wall systems primarily for non-residential buildings. • The Performance Surfaces Segment develops and manufactures high-performance coated materials for a variety of applications, including wall decor, museums, graphic design, digital displays, architectural interiors, and industrial flooring. The Company’s CEO is the chief operating decision maker (CODM) . The CODM utilizes net sales and adjusted earnings before interest and taxes (EBIT) to assess segment performance and make decisions about the allocation of operating and capital resources by analyzing recent results, trends, and variances of each segment in relation to forecasts and historical performance. Net sales, adjusted cost of sales, adjusted SG&A, adjusted other income (expense), and the resulting adjusted EBIT for each of the Company’s four reportable segments are presented below. Segment net sales is defined as net sales for a certain segment and includes revenue related to intersegment transactions. We report net sales intersegment eliminations separately to exclude these sales from our consolidated total. Segment EBIT includes intersegment sales transactions and excludes certain corporate costs that are not allocated at a segment level. We report these unallocated corporate costs in Corporate and Other. 71 Table of Contents (In thousands) Architectural Metals Architectural Services Architectural Glass Performance Surfaces Total 52-Weeks Ended March 1, 2025 Net sales to external customers $ 524,617 $ 419,861 $ 294,385 $ 122,131 $ 1,360,994 Intersegment net sales 92 — 27,812 — 27,904 524,709 419,861 322,197 122,131 1,388,898 Adjusted cost of sales (1) ( 373,902 ) ( 344,702 ) ( 220,636 ) ( 76,487 ) ( 1,015,727 ) Adjusted SG&A (2) ( 96,687 ) ( 45,604 ) ( 42,287 ) ( 21,505 ) ( 206,083 ) Adjusted other income (expense), net (3) — — 115 — 115 Adjusted EBIT $ 54,120 $ 29,555 $ 59,389 $ 24,139 $ 167,203 53-Weeks Ended March 2, 2024 Net sales to external customers $ 598,248 $ 377,443 $ 342,028 $ 99,223 $ 1,416,942 Intersegment net sales 3,488 979 36,421 — 40,888 601,736 378,422 378,449 99,223 1,457,830 Adjusted cost of sales (1) ( 425,424 ) ( 323,761 ) ( 267,469 ) ( 60,636 ) ( 1,077,290 ) Adjusted SG&A (2) ( 105,509 ) ( 40,295 ) ( 42,934 ) ( 14,354 ) ( 203,092 ) Adjusted other income (expense), net (3) — — ( 2,263 ) — ( 2,263 ) Adjusted EBIT $ 70,803 $ 14,366 $ 65,783 $ 24,233 $ 175,185 52-Weeks Ended February 25, 2023 Net sales to external customers $ 647,949 $ 408,566 $ 279,966 $ 104,215 $ 1,440,696 Intersegment net sales 1,829 2,061 36,588 — 40,478 649,778 410,627 316,554 104,215 1,481,174 Adjusted cost of sales (1) ( 463,902 ) ( 352,372 ) ( 247,073 ) ( 64,565 ) ( 1,127,912 ) Adjusted SG&A (2) ( 104,002 ) ( 40,115 ) ( 40,872 ) ( 14,303 ) ( 199,292 ) Adjusted other income (expense), net (3) — — ( 47 ) — ( 47 ) Adjusted EBIT $ 81,874 $ 18,140 $ 28,562 $ 25,347 $ 153,923 (1) Adjusted cost of sales excludes $ 4.2 million and $ 5.5 million of adjustments related to acquisition and restructuring costs as described in more detail within the reconciliation presented below, respectively, for the years ended March 1, 2025 and March 2, 2024. (2) Adjusted SG&A expenses excludes $ 11.5 million and $ 3.0 million of adjustments related to acquisition and restructuring costs and impairment expense as described in more detail within the reconciliation presented below, respectively, for the years ended March 1, 2025 and March 2, 2024. (3) Adjusted Other (income) expense, net excludes $ 4.7 million of NMTC benefit recorded for the year ended March 2, 2024 as described in more detail within the reconciliation presented below. The following table presents the reconciliation of adjusted EBIT to income before income taxes, the nearest measurement under GAAP: (In thousands) 2025 2024 2023 Segment Adjusted EBIT $ 167,203 $ 175,185 $ 153,923 Corporate and Other expenses ( 32,772 ) ( 35,454 ) ( 29,642 ) Segment acquisition-related costs (1) ( 4,529 ) — — Segment restructuring costs (2) ( 3,535 ) ( 8,496 ) — Impairment expense (3) ( 7,634 ) — — NMTC settlement gain (4) — 4,687 — Interest expense, net ( 6,159 ) ( 6,669 ) ( 7,660 ) Earnings before income taxes $ 112,574 $ 129,253 $ 116,621 72 Table of Contents (1) Segment acquisition-related costs include: • Transaction costs related to the UW Solutions acquisition. • Integration costs related to one-time expenses incurred to integrate the UW Solutions acquisition. • Backlog amortization is related the value attributed to contracting the backlog purchased in the UW Solutions acquisition. These costs were amortized in SG&A over the period that the contracted backlog was shipped. • Inventory step-up is related to the incremental cost to value inventory acquired as part of the UW Solutions acquisition at fair value. These costs were expensed to cost of goods sold over the period the inventory was sold. (2) Segment restructuring charges related to Project Fortify. Refer to Note 18. (3) Impairment expense on intangible assets in the Architectural Metals Segment. Refer to Note 6. (4) Realization of a NMTC benefit which was recorded in other income (expense), net. Refer to Note 10. The following table presents the capital expenditures, depreciation and amortization and identifiable assets by reportable segments and the reconciliation to amounts reported for GAAP: (In thousands) Architectural Metals Architectural Services Architectural Glass Performance Surfaces Corporate and Other Total Fiscal 2025 Capital expenditures $ 3,333 $ 7,522 $ 13,782 $ 9,479 $ 1,477 $ 35,593 Depreciation and amortization 16,471 3,978 12,274 9,085 2,800 44,608 Identifiable assets 343,553 179,311 213,067 345,034 94,304 1,175,269 Fiscal 2024 Capital expenditures $ 4,733 $ 3,166 $ 12,142 $ 16,896 $ 6,243 $ 43,180 Depreciation and amortization 19,226 4,011 11,955 3,040 3,356 41,588 Identifiable assets 363,512 131,651 208,651 83,731 96,519 884,064 Fiscal 2023 Capital expenditures $ 11,432 $ 3,683 $ 5,613 $ 13,474 $ 10,975 $ 45,177 Depreciation and amortization 19,386 3,953 11,964 3,088 4,012 42,403 Identifiable assets 426,946 141,840 207,730 69,035 69,814 915,365 The following table presents net sales, based on the location in which the sale originated, and long-lived assets, representing property, plant and equipment, net of related depreciation, by geographic region. (In thousands) 2025 2024 2023 Net Sales United States $ 1,258,887 $ 1,295,436 $ 1,301,168 Canada 85,417 101,055 120,565 Brazil 16,690 20,451 18,963 Total $ 1,360,994 $ 1,416,942 $ 1,440,696 (In thousands) March 1, 2025 March 2, 2024 February 25, 2023 Long-Lived Assets United States $ 261,457 $ 235,398 $ 239,847 Canada 4,984 6,345 6,330 Brazil 1,698 2,473 2,690 Total $ 268,139 $ 244,216 $ 248,867 Our export net sales from U.S. operations were $ 54.1 million, $ 47.6 million and $ 56.2 million in fiscal 2025, 2024 and 2023, respectively, representing approximately 4 %, 3 % and 4 % of consolidated net sales in each of these fiscal years, respectively. Due to the varying combinations and integration of individual window, storefront and curtainwall systems, it is impractical to report product revenues generated by class of product beyond the segment revenues currently reported. 73 Table of Contents 17. Acquisitions On November 4, 2024, we completed the acquisition of UW Solutions for $ 240.9 million in cash. UW Solutions is a U.S. based, vertically integrated manufacturer of high-performance coated substrates with a portfolio of well-known brands, including ResinDEK, ChromaLuxe, RDC Coatings, and Unisub, each known as a leader in its specified applications. The UW Solutions business activity is included in our Performance Surfaces Segment. The total purchase consideration was $ 232.2 million in cash, net of a favorable net working capital adjustment of $ 0.9 million and cash acquired of $ 8.7 million. The acquisition was funded with cash on hand and borrowings under our existing credit agreement. During fiscal 2025, we incurred pre-tax acquisition-related expenses of $ 10.3 million associated with the UW Solutions acquisition. We incurred $ 1.5 million for inventory step-up expense and $ 0.2 million of transaction costs which were included in costs of sales as well as $ 4.2 million of transaction costs, $ 2.1 million of integration costs, and $ 2.3 million of amortization of acquired backlog, which were included in SG&A within our consolidated results of operations. We accounted for the acquisition as a purchase of a business and recorded the excess of the purchase price over the estimated fair value of the assets acquired and liabilities assumed as goodwill of $ 107.8 million. The goodwill recognized is attributable primarily to expected synergies by integrating UW Solutions into our Performance Surfaces Segment and by creating a scalable growth platform in the specialty coatings and materials market. The acquired goodwill is expected to be amortized and deductible for income tax purposes. We have provisionally determined the appropriate fair values of the acquired intangible assets and completed our analysis of the economic lives of the assets acquired. We assigned $ 21.0 million to a tradename asset and are amortizing it over a 15-year expected life. We assigned $ 2.3 million to a contract backlog asset and amortized it over a 4-month life. We assigned $ 47.4 million to a customer relationship asset and are amortizing a portion over a 10-year expected life and the remainder over a 15-year expected life, based on historical customer attrition rates. We assigned $ 7.8 million to a developed technology asset and are amortizing over a 7.5-year expected life. The following table presents the estimated fair values of assets acquired and liabilities assumed at the acquisition date: (In thousands) Assets: Cash and cash equivalents $ 8,703 Receivables, net 12,427 Inventories, net 17,903 Other current assets 1,122 Property, plant and equipment 26,563 Operating lease right-of-use assets 14,189 Goodwill 107,826 Intangible assets, net 79,679 Other non-current assets 166 Total Assets $ 268,578 Liabilities: Accounts payable 5,126 Accrued compensation and benefits 6,900 Operating lease liabilities 1,259 Other current liabilities 1,490 Non-current operating lease liabilities 12,930 Total Liabilities $ 27,705 Net assets recorded $ 240,873 The impact of the acquisition of UW Solutions on our consolidated results of operations for fiscal 2025 was $ 32.0 million of net sales and $ 7.4 million of net loss, respectively. The net sales and net loss represent approximately 17 weeks of operating results. The following supplemental unaudited pro forma information presents our financial results as if the acquisition of UW Solutions had occurred on February 26, 2023. This supplemental pro forma information has been prepared for comparative purposes and would not necessarily indicate what may have occurred if the acquisition had been completed on February 26, 2023, and this information is not intended to be indicative of future results. 74 Table of Contents (in thousands, except earnings per share data) (Unaudited) 2025 2024 Net sales $ 1,423,635 $ 1,513,734 Net earnings 90,978 83,256 Earnings per share: Basic $ 4.19 $ 3.81 Diluted $ 4.16 $ 3.77 Nonrecurring charges of $ 4.4 million of transaction costs, $ 2.1 million of integration costs, $ 2.3 million of amortization of acquired backlog, and $ 1.5 million of inventory step-up expense incurred in fiscal 2025 are reflected as if those charges were incurred in the first and second quarters of the fiscal 2024 supplemental pro forma earnings. These amounts have been calculated after applying our accounting policies and adjusting the results of UW Solutions to reflect the effect of definite-lived intangible assets recognized as part of the business combination on amortization expense as if the acquisition had occurred on February 26, 2023. 18. Restructuring During the fourth quarter of fiscal 2024, we announced strategic actions to streamline our business operations, enable a more efficient cost model, and better position the Company for profitable growth (referred to as “Project Fortify”). Project Fortify primarily impacted the Architectural Metals Segment and included: • Eliminating certain lower-margin product and service offerings, enabling consolidation into a single operating entity. • Transferring production operations from the Company’s facility in Walker, Michigan, to the Company’s facilities in Monett, Missouri and Wausau, Wisconsin. • Simplifying the segment’s brand portfolio and commercial model to improve flexibility, better leverage the Company’s capabilities, and enhance customer service. Additionally, the Company implemented actions to optimize processes and streamline resources in its Architectural Services and Corporate and Other. During fiscal 2025, we incurred $ 4.3 million of pre-tax costs associated with Project Fortify, of which $ 2.5 million is included in cost of sales and $ 1.8 million is included within SG&A expenses. During fiscal 2024, we incurred $ 12.4 million of pre-tax costs associated with Project Fortify, of which $ 5.5 million is included within cost of sales and $ 6.9 million is included within SG&A expenses. The Company completed Project Fortify during the fourth quarter of fiscal 2025 and incurred at total of $ 16.7 million of restructuring changes, which included: • $ 7.0 million of severance and employee related costs; • $ 1.7 million contract termination costs: and • $ 8.0 million of other expenses. These actions have led to estimated annualized pre-tax cost savings of approximately $ 14 million. 75 Table of Contents (In thousands) Architectural Metals Architectural Services Architectural Glass Corporate & Other Total March 1, 2025 Termination benefits $ 928 $ ( 640 ) $ — $ 788 $ 1,076 Contract termination costs — — — — — Other restructuring charges 3,096 151 — — 3,247 Total restructuring charges $ 4,024 $ ( 489 ) $ — $ 788 $ 4,323 March 2, 2024 Termination benefits 3,348 2,475 — 56 5,879 Contract termination costs 1,568 49 — — 1,617 Other restructuring charges 1,054 2 — 3,851 4,907 Total restructuring charges $ 5,970 $ 2,526 $ — $ 3,907 $ 12,403 February 25, 2023 Termination benefits — — 116 — 116 Total restructuring charges $ — $ — $ 116 $ — $ 116 The following table summarizes our restructuring related accrual balances included within accrued payroll and related benefits and other current liabilities in the consolidated balance sheets. All remaining accrual balances are expected to be paid within fiscal 2026. (In thousands) Architectural Metals Architectural Services Architectural Glass Corporate & Other Total Balance at February 25, 2023 $ 62 $ — $ 23 $ — $ 85 Restructuring expense 3,985 2,477 — 56 6,518 Payments ( 1,233 ) ( 410 ) ( 23 ) — ( 1,666 ) Balance at March 2, 2024 $ 2,814 $ 2,067 $ — $ 56 $ 4,937 Restructuring expense 1,931 ( 812 ) — 778 1,897 Payments ( 4,256 ) ( 605 ) — ( 323 ) ( 5,184 ) Other adjustments 797 — — — 797 Balance at March 1, 2025 $ 1,286 $ 650 $ — $ 511 $ 2,447 The charges presented in the rollforward of our restructuring accruals do not include items charged directly to expense as incurred, as those items are not reflected in accrued payroll and related benefits and other current liabilities in the consolidated balance sheets. On April 23, 2025, we announced a second phase of Project Fortify to drive further cost efficiencies, primarily in the Architectural Metals and Architectural Services Segments. Phase 2 will focus on further optimizing our operating footprint and aligning resources to enable a more effective operating model. We expect the actions of Phase 2 to incur approximately $ 24 million to $ 26 million of pre-tax charges, of which approximately $ 8 million are expected to be non-cash charges. The charges include the following: • $ 9 million to $ 10 million of severance and employee related costs; • $ 2 million to $ 3 million of contract termination costs; and • $ 12 million to $ 13 million of other expenses. The Company expects the actions associated with Phase 2 to be substantially completed by the end of the fourth quarter of fiscal 2026 and expects them to deliver annualized pre-tax cost savings from Phase 2 of approximately $ 13 million to $ 15 million. During fiscal 2022, we announced plans to realign and simplify our business structure, which resulted in the closure of two facilities within the Architectural Glass Segment, in Dallas, Texas and Statesboro, Georgia. These closures were made in order to concentrate this segment on premium, high-performance products. Additionally, employee termination costs were incurred related to these facility closures, realignment of the Architectural Metals Segment, and within the Corporate office. 76 Table of Contents During the first quarter of fiscal 2023, we completed the execution of these plans with the sale of the remaining manufacturing assets at our Architectural Glass location, in Dallas, Texas, for $ 4.1 million. The remaining assets had a carrying value of $ 3.4 million, and we recognized a gain on the sale of approximately $ 0.6 million, net of associated transaction costs, which is included as a reduction of cost of sales within our consolidated statements of operations. ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE None. 77 Table of Contents