APOGEE ENTERPRISES, INC. 10-Q

Item 1. Financial Statements CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except stock data) August 30, 2025 March 1, 2025 Assets Current assets Cash and cash equivalents $ 39,526 $ 41,448 Receivables, net 195,324 185,590 Inventories, net 102,463 92,305 Contract assets 61,545 71,842 Other current assets 61,248 50,919 Total current assets 460,106 442,104 Property, plant and equipment, net of accumulated depreciation of $ 478,793 and $ 469,480 259,177 268,139 Operating lease right-of-use assets 56,053 62,314 Goodwill 236,653 235,775 Intangible assets, net 116,485 128,417 Other non-current assets 26,209 38,520 Total assets $ 1,154,683 $ 1,175,269 Liabilities and Shareholders’ Equity Current liabilities Accounts payable $ 95,412 $ 98,804 Accrued compensation and benefits 39,095 48,510 Contract liabilities 51,003 35,193 Operating lease liabilities 16,187 15,290 Other current liabilities 60,195 87,659 Total current liabilities 261,892 285,456 Long-term debt 270,000 285,000 Non-current operating lease liabilities 46,143 51,632 Non-current self-insurance reserves 31,048 30,382 Other non-current liabilities 45,385 34,901 Commitments and contingent liabilities (Note 6) 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 21,516,390 and 21,417,631 , respectively 7,172 7,139 Additional paid-in capital 158,065 156,075 Retained earnings 367,578 359,976 Accumulated other comprehensive loss ( 32,600 ) ( 35,292 ) Total shareholders’ equity 500,215 487,898 Total liabilities and shareholders’ equity $ 1,154,683 $ 1,175,269 See accompanying notes to consolidated financial statements. 3 Table of Contents CONSOLIDATED RESULTS OF OPERATIONS (Unaudited) Three Months Ended Six Months Ended (In thousands, except per share data) August 30, 2025 August 31, 2024 August 30, 2025 August 31, 2024 Net sales $ 358,194 $ 342,440 $ 704,816 $ 673,956 Cost of sales 275,587 245,119 547,084 477,780 Gross profit 82,607 97,321 157,732 196,176 Selling, general and administrative expenses 55,719 55,356 123,913 112,830 Operating income 26,888 41,965 33,819 83,346 Interest expense, net 4,075 1,140 7,921 1,590 Other income, net 5,140 290 4,458 433 Earnings before income taxes 27,953 41,115 30,356 82,189 Income tax expense 4,304 10,549 9,394 20,612 Net earnings $ 23,649 $ 30,566 $ 20,962 $ 61,577 Basic earnings per share $ 1.10 $ 1.40 $ 0.98 $ 2.83 Diluted earnings per share $ 1.10 $ 1.40 $ 0.97 $ 2.80 Weighted average basic shares outstanding 21,408 21,762 21,373 21,793 Weighted average diluted shares outstanding 21,590 21,875 21,562 21,985 See accompanying notes to consolidated financial statements. 4 Table of Contents CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (Unaudited) Three Months Ended Six Months Ended (In thousands) August 30, 2025 August 31, 2024 August 30, 2025 August 31, 2024 Net earnings $ 23,649 $ 30,566 $ 20,962 $ 61,577 Other comprehensive earnings (loss): Unrealized (loss) gain on marketable securities, net of $( 2 ), $ 30 , $ 8 , and $ 29 of tax (benefit) expense, respectively ( 7 ) 114 28 108 Unrealized (loss) gain on derivative instruments, net of $( 144 ), $( 257 ) $( 176 ) and $ 107 of tax (benefit) expense, respectively ( 388 ) ( 846 ) ( 482 ) 350 Foreign currency translation adjustments 479 ( 492 ) 3,146 ( 1,161 ) Other comprehensive earnings (loss) 84 ( 1,224 ) 2,692 ( 703 ) Total comprehensive earnings $ 23,733 $ 29,342 $ 23,654 $ 60,874 See accompanying notes to consolidated financial statements. 5 Table of Contents CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Six Months Ended (In thousands) August 30, 2025 August 31, 2024 Operating Activities Net earnings $ 20,962 $ 61,577 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 24,943 19,664 Share-based compensation 2,773 5,642 Deferred income taxes 17,214 2,016 Loss on disposal of property, plant and equipment 562 291 Impairment on intangible assets 7,418 — Settlement of New Markets Tax Credit transaction ( 4,597 ) — Non-cash lease expense 5,474 5,844 Other, net 3,567 1,002 Changes in operating assets and liabilities: Receivables ( 9,204 ) ( 3,698 ) Inventories ( 9,735 ) ( 10,509 ) Contract assets 10,518 238 Accounts payable ( 2,575 ) 1,335 Accrued compensation and benefits ( 9,681 ) ( 12,823 ) Contract liabilities 15,734 6,987 Operating lease liability ( 4,608 ) ( 5,748 ) Accrued income taxes ( 11,008 ) ( 224 ) Other current assets and liabilities ( 20,477 ) ( 7,462 ) Net cash provided by operating activities 37,280 64,132 Investing Activities Capital expenditures ( 11,827 ) ( 15,662 ) Proceeds from sales of property, plant and equipment 59 608 Purchases of marketable securities ( 200 ) ( 2,246 ) Sales/maturities of marketable securities 1,085 1,850 Net cash used in investing activities ( 10,883 ) ( 15,450 ) Financing Activities Proceeds from revolving credit facilities 76,000 95,201 Repayment on revolving credit facilities ( 91,000 ) ( 95,201 ) Repurchase of common stock — ( 15,061 ) Dividends paid ( 11,043 ) ( 10,821 ) Payments of debt issuance costs — ( 3,485 ) Other, net ( 3,087 ) ( 5,266 ) Net cash used in financing activities ( 29,130 ) ( 34,633 ) Effect of exchange rates on cash 811 ( 241 ) Decrease in cash, cash equivalents and restricted cash ( 1,922 ) 13,808 Cash, cash equivalents and restricted cash at beginning of period 41,448 37,216 Cash and cash equivalents at end of period $ 39,526 $ 51,024 Non-cash Activity Capital expenditures in accounts payable $ 2,202 $ 1,426 See accompanying notes to consolidated financial statements. 6 Table of Contents CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) (In thousands) Common Shares Outstanding Common Stock at Par Value Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive (Loss) Income Total Shareholders' Equity Balance at March 1, 2025 21,418 $ 7,139 $ 156,075 $ 359,976 $ ( 35,292 ) $ 487,898 Net loss — — — ( 2,688 ) — ( 2,688 ) Other comprehensive income, net of tax — — — — 2,608 2,608 Issuance of stock, net of cancellations 182 61 ( 61 ) — — — Share-based compensation — — 2,300 — — 2,300 Other share retirements ( 67 ) ( 22 ) ( 526 ) ( 2,267 ) — ( 2,815 ) Cash dividends, $ 0.26 per share — — — ( 5,520 ) — ( 5,520 ) Balance at May 31, 2025 21,533 $ 7,178 $ 157,788 $ 349,501 $ ( 32,684 ) $ 481,783 Net earnings — — — 23,649 — 23,649 Other comprehensive income, net of tax — — — — 84 84 Cancellations of stock, net of issuance ( 16 ) ( 5 ) ( 184 ) — — ( 189 ) Share-based compensation — 474 — — 474 Other share retirements ( 2 ) ( 1 ) ( 13 ) ( 49 ) — ( 63 ) Cash dividends, $ 0.26 per share — — — ( 5,523 ) — ( 5,523 ) Balance at August 30, 2025 21,515 $ 7,172 $ 158,065 $ 367,578 $ ( 32,600 ) $ 500,215 See accompanying notes to consolidated financial statements. 7 Table of Contents CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) (In thousands) Common Shares Outstanding Common Stock at Par Value Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive (Loss) Income Total Shareholders' Equity Balance at March 2, 2024 22,089 $ 7,363 $ 152,818 $ 340,375 $ ( 29,531 ) $ 471,025 Net earnings — — — 31,011 — 31,011 Other comprehensive income, net of tax — — — — 521 521 Issuance of stock, net of cancellations 170 57 ( 57 ) — — — Share-based compensation — — 2,704 — — 2,704 Share repurchases ( 242 ) ( 81 ) ( 1,860 ) ( 13,120 ) — ( 15,061 ) Other share retirements ( 80 ) ( 27 ) ( 603 ) ( 4,206 ) — ( 4,836 ) Declared dividends, $ 0.25 per share — — — ( 5,409 ) — ( 5,409 ) Balance at June 1, 2024 21,937 $ 7,312 $ 153,002 $ 348,651 $ ( 29,010 ) $ 479,955 Net earnings — — — 30,566 — 30,566 Other comprehensive income, net of tax — — — — ( 1,224 ) ( 1,224 ) Issuance of stock, net of cancellations 16 5 ( 5 ) — — — Share-based compensation — — 2,938 — — 2,938 Share repurchases — — — — — — Other share retirements ( 7 ) ( 2 ) ( 52 ) ( 347 ) — ( 401 ) Cash dividends, $ 0.25 per share — — — ( 5,412 ) — ( 5,412 ) Balance at August 31, 2024 21,946 $ 7,315 $ 155,883 $ 373,458 $ ( 30,234 ) $ 506,422 See accompanying notes to consolidated financial statements. 8 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. Summary of Significant Accounting Policies Basis of presentation The consolidated financial statements of Apogee Enterprises, Inc. (we, us, our or the Company) have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP). The information included in this Form 10-Q should be read in conjunction with the Company’s Form 10-K for the year ended March 1, 2025. We use the same accounting policies in preparing quarterly and annual financial statements. All adjustments necessary for a fair presentation of quarterly and year to date operating results are reflected herein. The results of operations for the three- and six-month periods ended August 30, 2025, are not necessarily indicative of the results to be expected for the full year. Adoption of new accounting standards On November 27, 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (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. We adopted this guidance in the fourth quarter of fiscal 2025 for the annual requirements and in the first quarter of fiscal 2026 for the interim requirements. Accounting standards not yet adopted On December 14, 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures. The ASU is effective for our fiscal 2026 annual financial statements and for our interim financial statements beginning fiscal 2027. This guidance expands the existing disclosure requirements for the annual rate reconciliation between the effective tax rate and the statutory federal tax rate by requiring reconciliation items to be disaggregated by defined categories and disclosed as both percentages and amounts. ASU 2023-09 also requires the disaggregation of income taxes paid by jurisdiction for each annual period presented. 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 (SG&A) 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 12 for disclosure of revenue by segment): Three Months Ended Six Months Ended (In thousands) August 30, 2025 August 31, 2024 August 30, 2025 August 31, 2024 Recognized at shipment $ 171,681 $ 140,518 $ 329,837 $ 277,240 Recognized over time (input method) 118,134 118,683 237,357 235,364 Recognized over time (output method) 68,379 83,239 137,622 161,352 Total $ 358,194 $ 342,440 $ 704,816 $ 673,956 Revenue at shipment is recognized at the time products are shipped from our manufacturing facilities, which is when control is transferred to our customer. We also recognize revenue over time using both the input method and output method. The contracts for the businesses that recognize revenue following an over-time input method 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 9 Table of Contents 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 by comparing total costs incurred to-date to the total estimated costs for the contract at completion, 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. For revenue recognized following an over-time output method, 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. 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 forecasted 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) August 30, 2025 March 1, 2025 Trade accounts $ 120,663 $ 117,533 Construction contracts 76,824 70,724 Total receivables 197,487 188,257 Less: allowance for credit losses 2,163 2,667 Receivables, net $ 195,324 $ 185,590 The following table summarizes the activity in the allowance for credit losses for the six months ended August 30, 2025: (In thousands) August 30, 2025 Beginning balance $ 2,667 Credits against costs and expenses ( 100 ) Deductions from allowance, net of recoveries ( 432 ) Other adjustments 28 Ending balance $ 2,163 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 deferred revenue on contracts. The time period between when performance obligations are complete and payment is due is not significant. In certain parts of our business that recognize revenue over time, progress billings follow an agreed-upon schedule of values. (In thousands) August 30, 2025 March 1, 2025 Contract assets $ 61,545 $ 71,842 Contract liabilities 51,003 35,193 The changes in contract assets and contract liabilities were mainly due to timing of project activity within our businesses that operate under long-term contracts. Other contract-related disclosures Three Months Ended Six Months Ended (In thousands) August 30, 2025 August 31, 2024 August 30, 2025 August 31, 2024 Revenue recognized related to contract liabilities from prior year-end $ 21,499 $ 3,451 $ 28,329 $ 30,361 Revenue recognized related to prior satisfaction of performance obligations 1,935 4,867 2,408 8,166 10 Table of Contents 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 prices associated with unsatisfied performance obligations at August 30, 2025, are expected to be satisfied, and the corresponding revenue to be recognized, over the following estimated time periods: (In thousands) August 30, 2025 Within one year $ 547,648 Between one and two years 292,578 Beyond two years 90,646 Total $ 930,872 Due to the nature of the work required under these long-term contracts, the estimation of total revenue and costs of sales is subject to many variables and requires significant judgment. We estimate variable consideration at the most likely amount to which we expect to be entitled. Our final cost of sales estimates are based largely on our assessments of anticipated performance and all information (historical, current and forecasted) that is reasonably available to us. Changes in estimated revenue, cost of sales and the related effect on operating income are recognized using a cumulative catch-up adjustment, which recognizes in the current period the cumulative effect of the changes on current and prior periods based on a long-term contracts percentage of completion. When the current estimates of total revenues and costs at completion for a long-term contract indicate a loss, a provision for the entire loss on the long-term contract is recognized. 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) Three Months Ended Six Months Ended August 30, 2025 August 31, 2024 August 30, 2025 August 31, 2024 Operating income $ 731 $ 4,099 $ 799 $ 7,104 Earnings per share: Basic 0.03 0.14 0.03 0.25 Diluted 0.03 0.14 0.03 0.24 3. Inventories (In thousands) August 30, 2025 March 1, 2025 Raw materials $ 44,693 $ 36,804 Work-in-process 16,723 15,554 Finished goods 41,047 39,947 Total inventories, net $ 102,463 $ 92,305 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 fixed-maturity investments: (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value August 30, 2025 $ 9,262 $ 18 $ 172 $ 9,108 March 1, 2025 10,148 33 222 9,959 Prism insures a portion of our general liability, workers’ compensation and automobile liability risks using third-party agreements to meet statutory requirements. Our third-party carriers require Prism to maintain fixed-maturity investments for the purpose of providing collateral for Prism’s obligations under these agreements. The amortized cost and estimated fair values of these investments at August 30, 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. 11 Table of Contents (In thousands) Amortized Cost Estimated Fair Value Due within one year $ 6,732 $ 6,652 Due after one year through five years 2,530 2,456 Total $ 9,262 $ 9,108 Derivative instruments We periodically use interest rate swaps, currency put options, forward purchase contracts, or other instruments to manage risks generally associated with foreign exchange rate (primarily related to the Canadian dollar and euro), interest rate and commodity price fluctuations. The information that follows explains the various types of derivatives and financial instruments we use, how such instruments are accounted for, and how such instruments impact our financial position and performance. In the second quarter of fiscal 2026, we entered into an interest rate swap with a notional value of $ 50.0 million with an expiration date of August 5, 2027. In fiscal 2025, we entered into an interest rate swap with a notional value of $ 75.0 million with an expiration date of January 5, 2027. In fiscal 2020, we entered into an interest rate swap with a notional value of $ 30.0 million with an expiration date of February 5, 2026. We entered into these swaps to hedge a portion of our exposure to variability in cash flows from interest payments on our floating-rate revolving credit facility. As of August 30, 2025, we had no foreign exchange option contracts with U.S. dollar notional values outstanding. Derivative instruments that qualify for hedge accounting 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. 12 Table of Contents 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 financial 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 August 30, 2025 Assets: Money market funds $ 28,705 $ — $ 28,705 Municipal bonds — 9,108 9,108 Interest rate swap contracts — 282 282 Liabilities: Interest rate swap contracts — 764 764 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 5. 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 replaced 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. As a result of the execution of the Credit Agreement, in the second quarter of fiscal 2025, we recognized a loss on extinguishment of debt 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 are being 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 August 30, 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 $ 75.0 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, in each a margin based on the 13 Table of Contents 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 %, respectively. The Credit Agreement also contains an “accordion” provision. Under this provision, we can request that the senior credit facility be increased by 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 Interco, LLC (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 August 30, 2025. Outstanding borrowings under the revolving credit facility were $ 55.0 million as of August 30, 2025. At August 30, 2025, we had a total of $ 2.6 million of ongoing letters of credit related to the senior credit facility, construction contracts and insurance collateral that expire in fiscal year 2026 and reduce borrowing capacity under the revolving credit facility. As of August 30, 2025, the amount available for revolving borrowings was $ 392.4 million. The fair value of our senior credit facility approximated carrying value at August 30, 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. Three Months Ended Six Months Ended (In thousands) August 30, 2025 August 31, 2024 August 30, 2025 August 31, 2024 Interest on debt $ 4,612 $ 1,339 $ 9,094 $ 2,513 Interest rate swap gain ( 132 ) ( 236 ) ( 313 ) ( 472 ) Other interest expense 187 594 302 615 Interest income ( 591 ) ( 557 ) ( 1,163 ) ( 1,066 ) Interest expense, net $ 4,076 $ 1,140 $ 7,920 $ 1,590 Interest payments under the credit facilities were $ 9.0 million and $ 2.6 million for the six months ended August 30, 2025 and August 31, 2024, respectively. The weighted average interest rates on borrowings outstanding, inclusive of the impact of our interest rate swap as of August 30, 2025, and March 1, 2025, were 3.88 % and 4.32 %, respectively. 6. Commitments and Contingent Liabilities Bond commitments In the ordinary course of business, predominantly in our Architectural Services Segment, we are required to provide surety or performance bonds that commit payments to our customers for non-performance against our contracts. At August 30, 2025, $ 1.2 billion of these types of bonds were outstanding, of which $ 293.7 million is in our backlog. These bonds have expiration dates that align with the completion of these contracts. 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 cost, 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 these accruals in any given period include changes in manufacturing quality, changes in product mix, and any significant changes in sales volume. Six Months Ended (In thousands) August 30, 2025 Beginning balance $ 18,461 Additional accruals 3,052 Claims paid ( 2,672 ) Ending balance $ 18,841 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 in certain parts of our Architectural Metals Segment. We manage the risk of these exposures through contract negotiations, proactive project management and insurance coverages. 14 Table of Contents Letters of credit At August 30, 2025, we had $ 2.6 million of ongoing letters of credit as discussed in Note 5. Purchase obligations Purchase obligations for raw material commitments and capital expenditures totaled $ 15.5 million as of August 30, 2025. New Markets Tax Credit (NMTC) transactions At August 30, 2025, we had one outstanding NMTC arrangement to support operational expansion. Proceeds received from investors on this transaction are included within other current liabilities in our consolidated balance sheets. The NMTC arrangement is subject to 100 percent tax credit recapture for a period of seven years from the date of transaction. Upon the termination, proceeds will be recognized in earnings in exchange for the transfer of tax credits. The direct and incremental costs incurred in structuring this arrangement have been deferred and are included in other current assets in our consolidated balance sheets. These costs will be recognized in conjunction with the recognition of the related proceeds. During the construction phase or for working capital purposes, we are required to hold cash dedicated to fund the project, which is classified as restricted cash in our consolidated balance sheet. As a result of the structure of this transaction, a variable-interest entity was created. As the other investors in this program do not have a material interest in the entity's underlying economics, we include 100% of the results of the variable-interest entity in our consolidated financial statements. During the second quarter ended August 30, 2025, one NMTC transaction was settled as expected and, as a result, a $ 4.6 million benefit was recorded in other (income) expense, net. We expect the last outstanding NMTC transaction to be settled during the third quarter of fiscal 2026. The table below provides a summary of estimated benefits related to our outstanding NMTC transaction (in thousands): Inception date Termination date Deferred benefit Deferred costs Net benefit September 2018 September 2025 $ 3,198 $ 1,031 $ 2,167 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 $ 20.0 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, and 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, in the fourth quarter of fiscal 2025, we recorded expense of $ 9.4 million, which represented the impact of the award amount net of existing reserves and insurance proceeds of $ 11.0 million. 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. 7. Supplier Finance Program Obligations We have 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 and outstanding balance for the six months ended August 30, 2025, that we have confirmed as valid to the administrators of our program: 15 Table of Contents (In thousands) August 30, 2025 Balance at beginning of period $ 6,846 Obligations added to the program 27,142 Obligations settled ( 26,035 ) Balance at end of period $ 7,953 8. Shareholders' Equity We paid dividends totaling $ 11.0 million ($ 0.52 per share) in the first six months of fiscal 2026, compared to dividends paid of $ 10.8 million ($ 0.50 per share) in the comparable prior year period. During fiscal 2004, the Board of Directors authorized a share repurchase program allowing us to repurchase shares of our outstanding common stock, with subsequent increases in authorization. During the six months ended August 30, 2025, we did not repurchase shares under the program. During the six months ended August 31, 2024, we repurchased 241,573 shares under the program, for a total cost of $ 15.1 million. We have repurchased a total of 12,063,207 shares, at a total cost of $ 438.5 million, since the inception of this program in fiscal 2004. We have remaining authority to repurchase 2,186,793 shares under this program, which has no expiration date. We may elect to repurchase additional shares of common stock under our authorization, subject to limitations contained in our debt agreements and based upon our assessment of a number of factors, including share price, trading volume and general market conditions, working capital requirements, general business conditions, financial conditions, any applicable contractual limitations, and other factors, including alternative investment opportunities. We may finance share repurchases with available cash, additional debt or other sources of financing. Additionally, shares withheld from the vesting of restricted awards, or the settlement of performance-based awards, are treated as purchases and retirements, and are included within other, net in the financing activities section in the consolidated statement of cash flows. 9. Share-Based Compensation As part of our compensation structure, we grant stock-based compensation awards to certain employees and non-employee directors during the fiscal year. These awards may be in the form of incentive stock options (to employees only), restricted stock awards and restricted stock units, and performance share unit awards, 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, unless the date of the award is on a day the Nasdaq Stock Market is not open for trading. In that case, the exercise price shall equal the fair market value on the most recent preceding date when such market is open. The table below sets forth the number of stock-based compensation awards granted during the six-months ended August 30, 2025, along with the weighted average grant date fair value: Awards Number of Awards Weighted Average Grant Date Fair Value Restricted stock awards and restricted stock units (1) 159,685 $ 44.54 Performance share units (2) 52,018 $ 45.65 (1) Represent service condition awards which generally vest over a two - or three -year period. (2) Represent performance condition awards with the grant equal to the target number of performance shares based on the share price at grant date. These grants allow for the right to receive a variable number of shares, between 0 % and 200 % of target, dependent on being employed at the end of the performance period and achieving defined performance goals for average adjusted return on invested capital and cumulative adjusted earnings per share. Total share-based compensation expense included in the results of operations was $ 0.5 million and $ 2.9 million for the three months ended August 30, 2025, and August 31, 2024, respectively and $ 2.8 million and $ 5.6 million for the six months ended August 30, 2025, and August 31, 2024, respectively. At August 30, 2025, there was $ 14.1 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 26 months. The total fair value of shares vested during the six months ended August 30, 2025, was $ 7.8 million. 10. Income Taxes We file income tax returns in the U.S. federal jurisdiction, various U.S. state and local jurisdictions, Canada, Brazil, and other international jurisdictions. In September 2025, the Company was notified that the Internal Revenue Service will conduct a U.S. 16 Table of Contents federal examination for fiscal year 2023. There is very limited audit activity of our income tax returns in U.S. state jurisdictions or international jurisdictions. For interim periods, our income tax expense and resulting effective tax rate are based upon an estimated annual effective tax rate adjusted for the effects of items required to be treated as discrete to the period, including changes in tax laws, changes in estimated exposures for uncertain tax positions and other items. For the three months ended August 30, 2025, income tax expense as a percentage of earnings before income tax was 15.4 %, compared to 25.7 % for the same period last year. The change in the effective tax rate was primarily due to a decrease in tax expense on discrete items. For the six months ended August 30, 2025, income tax expense as a percentage of earnings before income tax was 30.9 % compared to 25.1 % for the same period last year. The increase in the effective tax rate was primarily driven by lower net earnings before income tax. The total liability for unrecognized tax benefits was $ 6.2 million at August 30, 2025, compared to $ 6.0 million at March 1, 2025. Penalties and interest related to unrecognized tax benefits are recorded in income tax expense. On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law in the United States, introducing a wide array of tax reform measures. These include extensions and modifications to certain provisions originally enacted under the Tax Cuts and Jobs Act. Key changes include the immediate expensing of domestic research and development costs, the reinstatement of 100% bonus depreciation, and a new interest expense limitation based on EBITDA. These provisions did not have a material effect on the Company’s financial statements for the six-month period ended August 30, 2025. 11. Earnings per Share The following table presents a reconciliation of the share amounts used in the computation of basic and diluted earnings per share (diluted EPS): Three Months Ended Six Months Ended (In thousands) August 30, 2025 August 31, 2024 August 30, 2025 August 31, 2024 Net earnings $ 23,649 $ 30,566 $ 20,962 $ 61,577 Basic earnings per share – weighted average common shares outstanding 21,408 21,762 21,373 21,793 Weighted average effect of nonvested share grants and assumed exercise of stock options 182 113 189 192 Diluted earnings per share – weighted average common shares and potential common shares outstanding 21,590 21,875 21,562 21,985 Stock awards excluded from the calculation of earnings per share because the effect was anti-dilutive (award price greater than average market price of the shares) 230 11 215 65 Basic earnings per share $ 1.10 $ 1.40 $ 0.98 $ 2.83 Diluted earnings per share $ 1.10 $ 1.40 $ 0.97 $ 2.80 12. Business Segment Data We have four operating segments which are also reportable segments. Each of our four segments has 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. 17 Table of Contents The Company’s CEO is the chief operating decision maker (CODM) . The CODM utilizes net sales and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) 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), depreciation and amortization and the resulting adjusted EBITDA 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 adjusted EBITDA 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. Three Months Ended August 30, 2025 (In thousands) Architectural Metals Architectural Services Architectural Glass Performance Surfaces Total Net sales $ 140,922 $ 100,490 $ 68,392 $ 48,390 $ 358,194 Intersegment net sales 13 — 3,789 — 3,802 Total segment net sales 140,935 100,490 72,181 48,390 361,996 Adjusted cost of sales (1) ( 100,178 ) ( 85,968 ) ( 53,213 ) ( 31,941 ) ( 271,300 ) Adjusted SG&A (2) ( 23,681 ) ( 10,417 ) ( 10,636 ) ( 9,017 ) ( 53,751 ) Adjusted other expense, net (3) — — ( 8 ) — ( 8 ) Depreciation and amortization 3,752 911 3,323 3,789 11,775 Adjusted EBITDA $ 20,828 $ 5,016 $ 11,647 $ 11,221 $ 48,712 Three Months Ended August 31, 2024 (In thousands) Architectural Metals Architectural Services Architectural Glass Performance Surfaces Total Net sales $ 141,340 $ 98,018 $ 83,250 $ 19,832 $ 342,440 Intersegment net sales 10 — 6,851 — 6,861 Total segment net sales 141,350 98,018 90,101 19,832 349,301 Adjusted cost of sales (1) ( 98,898 ) ( 80,366 ) ( 58,739 ) ( 12,350 ) ( 250,353 ) Adjusted SG&A (2) ( 24,396 ) ( 11,263 ) ( 10,296 ) ( 3,687 ) ( 49,642 ) Adjusted other expense, net (3) — — ( 7 ) — ( 7 ) Depreciation and amortization 4,172 955 3,080 790 8,997 Adjusted EBITDA $ 22,229 $ 7,344 $ 24,140 $ 4,584 $ 58,297 Six Months Ended August 30, 2025 (In thousands) Architectural Metals Architectural Services Architectural Glass Performance Surfaces Total Net sales $ 269,519 $ 206,995 $ 137,662 $ 90,640 $ 704,816 Intersegment net sales 40 — 7,792 — 7,832 Total segment net sales 269,559 206,995 145,454 90,640 712,648 Adjusted cost of sales (1) ( 197,782 ) ( 176,630 ) ( 104,973 ) ( 60,157 ) ( 539,542 ) Adjusted SG&A (2) ( 49,148 ) ( 21,264 ) ( 21,944 ) ( 18,642 ) ( 110,998 ) Adjusted other expense, net (3) — — ( 66 ) — ( 66 ) Depreciation and amortization 7,566 1,983 6,593 7,338 23,480 Adjusted EBITDA $ 30,195 $ 11,084 $ 25,064 $ 19,179 $ 85,522 18 Table of Contents Six Months Ended August 31, 2024 (In thousands) Architectural Metals Architectural Services Architectural Glass Performance Surfaces Total Net sales $ 274,449 $ 197,045 $ 161,426 $ 41,036 $ 673,956 Intersegment net sales 73 — 15,378 — 15,451 Total segment net sales 274,522 197,045 176,804 41,036 689,407 Adjusted cost of sales (1) ( 187,448 ) ( 162,218 ) ( 117,024 ) ( 24,836 ) ( 491,526 ) Adjusted SG&A (2) ( 49,683 ) ( 22,815 ) ( 21,620 ) ( 7,561 ) ( 101,679 ) Adjusted other income, net (3) — — 123 — 123 Depreciation and amortization 8,679 1,905 6,089 1,586 18,259 Adjusted EBITDA $ 46,070 $ 13,917 $ 44,371 $ 10,225 $ 114,583 (1) Adjusted cost of sales excludes $ 0.3 million and $ 3.0 million of adjustments related to acquisition and restructuring expense, respectively, for the three months ended August 30, 2025, and excludes $ 0.4 million and $ 9.9 million of adjustments related to acquisition and restructuring expense, respectively, for the six months ended August 30, 2025. Adjusted cost of sales excludes $ 0.9 million and $ 1.4 million of adjustments related restructuring expense for the three and six months ended August 31, 2024, respectively. These adjustments are described in greater detail in the reconciliation below. (2) Adjusted SG&A expense excludes $ 0.9 million and $ 0.1 million of adjustments related to acquisition and restructuring expense, respectively, for the three months ended August 30, 2025, and excludes $ 1.1 million and $ 5.9 million of adjustments related to acquisition and restructuring expense, respectively, for the six months ended August 30, 2025. Adjusted SG&A expense excludes $ 0.3 million and $ 0.7 million of adjustments related restructuring expense for the three and six months ended August 31, 2024, respectively These adjustments are described in greater detail in the reconciliation below. (3) Adjusted other income, net excludes $ 4.6 million of NMTC gain recognized for the three and six months ended August 30, 2025. The following table presents the reconciliation of adjusted EBITDA to net earnings, the nearest measurement under U.S. GAAP: Three Months Ended Six Months Ended (In thousands) August 30, 2025 August 31, 2024 August 30, 2025 August 31, 2024 Segment Adjusted EBITDA $ 48,712 $ 58,297 $ 85,522 $ 114,583 Corporate and Other Expenses ( 4,474 ) ( 5,175 ) ( 9,603 ) ( 8,839 ) Segment acquisition-related costs (1) ( 1,187 ) — ( 1,464 ) — Segment restructuring costs (2) ( 3,113 ) ( 1,179 ) ( 15,832 ) ( 2,301 ) Depreciation and amortization ( 12,507 ) ( 9,688 ) ( 24,943 ) ( 19,664 ) Other income (3) 4,597 — 4,597 — Interest expense, net ( 4,075 ) ( 1,140 ) ( 7,921 ) ( 1,590 ) Income tax expense ( 4,304 ) ( 10,549 ) ( 9,394 ) ( 20,612 ) Net earnings $ 23,649 $ 30,566 $ 20,962 $ 61,577 (1) Acquisition-related costs include costs related to one-time expenses incurred to integrate the UW Solutions acquisition. (2) Segment restructuring charges related to Project Fortify. (3) Other income, net includes $ 4.6 million of NMTC gain recognized for the three and six months ended August 30, 2025. 13. 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 total pre-tax acquisition-related expenses of $ 10.3 million associated with the acquisition. During the three-month period ended August 30, 2025, we incurred integration costs associated with the acquisition of $ 1.3 million, of which $ 0.3 million and $ 1.0 million are included in cost of sales and SG&A, respectively, within our consolidated results of operations. During the six-month period ended August 30, 2025, we incurred integration costs associated with the acquisition of $ 1.6 million, of which $ 0.4 million and $ 1.2 million are included in cost of sales and SG&A, respectively, within our consolidated results of operations. 19 Table of Contents 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 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. 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 non-current liabilities 1,490 Noncurrent 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 the three-month period ended on August 30, 2025, was $ 24.9 million of net sales and $ 0.8 million of net loss, and for the six-month period ended on August 30, 2025, was $ 46.9 million of net sales and $ 2.2 million of net loss. The following supplemental unaudited pro forma information presents our financial results as if the acquisition of UW Solutions had occurred on March 3, 2024. 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 March 3, 2024, and this information is not intended to be indicative of future results. (in thousands, except earnings per share data) (Unaudited) Three Months Ended Six Months Ended August 31, 2024 August 31, 2024 Net sales $ 363,410 $ 718,037 Net earnings 27,466 51,693 Earnings per share: Basic $ 1.26 $ 2.37 Diluted $ 1.26 $ 2.35 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 the third and fourth quarters of fiscal 2025 are reflected as if those charges were incurred in the first and second quarters of the fiscal 2025 supplemental pro forma earnings. Nonrecurring charges of $ 0.2 million of integration costs incurred in the first quarter of fiscal 2026 are reflected as if those charges were incurred in the first and second quarter of fiscal 2025 supplemental pro forma earnings. 20 Table of Contents 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 March 3, 2024. 14. 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 Segment and Corporate and Other. The Company completed Project Fortify during the fourth quarter of fiscal 2025 and incurred a total of $ 16.7 million of restructuring charges, which led to an annualized pre-tax cost savings of approximately $ 14 million . On April 23, 2025, we announced a second phase of Project Fortify (referred to as "Project Fortify Phase 2" or "Phase 2") to drive further cost efficiencies, primarily in the Architectural Metals and Architectural Services Segments. Phase 2 focuses on further optimizing our operating footprint and aligning resources to enable a more effective operating model. We expect to incur approximately $ 24 million to $ 26 million of pre-tax charges associated with Phase 2. The total charges are expected to include the following: • $ 9 million to $ 10 million of severance and employee related costs; • $ 5 million to $ 6 million of contract termination costs; and • $ 9 million to $ 10 million of other expenses. We expect the actions associated with Phase 2 to be substantially completed by the end of the fourth quarter of fiscal 2026 and expect them to deliver annualized pre-tax cost savings of approximately $ 13 million to $ 15 million. During the second quarter of fiscal 2026, we incurred $ 3.1 million of pre-tax costs associated with Phase 2, of which $ 3.0 million is included in cost of sales and $ 0.1 million is included within SG&A. During the first six months of fiscal 2026, we incurred $ 18.5 million of pre-tax costs associated with Phase 2, of which, $ 9.9 million is included in cost of sales and $ 8.6 million is included within SG&A. For the six months ended August 30, 2025, SG&A charges include a $ 5.0 million non-cash intangible asset impairment charge in the Architectural Services segment and a $ 2.6 million non-cash asset write-off and other charges in Corporate and Other. The table below reflects the pretax impact of Project Fortify for the quarters ended August 30, 2025, and August 31, 2024, respectively. (In thousands) Architectural Metals Architectural Services Corporate and Other Total August 30, 2025 Termination benefits $ — $ 476 $ — $ 476 Contract termination costs 201 1,659 — 1,860 Other restructuring charges 154 623 10 787 Total restructuring charges $ 355 $ 2,758 $ 10 $ 3,123 August 31, 2024 Termination benefits $ 271 $ 172 $ 5 $ 448 Contract termination costs 108 — — 108 Other restructuring charges 537 86 — 623 Total restructuring charges $ 916 $ 258 $ 5 $ 1,179 21 Table of Contents The table below reflects the pretax impact of Project Fortify for the six months ended August 30, 2025, and August 31, 2024, respectively. (In thousands) Architectural Metals Architectural Services Corporate and Other Total August 30, 2025 Termination benefits $ 805 $ 6,424 $ — $ 7,229 Contract termination costs 802 1,932 — 2,734 Other restructuring charges 218 5,650 2,641 8,509 Total restructuring charges $ 1,825 $ 14,006 $ 2,641 $ 18,472 August 31, 2024 Termination benefits $ 573 $ 172 $ 129 $ 874 Contract termination costs 108 — — 108 Other restructuring charges 1,233 86 — 1,319 Total restructuring charges $ 1,914 $ 258 $ 129 $ 2,301 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 Corporate and Other Total Balance at March 1, 2025 $ 1,286 $ 650 $ 511 $ 2,447 Restructuring expense 1,567 6,050 10 7,627 Payments ( 965 ) ( 2,872 ) ( 329 ) ( 4,166 ) Balance at August 30, 2025 $ 1,888 $ 3,828 $ 192 $ 5,908 The charges presented in the roll forward 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. 22 Table of Contents