APOGEE ENTERPRISES, INC. 10-Q

Item 1. Financial Statements CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except stock data) May 30, 2026 February 28, 2026 Assets Current assets Cash and cash equivalents $ 26,434 $ 39,523 Receivables, net 192,204 198,516 Inventories, net 101,803 98,059 Contract assets 59,344 59,512 Other current assets 50,619 43,823 Total current assets 430,404 439,433 Property, plant and equipment, net 247,763 255,032 Operating lease right-of-use assets 45,633 48,736 Goodwill 236,647 236,744 Intangible assets, net 108,592 111,261 Other non-current assets 32,420 31,139 Total assets $ 1,101,459 $ 1,122,345 Liabilities and Shareholders’ Equity Current liabilities Accounts payable $ 86,166 $ 105,478 Accrued compensation and benefits 30,435 39,667 Contract liabilities 68,265 60,903 Operating lease liabilities 14,737 14,729 Other current liabilities 45,002 46,079 Total current liabilities 244,605 266,856 Long-term debt 237,411 232,279 Non-current operating lease liabilities 35,780 39,375 Non-current self-insurance reserves 26,439 24,914 Other non-current liabilities 45,205 47,127 Commitments and contingent liabilities (Note 6) Shareholders’ equity Common stock of $ 0.33 -1/3 par value; authorized 50,000,000 shares; issued and outstanding 21,062,901 and 21,220,350 , respectively 7,021 7,073 Additional paid-in capital 159,043 159,085 Retained earnings 374,103 376,438 Accumulated other comprehensive loss ( 28,148 ) ( 30,802 ) Total shareholders’ equity 512,019 511,794 Total liabilities and shareholders’ equity $ 1,101,459 $ 1,122,345 See accompanying notes to consolidated financial statements. 3 Table of Contents CONSOLIDATED RESULTS OF OPERATIONS (Unaudited) Three Months Ended (In thousands, except per share data) May 30, 2026 May 31, 2025 Net sales $ 342,684 $ 346,622 Cost of sales 267,654 271,497 Gross profit 75,030 75,125 Selling, general and administrative expenses 56,191 68,194 Operating income 18,839 6,931 Interest expense, net 2,834 3,846 Other expense, net 73 682 Earnings before income taxes 15,932 2,403 Income tax expense 4,397 5,091 Net earnings (loss) $ 11,535 $ ( 2,688 ) Basic earnings (loss) per share $ 0.55 $ ( 0.13 ) Diluted earnings (loss) per share $ 0.54 $ ( 0.13 ) Weighted average basic shares outstanding 21,045 21,338 Weighted average diluted shares outstanding 21,312 21,338 See accompanying notes to consolidated financial statements. 4 Table of Contents CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (Unaudited) Three Months Ended (In thousands) May 30, 2026 May 31, 2025 Net earnings (loss) $ 11,535 $ ( 2,688 ) Other comprehensive earnings (loss): Unrealized (loss) gain on marketable securities, net of $( 29 ) and $ 10 of tax (benefit) expense, respectively ( 108 ) 35 Unrealized gain (loss) on derivative instruments, net of $ 840 and $( 32 ) of tax expense (benefit), respectively 2,462 ( 94 ) Foreign currency translation adjustments 300 2,667 Other comprehensive earnings 2,654 2,608 Total comprehensive earnings (loss) $ 14,189 $ ( 80 ) See accompanying notes to consolidated financial statements. 5 Table of Contents CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Three Months Ended (In thousands) May 30, 2026 May 31, 2025 Operating Activities Net earnings (loss) $ 11,535 $ ( 2,688 ) Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: Depreciation and amortization 12,579 12,436 Share-based compensation 2,309 2,300 Deferred income taxes 1,333 2,496 Impairment of long-lived assets — 7,418 Non-cash lease expense 2,981 3,738 Other, net ( 40 ) 1,622 Changes in operating assets and liabilities: Receivables 6,339 ( 3,938 ) Inventories ( 3,699 ) ( 11,255 ) Contract assets 113 2,596 Accounts payable ( 15,638 ) 1,103 Accrued compensation and benefits ( 9,225 ) ( 16,639 ) Contract liabilities 7,312 8,104 Operating lease liability ( 3,430 ) ( 3,643 ) Accrued income taxes 1,189 1,698 Other current assets and liabilities ( 6,228 ) ( 25,130 ) Net cash provided by (used in) operating activities 7,430 ( 19,782 ) Investing Activities Capital expenditures ( 6,289 ) ( 7,167 ) Purchases of marketable securities ( 4,637 ) — Other, net 1,157 185 Net cash used in investing activities ( 9,769 ) ( 6,982 ) Financing Activities Proceeds from revolving credit facilities 33,000 59,000 Repayment on revolving credit facilities ( 25,000 ) ( 33,000 ) Repayment of term loans ( 2,867 ) — Repurchase of common stock ( 9,654 ) — Dividends paid ( 5,630 ) ( 5,520 ) Other, net ( 995 ) ( 2,835 ) Net cash (used in) provided by financing activities ( 11,146 ) 17,645 Effect of exchange rates on cash 396 502 Decrease in cash and cash equivalents ( 13,089 ) ( 8,617 ) Cash and cash equivalents at beginning of period 39,523 41,448 Cash and cash equivalents at end of period $ 26,434 $ 32,831 Non-cash Activity Capital expenditures in accounts payable $ 482 $ 922 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 February 28, 2026 21,220 $ 7,073 $ 159,085 $ 376,438 $ ( 30,802 ) $ 511,794 Net earnings — — — 11,535 — 11,535 Other comprehensive income, net of tax — — — — 2,654 2,654 Issuance of stock, net of cancellations 123 41 ( 109 ) — — ( 68 ) Share-based compensation — — 2,309 — — 2,309 Share repurchases ( 259 ) ( 86 ) ( 2,069 ) ( 7,499 ) — ( 9,654 ) Other share retirements ( 22 ) ( 7 ) ( 173 ) ( 741 ) — ( 921 ) Cash dividends, $ 0.27 per share — — — ( 5,630 ) — ( 5,630 ) Balance at May 30, 2026 21,062 $ 7,021 $ 159,043 $ 374,103 $ ( 28,148 ) $ 512,019 (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 See accompanying notes to consolidated financial statements. 7 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. (Apogee, 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 February 28, 2026. 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 month period ended May 30, 2026, are not necessarily indicative of the results to be expected for the full year. Accounting standards not yet adopted 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 (In thousands) May 30, 2026 May 31, 2025 Recognized at shipment $ 157,806 $ 158,155 Recognized over time (input method) 124,199 119,224 Recognized over time (output method) 60,679 69,243 Total $ 342,684 $ 346,622 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 amount is no longer collectible. (In thousands) May 30, 2026 February 28, 2026 Trade accounts $ 110,933 $ 111,679 Construction contracts 82,801 88,445 Total receivables 193,734 200,124 Less: allowance for credit losses 1,530 1,608 Receivables, net $ 192,204 $ 198,516 8 Table of Contents The following table summarizes the activity in the allowance for credit losses for the three months ended May 30, 2026: (In thousands) May 30, 2026 Beginning balance $ 1,608 Credits against costs and expenses ( 19 ) Deductions from allowance, net of recoveries ( 59 ) Ending balance $ 1,530 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) May 30, 2026 February 28, 2026 Contract assets $ 59,344 $ 59,512 Contract liabilities 68,265 60,903 Other contract-related disclosures Three Months Ended (In thousands) May 30, 2026 May 31, 2025 Revenue recognized related to contract liabilities from prior year-end $ 42,604 $ 6,830 Revenue recognized related to prior satisfaction of performance obligations ( 759 ) 473 Some of our contracts have an expected duration of longer than a year, with performance obligations extending over that time frame. The transaction price associated with performance obligations that were not yet satisfied as of May 30, 2026, will be recognized as revenue in the following estimated time periods: (In thousands) May 30, 2026 Within one year $ 442,106 Between one and two years 257,429 Beyond two years 37,638 Total $ 737,173 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 May 30, 2026 May 31, 2025 Operating income $ ( 669 ) $ 67 Earnings per share: Basic $ ( 0.02 ) $ 0.00 Diluted $ ( 0.02 ) $ 0.00 9 Table of Contents 3. Inventories (In thousands) May 30, 2026 February 28, 2026 Raw materials $ 42,277 $ 43,441 Work-in-process 19,208 18,089 Finished goods 40,318 36,529 Total inventories, net $ 101,803 $ 98,059 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 May 30, 2026 $ 18,456 $ 3 $ 211 $ 18,248 February 28, 2026 14,989 23 94 14,918 Prism insures a portion of our general liability, workers’ compensation and automobile liability risks using third-party 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 these investments at May 30, 2026, 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 $ 6,303 $ 6,244 Due after one year through five years 12,153 12,004 Total $ 18,456 $ 18,248 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. We have entered into interest rate swaps with a total notional value of $ 125.0 million, with expiration dates throughout fiscal 2027, to hedge a portion of our exposure to variability in cash flows from interest payments on our floating-rate revolving credit facility. We have also entered into multiple aluminum commodity swap contracts with an aggregate notional value of $ 27.7 million to hedge a portion of our exposure to variability in cash flows associated with forecasted aluminum purchases. These swap contracts mature over the next twelve months, with final settlements occurring by March 2027. The mark-to-market adjustments on these derivative instruments are recorded within our Consolidated Balance Sheets within other current assets or other current liabilities. Gains or losses associated with these instruments are recorded as a component within the Consolidated Statements of Comprehensive Earnings until which time the hedged transaction is settled and gains or losses are recorded in net 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 financial assets or liabilities. Financial assets and liabilities measured at fair value on a recurring basis were: 10 Table of Contents (In thousands) Quoted Prices in Active Markets (Level 1) Other Observable Inputs (Level 2) Total Fair Value May 30, 2026 Assets: Money market funds $ 21,550 $ — $ 21,550 Municipal bonds — 18,248 18,248 Aluminum hedging contract — 2,684 2,684 Liabilities: Interest rate swap contracts — 102 102 February 28, 2026 Assets: Money market funds $ 31,662 $ — $ 31,662 Municipal bonds — 14,918 14,918 Aluminum hedging contract — 401 401 Liabilities: Interest rate swap contracts — 701 701 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 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 long‑lived assets — including goodwill, intangible assets, property and equipment, and right‑of‑use lease assets — at fair value on a nonrecurring basis when indicators of impairment are present. These assets, initially recorded at fair value upon acquisition or purchase, are evaluated periodically, and if impairment indicators exist, we compare their carrying values to their estimated fair values and recognize an impairment charge for any excess carrying value. See Note 1 for further information on impairment of long-lived assets. 5. Debt We are party to 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 floating rate 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 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 May 30, 2026, we were in compliance with all covenants as defined under the terms of the Credit Agreement. 11 Table of Contents 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 %, respectively. Outstanding borrowings under the term loan facility and current floating rate revolving facility were $ 209.4 million and $ 28.0 million, respectively, as of May 30, 2026. At May 30, 2026, 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 2027 and reduce borrowing capacity under the floating rate revolving credit facility to an amount of $ 419.4 million. Interest payments under the credit facilities were $ 3.0 million and $ 4.5 million for the three months ended May 30, 2026 and May 31, 2025, respectively. The weighted average interest rates on borrowings outstanding, inclusive of the impact of our interest rate swaps as of May 30, 2026, and February 28, 2026, were 4.43 % and 4.44 %, respectively. Three Months Ended (In thousands) May 30, 2026 May 31, 2025 Interest on debt $ 3,051 $ 4,483 Interest rate swap expense (gain) 85 ( 181 ) Other interest expense 192 115 Interest income ( 494 ) ( 571 ) Interest expense, net $ 2,834 $ 3,846 The fair value of our senior credit facility approximated carrying value at May 30, 2026, 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. 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 May 30, 2026, $ 1.1 billion of these types of bonds were outstanding, of which $ 239.8 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. Three Months Ended (In thousands) May 30, 2026 Beginning balance $ 12,903 Additional provision 1,399 Claims paid ( 1,391 ) Ending balance $ 12,911 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. Letters of credit At May 30, 2026, 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 $ 14.9 million as of May 30, 2026. 12 Table of Contents 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. One such claim was resolved and paid during the first quarter of fiscal 2026, resulting in a payment of $ 24.7 million, which was reserved for during 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. 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 operating activities in our Consolidated Statements of Cash Flows when settled. The following table summarizes the obligation activity and outstanding balance for the three months ended May 30, 2026, that we have confirmed as valid to the administrators of our program: (In thousands) May 30, 2026 Balance at beginning of period $ 7,857 Obligations added to the program 13,003 Obligations settled ( 12,234 ) Balance at end of period $ 8,626 8. Shareholders' Equity We paid dividends totaling $ 5.6 million ($ 0.27 per share) in the first three months of fiscal 2027, compared to dividends paid of $ 5.5 million ($ 0.26 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 three months ended May 30, 2026, we repurchased 269,500 shares under the program, for a total of $ 9.7 million. No shares were repurchased during the three months ended May 31, 2025. We have repurchased a total of 12,721,289 shares, at a total cost of $ 463.1 million, since the inception of this program in fiscal 2004. We have remaining authority to repurchase 1,528,711 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. The Company maintains a Junior Preferred Stock plan, under which 200,000 shares of $ 1.00 par value junior preferred stock are authorized, with zero shares issued and outstanding as of May 30, 2026. 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. We have a 2019 Stock Incentive Plan and a 2019 Non-Employee Director Stock Plan (the Plans) that provide for the issuance of 2,150,000 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), restricted stock awards, or 13 Table of Contents 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. The table below sets forth the number of stock-based compensation awards granted during the three months ended May 30, 2026, 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) 126,781 $ 35.50 Performance share units (2) 35,051 $ 35.11 (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. We recorded share-based compensation expense, in which we account for any forfeitures as they occur, as follows: (In thousands) May 30, 2026 May 31, 2025 Restricted stock awards and restricted stock units $ 2,082 $ 1,588 Performance share units 227 712 Share-based compensation expense $ 2,309 $ 2,300 At May 30, 2026, there was $ 14.9 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 2.1 years. The total fair value of shares vested during the three months ended May 30, 2026, was $ 3.0 million. 10. Income Taxes The Company files income tax returns in the U.S. (federal and certain states), Canada, Brazil and other international jurisdictions and is generally subject to limited audit activity. The Internal Revenue Service is in the process of conducting a U.S. federal examination for fiscal year 2023. The effective tax rate for the three months ended May 30, 2026 was 27.6 %, compared to 211.9 % for the same period last year. In the prior year-quarter, pretax income was low, resulting in a disproportionately high effective tax rate due to the impact of unfavorable discrete tax items. 11. 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: Three Months Ended (In thousands) May 30, 2026 May 31, 2025 Basic earnings per share – weighted average common shares outstanding 21,045 21,338 Weighted average effect of nonvested share grants and assumed exercise of stock options 267 — Diluted earnings (loss) per share – weighted average common shares and potential common shares outstanding 21,312 21,338 Stock awards excluded from the calculation of earnings (loss) per share because the effect was anti-dilutive (award price greater than average market price of the shares) 343 224 14 Table of Contents 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. The Company’s CEO is the chief operating decision maker (CODM) . The CODM utilizes segment net sales and adjusted 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 expense, net, adjusted 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 of the segment including sales related to intersegment transactions. We present intersegment net sales 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 May 30, 2026 (In thousands) Architectural Metals Architectural Services Architectural Glass Performance Surfaces Total Net sales to external customers $ 122,434 $ 115,237 $ 60,689 $ 44,324 $ 342,684 Intersegment net sales 9 — 7,023 — 7,032 Total segment net sales 122,443 115,237 67,712 44,324 349,716 Adjusted cost of sales (1) ( 90,054 ) ( 98,910 ) ( 54,878 ) ( 31,913 ) ( 275,755 ) Adjusted SG&A (2) ( 22,244 ) ( 10,988 ) ( 10,383 ) ( 9,784 ) ( 53,399 ) Adjusted other expense, net — — ( 56 ) — ( 56 ) Adjusted depreciation and amortization 3,554 798 3,499 3,950 11,801 Adjusted EBITDA $ 13,699 $ 6,137 $ 5,894 $ 6,577 $ 32,307 Three Months Ended May 31, 2025 (In thousands) Architectural Metals Architectural Services Architectural Glass Performance Surfaces Total Net sales to external customers $ 128,596 $ 106,505 $ 69,271 $ 42,250 $ 346,622 Intersegment net sales 28 — 4,002 — 4,030 Total segment net sales 128,624 106,505 73,273 42,250 350,652 Adjusted cost of sales (1) ( 97,603 ) ( 90,664 ) ( 51,759 ) ( 28,217 ) ( 268,243 ) Adjusted SG&A (2) ( 25,468 ) ( 10,847 ) ( 11,309 ) ( 9,624 ) ( 57,248 ) Adjusted other expense, net — — ( 58 ) — ( 58 ) Adjusted depreciation and amortization 3,813 1,073 3,270 3,550 11,706 Adjusted EBITDA $ 9,366 $ 6,067 $ 13,417 $ 7,959 $ 36,809 (1) Adjusted cost of sales excludes $ 6.9 million related to acquisition and restructuring expense for the three months ended May 31, 2025. (2) Adjusted SG&A expense excludes $ 5.8 million related to acquisition and restructuring expense for the three months ended May 31, 2025. 15 Table of Contents The following table presents the reconciliation of adjusted EBITDA to net earnings, the nearest measurement under U.S. GAAP: Three Months Ended (In thousands) May 30, 2026 May 31, 2025 Segment adjusted EBITDA $ 32,307 $ 36,809 Corporate and Other expenses (1) ( 962 ) ( 5,129 ) Segment acquisition-related costs (2) — ( 277 ) Segment restructuring costs (3) — ( 12,718 ) Depreciation and amortization ( 12,579 ) ( 12,436 ) Interest expense, net ( 2,834 ) ( 3,846 ) Income tax expense ( 4,397 ) ( 5,091 ) Net earnings (loss) $ 11,535 $ ( 2,688 ) (1) Includes $ 0.8 million in acquisition related costs incurred at Corporate for the pending Keller Companies, Inc. acquisition in the three months ended May 30, 2026. Includes $ 2.6 million of restructuring costs in the three months ended May 31, 2025. (2) Acquisition-related costs incurred to integrate the UW Solutions acquisition. (3) Segment restructuring charges related to Project Fortify Phase 2. 13. Restructuring Project Fortify, announced in the fourth quarter of fiscal 2024, was a restructuring program designed to streamline operations, improve cost efficiency, and enhance the Company’s operating model, primarily within the Architectural Metals Segment. The program also included process and resource optimization within the Architectural Services Segment and Corporate and Other and was completed in the fourth quarter of fiscal 2025. A second phase of Project Fortify (Phase 2) was announced on April 23, 2025, focused on driving additional cost efficiencies and further optimizing the Company’s operating footprint and resource alignment. The actions associated with Phase 2 were substantially completed in the fourth quarter of fiscal 2026, and therefore no further activity occurred during the first quarter of fiscal 2027. During the first quarter of fiscal 2026, we incurred $ 15.3 million of pre-tax costs associated with Phase 2, of which $ 6.9 million was included in cost of sales and $ 8.4 million was included within SG&A. The SG&A charges include a $ 5.0 million non-cash intangible asset impairment charge in the Architectural Services Segment and $ 2.6 million of a non-cash asset write-off and other charges in Corporate and Other. The table below reflects the pretax impact of Project Fortify for the quarter ended May 31, 2025. (In thousands) Architectural Metals Architectural Services Corporate and Other Total May 31, 2025 Termination benefits $ 805 $ 5,947 $ — $ 6,752 Other restructuring charges 666 5,300 2,632 8,598 Total restructuring charges $ 1,471 $ 11,247 $ 2,632 $ 15,350 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 2027. (In thousands) Architectural Metals Architectural Services Corporate and Other Total Balance at February 28, 2026 $ 3,581 $ 2,311 $ 1,082 $ 6,974 Payments ( 1,151 ) ( 124 ) ( 675 ) ( 1,950 ) Other adjustments ( 136 ) 12 — ( 124 ) Balance at May 30, 2026 $ 2,294 $ 2,199 $ 407 $ 4,900 16 Table of Contents