Apogee Enterprises, Inc. (NASDAQ:APOG) Q4 2024 Earnings Call Transcript

At the same time, then it allows us to take cost out. So framing has had — probably would have, if not for 53 week and some order pull-through in Q4 probably would have been down double digit in Q4. And so that’s something we’re looking at kind of setting them up for probably a bit of a rougher Q1 and we’re going to look at it as how did framing perform over Q4 and Q1 together. But by taking those actions, it gives us some additional cost opportunity to manage even with some softer volumes that still gives us confidence they’re going to stay in that 10% to 15% range. And then our — we feel confident we’re positioning that business much in the same way as glass that as we get volume starting to flow through there, we expect we’re going to see a fair amount of leverage, which pushes us to the top end of that new 10% to 15% range.

And yes, then maybe in a great quarter or something like we saw in glass, they might even exceed that. But we feel really good about where that business is. And as they consolidate that footprint, which they expect to be done by the summer that puts them in a strong position to have volume flow through and really start to drop some meaningful dollars to the bottom line as a result.

Jon Braatz: Okay. Okay. And then secondly, when you announced back in January, these actions Project Fortify — you talked a little bit about annualized cost savings of $12 million to $14 million, 60% in ’25 and the remainder in ’26. Can you talk a little bit about whether you’re ahead of schedule. Do you think you can do more than that? Where do you stand on those annualized cost savings?

Matthew Osberg: Jon, it’s Matt. Yes, we’re on track for both kind of the total amount of charges related to Fortify and the amount of annualized cost savings.

Operator: Thanks, John. [indiscernible] Thank you. At this time, I would now like to turn the conference back over to Ty Silberhorn CEO, for closing remarks.

Ty Silberhorn: All right. Well, thanks for joining us today. We look forward to connecting at an upcoming investor conference or at our next earnings call. Everyone, have a great day.

Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.