Apogee Enterprises, Inc. (NASDAQ:APOG) Q3 2024 Earnings Call Transcript

Ty Silberhorn: Yes, Brent, great question. And we’ve talked before, we’ve built the process, we’ve got resources, we’ve been – we have an active pipeline. We’ll never talk specifics on companies, et cetera. It has remained tight. Even things that were coming into a process and just – they get a sense that there’s not maybe as many buyers yet as they would like. And so we’ve seen some processes pulled as a result of that. When you step back and think about it, we are primarily an architectural products and services company. So we will look to diversify our product portfolio via acquisitions, in part to allow us to play into more of those project types. And we won’t get into specifics, but I’d say, if you think about it that way, from our products-related business and probably things that are more related to are an extension of what we’re doing in Framing, but different product sets.

And then, yes, you hit on a really solid point with large-scale optical. We’ve got some really great technology and know-how and understanding about performance coatings on both glass and acrylic or polymer substrates. And as we now have invested in additional coating capacity for that business, and we work to accelerate their diversification, we are being opportunistic if there’s some acquisitions that can accelerate that diversification of that business that we see both a strategic fit from a technology and business standpoint, and again, are accretive to our margin goals as a company. So as we look at that space, it’s likely we’re not acquiring something that’s a 25% — greater than 25% EBIT, but we’re certainly interested in things that accelerate diversification in that business that are even in the teens from an EBIT perspective that help us grow that business as well.

Operator: There are no further questions. I’d like to turn the call over to Ty Silberhorn for closing remarks.

Ty Silberhorn : Well, I’d just like to thank everyone for joining us today. And I know we’re right up against the holiday season, so I’d just like to wish you and your families happy holidays, and looking forward to a prosperous new year for all of us. Have a great day.

Operator: Thank you for your participation. This does conclude the program. You may now disconnect.