We view yesterday's planned acquisition announcement as a constructive step toward differentiated growth that is reasonably valued and strategically sound, yet we continue to view APOG as a company in transition amid ongoing challenges of rising input costs, competitive pressures, and a CEO search. APOG announced an agreement to acquire of Kalwall Companies, a leading provider of translucent daylighting solutions, for $105 million in cash and up to $10 million of cash earnout. The deal will be funded with cash and revolver borrowings, and the company expects it to close in 2Q:F27 (the quarter ending in August 2026). Apogee expects Kalwall to contribute $85 million in sales in the first 12 months post-close at an adjusted (for acquisition-related and other one-time items) EBITDA margin of about 15%, implying a purchase multiple of roughly 9.0x NTM adjusted EBITDA (or 8.2x excluding the potential earn-out). Our initial view of the deal is cautiously positive, given a reasonable purchase multiple paid, a strategic rationale beyond just added scale, and APOG's further leaning into differentiated higher-margin products and services. The deal will add to the Glass segment, APOG's second highest margin segment, but one that has been growth challenged. We adjust our estimates to reflect our first pass integration of Kalwall, which, based on our analysis, adds 2% and 4% to our respective F2027 and F2028 adjusted EPS estimates. Our new $45 price target (from $41) is based on 14x our average F2027-F2028 EPS forecast of $3.24. We formerly based our valuation on 15x our prior F2027 EPS estimate of $2.72. We view APOG's solid balance sheet as supportive of our moderate risk rating.