APOG

Apogee Enterprises, Inc. APOG used its first-quarter fiscal 2027 earnings call to stress execution and portfolio reshaping rather than headline growth. Management framed the quarter as proof that pricing discipline and cost actions can offset a still uneven demand backdrop. The bigger message was what comes next. Executives reaffirmed full-year guidance, pointed to a more second-half-weighted year and cast the pending Kalwall deal as a strategic move to improve the company’s mix and earnings durability. Adjusted EPS of 57 cents and revenues of $342.7 million came in ahead of the Zacks Consensus Estimate of 43 cents and $333.9 million, producing surprises of 32.6% and 2.6%, respectively. Apogee Enterprises, Inc. price-consensus-eps-surprise-chart | Apogee Enterprises, Inc. Quote CFO Mark Augdahl said first-quarter profit finished ahead of internal expectations even as net sales slipped 1.1% year over year. He tied the result to pricing actions, productivity gains and savings from Project Fortify Phase 2, which helped offset higher material and freight costs and lower volume. Management kept fiscal 2027 guidance unchanged at $1.38-$1.43 billion in net sales and $2.70-$3.25 in adjusted EPS, excluding Kalwall. Augdahl also said results should skew more heavily toward the second half, while second-quarter sales and adjusted EPS are expected to run below the prior year. Executive chair and CEO Donald Nolan made the pending Kalwall acquisition the clearest strategic theme of the call. He described the deal as a way to expand into faster-growing, specification-driven daylighting products tied to energy-efficiency trends and institutional end markets. Nolan said the business should strengthen Apogee’s standing with architects and specifiers while broadening the company’s higher-margin, differentiated offerings. He also presented Kalwall as a counterweight to the more cyclical parts of the Glass segment, reinforcing management’s effort to improve the durability of earnings over time. Augdahl added more financial detail, saying Kalwall is expected to generate about $85 million of revenues over the first 12 months at roughly a 15% adjusted EBITDA margin, with a long-term margin target of 20%. The deal is expected to close in early July and be accretive in the first year. The quarter again showed a split portfolio. Architectural Services posted 8.2% sales growth, and Nolan highlighted the unit’s ninth straight quarter of top-line growth, supported by project wins and improving flow. Backlog ended the quarter at $734.5 million, up from $682.9 million at fiscal year-end. Performance Surfaces also grew, with sales up 4.9%, but margins narrowed as higher input and freight costs outpaced near-term pricing recovery. Augdahl said pricing actions taken in the quarter should benefit results later in the fiscal year. Glass remained the main pressure point. Sales fell 7.6%, and adjusted EBITDA margin dropped to 8.7% from 18.3% a year ago as lower prices, lower volume and material inflation weighed on results. A central management argument was that operational discipline is still working even in a volatile cost environment. Nolan credited price increases, productivity and Fortify-related savings for helping protect margins across the business. That was most visible in Architectural Metals, where sales fell 4.8% but adjusted EBITDA margin rose to 11.2% from 7.3%. Management said favorable mix, productivity gains and cost savings more than offset the effect of lower volume and higher aluminum costs. The same discipline showed up in capital allocation. Operating cash flow improved to $7.4 million from a year-earlier use of cash, while Apogee returned $15.3 million to shareholders through dividends and repurchases and ended the quarter with a 1.3x leverage ratio. Analyst questions focused heavily on pricing and Kalwall, signaling where investors still want proof. A Sidoti & Company analyst asked whether first-quarter results increased confidence in offsetting cost pressure, especially in Metals. Augdahl responded with a firm message on pricing discipline, saying the company used both pricing changes and surcharges during the quarter and plans to keep passing through input-cost moves as conditions require. The tone suggested management sees pricing as an ongoing lever rather than a one-time reset. On Kalwall, management sounded more expansive in Q&A than in prepared remarks. Nolan told analysts the business creates cross-selling opportunities across Apogee’s architectural portfolio, while Augdahl said it also opens exposure to education, museums and other markets that differ from Viracon’s traditional mix. Nolan also said Apogee sees about $4 million in synergies by fiscal 2029. The broader tone of the call was disciplined but not defensive. Management acknowledged continued softness in construction-related demand, especially in Glass, while emphasizing actions already under way to improve order rates, productivity and cost management. That posture left investors with a company still managing through a mixed market, but doing so with a steady full-year outlook, a clear integration agenda for Kalwall and an emphasis on improving the quality of the portfolio rather than chasing volume at any cost. APOG carries a Zacks Rank #3 (Hold), along with a Value Score of B, Growth Score of B, Momentum Score of C and a VGM Score of A. Under the Zacks framework, a Hold rating suggests a more balanced near-term outlook than a Zacks Rank #1 (Strong Buy) or #2 (Buy), while the VGM Score of A and B grades in Value and Growth indicate favorable characteristics on those measures. You can see the complete list of today’s Zacks #1 Rank stocks here. The weaker Momentum Score of C tempers that profile, even with the strong VGM reading. Zacks also notes that Style Scores work best alongside the Rank and that the Zacks Rank can change as earnings estimate revisions adjust after a quarterly report. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Apogee Enterprises, Inc. (APOG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Apogee Enterprises, Inc. APOG reported adjusted earnings of 57 cents per share for first-quarter fiscal 2027, beating the Zacks Consensus Estimate of 43 cents by 32.56%. The bottom line rose 1.8% year over year.Including one-time items, the company reported EPS of 54 cents against the year-ago quarter's loss of 13 cents. Apogee Enterprises, Inc. price-consensus-eps-surprise-chart | Apogee Enterprises, Inc. Quote Apogee generated revenues of $342.7 million in the quarter under review, down 1.1% year over year due to lower volume. This was partially offset by favorable pricing as the company passed on higher material and freight costs, along with a favorable mix. The top line beat the Zacks Consensus Estimate of $334 million. Architectural Services backlog reached $734.5 million compared with $683 million at the end of fiscal year 2026. Cost of sales in the fiscal first quarter decreased 1.4% year over year to $268 million. Gross profit fell 0.1% year over year to $75 million. The gross margin increased 21.9% from  21.7% in the prior-year quarter. The improvement was driven by price, productivity gains, savings from Project Fortify Phase 2 and a favorable mix, partly offset by higher material and freight costs and lower volume.Selling, general and administrative expenses fell 17.6% year over year to $56.2 million. SG&A expenses as a percentage of sales improved 330 basis points to 16.4%, mainly due to cost savings from Fortify Phase 2.Operating income totaled $18.8 million in the quarter under review, marking a 171.8% jump from $6.9 million in the prior-year quarter. In the fiscal first quarter, revenues in the Architectural Metals segment declined 4.8% year over year to $122.4 million due to lower volume. This was partially offset by a favorable price and product mix. The segment’s adjusted EBITDA was $13.7 million compared with the year-ago quarter’s $9.4 million.Revenues in the Architectural Glass segment fell 7.6% year over year to $67.7 million due to lower prices and volume. This was partially offset by a favorable mix. The segment’s adjusted EBITDA was $5.9 million compared with $13.4 million in the prior-year quarter.Revenues in the Architectural Services segment improved 8.2% year over year to $115.2 million on increased volume. The segment reported adjusted EBITDA of $6.1 million, up 1.2% year over year.Revenues in the Performance Surfaces segment rose 4.9% year over year to $44.3 million due to increased volume and favorable pricing. The segment reported adjusted EBITDA of $6.6 million in the fiscal first quarter compared with $8 million in the prior-year quarter. Apogee had cash and cash equivalents of $26.4 million at the end of first-quarter fiscal 2027 compared with $39.5 million at the end of fiscal 2026. Cash provided by operating activities totaled $7.4 million in the fiscal first quarter against cash used in operating activities of $19.8 million in the prior-year quarter.Long-term debt was $237.4 million at the end of the first quarter of fiscal 2027, up from $232.3 million at the end of fiscal 2026. The company’s Consolidated Leverage Ratio was 1.3x at the end of the quarter. Excluding the pending Kalwall acquisition, APOG continues to expect fiscal 2027 net revenues of $1.38-$1.43 billion and adjusted earnings of $2.70-$3.25 per share. Assuming Kalwall closes in early July, revenues are expected to be $1.43-$1.48 billion. The acquisition is expected to be accretive to adjusted earnings but is not anticipated to materially change the fiscal 2027 adjusted earnings outlook.For the second quarter, the company expects net revenues to be slightly lower year over year, adjusted earnings to decline and operating cash flow strength to continue. Shares of the company have gained 16.8% in the past year against the industry's loss of 20.8%. Image Source: Zacks Investment Research O-I Glass, Inc. OI posted first-quarter 2026 adjusted earnings of 5 cents per share, missing the Zacks Consensus Estimate of 9 cents by 44.4%. Results also fell sharply from 40 cents a year ago.O-I Glass generated net revenues of $1.54 billion, edging down 1.7% year over year, but beating the consensus mark of $1.43 billion by 7.8%. Shipments declined 8%, with a tougher operating backdrop in Europe as energy costs increased and price competition intensified. Apogee currently has a Zacks Rank #5 (Strong Sell). Some better-ranked stocks from the Industrial Products sector are Tennant Company TNC and RBC Bearings Incorporated RBC. TNC sports a Zacks Rank #1 (Strong Buy) while RBC carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.Tennant has an average trailing four-quarter earnings surprise of 40.8%. The Zacks Consensus Estimate for TNC’s 2026 earnings is pinned at $5.12 per share. The company’s shares have gained 14% in a year.The Zacks Consensus Estimate for RBC Bearings’ fiscal 2027 earnings is pegged at $14.17 per share. The company has a trailing four-quarter average earnings surprise of 6.2%. RBC shares have gained 65% in a year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Apogee Enterprises, Inc. (APOG) : Free Stock Analysis Report O-I Glass, Inc. (OI) : Free Stock Analysis Report RBC Bearings Incorporated (RBC) : Free Stock Analysis Report Tennant Company (TNC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Friday, June 26, 2026 at 9:00 a.m. ET Vice President, Investor Relations and Communications - Jeremy Steffan Chief Executive Officer - Donald A. Nolan Chief Financial Officer - Mark Richard Augdahl Operator: Day, and thank you for standing by. Welcome to the Apogee Enterprises First Quarter Earnings Conference Call. At this time, participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. You will then hear an automated message advising your hand is raised. To withdraw your question, please press 1, 1 again. As a reminder, this conference is being recorded for replay purposes. I will now turn the conference over to Jeremy Steffan, Vice President, Investor Relations and Communications to begin Jeremy, please go ahead. Jeremy Steffan: Thank you. Good morning, and welcome to Apogee Enterprises. Fiscal 2027 First Quarter Earnings Call. On the call today are Donald A. Nolan, Apogee's Chief Executive Officer and Mark Ogdahl, our Chief Financial Officer. During this call, the team will reference certain non GAAP financial measures. Definitions of these measures, a reconciliation to the nearest GAAP measures are provided in the earnings release and slide deck. Which are available in the Investor Relations section of our website. As a reminder, today's call will contain forward looking statements. Reflect management's expectations based on currently available information. Actual results may differ materially from those expressed today. More information about factors that could affect Apogee's business and financial results can be found in our press release and in the company's SEC filings. With that, I will turn the call over to Donald. Donald A. Nolan: Thanks, Jeremy, and good morning, everyone. We are glad you could join us for our first quarter earnings call. Our team delivered revenue of $343 million and adjusted diluted EPS of $0.57 in the quarter. Demonstrating strong execution across the business. Effectively navigated a challenging environment marked by rising aluminum costs, a dynamic macroeconomic backdrop, and elevated interest rates. These results were supported by a sustained focus on cost control, and thoughtful pricing actions in response to higher input costs. Across our segments, results reflected a mix of solid performance continued variability in end markets. In metals, pricing actions and cost savings from Fortify Phase 2 drove margin expansion supported by favorable mix and ongoing productivity improvements. We also made continued progress in operational performance, improving quality and on time delivery while strengthening customer relationships. Services delivered its 9th consecutive quarter of top line growth and also increased backlog sequentially. Reflecting steady project award wins, and improving project flow. Performance services sustained its positive momentum with another quarter of growth supported by healthy demand across key end markets. Margins were impacted by rising input costs, which drove pricing actions during the quarter that we expect to benefit results through the remainder of the fiscal year. In glass, results remain pressured by softer conditions in new construction and lower demand for premium product offerings. We are implementing an action plan to improve performance, prioritizing initiatives to drive order rates, enhance operational productivity, and strengthen cost management. I am proud of our team's performance in the quarter and the progress we are making across the business. The team's actions are aligned to improve results and we remain on track to deliver on our full year guidance. As we discussed last quarter, we are actively advancing our strategy executing on our enhanced 3 pillar framework, while improving the overall quality and durability of our portfolio. Kalwall is a strong example of this strategy in action. Demonstrating how we are building capabilities and expanding into areas that support long term profitable growth. Our M&A process remains active as we continue to evaluate additional opportunities that align with our growth priorities and financial criteria. Turning to the Kalwall acquisition, this is a highly strategic addition that aligns with the M&A priorities we have outlined over the past several quarters. Kalwall expands our presence in attractive faster growing areas of the building envelope market particularly in day lighting solutions that are engineered specification driven, and aligned with energy efficiency trends. It strengthens our position with architects and specifiers and enhances our ability to deliver differentiated high performance solutions across key end markets such as education, health care, and other institutional applications. From a financial perspective, Kalwall is an attractive addition to our portfolio. The business operates with margins that are accretive to Apogee's current profile and is supported by specification driven demand. It also is expected to enhance the durability of our earnings which should offset the more cyclical elements of our Glass segment. Overall, the acquisition enhances the quality and resilience of our earnings profile over time. From an integration perspective, our priority is to preserve what has made Kalwall successful while identifying opportunities to collaborate and create value across the broader Apogee portfolio. Will pursue synergies over time along with opportunities to drive revenue by leveraging our relationships with architects, designers, and glazing contractors. As we begin integration planning, we are taking a structured approach across key functions, including finance, human resources, and sales and marketing. Our efforts are focused on aligning financial reporting and controls maintaining stability and talent and culture, and strengthening our go to market approach over time while ensuring strong day to day execution and continued customer engagement. As we look ahead, we remain focused on strong near term execution while positioning Apogee for long term value creation. Kalwall represents an important step in advancing our strategy to build a more differentiated higher margin, and specification driven portfolio while maintaining the operational discipline that has long defined this company. We are managing the business for the environment we see today while taking deliberate actions to improve the quality and durability of our earnings over time. We believe that combination near term discipline paired with long term strategic progress, positions Apogee well to deliver sustainable value. With that, I will turn it over to Mark to cover the financials. Mark Richard Augdahl: Thanks, Donald, and good morning, everyone. I will begin with a review of our 1st quarter results, and then discuss our outlook for the remainder of fiscal 27. Beginning with our consolidated results, net sales decreased 1.1% to 343 million primarily reflecting lower volume in metals and glass as expected. This was partially offset by favorable pricing actions to recover higher material and freight costs. As well as positive mix. Adjusted EBITDA margin decreased to 9.4% compared to 9.9% a year ago, driven by higher material and freight costs, and the impact of lower volume. These headwinds were partially offset by cost savings from Fortify phase 2. Productivity improvements, and favorable pricing. Adjusted diluted EPS was $0.57, ahead of our expectations and up year over year primarily driven by lower interest expense. Turning to our segment results. Metals net sales declined 4.8% to 122 million reflecting continued challenging market conditions. The decrease was primarily due to lower volume partially offset by favorable price and product mix. Adjusted EBITDA margin expanded to 11.2% driven by favorable mix increased productivity, and cost savings from Fortify Phase 2, partially offset by the impact from lower volume and the net impact from higher aluminum costs. The services segment continued its positive momentum and delivered their 9th consecutive quarter of net sales growth. Improve improving by 8.2% primarily driven by volume. Adjusted EBITDA margin slightly decreased to 5.3% due to project mix partially offset by benefits from Project Fortify Phase 2 to reduce the impact of tariffs and the impact from increased volume. Backlog ended the quarter at $735 million up 8% year over year and 6% sequentially. Glass net sales declined 7.6% to 67.7 million primarily driven by lower price and volume due to the continued end market demand softness. Adjusted EBITDA margin also declined to 8.7% due to the impact of lower price and volume and inflation on material costs. Performance Surfaces net sales increased approximately 5% driven by increased volume and favorable price. Adjusted EBITDA margin decreased due to the net impact of higher material and freight costs, partially offset by productivity. Turning to our cash flow and the balance sheet. Net cash provided by operating activities was $7.4 million in the quarter, compared to $19.8 million net use of cash a year ago. In the first quarter, we repurchased $9.7 million of stock and returned $5.6 million to shareholders through dividends. Our balance sheet at the end of the quarter was strong, with consolidated leverage ratio at 1.3 times no near term debt maturities and significant capital available for future deployment. Overall, Q1 profit exceeded our internal expectations and I am pleased with our team's ability to deliver in this environment. Before I turn to the Outlook, I will address Kalwall a financial perspective. The acquisition is consistent with our capital allocation framework. Prioritizing investment in business, value accretive m&a, and returning capital to shareholders. And adds a business with margins above our current company average. We expect Kalwall to generate approximately $85 million of revenue at roughly a 15% adjusted EBITDA margin over the first 12 months, with a long term margin rate. of 20%. The transaction is expected to be accretive in the first year and is anticipated to close in early July. Following completion, we expect to maintain a strong balance sheet with capacity to support future M and A. Now for fiscal 27, continue to expect full year net sales between $1.38 billion and $1.43 billion and adjusted EPS in the range of $2.70 to $3.25. We expect results to be weighed more heavily towards the second half of the year reflecting anticipated improvement in underlying market conditions as the year progresses. We continue to expect interest expense of approximately $10 million and adjusted effective tax rate of 26% to 27% and capital expenditures between $35 and $40 million. This guidance is based on current market conditions and does not include any impact from Kalwall. Incorporating the potential impact from Kalwall assuming closure in early July, our net sales range would be 1.43 billion to $1.48 billion and EPS continuing to be in a range of $2.70 to $3.25. Interest expense would increase to approximately $14 million. Looking ahead to the 2nd quarter, we expect net sales to be slightly lower and adjusted EPS to be lower on a year over year basis. These assumptions are minimally impacted by the anticipated early Julio close of Kalwall. With a more meaningful contribution expected in the second half. We remain focused on what we can control executing our business, controlling costs, and maintaining pricing discipline in a variable demand environment. Our strong balance sheet and cash flow provide flexibility to invest in the business advancing integration of Kalwall and deploying capital effectively. Including evaluating share repurchases as part of our broader capital allocation strategy. This positions us well to manage near term dynamics while continuing to build long term value. We will now open the call to questions. Operator, please go ahead. Operator: Thank you. Our first question comes from Julio Romero with Sidoti and Company. Your line is open. Julio Romero: Donald, Mark, Jeremy. Can you update us on where you stand in terms of pricing realization across the portfolio? And does the Q1 results give you more confidence in your ability to offset cost pressure both in metals and across the broader portfolio? Mark Richard Augdahl: Hi, Julio. This is Mark. I will start off here. Yeah. In the quarter, you know, our primary input costs, especially in our metals segment, continued to be very volatile, obviously, with aluminum doing what it was doing. So we did implement in the quarter. Both pricing and surcharges to offset those costs. In the metals in the metals seg segment. We also made additional, changes in our in our pricing structures and surcharges in our other segments as well to kinda follow along with those input cost changes. We expect that to continue, you know, as our input costs change, we will be we will have pricing discipline to make sure that we are passing those along to the to the best of our ability. Julio Romero: Okay. Very helpful there. And then, you know, on Kalwall, can you maybe expand on your comments about the Callwall's revenue synergy opportunity with the legacy glass segment? You know, just help us think about how it might accelerate growth of the end markets that you outlined. I believe it was education, health care, and other institutional Is there other end markets that may provide entry to and just help us think about the strategic fit legacy glass there. Donald A. Nolan: Hi, Julio. This is Donald. Hey. Brent question. looks, we are really excited about Kalwall. It brings a leading provider of high performance translucent daylighting solutions in into the company. And you are right. It definitely strengthens our core. And advances our strategy. it is differentiated products. Specification driven, you know, right up our alley. And these products are highly complementary to Viracon, our architectural glass business. And we clearly see cross selling opportunities over in other brands. Across the metals business. So, you know, I would say pretty much across our entire Apogee architectural portfolio, we will see opportunities to cross sell. The other thing I might add is we also see operational across synergy opportunities here of about $4 million by fiscal year 29. So primarily driven by input cost synergies. So it will also it will also we also see margins will be growing over the next 2.5 years from 15% EBITDA to up to 20%. So very exciting for us. Jeremy Steffan: And then maybe, Julio, just to add on, you know, Kalwall certainly plays in different markets than our traditional Viracon business, so it does help diversify our glass segment into some other sectors like, you know, education and museums and whatnot. So yeah, we feel like this is a great addition to the to the segment and certainly to the enterprise overall. Julio Romero: Very helpful. And then 1 more for me is just staying on Callwall for a bit. It Is there a retrofit opportunity embedded within that acquisition? Donald A. Nolan: Yeah. I mean, that is an interesting question. There is some. As the product ages, you know, occasionally. But it is it is not a primary market for us. You know, usually, it is new construction, a lot of institutional opportunities here. it is a little bit different market than we typically would go in with American. And but the retrofit market is not as much. Usually, it is it is a specified, you know, architectural spec product. So did I answer your question, Julio? Julio Romero: It does. Thanks very much, guys. I will pass it on. Operator: 1 moment for our next question. Our next question our next question comes from Gashi sir with Singular Research. Your line is open. Gowshihan Sriharan: Good morning, gentlemen. Can you hear me? Loud and clear. Thank you. My first question is on Caldwell. Just I know you guys have said that the end markets are civic buildings, health care. Any of that is that exposed to government sending institute construction as that how much of that is actually, being revenue tested against the municipal and federal construction budgets? Mark Richard Augdahl: I Got you. This is Mark. Yeah. We would expect know, a certain amount of government projects in our future as it relates to Kalwall. I do not know if it is gonna be a significant driver, but it is certainly in play. I would say and I would say all 3 levels. You have municipal, state, and federal. And I would also add in there educational. Institutions. Quite a bit there. Gowshihan Sriharan: So does Kalwall come in at 15% or where specifically are the are the oh, is that $4 million adding up to that 15% margin? Mark Richard Augdahl: So it comes in close to that 15%. So our ability to our ability to take on synergies and know, hopefully, execute some additional cost input reductions across the overall portfolio, will drive the EBITDA growth there. Gowshihan Sriharan: Gotcha. So with so just to be clear, so with the $4 million in synergy, we expect the business to get to 20% EBITDA margins. Mark Richard Augdahl: that is Gotcha. Gowshihan Sriharan: Okay. On the glass side, are you is it all purely macro driven softness, or are you seeing any competitors moving being on price? Donald A. Nolan: Yeah. I mean, look, glass business has been a few quarters here and we have definitely seen softer conditions. there is fewer jobs. And many of those jobs are at a lower volume. And, you know, we must say, though, that the team is executing. You know, we are our hit rate is improving on the jobs we pursue. And we have we have put together a performance improvement challenge, I will call it, to increase order rates, enhance productivity, and strengthen our cost management. The other the other piece I might mention here is yesterday, we actually announced a new president for the glass segment. And Chris Eid, who is he is been with the company for 4 years, so it enables us to leverage our bench strength in this in this really important role. I am really happy for Chris, and he is got a 20 year background spanning strategy, m&a, p and l responsibility. And he was with the guy that was responsible for the UW Solutions acquisition. So he made that happen and was also running the integration activities, which as you remember, it really hit 1st year expectations. So he will be he will also be leading the integration efforts with Caldwell. Leveraging all that knowledge and experience that we have with UW. So Yeah. Gowshihan Sriharan: Awesome. And on the performance side, I will make this my last question. On the performance side, I know it is been compressed around 20% to around 14% in Q1. Help us understand how much of that direct oil polymer input cost sensitivity is that for the segment? So roughly, you know, what if a $10 move in oil needs to what does that mean to performance EBITDA margins? Donald A. Nolan: About if I just, I am gonna go this direction. So first of all, I am we are really pleased the growth that segment has displayed over the past quarters. You know, but UW integration was very successful. Yes. In the in the current quarter, we saw input costs rise quite a bit and, you know, specifically related to the petrochemical derived products like you suggested, as well as aluminum costs impact that segment. You know, we implemented some both pricing and some price increases as well as surcharges. In the quarter, but we are expecting that to impact later on in the year. And, you know, to the extent that those input costs continue to increase, we will continue those activities. Gowshihan Sriharan: Awesome. Thank you, guys. Appreciate you taking my time. I will pass it on. Operator: I am not showing any further questions at this time. I would like to turn the call back over to Donald for any further remarks. Donald A. Nolan: In closing, I continue to be encouraged by the progress we are making and the actions we are taking across the business. I wanna thank our employees for their hard work and commitment. They play a critical role in supporting our customers and strengthening our company every day. We are building Apogee with discipline and ambition, improving performance today while positioning the company for stronger, more durable growth over time. I am grateful for our employees, confident in our strategy, and energized by what lies ahead. Thank you for your continued interest and support. Operator: Thank you, ladies and gentlemen. This does conclude today's presentation. We thank you for your You may now disconnect, and have a wonderful day. Before you buy stock in Apogee Enterprises, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Apogee Enterprises wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $382,359!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,201,390!* Now, it’s worth noting Stock Advisor’s total average return is 883% — a market-crushing outperformance compared to 205% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of June 26, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Apogee (APOG) Q1 2027 Earnings Call Transcript was originally published by The Motley Fool

Apogee Enterprises, Inc. reported past first‑quarter 2026 results showing sales of US$342.68 million and a shift from a US$2.69 million net loss to US$11.54 million in net income, while also reaffirming its fiscal 2027 net sales guidance and outlining the potential impact of the pending Kalwall acquisition. Alongside this earnings turnaround, Apogee continued its long-running share repurchase program, buying back 275,477 shares in the latest tranche and bringing total buybacks under the plan to 12,727,266 shares, while maintaining a quarterly dividend of US$0.27 per share. With this earnings recovery and reaffirmed fiscal 2027 outlook, we’ll explore how the updated guidance influences Apogee’s existing investment narrative. Find 44 companies with promising cash flow potential yet trading below their fair value. To own Apogee, you need to believe its architectural glass and framing business can convert building and renovation trends into steady margins while managing cost and demand swings. The latest quarter’s move back into profitability and the reaffirmed fiscal 2027 sales guidance support that thesis, but the biggest near term catalyst remains execution on acquisitions like Kalwall, while the key risk is still weaker non residential construction demand that could keep pressure on volumes and margins. The most relevant update here is Apogee’s reaffirmed fiscal 2027 net sales outlook of US$1.38 billion to US$1.43 billion, rising to US$1.43 billion to US$1.48 billion if the Kalwall deal closes as expected. That range gives investors a reference point for how management currently sees demand and integration shaping up, which matters directly for the catalysts around operational efficiency efforts and for assessing whether acquisition driven growth can offset ongoing exposure to the U.S. commercial construction cycle. But even with this improved near term profitability, investors should be aware of the risk that prolonged weakness in commercial building activity could still... Read the full narrative on Apogee Enterprises (it's free!) Apogee Enterprises' narrative projects $1.6 billion revenue and $93.5 million earnings by 2029. This requires 3.6% yearly revenue growth and about a $39.4 million earnings increase from $54.1 million today. Uncover how Apogee Enterprises' forecasts yield a $42.50 fair value, a 13% downside to its current price. Some of the most optimistic analysts were previously assuming Apogee could reach about US$1.5 billion in revenue and US$118.3 million in earnings, which is much rosier than the baseline view, so you should weigh those expectations against this new guidance and the possibility that remote work and weaker office demand may reshape how the story evolves from here. Explore 2 other fair value estimates on Apogee Enterprises - why the stock might be worth 13% less than the current price! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your Apogee Enterprises research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision. Our free Apogee Enterprises research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Apogee Enterprises' overall financial health at a glance. Opportunities like this don't last. These are today's most promising picks. Check them out now: Invest in the nuclear renaissance through our list of 89 elite nuclear energy infrastructure plays powering the global AI revolution. This technology could replace computers: discover 30 stocks that are working to make quantum computing a reality. The latest GPUs need a type of rare earth metal called Neodymium and there are only 29 companies in the world exploring or producing it. Find the list for free. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include APOG. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

This article first appeared on GuruFocus. Revenue: $342.7 million, a decrease of 1.1% year-over-year. Adjusted Diluted EPS: $0.57, ahead of expectations and up year-over-year. Adjusted EBITDA Margin: 9.4%, down from 9.9% a year ago. Metals Net Sales: $122 million, a decline of 4.8%. Services Segment Net Sales Growth: 8.2%, marking the ninth consecutive quarter of growth. Services Segment Backlog: $735 million, up 8% year-over-year and 6% sequentially. Glass Net Sales: $67.7 million, a decline of 7.6%. Net Cash Provided by Operating Activities: $7.4 million, compared to a net use of $19.8 million a year ago. Stock Repurchase: $9.7 million in the quarter. Dividends Returned to Shareholders: $5.6 million. Consolidated Leverage Ratio: 1.3 times. Fiscal 2027 Full Year Net Sales Guidance: $1.38 billion to $1.43 billion. Fiscal 2027 Adjusted EPS Guidance: $2.70 to $3.25. Kalwall Acquisition Expected Revenue: Approximately $85 million with a 15% adjusted EBITDA margin in the first 12 months. Warning! GuruFocus has detected 5 Warning Signs with CNVS. Is APOG fairly valued? Test your thesis with our free DCF calculator. Release Date: June 26, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Apogee Enterprises Inc (NASDAQ:APOG) delivered revenue of $343 million and adjusted diluted EPS of $0.57, demonstrating strong execution despite challenging conditions. The Services segment achieved its ninth consecutive quarter of top-line growth, with an 8.2% increase in net sales. The acquisition of Kalwall is expected to be accretive in the first year, with anticipated revenue of approximately $85 million and a long-term margin rate of 20%. The company maintained a strong balance sheet with a consolidated leverage ratio of 1.3 times and significant capital available for future deployment. Apogee Enterprises Inc (NASDAQ:APOG) is actively advancing its strategy with a focus on building a more differentiated, higher-margin, and specification-driven portfolio. Net sales decreased by 1.1% to $342.7 million, primarily due to lower volume in metals and glass segments. Adjusted EBITDA margin decreased to 9.4% from 9.9% a year ago, impacted by higher material and freight costs. The Glass segment faced pressure from softer conditions in new construction and lower demand for premium product offerings. The Performance Surfaces segment experienced a decrease in adjusted EBITDA margin due to higher material and freight costs. The company expects net sales and adjusted EPS to be lower on a year-over-year basis in the second quarter. Q: Can you update us on where you stand in terms of pricing realization across the portfolio? And does the 1Q results give you more confidence in your ability to offset cost pressure both in metals and across the broader portfolio? A: This is Mark Augdahl, CFO. In the quarter, our primary input costs, especially in our Metals segment, continued to be very volatile. We implemented pricing and surcharges to offset those costs in the Metals segment and made additional changes in our pricing structures in other segments. We expect to continue this pricing discipline as input costs change. Q: Can you expand on the Kalwall revenue synergy opportunity with the legacy Glass segment? How might it accelerate growth in end markets like education and healthcare? A: Donald Nolan, CEO, responded that Kalwall strengthens our core and advances our strategy with its high-performance translucent daylighting solutions. It complements our architectural glass business and presents cross-selling opportunities across our portfolio. We also see operational and cost synergy opportunities of about $4 million by fiscal year '29, with margins expected to grow from 15% to 20% EBITDA. Q: Is there a retrofit opportunity embedded within the Kalwall acquisition? A: Donald Nolan, CEO, mentioned that while there is some retrofit opportunity as the product ages, it is not a primary market for us. The focus is more on new construction and institutional opportunities. Q: On the glass side, is the softness purely macro-driven, or are competitors being aggressive on price? A: Donald Nolan, CEO, stated that the glass business has seen softer conditions with fewer jobs and lower volumes. However, the team is executing well, with an improved hit rate on pursued jobs. A performance improvement plan is in place to increase order rates, enhance productivity, and strengthen cost management. Q: Regarding the Performance Surfaces segment, how sensitive is it to oil polymer input costs, and what does a $10 move in oil mean for EBITDA margins? A: Mark Augdahl, CFO, explained that the segment saw input costs rise, particularly related to petrochemical-derived products and aluminum costs. Pricing increases and surcharges were implemented, with impacts expected later in the year. The company will continue these activities if input costs rise further. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

First-quarter net sales of $342.7 million First-quarter diluted EPS of $0.54 and adjusted diluted EPS of $0.57 Pending Kalwall acquisition on track for early July close, advancing strategy to expand into higher-growth differentiated product offerings Company reaffirms fiscal 2027 guidance MINNEAPOLIS, June 26, 2026--(BUSINESS WIRE)--Apogee Enterprises, Inc. (Nasdaq: APOG), a leading provider of architectural building products and services, as well as high-performance coated materials used in a variety of applications, today reported its results for the first quarter of fiscal 2027, ended May 30, 2026. The Company reported the following selected financial results: "Our results for the quarter reflect solid execution as our team effectively navigated a dynamic operating environment," said Donald Nolan, Executive Chair and CEO. "We continued to advance our strategic priorities while maintaining strong operational performance across the business. We also maintained a disciplined capital allocation approach, returning cash to shareholders through dividends and share repurchases. In parallel, we are progressing integration planning for the pending Kalwall acquisition, which we expect to support our long-term growth strategy following its anticipated early July closing." First-Quarter Consolidated Results (First Quarter Fiscal 2027 compared to First Quarter Fiscal 2026) Net sales decreased 1.1% to $342.7 million, driven by lower volume, partially offset by favorable pricing as we pass on higher material and freight costs and mix. Gross margin rose 20 basis points to 21.9%, primarily due to price, productivity improvements including savings from Project Fortify 2, and favorable mix, partially offset by higher material and freight costs and impacts from lower volume. Selling, general and administrative (SG&A) expenses as a percentage of net sales decreased 330 basis points to 16.4%, primarily due to benefits from cost savings of Fortify Phase 2. Operating income increased to $18.8 million from $6.9 million, and operating margin increased 350 basis points to 5.5%. Adjusted EBITDA decreased to $32.1 million, compared to $34.4 million, and adjusted EBITDA margin decreased to 9.4%, compared to 9.9%. The decrease in adjusted EBITDA margin was primarily driven by higher material and freight costs and the impacts from lower volume, partially offset by productivity improvements and benefits from cost savings of Fortify Phase 2. Interest expense decreased to $2.8 million, compared to $3.8 million, primarily due to lower average debt balance. Diluted earnings per share (EPS) were $0.54, compared to a diluted loss per share of $0.13, and adjusted diluted EPS increased to $0.57, compared to $0.56. First Quarter Segment Results (First Quarter Fiscal 2027 Compared to First Quarter Fiscal 2026) Architectural Metals Net sales declined 4.8% to $122.4 million, driven by lower volume, partially offset by favorable price and product mix. Adjusted EBITDA was $13.7 million, or 11.2% of net sales, compared to $9.4 million, or 7.3% of net sales. The higher adjusted EBITDA margin was primarily driven by favorable mix and improved productivity and cost savings from Fortify Phase 2, partially offset by the impact from lower volume and the net impact from higher aluminum costs. Architectural Services Net sales increased 8.2% to $115.2 million, primarily due to increased volume. Adjusted EBITDA was $6.1 million, or 5.3% of net sales, compared to $6.1 million, or 5.7% of net sales. The slight decrease in adjusted EBITDA margin was primarily driven by project mix, mostly offset by benefits from actions of Project Fortify 2 to reduce the impact of tariffs and the impact from increased volume. Segment backlog1 at the end of the quarter was $734.5 million compared to $682.9 million at the end of fiscal year 2026. Architectural Glass Net sales declined 7.6% to $67.7 million, driven by lower price and volume, partially offset by favorable mix. Adjusted EBITDA was $5.9 million, or 8.7% of net sales, compared to $13.4 million, or 18.3% of net sales. The decrease in adjusted EBITDA margin was primarily driven by the impact of lower price, volume, and inflation of material costs. Performance Surfaces Net sales increased 4.9% to $44.3 million due to increased volume and favorable price. Adjusted EBITDA was $6.6 million, or 14.8% of net sales compared to $8.0 million, or 18.8% of net sales. The decrease in adjusted EBITDA margin was primarily driven by the net impact of higher material and freight costs, partially offset by productivity. Corporate and Other Corporate and other adjusted EBITDA was an expense of $0.2 million, compared to $2.4 million in the prior year, primarily due to an insurance-related benefit. Financial Condition Net cash provided by operating activities in the first quarter was $7.4 million, compared to $19.8 million net cash used by operating activities in the prior year period. The Company returned $15.3 million of cash to shareholders, through $9.7 million of share repurchases and $5.6 million of dividends. Quarter-end long-term debt slightly increased to $237.4 million, bringing the Consolidated Leverage Ratio2 (as defined in the Company’s credit agreement) to 1.3x at the end of the quarter. Fiscal 2027 Outlook Based on current macroeconomic conditions and excluding any impacts from the pending Kalwall acquisition, the Company continues to expect net sales to be in the range of $1.38 billion to $1.43 billion and adjusted diluted EPS in the range of $2.70 to $3.25. The Company’s outlook also continues to assume interest expense of approximately $10 million, an adjusted effective tax rate of 26% to 27%, and capital expenditures between $35 million and $40 million. Assuming the pending Kalwall acquisition closes in early July, the Company expects net sales in the range of $1.43 billion to $1.48 billion. While the acquisition is expected to be accretive to adjusted diluted EPS, it is not expected to materially change the Company’s fiscal 2027 adjusted diluted EPS outlook of $2.70 to $3.25. The Company also expects interest expense to be approximately $14 million, an adjusted effective tax rate of 26% to 27%, and capital expenditures between $35 million and $40 million. Conference Call Information The Company will host a conference call today at 8:00 a.m. Central Time to discuss this earnings release. This call will be webcast and is available in the Investor Relations section of the Company’s website, along with presentation slides, at https://www.apog.com/events-and-presentations. A replay and transcript of the webcast will be available on the Company’s website following the conference call. About Apogee Enterprises Apogee Enterprises, Inc. (Nasdaq: APOG) is a leading provider of architectural building products and services, as well as high-performance coated materials used in a variety of applications. Headquartered in Minneapolis, MN, our portfolio of industry-leading products and services includes architectural glass, windows, curtainwall, storefront and entrance systems, integrated project management and installation services, and high-performance coatings that provide protection, innovative design, and enhanced performance. For more information, visit www.apog.com. Use of Non-GAAP Financial Measures Management uses non-GAAP measures to evaluate the Company’s historical and prospective financial performance, measure operational profitability on a consistent basis, as a factor in determining executive compensation, and to provide enhanced transparency to the investment community. Non-GAAP measures should be viewed in addition to, and not as a substitute for, the reported financial results of the Company prepared in accordance with GAAP. Other companies may calculate these measures differently, limiting the usefulness of the measures for comparison with other companies. This release and other financial communications may contain the following non-GAAP measures: Adjusted net earnings and adjusted diluted EPS are used by the Company to provide meaningful supplemental information about its operating performance by excluding amounts that the Company does not consider to be part of core operating results, to enhance comparability of results from period to period. The Company is unable to provide a quantitative reconciliation of its forward-looking adjusted diluted EPS guidance to the most directly comparable GAAP measure without unreasonable effort because it cannot reliably predict the timing and magnitude of certain items, including acquisition-related costs, integration costs, restructuring-related items, and other discrete items that could materially affect GAAP results. Adjusted EBITDA represents adjusted net earnings before interest, taxes, depreciation, and amortization. The Company uses adjusted EBITDA and adjusted EBITDA margin 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. Consolidated Leverage Ratio is calculated as Consolidated Funded Indebtedness minus Unrestricted Cash at the end of the current period, divided by Consolidated EBITDA. All capitalized and undefined terms used in this bullet and not otherwise defined herein are defined in the Company’s credit agreement dated July 19, 2024, which is included as an exhibit to the Company’s most recent Annual Report on form 10-K. The Company is unable to present a quantitative reconciliation of forward-looking expected Consolidated Leverage Ratio to its most directly comparable forward-looking GAAP financial measure without unreasonable effort because management cannot reliably predict all the necessary components of that GAAP measure. In addition, the Company believes such reconciliation could imply a degree of precision that would be confusing or misleading to investors. Backlog is defined as the dollar amount of signed contracts or firm orders, generally as a result of a competitive bidding process, which is expected to be recognized as revenue. Backlog is an operating measure used by management to assess future potential sales revenue. It is most meaningful for the Architectural Services segment, due to the longer-term nature of their projects. Backlog is not a term defined under U.S. GAAP and is not a measure of contract profitability. Backlog should not be used as the sole indicator of future revenue because the Company has a substantial number of projects with short lead times that book-and-bill within the same reporting period that are not included in backlog. Forward-Looking Statements This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. The words "may," "believe," "expect," "anticipate," "intend," "estimate," "forecast," "project," "should," "will," "continue," and similar expressions are intended to identify "forward-looking statements". These statements reflect Apogee management’s expectations or beliefs as of the date of this release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. All forward-looking statements are qualified by factors that may affect the results, performance, financial condition, prospects and opportunities of the Company, including the following: (A) North American and global economic conditions, including the cyclical nature of the North American and Latin American non-residential construction industries, which may adversely affect demand for the Company’s products and services; (B) U.S. and global instability and uncertainty arising from events outside of our control; (C) actions of new and existing competitors; (D) departure of key personnel and ability to source sufficient labor; (E) product performance, reliability and quality issues; (F) project management and installation issues that could affect the profitability of individual contracts; (G) financial and operating results that could differ from market expectations; (H) self-insurance risk related to a material product liability or other events for which the Company is liable; (I) maintaining our information technology systems and potential cybersecurity threats; (J) cost of regulatory compliance, including environmental regulations; (K) supply chain disruptions, including fluctuations in the availability and cost of materials used in our products and the impact of trade policies and regulations, including existing and potential future tariffs; (L) the ability to complete announced acquisitions on expected terms and timing; the successful integration and future operating performance of acquired businesses; and the ability to achieve anticipated benefits, including cost synergies, within expected timeframes; (N) our ability to successfully manage and implement our enterprise strategy; (O) our ability to maintain effective internal controls over financial reporting; (P) our judgments regarding accounting for tax positions and resolution of tax disputes; (Q) the impacts of cost inflation and interest rates; and (R) the impact of changes in capital and credit markets on our liquidity and cost of capital. These factors are not exhaustive. Additional factors that could cause actual results to differ materially from those described in the forward-looking statements may emerge from time to time, and it is not possible for the Company to predict all such factors or assess the impact of each factor, or any combination of factors, on the Company’s business. More information concerning these and other risks is included in the Company’s Annual Report on Form 10-K and in subsequent filings with the U.S. Securities and Exchange Commission. Segment net sales is defined as net sales of the segment including revenue related to intersegment transactions. Intersegment net sales eliminations are presented separately to exclude these sales from our consolidated total. View source version on businesswire.com: https://www.businesswire.com/news/home/20260626138142/en/ Contacts Jeremy SteffanVice President, Investor Relations & [email protected]

Apogee Enterprises (APOG) came out with quarterly earnings of $0.57 per share, beating the Zacks Consensus Estimate of $0.43 per share. This compares to earnings of $0.56 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +32.56%. A quarter ago, it was expected that this glass products company would post earnings of $0.89 per share when it actually produced earnings of $0.92, delivering a surprise of +3.37%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Apogee Enterprises, which belongs to the Zacks Glass Products industry, posted revenues of $342.68 million for the quarter ended May 2026, surpassing the Zacks Consensus Estimate by 2.64%. This compares to year-ago revenues of $346.62 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Apogee Enterprises shares have added about 16.7% since the beginning of the year versus the S&P 500's gain of 7.5%. While Apogee Enterprises has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Apogee Enterprises was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.63 on $346.7 million in revenues for the coming quarter and $2.88 on $1.41 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Glass Products is currently in the bottom 7% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the broader Zacks Industrial Products sector, Alcoa (AA), is yet to report results for the quarter ended June 2026. The results are expected to be released on July 16. This bauxite, alumina and aluminum products company is expected to post quarterly earnings of $2.38 per share in its upcoming report, which represents a year-over-year change of +510.3%. The consensus EPS estimate for the quarter has been revised 0.6% higher over the last 30 days to the current level. Alcoa's revenues are expected to be $3.98 billion, up 32% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Apogee Enterprises, Inc. (APOG) : Free Stock Analysis Report Alcoa (AA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research