Apogee Enterprises Inc. (NASDAQ:APOG) shares traded higher on Friday after the company reported better-than-expected fourth-quarter fiscal 2026 results and above consensus guidance.

Apogee provides architectural building products, services, and high-performance coated materials. It also offers project management and installation services for construction and specialty applications.

Details

Revenue rose 1.6% year over year (Y/Y) to $351.35 million, topping the consensus estimate of $335.82 million, driven by favorable price and mix.

Adjusted earnings per share came in at 92 cents, beating the Street estimate of 88 cents.

Gross margin expanded 80 bps Y/Y to 22.4%, supported by a favorable comparison to a prior-year non-recurring $9.4 million arbitration expense.

The improvement also reflected productivity gains, including savings from Project Fortify 2, along with lower insurance costs related to risk coverage.

Operating income rose to $25.8 million from $6.1 million, and operating margin expanded 550 basis points to 7.3%.

Adjusted EBITDA rose to $42.4 million from $41.1 million a year ago quarter, and the margin expanded to 12.1% from 11.9%. This benefited from lower incentive compensation and risk-related insurance expenses, productivity advancements, and benefits from the cost savings of Fortify Phase 2.

The company paid $22.2 million in dividends and returned $15.0 million in share repurchases in the year.

The Board of Directors has declared a cash dividend per share of 27 cents, payable on May 28, 2026, to shareholders of record as of May 13, 2026.

As of February 28, Apogee held $39.5 million in cash and cash equivalents.

Outlook

For fiscal 2027, the company expects adjusted EPS of $2.70 to $3.25, compared with the consensus estimate of $3.09, and revenue of $1.38 billion to $1.43 billion, versus expectations of $1.374 billion.

Donald Nolan, Executive Chair and CEO, said, “Throughout the fiscal year, we continued to focus on our priorities while actively managing our cost structure and returning cash to shareholders through dividends and share buybacks.”

Earnings Call Highlights

Apogee Enterprises reported better-than-expected fourth-quarter results, with a 1.6% increase in net sales to $351.4 million, driven by favorable pricing in the metals segment.

The company successfully integrated UW Solutions into its Performance Services segment, achieving first-year financial targets of $100 million in revenue and an adjusted EBITDA margin of at least 20%.

Strategic initiatives include leveraging the Apogee management system to drive manufacturing improvements, actively managing the cost structure, and enhancing strategic pillars to position the company for growth.

Future guidance for fiscal 2027 anticipates net sales between $1.38 billion and $1.43 billion and adjusted diluted EPS of $2.70 to $3.25, reflecting a challenging macroeconomic environment.

The company expects a softer first quarter with lower sales and EPS year over year, but anticipates strong operating cash flow driven by tight working capital management, while staying focused on execution amid macro headwinds like pricing pressure, high interest rates and uneven demand.

Management highlighted the impact of aluminum cost increases and tariffs, with efforts to offset these through pricing actions and strategic cost management.

APOG Price Action: Apogee Enterprises shares were up 10.65% at $39.38 at the time of publication on Friday, according to Benzinga Pro data.

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