APOGEE ENTERPRISES REPORTS FISCAL 2027 SECOND QUARTER RESULTS
APOGEE ENTERPRISES, INC. (APOG) filed an SEC Form 8-K — Results of Operations and Financial Condition. Press Release FOR RELEASE: October 6, 2026 APOGEE ENTERPRISES REPORTS FISCAL 2027 SECOND QUARTER RESULTS • Second-quarter net sales increased 9.2% to $391.1 million • Second-quarter diluted EPS of $1.07 and adjusted diluted EPS of $1.17 • Advanced strategic priorities through the
How this was made
The 30-second read
Why it matters
The raised guidance and strong quarter suggest near‑term upside, but cost pressures warrant monitoring.
Market read
The earnings beat and guidance lift provide a fresh catalyst for APOG, likely prompting buying interest in the pre‑market session.
What to watch
Higher material and freight costs could erode margins later in the year.
APOGEE ENTERPRISES REPORTS FISCAL 2027 SECOND QUARTER RESULTS
Second-quarter net sales increased 9.2%, operating income increased 24.5%, adjusted EBITDA increased 11.7%, and the Company raised fiscal 2027 net sales and adjusted diluted EPS guidance. GAAP net earnings declined 5.4% and diluted EPS declined 2.7%, primarily against a prior-year period that included a nonrecurring New Markets Tax Credit.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Three Months Ended August 29, 2026 Net salesGAAP | $391.1M | – | 9.2% |
| Three Months Ended August 29, 2026 Cost of salesGAAP | 294,970 | – | 7.0% |
| Three Months Ended August 29, 2026 Gross profitGAAP | 96,165 | – | 16.4% |
| Three Months Ended August 29, 2026 Gross marginGAAP | 24.6 % | – | increased 150 basis points |
| Three Months Ended August 29, 2026 Selling, general and administrative expensesGAAP | 62,679 | – | 12.5 % |
| Three Months Ended August 29, 2026 Selling, general and administrative expenses as % of salesGAAP | 16.0 % | – | increased 40 basis points |
| Three Months Ended August 29, 2026 Operating incomeGAAP | $33.49M | – | 24.5% |
| Three Months Ended August 29, 2026 Operating marginGAAP | 8.6 % | – | increased 110 basis points |
| Three Months Ended August 29, 2026 Interest expense, netGAAP | 3,554 | – | (12.8) % |
| Three Months Ended August 29, 2026 Other income, netGAAP | 485 | – | (90.6) % |
| Three Months Ended August 29, 2026 Earnings before income taxesGAAP | 30,417 | – | 8.8 % |
| Three Months Ended August 29, 2026 Income tax expenseGAAP | 8,037 | – | 86.7 % |
| Three Months Ended August 29, 2026 Net earningsGAAP | $22.38M | – | (5.4) % |
| Three Months Ended August 29, 2026 Basic earnings per shareGAAP | $ 1.08 | – | (1.8) % |
| Three Months Ended August 29, 2026 Diluted earnings per shareGAAP | $ 1.07 | – | (2.7) % |
| Three Months Ended August 29, 2026 Adjusted EBITDAnon-GAAP | $49.54M | – | 11.7% |
| Three Months Ended August 29, 2026 Adjusted EBITDA marginnon-GAAP | 12.7 % | – | – |
| Three Months Ended August 29, 2026 Adjusted net earningsnon-GAAP | $24.40M | – | – |
| Three Months Ended August 29, 2026 Adjusted diluted earnings per sharenon-GAAP | $ 1.17 | – | 19.4% |
| Three Months Ended August 29, 2026 Cash dividends per common shareGAAP | $ 0.27 | – | 3.8 % |
| Six Months Ended August 29, 2026 Net salesGAAP | $733.8M | – | 4.1 % |
| Six Months Ended August 29, 2026 Gross profitGAAP | 171,196 | – | 8.5 % |
| Six Months Ended August 29, 2026 Gross marginGAAP | 23.3 % | – | – |
| Six Months Ended August 29, 2026 Operating incomeGAAP | 52,326 | – | 54.7 % |
| Six Months Ended August 29, 2026 Operating marginGAAP | 7.1 % | – | – |
| Six Months Ended August 29, 2026 Net earningsGAAP | $33.92M | – | 61.8 % |
| Six Months Ended August 29, 2026 Diluted earnings per shareGAAP | $ 1.61 | – | 66.0 % |
| Six Months Ended August 29, 2026 Adjusted EBITDAnon-GAAP | $81.65M | – | 3.7 % |
| Six Months Ended August 29, 2026 Adjusted diluted earnings per sharenon-GAAP | $ 1.74 | – | – |
| Six Months Ended August 29, 2026 Net cash provided by operating activitiesGAAP | 43,259 | – | – |
| Six Months Ended August 29, 2026 Capital expendituresGAAP | (17,796) | – | – |
| August 29, 2026 Cash and cash equivalentsGAAP | $36.53M | – | – |
| August 29, 2026 Long-term debtGAAP | 335,545 | – | – |
| August 29, 2026 Consolidated Leverage Rationon-GAAP | 1.7x | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Architectural MetalsFavorable price, partially offset by lower volume. | $143.5M | – | 1.8 % |
| Architectural ServicesPrimarily increased volume. | $108.5M | – | 7.9 % |
| Architectural GlassA $16.4 million contribution from the Kalwall acquisition and favorable mix, partially offset by lower volume and price. | $87.42M | – | 21.1 % |
| Performance SurfacesHigher volume and price. | $55.26M | – | 14.2 % |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
fiscal 2027 outlook
- Revenue$1.46 billion to $1.50 billion
- Tax rateapproximately 26%
- Noteadjusted diluted EPS in the range of $3.00 to $3.40
- Noteinterest expense of approximately $15 million
- Notecapital expenditures between $35 million and $40 million
Capital returns
- Fiscal year-to-date, the Company returned $27.3 million of cash to shareholders, through $16.1 million of share repurchases and $11.2 million of dividends.
- Six Months Ended August 29, 2026 Repurchase of common stock: (16,099).
- Six Months Ended August 29, 2026 Dividends paid: (11,175).
- Three Months Ended August 29, 2026 cash dividends per common share: $ 0.27.
What drove it
- Consolidated second-quarter sales growth reflected a $16.4 million contribution from the Kalwall acquisition, price, and favorable mix, partially offset by lower volume.
- Gross margin benefited from price, productivity improvements including the net benefit from Project Fortify 2, and the accretive impact of Kalwall.
- Architectural Services segment backlog was $833.0 million at quarter end, compared to $792.3 million at the end of fiscal year 2026.
- The Company cited stronger-than-expected first-half performance, anticipated Kalwall and Groglass contributions, and current macroeconomic conditions in raising outlook.
Concerns
- The Company described the demand environment as mixed, while consolidated sales faced lower volume.
- Architectural Glass adjusted EBITDA margin was 14.9%, compared to 16.1%, with pressure from price, higher manufacturing and freight costs, and lower volume.
- Performance Surfaces adjusted EBITDA margin was 22.5%, compared to 23.2%, primarily reflecting higher material costs.
- Other income, net decreased to $0.5 million from $5.1 million, primarily because the prior year included a nonrecurring New Markets Tax Credit.
- Long-term debt increased to $335.5 million from $232.3 million at February 28, 2026.
What to watch
- Execution and contribution from the Kalwall acquisition and pending Groglass acquisition.
- Volume trends across the architectural businesses amid the mixed demand environment.
- Architectural Glass pricing, manufacturing and freight costs, and volume.
- The conversion of Architectural Services backlog of $833.0 million into revenue.
- Delivery of Project Fortify Phase 2 cost savings and productivity improvements.
- Progress toward fiscal 2027 net sales of $1.46 billion to $1.50 billion and adjusted diluted EPS of $3.00 to $3.40.
Balance sheet and cash flow
- Fiscal year-to-date net cash provided by operating activities was $43.3 million, compared to $37.3 million in the prior year period.
- Six Months Ended August 29, 2026 net cash used by investing activities was (121,831), including Acquisition of business, net of cash acquired of (99,574).
- Cash and cash equivalents were $ 36,529 at August 29, 2026, compared with $ 39,523 at February 28, 2026.
- Quarter-end long-term debt was $335.5 million and the Consolidated Leverage Ratio was 1.7x.
- Total assets were $ 1,244,104 and total shareholders’ equity was 523,334 at August 29, 2026.
Analysis
Apogee reported a solid fiscal 2027 second quarter. Net sales increased 9.2% to $391.1 million, operating income increased to $33.5 million from $26.9 million, and operating margin increased to 8.6% from 7.5%. Gross margin rose 150 basis points to 24.6%, supported by price, productivity, Project Fortify 2 benefits and Kalwall accretion. Consolidated growth nevertheless included lower volume, and management characterized demand as mixed.
The earnings comparison differs materially between GAAP and adjusted results. Net earnings declined 5.4% to $22.4 million and diluted EPS declined to $1.07 from $1.10, while adjusted diluted EPS increased to $1.17 from $0.98. The prior-year period included a nonrecurring New Markets Tax Credit, reflected in other income of $5.1 million versus $0.5 million in the current period. Adjusted EBITDA increased 11.7% to $49.5 million and adjusted EBITDA margin increased to 12.7% from 12.4%.
Segment performance was broad-based on sales, led by Architectural Glass, where sales increased 21.1% to $87.4 million, including a $16.4 million Kalwall contribution. Architectural Services sales increased 7.9% on volume and had $833.0 million of backlog, versus $792.3 million at fiscal 2026 year end. Architectural Metals grew 1.8% on price despite lower volume. Margin performance was uneven: Architectural Glass adjusted EBITDA margin fell to 14.9% from 16.1%, and Performance Surfaces fell to 22.5% from 23.2%, while Architectural Metals and Architectural Services improved.
Cash generation was positive, with fiscal year-to-date operating cash flow of $43.3 million versus $37.3 million, although investing cash flow included $99.6 million for acquisitions. The Company returned $27.3 million to shareholders through repurchases and dividends. Long-term debt increased to $335.5 million from $232.3 million at fiscal year end, with leverage at 1.7x.
Management raised fiscal 2027 net sales guidance to $1.46 billion to $1.50 billion from $1.38 billion to $1.43 billion and adjusted diluted EPS guidance to $3.00 to $3.40 from $2.70 to $3.25. The revised outlook incorporates stronger-than-expected first-half performance, expected Kalwall and Groglass contributions, and current macroeconomic conditions. The principal reported execution items are volume trends, acquisition integration, material and freight costs, and preservation of the productivity and pricing benefits supporting margins.
Management, verbatim
We are pleased with the second-quarter results which exceeded our expectations, driven by strong execution across the business. The benefits of disciplined pricing, productivity initiatives, and ongoing operational improvements helped offset a mixed demand environment.
Don Nolan, Executive Chair and Chief Executive Officer
The momentum we established in the first half of the year, combined with our confidence in the business, supports our decision to raise full-year guidance.
Don Nolan, Executive Chair and Chief Executive Officer
Early performance at Kalwall has been encouraging, and we believe the addition of Groglass will further strengthen our portfolio through differentiated capabilities and increased exposure to attractive end markets that support long-term value creation.
Don Nolan, Executive Chair and Chief Executive Officer
Not in the filing
stated, not guessed- Prior outlook section from the previous earnings release was not provided; therefore, no actual-versus-prior-guidance comparisons are included.
- Quarterly operating cash flow was not reported.
- Free cash flow was not reported.
- A quarterly cash balance comparison with the prior-year quarter was not reported.
- A prior-year comparison for long-term debt was not reported.
- Fiscal 2027 gross margin guidance was not reported.
- Fiscal 2027 operating expense guidance was not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Apogee Enterprises, a Nasdaq‑listed provider of architectural building products, filed an 8‑K reporting Q2 fiscal 2027 results and an upward revision to its EPS outlook.
Ticker impact
Apogee Enterprises raised its fiscal 2027 adjusted diluted EPS guidance to $3.00‑$3.40, up from $2.70‑$3.25, and reported Q2 results with 9.2% sales growth.
likely upward pressure as investors price in higher earnings outlook
The company’s own guidance lift and solid operating performance provide a fresh, material catalyst that can move the stock immediately.
Market effects
Strengthens the architectural building products sector outlook, supporting peers with similar exposure to construction demand.
Positive for U.S. industrial and building‑materials equities.
Limited to U.S. markets; no direct global macro effect.
Counterpoint
If the sales growth slows in the second half, the guidance raise may be premature, risking a pull‑back.
Key entities
- companyApogee Enterprises, Inc.
Nasdaq‑listed builder of architectural products.
