Apogee Enterprises Reports Fiscal 2026 Fourth Quarter and Full Year Results

Published: 2026-04-27 06:18:33 ET APOG

Published on 04/27/2026 at 06:18 am EDT

MINNEAPOLIS - 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 fourth quarter and full year of fiscal 2026, ended February 28, 2026.

The Company reported the following selected financial results:

'We delivered fourth-quarter results ahead of our expectations and closed out the fiscal year strongly. The teams executed well as they continued to serve our customers in a dynamic operating environment,' said Donald Nolan, Executive Chair and CEO. '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. This, along with generating strong cash flow, supports a resilient and flexible balance sheet for future growth opportunities.'

'As we enter the new fiscal year, we are mindful of ongoing market conditions and are navigating the environment with an emphasis on serving our customers and executing across our operations,' Nolan added. 'We intend to maintain prudent and disciplined cost management while being thoughtful and selective in pursuing growth investments, prioritizing opportunities with clear strategic alignment and financial returns that support long-term value creation.'

Fourth-Quarter Consolidated Results (Fourth Quarter Fiscal 2026 compared to Fourth Quarter Fiscal 2025)

Net sales increased 1.6% to $351.4 million, driven by favorable price and mix, partially offset by lower volume.

Gross margin rose 80 basis points to 22.4%, primarily due to a non-recurring $9.4 million arbitration decision expensed in the prior year, productivity improvements including savings from Project Fortify 2, and lower risk-related insurance expenses, partially offset by higher aluminum costs, impacts from lower volume, and higher health insurance costs.

Selling, general and administrative (SG&A) expenses as a percentage of net sales decreased 470 basis points to 15.1%, primarily due to a non-recurring impairment charge in the Metals segment in the prior year, lower incentive compensation, acquisition-related expenses incurred in the prior year, and benefits from cost savings of Fortify Phase 2, partially offset by restructuring related expenses.

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

Adjusted EBITDA increased to $42.4 million, compared to $41.1 million, and adjusted EBITDA margin increased to 12.1%, compared to 11.9%. The increase in adjusted EBITDA margin was primarily driven by lower incentive compensation and risk-related insurance expenses, productivity improvements, and benefits from cost savings of Fortify Phase 2, partially offset by higher aluminum costs, reduction in volume, and higher health insurance costs.

Interest expense decreased to $2.8 million, compared to $3.5 million, primarily due to lower debt.

Diluted earnings per share (EPS) were $0.78, compared to $0.11, and adjusted diluted EPS increased to $0.92, compared to $0.89.

Full-Year Consolidated Results (Fiscal 2026 compared to Fiscal 2025)

Net sales increased 3.2% to $1.40 billion, driven by $65.3 million of inorganic sales contribution from the acquisition of UW Solutions, partially offset by lower volume.

Operating income declined to $84.5 million from $118.1 million, and operating margin decreased by 270 basis points to 6.0%.

Adjusted EBITDA decreased to $167.3 million, compared to $192.7 million, and adjusted EBITDA margin decreased to 11.9%, compared to 14.2%. The decrease was primarily due to higher aluminum costs, impacts from lower volume, and health insurance costs, partially offset by lower incentive compensation and risk-related insurance expenses, and benefits from cost savings of Fortify Phase 2.

Diluted EPS was $2.52, compared to $3.89. Adjusted diluted EPS declined to $3.47 from $4.97.

Fourth Quarter Segment Results (Fourth Quarter Fiscal 2026 Compared to Fourth Quarter Fiscal 2025)

Architectural Metals

Net sales declined 1.9% to $110.0 million, driven by lower volume, partially offset by favorable price and product mix. Adjusted EBITDA was $7.2 million, or 6.5% of net sales, compared to $7.0 million, or 6.3% of net sales. The higher adjusted EBITDA margin was primarily driven by favorable productivity from Fortify Phase 2, and product mix, partially offset by higher aluminum costs and impact from lower volume.

Architectural Services

Net sales increased 7.8% to $127.1 million, primarily due to increased volume, partially offset by price. Adjusted EBITDA was $9.6 million, or 7.5% of net sales, compared to $9.6 million, or 8.2% of net sales. The decrease in adjusted EBITDA margin was primarily driven by lower price, partially offset by the impact from higher volume and improved productivity. Segment backlog1 at the end of the quarter was $693.8 million compared to $774.7 million at the end of the third quarter.

Architectural Glass

Net sales declined 10.4% to $67.4 million, driven by lower volume and price. Adjusted EBITDA was $9.1 million, or 13.5% of net sales, compared to $14.1 million, or 18.8% of net sales. The decrease in adjusted EBITDA margin was primarily driven by impact from lower volume and price and higher material and freight costs, partially offset by productivity improvements, lower incentive compensation and warranty-related expenses.

Performance Surfaces

Net sales increased 13.5% to $54.3 million due to increased volume. Adjusted EBITDA was $10.5 million, or 19.4% of net sales compared to $12.8 million, or 26.8% of net sales. The decrease in adjusted EBITDA margin was primarily driven by higher manufacturing and materials costs, partially offset by impact from higher volume.

Corporate and Other

Corporate and other adjusted EBITDA increased to $6.0 million, compared to expense of $2.5 million, primarily due to lower incentive compensation and risk-related insurance expenses, partially offset by higher health insurance costs.

Financial Condition

Net cash provided by operating activities in the fourth quarter was $55.8 million, compared to $30.0 million in the prior year period. For the full year, net cash provided by operating activities was $122.5 million, compared to $125.2 million last year. Capital expenditures for the full year were $27.3 million, compared to $35.6 million last year.

For the full year, the Company returned $37.2 million of cash to shareholders, through $15.0 million of share repurchases and $22.2 million of dividends.

Quarter-end long-term debt decreased to $232.3 million, an improvement of $52.7 million, bringing the Consolidated Leverage Ratio2 (as defined in the Company's credit agreement) to 1.3x at the end of the quarter.

Project Fortify

The Company substantially completed Project Fortify Phase 2 during the fourth quarter and incurred $3.9 million of pre-tax charges. Total pre-tax charges incurred under the program were $27.4 million. The Company estimates annualized cost savings of approximately $26 million as a result of the Project Fortify program.

1 Backlog is a non-GAAP financial measure. See Use of Non-GAAP Financial Measures later in this press release for more information.

2 Consolidated Leverage Ratio is a non-GAAP financial measure. See Use of Non-GAAP Financial Measures later in this press release for more information.

Fiscal 2027 Outlook

Based on current macroeconomic conditions, the Company expects 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 assumes interest expense of approximately $10 million, an adjusted effective tax rate of 26% to 27%, and capital expenditures between $35 million to $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 operating income, adjusted operating margin, 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.

Adjusted EBITDA represents adjusted net earnings before interest, taxes, depreciation, and amortization. The Company believes adjusted EBITDA and adjusted EBITDA margin metrics provide useful information to investors and analysts about the Company's core operating 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 are defined in the Company's credit agreement dated July 19, 2024, and defined as an exhibit to our form 10-K for the year ended March 1, 2025. 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 because such information is not available, and management cannot reliably predict all the necessary components of such GAAP financial measure without unreasonable effort or expense. In addition, the Company believes such reconciliation would 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 and the potential impact of an economic downturn or recession; (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) integration and future operating results of acquisitions, including but not limited to the acquisition of UW Solutions, and management of acquired contracts; (M) impairment of goodwill or indefinite-lived intangible assets; (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 the impact of changes in capital and credit markets on our liquidity and cost of capital. The Company cautions investors that actual future results could differ materially from those described in the forward-looking statements and that other factors may in the future prove to be important in affecting the Company's results, performance, prospects, or opportunities. New factors emerge from time to time, and it is not possible for management to predict all such factors, nor can it assess the impact of each factor on the business or the extent to which any factor, or a combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. More information concerning potential factors that could affect future financial results is included in the Company's Annual Report on Form 10-K and in subsequent filings with the U.S. Securities and Exchange Commission.

Contact:

Jeremy Steffan

Vice President, Investor Relations & Communications

Tel: 952.346.3502

Email: [email protected]