Apogee Q4 Earnings Fall Short of Estimates, Shares Decline 12%

Shares of Apogee Enterprises, Inc. APOG fell 12% since reporting fourth-quarter fiscal 2025 results on April 24. APOG registered fourth-quarter fiscal 2024 (ended March 1, 2025) adjusted earnings per share (EPS) of 89 cents, missing the Zacks Consensus Estimate of 90 cents. The bottom line decreased 21.9% year over year.

Including one-time items, the company reported earnings per share of 11 cents compared with the year-ago quarter's 71 cents. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Apogee generated revenues of $346 million in the quarter under review, down 4.5% year over year due to lower volume in Architectural Metals and Architectural Glass. The top line surpassed the Zacks Consensus Estimate of $336 million. The headwinds were partially offset by growth in the Architectural Services segment and contributions from the UW Solutions acquisition.

APOG’s Q4 Margins Contract Y/Y

Cost of sales in the fiscal fourth quarter dipped 0.8% year over year to $271 million. The gross profit fell 15.7% year over year to $74.6 million. The gross margin decreased to 21.6% from the prior-year quarter's 24.4%.

The selling, general and administrative (SG&A) expenses rose 2.8% year over year to $68 million. The operating income was $6.1 million in the quarter under review, marking a 72% plunge from the prior-year quarter’s $21.9 million.

Apogee’s Q4 Segmental Performance

APOG changed the names of two reporting segments to better reflect their product focus and capabilities. Beginning in the fourth quarter of fiscal 2025, the Architectural Framing Systems segment will be known as the Architectural Metals segment and the Large-Scale Optical segment will now be known as the Performance Surfaces segment.

In the fiscal fourth quarter, revenues in the Architectural Metals segment moved down 19.4% year over year to $112 million due to lower volume and a less favorable sales mix. The segment's operating loss was $5.7 million against the year-ago quarter's operating profit of $6.8 million.

Revenues in the Architectural Glass segment fell 21.9% year over year to $75 million due to lower volume. The segment's operating profit was around $11 million compared with $18.9 million in 2024.

Revenues in the Architectural Services segment improved 10.9% year over year to $118 million on a favorable mix of projects and improved volumes. The segment reported an operating income of $8.6 million compared with $3.6 million a year ago.

Revenues in the Performance Surfaces segment surged 76.7% year over year to $48 million, reflecting the contribution from the UW Solutions acquisition. The segment reported an operating profit of $6.1 million in the fiscal fourth quarter compared with the prior-year quarter's $6.9 million.

APOG’s Cash Position & Balance Sheets

Apogee had cash and cash equivalents of $41 million at the end of fiscal 2025 compared with $37 million at the end of fiscal 2024. Cash generated from operating activities was $125 million in fiscal 2025 compared with the prior year’s $204 million.

Long-term debt was $285 million at the end of fiscal 2025, higher than $62 million at the end of fiscal 2024. Apogee returned $67.1 million of cash to shareholders through share repurchases and dividend payments in fiscal 2025.

Apogee’s FY25 Performance

APOG reported a record adjusted EPS of $4.97 in fiscal 2025 compared with $4.77 in the prior year. Earnings met the Zacks Consensus Estimate. Including one-time items, the bottom line was $3.89, down from $4.51 in fiscal 2023.

Revenues slipped 3.9% year over year to $1.36 billion, which beat the Zacks Consensus Estimate of $1.35 billion.

APOG’s FY25 Guidance

Apogee expects net revenues of $1.37-$1.43 billion for fiscal 2026. Adjusted EPS is expected to be $3.55-$4.10, which includes an unfavorable headwind from tariffs of 45-55 cents, which is likely to have an impact in the first half of fiscal 2026. In the back half of the fiscal, the company’s mitigation efforts are expected to counter the effects. The company, thus, expects significant declines in adjusted earnings per share in the first two quarters of fiscal 2026 due to lower operating margins, higher interest expenses  and tariff-related costs.

APOG expects UW Solutions business to contribute $100 million to net revenues in fiscal 2026.

Apogee’s Stock Price Performance

Shares of the company have lost 34.4% in the past year compared with the industry's decline of 17.3%.

Another Glass Stock’s Performance

O-I Glass, Inc. OI reported first-quarter 2025 adjusted earnings per share of 40 cents, which beat the Zacks Consensus Estimate of 18 cents. O-I Glass posted earnings of 45 cents in the year-ago quarter.

Revenues were $1.57 billion for the quarter under review, down 1.6% from the year-ago quarter. O-I Glass’ top line beat the Zacks Consensus Estimate of $1.53 billion.

Apogee’s Zacks Rank & Stocks to Consider

Apogee currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks from the Industrial Products sector are Andritz AG ADRZY and ESCO Technologies Inc. ESE. These two companies flaunt a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Andritz’s 2025 earnings is pegged at $1.17 per share, which indicates year-over-year growth of 7.7%. ADRZY’s shares have gained 25.6% in a year.

The Zacks Consensus Estimate for ESCO Technologies’ 2025 earnings is pegged at $5.70 per share, which indicates year-over-year growth of 36.4%. ESE’s shares have gained 55.7% in a year.

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This article originally published on Zacks Investment Research (zacks.com).

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