Apogee Beats Q1 Earnings & Revenue Estimates, Hikes FY26 View

Apogee Enterprises, Inc. APOG reported earnings per share (EPS) of 56 cents in first-quarter fiscal 2026 (ended May 31, 2025), surpassing the Zacks Consensus Estimate of 50 cents. The bottom line decreased 61.1% year over year.

Apogee generated revenues of $347 million in the quarter under review, up 4.6% year over year, driven by gains from the acquisition of UW Solutions. The top line surpassed the Zacks Consensus Estimate of $324 million. However, this was somewhat negated by lower volume in Architectural Glass and a less favorable mix in Architectural Metals. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

APOG’s Q1 Gross Margin Contracts Y/Y

Cost of sales in the fiscal first quarter increased 16.7% year over year to $271 million. Gross profit fell 24% year over year to $75 million. The gross margin fell to 21.7% in the quarter from the prior-year quarter's 29.8%.

Selling, general and administrative expenses increased 18.7% year over year to $68 million. The operating income fell 83.3% year over year to $6.9 million.

Apogee’s Q1 Segmental Performance

In the fiscal first quarter, revenues in the Architectural Metals segment moved down 3.4% year over year to $129 million due to a less favorable mix. The segment's adjusted EBITDA was $9.4 million compared with the year-ago quarter's $23.8 million.

Revenues in the Architectural Glass segment fell 15.5% year over year to $73 million due to lower volume. The segment's adjusted EBITDA was around $13 million compared with $20 million in 2025.
Revenues in the Architectural Services segment improved 7.6% year over year to $106.5 million on improved volumes. The segment reported an adjusted EBITDA of $6.1 million, down 7.7% year over year.

Revenues in the Performance Surfaces segment surged 99.3% year over year to $42 million, reflecting the contribution from the UW Solutions acquisition. The segment reported an adjusted EBITDA of $7.96 million in the fiscal first quarter compared with the prior-year quarter's $5.6 million.

APOG’s Cash Position & Balance Sheets

Apogee had cash and cash equivalents of $32.8 million at the end of first-quarter fiscal 2026 compared with $41 million at the end of fiscal 2025. Cash used from operating activities was $19.7 million in the first fiscal quarter against a cash inflow of $5.5 million in the prior year.

Long-term debt was $311 million at the end of the first quarter, higher than $285 million at the end of fiscal 2025. Apogee returned $5.5 million of cash to its shareholders through share repurchases and dividend payments in the first fiscal quarter of 2026.

Apogee’s FY26 Guidance

Apogee is raising its guidance for net revenues to $1.40-$1.44 billion for fiscal 2026, up from the prior stated $1.37-$1.43 billion. Its updated adjusted EPS guidance is to be within $3.80-$4.20 from the prior stated $3.55-$4.10. The updated guidance 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.

APOG’s Stock Price Performance

Shares of the company have lost 30.7% in the past year against the industry's growth of 8.2%.

Another Glass Stock’s Performance

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

The 11% year-over-year decline was attributed to the company’s temporary production curtailment measures to lower its inventory levels amid sluggish demand and pricing pressure. OI, however, witnessed higher shipments across both the Americas and Europe and achieved $61 million in benefits from its Fit To Win initiatives.

Revenues were $1.567 billion, down 1.6% from the year-ago quarter. The top line, however, beat the Zacks Consensus Estimate of $1.53 billion. Sales volume (in tons) was up 4.4% year over year. This was offset by unfavorable foreign currency translation and lower average selling prices.

APOG’s Zacks Rank & Stocks to Consider

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

Some better-ranked stocks from the Industrial Products sector are Life360, Inc. LIF and Federal Signal Corporation FSS. LIF sports a Zacks Rank #1 (Strong Buy) at present and FSS has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

Life360 delivered an average trailing four-quarter earnings surprise of 415%. The Zacks Consensus Estimate for LIF’s 2025 earnings is pinned at 24 cents per share, which indicates a year-over-year upsurge of 500%. Life360’s shares have soared 117.3% in a year.

Federal Signal delivered an average trailing four-quarter earnings surprise of 6.4%. The Zacks Consensus Estimate for FSS’ 2025 earnings is pinned at $3.83 per share, which indicates year-over-year growth of 14.6%. The company’s shares have gained 18.9% 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

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

Zacks Investment Research