Apogee Beats Q1 Earnings & Revenue Estimates, Hikes FY26 View

Core Insights - Apogee Enterprises, Inc. (APOG) reported earnings per share (EPS) of 56 cents for the first quarter of fiscal 2026, exceeding the Zacks Consensus Estimate of 50 cents, although this represents a 61.1% decrease year over year [1] - The company generated revenues of $347 million, a 4.6% increase year over year, driven by the acquisition of UW Solutions, surpassing the Zacks Consensus Estimate of $324 million [2] - Despite revenue growth, gross profit fell 24% year over year to $75 million, with gross margin contracting to 21.7% from 29.8% in the prior year [2] Financial Performance - Cost of sales increased by 16.7% year over year to $271 million, contributing to the decline in gross profit [2] - Selling, general and administrative expenses rose 18.7% year over year to $68 million, leading to an operating income drop of 83.3% year over year to $6.9 million [3] Segment Performance - Architectural Metals segment revenues decreased 3.4% year over year to $129 million, with adjusted EBITDA falling to $9.4 million from $23.8 million [4] - Architectural Glass segment revenues fell 15.5% year over year to $73 million, with adjusted EBITDA around $13 million compared to $20 million in the previous year [5] - Architectural Services segment revenues improved 7.6% year over year to $106.5 million, but adjusted EBITDA decreased by 7.7% year over year to $6.1 million [5] - Performance Surfaces segment revenues surged 99.3% year over year to $42 million, reflecting the contribution from the UW Solutions acquisition, with adjusted EBITDA increasing to $7.96 million from $5.6 million [6] Cash Position and Debt - At the end of the first quarter of fiscal 2026, Apogee had cash and cash equivalents of $32.8 million, down from $41 million at the end of fiscal 2025 [7] - Cash used from operating activities was $19.7 million in the first quarter, compared to a cash inflow of $5.5 million in the prior year [7] - Long-term debt increased to $311 million from $285 million at the end of fiscal 2025 [8] Guidance - Apogee raised its guidance for net revenues to $1.40-$1.44 billion for fiscal 2026, up from the previous range of $1.37-$1.43 billion [9] - The updated adjusted EPS guidance is now $3.80-$4.20, an increase from the prior range of $3.55-$4.10, despite anticipated tariff pressures [9][10] Stock Performance - Apogee's shares have declined by 30.7% over the past year, contrasting with an 8.2% growth in the industry [11]