Apogee Enterprises Reports 9.2% Q2 Sales Growth And Raises Fiscal 2027 Outlook
Apogee Enterprises reported stronger fiscal 2027 second-quarter results, with sales growth, higher operating income, improved margins, and increased full-year guidance.
Net sales increased 9.2% year-over-year to $391.1 million, driven by the Kalwall acquisition, pricing, and favorable product mix.
Operating income increased 24.5% to $33.5 million from $26.9 million a year earlier.
Operating margin improved to 8.6% from 7.5%, while gross margin expanded 150 basis points to 24.6%.
Adjusted EBITDA increased 11.7% to $49.5 million, and adjusted EBITDA margin improved to 12.7% from 12.4%.
Adjusted diluted earnings per share increased 19.4% to $1.17 from $0.98. Apogee Enterprises Reports Fisc…
Management said the quarter exceeded its expectations, supported by disciplined pricing, productivity initiatives, and continuing operational improvements.
Apogee also advanced its portfolio strategy through the acquisitions of Kalwall and Groglass.
The company said early performance from Kalwall has been encouraging, while Groglass is expected to add differentiated capabilities and increase exposure to attractive end markets. Apogee Enterprises Reports Fisc…
Architectural Metals generated $143.5 million in sales, up 1.8%, while adjusted EBITDA increased to $22.1 million from $20.8 million.
Architectural Services revenue increased 7.9% to $108.5 million, supported by higher volume. Adjusted EBITDA rose to $6.2 million from $5 million, and segment backlog increased to $833 million from $792.3 million at the end of fiscal 2026.
Architectural Glass posted the strongest sales growth among the company’s segments, with revenue increasing 21.1% to $87.4 million. The Kalwall acquisition contributed $16.4 million during the quarter.
Performance Surfaces revenue increased 14.2% to $55.3 million, driven by higher volume and pricing. Apogee Enterprises Reports Fisc… Apogee Enterprises Reports Fisc…
Apogee also generated $43.3 million of operating cash flow during the first half of fiscal 2027, up from $37.3 million in the prior-year period.
The company returned $27.3 million to shareholders through $16.1 million of share repurchases and $11.2 million of dividends. Apogee Enterprises Reports Fisc…
Reflecting stronger-than-expected first-half performance and anticipated contributions from Kalwall and Groglass, Apogee raised its fiscal 2027 outlook.
The company now expects full-year net sales of $1.46 billion to $1.50 billion, up from its previous forecast of $1.38 billion to $1.43 billion.
Adjusted diluted EPS guidance was increased to $3.00 to $3.40 from the previous range of $2.70 to $3.25. Apogee Enterprises Reports Fisc…
For the first six months of fiscal 2027, Apogee generated $733.8 million in sales, up 4.1%, while operating income increased 54.7% to $52.3 million.
First-half net earnings increased 61.8% to $33.9 million, and diluted EPS rose 66% to $1.61. Apogee Enterprises Reports Fisc…
KEY QUOTES:
“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.”
“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. We also advanced our strategic priorities through the acquisitions of Kalwall and Groglass. 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 of Apogee Enterprises
