Apogee Q2 EPS Crushes Estimates, Guidance Boost Sends Stock Up 19%
APOG sits 40% above its 52-week low of $30.75 on elevated volume (1.9× avg).
Summary
Apogee reported Q2 adjusted EPS of $1.17, nearly double the $0.59 consensus, on revenue of $391.1M versus $362.6M expected. Revenue grew 9.2% year-over-year. The company raised FY27 guidance to $3.00-$3.40 EPS and $1.46B-$1.5B sales, up from $2.70-$3.25 and $1.38B-$1.43B. Shares jumped 19.41% to $42.58 on volume of 964,275 shares, more than four times the 100-day average of 220,069 shares. Adjusted earnings rose more than 19% year over year to $1.17 per share, driven by the Kalwall acquisition, favorable pricing across most segments, and stronger product mix, while higher material and manufacturing costs continued to pressure profitability, offset by pricing actions, productivity gains, and Fortify Phase II cost savings. Adjusted EBITDA margin improved to 12.7% from 12.4% a year earlier. The company generated $43.3 million in year-to-date operating cash flow, repurchased $6.4 million of stock, and paid $5.5 million in dividends during the quarter. Architectural Metals revenue rose 1.8% to $143.5 million with Adjusted EBITDA up to $22.1 million from $20.8 million and margin to 15.4% from 14.8%. Architectural Services revenue grew 7.9% to $108.5 million on higher volume, Adjusted EBITDA rose to $6.2 million from $5 million, and backlog reached $833 million, up from $792.3 million at end of fiscal 2026. Architectural Glass revenue climbed 21.1% to $87.4 million, including $16.4 million from Kalwall, with Adjusted EBITDA up to $13 million but margin down to 14.9% from 16.1%. Performance Surfaces revenue increased 14.2% to $55.3 million, Adjusted EBITDA rose to $12.4 million from $11.2 million, and margin slipped to 22.5%. Kalwall is performing in line with expectations, targeting $85 million revenue and 15% adjusted EBITDA margin in its first 12 months, while Groglass is expected to contribute $30 million revenue and 25% adjusted EBITDA margin in its first 12 months. The FY27 adjusted EPS outlook of $3.00-$3.40 is above the $2.92 estimate, and the FY27 sales forecast of $1.46B-$1.5B is above the $1.458B consensus estimate, reflecting first-half performance, Kalwall/Groglass contributions, and operating execution, with net sales and adjusted diluted EPS expected to be relatively balanced between Q3 and Q4. This follows the earlier guidance announcement and the completed GroGlass acquisition.
Updated with a Benzinga report · What changed
Updates
· Benzinga — Apogee shares rose 19.41% to $42.58 on volume of 964,275 shares, more than four times average.
- Share Volume — 100-day average volume was 220,069 shares.
- Earnings Drivers — Adjusted earnings rose more than 19% year over year to $1.17 per share. Kalwall acquisition, favorable pricing, and stronger product mix drove growth; higher material and manufacturing costs pressured profitability, offset by pricing actions, productivity gains, and Fortify Phase II cost savings.
- Adjusted EBITDA Margin — Adjusted EBITDA margin improved to 12.7% from 12.4% a year earlier.
- Cash Flow — Generated $43.3 million in year-to-date operating cash flow. Repurchased $6.4 million of stock and paid $5.5 million in dividends during the quarter.
- Architectural Metals — Revenue rose 1.8% to $143.5 million. Adjusted EBITDA increased to $22.1 million from $20.8 million, margin to 15.4% from 14.8%.
- Architectural Services — Revenue grew 7.9% to $108.5 million on higher volume. Adjusted EBITDA rose to $6.2 million from $5 million. Backlog reached $833 million, up from $792.3 million at end of fiscal 2026.
- Architectural Glass — Revenue climbed 21.1% to $87.4 million, including $16.4 million from Kalwall. Adjusted EBITDA rose to $13 million, margin fell to 14.9% from 16.1%.
- Performance Surfaces — Revenue increased 14.2% to $55.3 million. Adjusted EBITDA rose to $12.4 million from $11.2 million, margin slipped to 22.5%.
- Kalwall and Groglass — Kalwall is performing in line with expectations. Kalwall target: $85 million revenue and 15% adjusted EBITDA margin in first 12 months. Groglass expected to contribute $30 million revenue and 25% adjusted EBITDA margin in first 12 months.
- FY27 Guidance
- FY27 adjusted EPS outlook of $3.00-$3.40 is above the $2.92 estimate.
- FY27 sales forecast of $1.46B-$1.5B is above the $1.458B consensus estimate.
- Higher FY27 outlook reflects first-half performance, Kalwall/Groglass contributions, and operating execution.
- Expects net sales and adjusted diluted EPS to be relatively balanced between Q3 and Q4.
All 25 details
- 100-day average volume was 220,069 shares.
- Adjusted earnings rose more than 19% year over year to $1.17 per share.
- Kalwall acquisition, favorable pricing across most segments, and stronger product mix drove growth.
- Higher material and manufacturing costs continued to pressure profitability.
- Pricing actions, productivity gains, and Fortify Phase II cost savings helped offset headwinds.
- Adjusted EBITDA margin improved to 12.7% from 12.4% a year earlier.
- Generated $43.3 million in year-to-date operating cash flow.
- Repurchased $6.4 million of stock during the quarter.
- Paid $5.5 million in dividends during the quarter.
- Architectural Metals revenue rose 1.8% to $143.5 million.
- Architectural Metals Adjusted EBITDA increased to $22.1 million from $20.8 million, margin to 15.4% from 14.8%.
- Architectural Services revenue grew 7.9% to $108.5 million on higher volume.
- Architectural Services Adjusted EBITDA rose to $6.2 million from $5 million.
- Architectural Services backlog reached $833 million, up from $792.3 million at end of fiscal 2026.
- Architectural Glass revenue climbed 21.1% to $87.4 million, including $16.4 million from Kalwall.
- Architectural Glass Adjusted EBITDA rose to $13 million, margin fell to 14.9% from 16.1%.
- Performance Surfaces revenue increased 14.2% to $55.3 million.
- Performance Surfaces Adjusted EBITDA rose to $12.4 million from $11.2 million, margin slipped to 22.5%.
- Kalwall is performing in line with expectations.
- Kalwall target: $85 million revenue and 15% adjusted EBITDA margin in first 12 months.
- Groglass expected to contribute $30 million revenue and 25% adjusted EBITDA margin in first 12 months.
- FY27 adjusted EPS outlook of $3.00-$3.40 is above the $2.92 estimate.
- FY27 sales forecast of $1.46B-$1.5B is above the $1.458B consensus estimate.
- Higher FY27 outlook reflects first-half performance, Kalwall/Groglass contributions, and operating execution.
- Expects net sales and adjusted diluted EPS to be relatively balanced between Q3 and Q4.
At the time of this announcement, APOG was trading at $43.20 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $744.2M. The 52-week trading range was $30.75 to $50.88. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.