Why Is Apogee Enterprises Stock Soaring Friday?

Apogee Enterprises Inc. (NASDAQ:APOG) stock surged Friday after the architectural products maker reported fiscal first-quarter 2027 results that beat Wall Street estimates on both earnings and revenue while affirming its full-year outlook.

Q1 Earnings Top Expectations

Adjusted diluted earnings came in at 57 cents per share, topping the analyst consensus estimate of 45 cents. Net sales totaled $342.7 million, ahead of the $333.8 million estimate.

Revenue declined 1.1% from a year earlier due to lower sales volume. However, favorable pricing and product mix partly offset the decline. GAAP diluted earnings were 54 cents per share, compared with a loss of 13 cents in the prior-year quarter.

Net earnings increased to $11.5 million from a loss of $2.7 million a year earlier. Operating income rose to $18.8 million from $6.9 million, while operating margin expanded to 5.5% from 2.0%.

Gross margin improved 20 basis points to 21.9%, supported by pricing actions, productivity gains, Project Fortify 2 cost savings and a favorable product mix.

Adjusted EBITDA fell 6.6% to $32.1 million. Adjusted EBITDA margin narrowed to 9.4% from 9.9%, reflecting higher material and freight costs along with lower volume.

Segment Results

Architectural Metals revenue declined 4.8% year over year to $122.4 million. However, adjusted EBITDA margin improved to 11.2% from 7.3%.

Architectural Services revenue increased 8.2% to $115.2 million on higher volume. The segment’s backlog grew to $734.5 million from $682.9 million at the end of fiscal 2026.

Performance Surfaces revenue rose 4.9% to $44.3 million, although adjusted EBITDA margin declined to 14.8% from 18.8%.

Architectural Glass revenue fell 7.6% to $67.7 million. Adjusted EBITDA margin dropped to 8.7% from 18.3%.

Cash Flow, Outlook And Kalwall Acquisition

Operating cash flow totaled $7.4 million, compared with cash used in operations of $19.8 million a year earlier. Apogee ended the quarter with $26.4 million in cash and $237.4 million of long-term debt.

The company affirmed its fiscal 2027 adjusted EPS guidance of $2.70 to $3.25, compared with the consensus estimate of $2.86. It also maintained its sales forecast of $1.38 billion to $1.43 billion, in line with the analyst estimate of $1.406 billion.

Management said the pending acquisition of Kalwall remains on track to close in early July.

“Our results for the quarter reflect solid execution as our team effectively navigated a dynamic operating environment,” Executive Chair and CEO Donald Nolan said.

APOG Price Action: Apogee Enterprises shares were trading up 9.44% at $46.49 at the time of publication on Friday, according to Benzinga Pro data.

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