Apogee Enterprises 2026 Q1 Earnings Revenue Grows, Net Income Falls Over 100%

Apogee Enterprises (APOG) reported its fiscal 2026 Q1 earnings on July 2, 2025. The company posted a total revenue of $346.62 million, reflecting a 4.6% increase from the previous year, surpassing the consensus estimate of $325.48 million. Despite revenue growth, Apogee faced a significant downturn in profitability, reporting a net loss and negative earnings per share. In response to these results, Apogee has adjusted its fiscal year guidance, raising expectations for net sales and adjusted EPS, while acknowledging ongoing tariff challenges impacting the first half of the year.

Revenue
Apogee Enterprises saw a 4.6% increase in total revenue, reaching $346.62 million in Q1 2026, up from $331.52 million in the same quarter of the previous year. The Architectural Metals segment generated $128.62 million, while Architectural Services contributed $106.50 million. The Architectural Glass segment brought in $73.27 million, and Performance Surfaces added $42.25 million. After accounting for intersegment eliminations of $-4.03 million, the net sales totaled $346.62 million.

Earnings/Net Income
Apogee Enterprises experienced a notable decline in profitability, swinging to a net loss of $0.13 per share in Q1 2026 from a profit of $1.42 per share in Q1 2025, marking a 109.2% negative change. The company reported a net loss of $2.69 million, a significant deterioration from the $31.01 million net income achieved in the same period last year. This reflects an unfavorable earnings performance.

Price Action
The stock price of Apogee Enterprises has climbed 3.15% during the latest trading day, jumped 10.99% over the most recent full trading week, and increased 11.80% month-to-date.

Post-Earnings Price Action Review
The strategy of purchasing Apogee Enterprises shares when revenues miss targets and holding them for 30 days has historically yielded a 13.18% compound annual growth rate (CAGR). This approach has resulted in a total return of 85.04%, with an excess return of 5.08%. However, investors should be aware of the strategy's inherent risks, as evidenced by a high maximum drawdown of -53.43% and a Sharpe ratio of 0.35, indicating significant volatility. These metrics highlight the potential for substantial fluctuations in returns, underscoring the importance of careful risk management when employing this strategy.

CEO Commentary
Ty R. Silberhorn, Chief Executive Officer of Apogee Enterprises, expressed satisfaction with the company's performance, achieving results ahead of expectations despite challenging market conditions. He identified key growth drivers such as the recent acquisition of UW Solutions, which contributed significantly to revenue in the Performance Surfaces segment. However, he acknowledged challenges, particularly from tariffs impacting the first quarter, while emphasizing ongoing mitigation efforts. Looking forward, Silberhorn highlighted the importance of strategic investments and operational improvements, indicating optimism for a stronger second half of the fiscal year as the company positions itself for growth.

Guidance
Apogee Enterprises raised its fiscal 2026 guidance, now expecting net revenues between $1.40 billion and $1.44 billion, up from the previous range of $1.37 billion to $1.43 billion. The adjusted EPS guidance was updated to a range of $3.80 to $4.20, reflecting a projected unfavorable impact from tariffs of $0.35 to $0.45, primarily affecting the first half of the fiscal year. The company anticipates capital expenditures between $35 million and $40 million, maintaining a cautious yet positive outlook for the upcoming periods.

Additional News
Apogee Enterprises recently announced its Board of Directors has declared a quarterly cash dividend of $0.26 per share, payable on July 31, 2025, to shareholders of record on July 16, 2025. This dividend declaration aligns with Apogee's strategic intent to deliver consistent shareholder returns. In addition, Apogee has completed the initial phase of Project Fortify, achieving cost efficiencies and setting the stage for phase two, which aims to further optimize operations within the Architectural Services and Metals segments. With an expected completion by the end of fiscal 2026, this initiative is projected to incur $24 million to $26 million in pre-tax charges while delivering annual savings of $13 million to $15 million.