Inside Apogee’s Q1 Beat: EPS Resilience Amid Restructuring and Tariffs
The Tokenist | Jun 27, 2025 12:46PM ET
Apogee (NASDAQ:APOG) Enterprises, Inc. reported its fiscal 2026 first-quarter results, revealing a notable performance that exceeded market expectations. The company, a leader in architectural building products, showcased growth despite challenging market conditions, prompting an upward revision of its fiscal year outlook.
Apogee Enterprises Reports Strong Start to Fiscal 2026
Apogee Enterprises began fiscal 2026 on a strong note, with net sales rising 4.6% to $346.6 million, surpassing the expected revenue of $323.7 million. This growth was primarily driven by the acquisition of UW Solutions, contributing $22.0 million in sales. Despite a challenging environment characterized by tariffs and increased aluminum costs, the company managed to deliver an adjusted diluted earnings per share (EPS) of $0.56, which exceeded the anticipated EPS of $0.5.
However, the quarter was not without its hurdles. The company reported a net loss of $2.7 million, a stark contrast to the $31.0 million net earnings from the same period last year. This loss was attributed to restructuring charges and the impact of tariffs. Diluted loss per share was reported at $0.13, but when adjusted, the EPS was a positive $0.56, signifying operational strength in the face of external pressures.
Segment-wise, the Architectural Metals division saw a decline in net sales to $128.6 million due to a less favorable product mix, while the Architectural Services segment experienced a 7.6% increase in sales to $106.5 million, driven by higher volume. The Performance Surfaces segment nearly doubled its sales to $42.3 million, primarily due to the acquisition of UW Solutions. Despite these mixed results, the overall performance reflected a solid start to the fiscal year.
Apogee Enterprises Revises Fiscal 2026 Outlook Upward
Looking ahead, Apogee Enterprises has revised its fiscal 2026 outlook upward, projecting net sales between $1.40 billion and $1.44 billion, compared to the previous range of $1.37 billion to $1.43 billion. The company also adjusted its expected diluted EPS to a range of $2.59 to $3.12, with adjusted diluted EPS anticipated to be between $3.80 and $4.20. This optimistic guidance reflects confidence in overcoming the first-half challenges, particularly the impact of tariffs.
CEO Ty R. Silberhorn expressed optimism about the company’s trajectory, citing the successful integration of UW Solutions and ongoing efforts to mitigate tariff impacts. The company plans to continue its strategic initiatives under Project Fortify Phase 2, aimed at enhancing cost efficiencies and optimizing its operational model. These efforts are expected to yield significant cost savings and bolster the company’s competitive position in the market.
Apogee’s guidance also considers potential headwinds, including tariff impacts and aluminum cost fluctuations, which are expected to affect EPS by $0.35 to $0.45. However, mitigation strategies are in place to address these challenges, with the company expecting a stronger performance in the second half of the fiscal year. The revised outlook underscores Apogee’s commitment to leveraging its strengths and strategic investments to drive sustained growth.
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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.
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