Apogee Enterprises (APOG) Q2 2027 earnings summary

Executive summary

• Q2 FY27 net sales rose 9.2% to $391.1M; adjusted EBITDA increased 11.7% to $49.5M and adjusted diluted EPS rose 19.4% to $1.17.

• Pricing, productivity, Fortify Phase 2 savings and Kalwall supported results despite mixed demand, lower volume and higher costs.

• Stronger-than-expected H1 performance supported higher FY27 sales and adjusted EPS guidance.

Financial highlights

• Q2 gross profit was $96.2M, operating income $33.5M and net earnings $22.4M; diluted EPS was $1.07 versus $1.10 YoY.

• Adjusted EBITDA margin increased to 12.7% from 12.4%; operating margin expanded 110 bps to 8.6% and gross margin rose 150 bps to 24.6%.

• H1 net sales increased 4.1% to $733.8M and net earnings rose to $33.9M from $21.0M; adjusted diluted EPS was $1.74 versus $1.53.

• H1 operating cash flow was $43.3M versus $37.3M; free cash flow was $25.5M in both periods.

Outlook and guidance

• FY27 sales guidance increased to $1.46B–$1.50B from $1.38B–$1.43B; adjusted diluted EPS guidance rose to $3.00–$3.40 from $2.70–$3.25.

• Guidance assumes ~$15M interest expense, ~26% adjusted effective tax rate and $35M–$40M capital expenditures; Kalwall and Groglass are expected to be modestly accretive to EPS.

• Q3 and Q4 sales and adjusted diluted EPS are expected to be relatively balanced; operating cash flow generation strength is expected to continue.