Apogee Enterprises (APOG) Q4 2026 earnings summary

Executive summary

• Fourth quarter and full-year results exceeded expectations, with net sales up 1.6% in Q4 to $351.4 million and full-year net sales up 3.2% to $1.4 billion, driven by disciplined execution, the UW Solutions acquisition, and favorable pricing, despite lower volume and a challenging market environment.

• Adjusted diluted EPS was $0.92 in Q4 and $3.47 for the year, with operating income for the quarter rising to $25.8 million, though full-year operating income declined to $84.5 million.

• Project Fortify Phase 2 was substantially completed, delivering approximately $26 million in annualized pre-tax cost savings.

• Strategic focus remains on operational excellence, portfolio management, and customer-centric growth, supported by the Apogee Management System and early adoption of AI tools.

• Strong balance sheet and liquidity position the company for future M&A opportunities and continued disciplined capital allocation.

Financial highlights

• Q4 net sales rose 1.6% year-over-year to $351.4 million; adjusted EBITDA was $42.4 million (12.1% margin), and adjusted diluted EPS was $0.92, up 3.4% YoY.

• FY26 net sales reached $1,404.7 million, up 3.2% YoY, with $65.3 million from the UW Solutions acquisition; adjusted EBITDA was $167.3 million (11.9% margin), down 13.2% YoY.

• Free cash flow for FY26 was $95.2 million, with net cash from operating activities at $122.5 million and capital expenditures totaling $27.3 million.

• $37.2 million was returned to shareholders via $15 million in share repurchases and $22.2 million in dividends.

• Debt reduced by approximately $53 million, with a consolidated leverage ratio of 1.3x and no near-term maturities.

Outlook and guidance

• Fiscal 2027 net sales expected between $1.38 billion and $1.43 billion; adjusted diluted EPS guidance is $2.70–$3.25.

• Guidance reflects headwinds from higher aluminum and fuel costs, rising health insurance, and normalized incentive compensation.

• Capital expenditures projected at $35–$40 million; interest expense around $10 million; effective tax rate 26–27%.

• Q1 FY27 net sales and adjusted diluted EPS expected to be slightly lower YoY, but strong operating cash flow anticipated.

• Anticipates stronger revenue and profit in the second half of fiscal 2027 as macroeconomic conditions improve.