Apogee Enterprises, Inc.

What they do

Apogee designs, engineers, fabricates, finishes, and installs aluminum window, curtainwall, storefront and entrance systems, and facade-related systems, primarily for non-residential construction. It also cuts, treats, coats and fabricates high-performance architectural glass, and manufactures high-performance coated materials for uses including wall decor, museums, graphic design, digital displays, architectural interiors and industrial flooring.

Revenue drivers

• Architectural Metals — Designs, engineers, fabricates and finishes aluminum window, curtainwall, storefront and entrance systems for non-residential construction; approximately 36% of fiscal 2026 net sales.
• Architectural Services — Integrates technical services, project management and field installation to design, engineer, fabricate and install curtainwall and other facade-related systems; approximately 31% of fiscal 2026 net sales.
• Architectural Glass — Cuts, treats, coats and fabricates high-performance glass for custom window and wall systems in non-residential buildings; approximately 19% of fiscal 2026 net sales. The pending Kalwall acquisition is expected to be integrated here.
• Performance Surfaces — Develops and manufactures high-performance coated materials for wall decor, museums, graphic design, digital displays, architectural interiors and industrial flooring; approximately 14% of fiscal 2026 net sales, and it integrated the UW Solutions acquisition in fiscal 2026.

Recent performance

Fiscal 2027 first-quarter net sales were $342.7 million, down 1.1% from $346.6 million, driven by lower volume and partly offset by favorable pricing and mix. Operating income rose to $18.8 million from $6.9 million and operating margin increased 350 basis points to 5.5%. Net earnings were $11.5 million, or $0.54 diluted EPS, versus a $2.7 million loss, or $0.13 diluted loss per share, a year earlier. Adjusted EBITDA decreased 6.6% to $32.1 million and adjusted EBITDA margin fell to 9.4% from 9.9%. Gross margin rose 20 basis points to 21.9%, while SG&A fell 330 basis points to 16.4% of net sales.

Strategy

The company is executing a strategy it introduced in November 2021, built on the Apogee Management System, cost structure and manufacturing footprint improvements, and greater leverage of administrative functions. It is refining this framework around three priorities: accelerating leadership in target markets, growing and strengthening the portfolio through organic and inorganic investments, and advancing core capabilities. Project Fortify Phase 2 is managing costs and the manufacturing footprint to mitigate tariff impacts. On May 27, 2026, Apogee agreed to acquire Keller Companies, Inc., controlling shareholder of Kalwall Corporation and Structures Unlimited Inc., for approximately $105 million in cash plus up to $10 million in earn-out consideration, to be integrated into Architectural Glass.

Risks

• Non-residential construction cyclicality — The Architectural Metals, Architectural Services, Architectural Glass segments and part of Performance Surfaces are influenced by North American economic conditions and the cyclical non-residential construction industry, which is affected by credit availability, employment, consumer confidence, interest rates and commodity prices.
• Retail framing demand — A significant portion of the Performance Surfaces Segment depends on the U.S. retail custom picture framing industry, which is heavily influenced by consumer confidence and economic conditions.
• Tariffs and input costs — The company has managed its cost structure through Project Fortify Phase 2 to mitigate portions of direct and indirect tariffs, and higher material and freight costs weighed on first-quarter adjusted EBITDA margin.
• Disruption from catastrophic events — Natural disasters, political crises, public health crises and other catastrophic events could negatively impact Apogee's facilities or those of third parties it depends on, and could affect the non-residential construction market and employee well-being.

Outlook

Management reaffirmed fiscal 2027 guidance alongside the first-quarter release. CEO Donald Nolan said the quarter reflected solid execution in a dynamic operating environment, continued progress on strategic priorities, and a disciplined capital allocation approach returning cash through dividends and share repurchases. The company is progressing integration planning for the Kalwall acquisition and expects it to close in early July 2026 and support long-term growth.