Earnings fall as Apogee Enterprises (NASDAQ: APOG) guides lower for 2027
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Apogee Enterprises reported modest growth in fiscal 2026 sales but sharply lower profitability. Full-year net sales rose 3.2% to $1.40 billion, while diluted EPS fell to $2.52 and adjusted diluted EPS to $3.47, both well below the prior year.
Fourth-quarter results improved year over year, with net sales up 1.6% to $351.4 million, net earnings of $16.6 million, and diluted EPS of $0.78, supported by lower SG&A and prior-year one-time charges. Adjusted EBITDA for the year declined to $167.3 million, with margin sliding to 11.9%.
Cash generation remained solid, with full-year operating cash flow of $122.5 million and capital expenditures of $27.3 million. The company returned $37.2 million to shareholders and reduced long-term debt to $232.3 million, ending the year with a 1.3x consolidated leverage ratio.
For fiscal 2027, Apogee expects net sales between $1.38 billion and $1.43 billion and adjusted diluted EPS between $2.70 and $3.25, implying softer earnings than fiscal 2026. Management highlighted cost savings from Project Fortify and continued disciplined spending as key levers in a challenging market.
Positive
- None.
Negative
- Profitability deterioration: Despite 3.2% sales growth to $1.40 billion, fiscal 2026 diluted EPS fell from $3.89 to $2.52 and adjusted diluted EPS from $4.97 to $3.47, with adjusted EBITDA margin dropping from 14.2% to 11.9%.
- Softer earnings outlook: Fiscal 2027 adjusted diluted EPS guidance of $2.70–$3.25 is below 2026’s $3.47, indicating expected continued margin and earnings pressure even as revenue is guided roughly flat to slightly up.
Insights
Revenue grew modestly, but margins and EPS contracted and guidance is softer.
Apogee delivered fiscal 2026 net sales of $1.40 billion, up 3.2%, helped by the UW Solutions acquisition. However, operating margin declined from 8.7% to 6.0%, and adjusted EBITDA fell to $167.3 million, showing cost and mix pressures.
Full-year diluted EPS dropped from $3.89 to $2.52, with adjusted diluted EPS down from $4.97 to $3.47. Drivers included higher aluminum and health costs, lower volume in several segments, and restructuring and impairment charges tied to Project Fortify, partly offset by lower incentive and insurance expenses.
Fiscal 2027 guidance calls for net sales of $1.38–$1.43 billion and adjusted EPS of $2.70–$3.25, below 2026 adjusted EPS. While leverage improved to 1.3x and operating cash flow was $122.5 million, the outlook suggests continued earnings headwinds unless cost savings and mix improvements offset macro and input-cost pressures.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q4 2026 net sales: $351.4M
Q4 2026 diluted EPS: $0.78
Fiscal 2026 net sales: $1.40B
+5 more
8 metrics
Q4 2026 net sales
$351.4M
Three months ended February 28, 2026; up 1.6% year over year
Q4 2026 diluted EPS
$0.78
Versus $0.11 in the prior-year quarter
Fiscal 2026 net sales
$1.40B
Year ended February 28, 2026; up 3.2% from $1.36B
Fiscal 2026 diluted EPS
$2.52
Down from $3.89 in the prior year
Fiscal 2026 adjusted diluted EPS
$3.47
Down from $4.97 in fiscal 2025
Fiscal 2026 adjusted EBITDA
$167.3M
Adjusted EBITDA margin 11.9% vs 14.2% prior year
Operating cash flow 2026
$122.5M
Net cash provided by operating activities for fiscal 2026
Fiscal 2027 adjusted EPS guidance
$2.70–$3.25
Company outlook for adjusted diluted EPS in fiscal 2027
Key Terms
Adjusted EBITDA, Adjusted diluted earnings per share, Consolidated Leverage Ratio, Project Fortify, +2 more
6 terms
Adjusted EBITDA financial
"Adjusted EBITDA increased to $42.4 million, compared to $41.1 million"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Consolidated Leverage Ratio financial
"bringing the Consolidated Leverage Ratio2 ... to 1.3x"
A consolidated leverage ratio measures a business group's total debt compared with its ability to pay, by using combined figures for the parent company and its subsidiaries. Think of it like comparing the total mortgage across all properties you own to your overall income or net worth; investors use it to judge how risky the company’s capital structure is and how vulnerable it may be to rising interest rates or income drops.
Project Fortify financial
"The Company substantially completed Project Fortify Phase 2 during the fourth quarter"
Backlog financial
"Segment backlog1 at the end of the quarter was $693.8 million"
A backlog is the amount of work or orders that a company has received but hasn't completed yet. It’s like a restaurant with many dishes to serve; the backlog shows how many orders are still waiting to be finished. It matters because a large backlog can indicate strong demand or potential delays in delivering products or services.
New Market Tax Credit financial
"Gain related to the settlement of a New Market Tax Credit transaction"
A New Markets Tax Credit is a government incentive that gives investors a dollar-for-dollar reduction in their federal taxes when they put money into projects and businesses in low-income communities. Think of it as a coupon that makes risky, long-term community investments cheaper, helping projects get funded that might not otherwise attract capital. For investors, it lowers after-tax cost and can improve returns while supporting development in underserved areas.
Earnings Snapshot
Revenue: $1.40B · Guidance included
Fiscal 2026 (year and Q4 ended February 28, 2026)
Revenue
$1.40B
+3.2% vs prior year
Net earnings
$54.1M
-36.4% vs prior year
Diluted EPS
$2.52
-35.2% vs prior year
Adjusted diluted EPS
$3.47
-30.2% vs prior year
Adjusted EBITDA
$167.3M
-13.2% vs prior year
Guidance
For fiscal 2027, Apogee expects net sales of $1.38–$1.43 billion and adjusted diluted EPS of $2.70–$3.25, with assumed interest expense of about $10 million and capital expenditures of $35–$40 million.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported): April 24, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | |||||||||||||||
| (Address of principal executive offices) | (Zip Code) | ||||||||||||||||
Registrant’s telephone number, including area code: (952 ) 835-1874
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (Section 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (Section 240.12b-2 of this chapter).
| Emerging growth company | |||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| ITEM 2.02 | RESULTS OF OPERATIONS AND FINANCIAL CONDITION | ||||
On April 24, 2026 , Apogee Enterprises, Inc. issued a press release announcing its financial results for the fourth quarter and full year of fiscal 2026. A copy of this press release is attached hereto as Exhibit 99.1 and incorporated herein by reference.
The information furnished in Item 2.02 of this Current Report on Form 8-K and Exhibit 99.1 attached hereto shall not be deemed to be filed for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liabilities of that Section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended, and shall not be deemed to be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended.
| ITEM 9.01 | FINANCIAL STATEMENTS AND EXHIBITS | ||||
(d) Exhibits.
| Exhibit Number | Description | ||||||||||||||||
| 99.1 | Press Release issued by Apogee Enterprises, Inc. dated April 24, 2026 | ||||||||||||||||
| 104 | Cover page interactive data file (embedded within the Inline XBRL document) | ||||||||||||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| APOGEE ENTERPRISES, INC. | ||||||||
| By: | /s/ Mark R. Augdahl | |||||||
| Mark R. Augdahl Executive Vice President and Chief Financial Officer | ||||||||
Dated: April 24, 2026
Press Release
FOR RELEASE: April 24, 2026
APOGEE ENTERPRISES REPORTS FISCAL 2026 FOURTH QUARTER
AND FULL YEAR RESULTS
•Fourth-quarter net sales increased 1.6% to $351.4 million
•Fourth-quarter diluted EPS of $0.78 and adjusted diluted EPS of $0.92
•Full-year net sales increased 3.2% to $1.40 billion
•Full-year diluted EPS of $2.52 and adjusted diluted EPS of $3.47
•Company provides fiscal 2027 guidance
MINNEAPOLIS, MN, April 24, 2026 – Apogee Enterprises, Inc. (Nasdaq: APOG), a leading provider of architectural building products and services, as well as high-performance coated materials used in a variety of applications, today reported its results for the fourth quarter and full year of fiscal 2026, ended February 28, 2026. The Company reported the following selected financial results:
| Three Months Ended | ||||||||||||||||||||
(Unaudited, $ in thousands, except per share amounts) | February 28, 2026 | March 1, 2025 | % Change | |||||||||||||||||
| Net sales | $ | 351,354 | $ | 345,694 | 1.6% | |||||||||||||||
| Net earnings | $ | 16,620 | $ | 2,485 | 568.8% | |||||||||||||||
Diluted earnings per share | $ | 0.78 | $ | 0.11 | 609.1% | |||||||||||||||
Non-GAAP Measures1 | ||||||||||||||||||||
Adjusted EBITDA | $ | 42,418 | $ | 41,105 | 3.2% | |||||||||||||||
| Adjusted EBITDA margin | 12.1 | % | 11.9 | % | ||||||||||||||||
| Adjusted diluted earnings per share | $ | 0.92 | $ | 0.89 | 3.4% | |||||||||||||||
| (1) | Earnings before interest, taxes, depreciation and amortization (EBITDA), EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, and adjusted diluted earnings per share (EPS) are non-GAAP financial measures. See Use of Non-GAAP Financial Measures and reconciliations to the most directly comparable GAAP measures later in this press release. | ||||
"We delivered fourth‑quarter results ahead of our expectations and closed out the fiscal year strongly. The teams executed well as they continued to serve our customers in a dynamic operating environment,” said Donald Nolan, Executive Chair and CEO. “Throughout the fiscal year, we continued to focus on our priorities while actively managing our cost structure and returning cash to shareholders through dividends and share buybacks. This, along with generating strong cash flow, supports a resilient and flexible balance sheet for future growth opportunities."
Apogee Enterprises, Inc. • 4400 West 78th Street • Minneapolis, MN 55435 • (952) 835-1874 • www.apog.com
Apogee Enterprises, Inc.
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"As we enter the new fiscal year, we are mindful of ongoing market conditions and are navigating the environment with an emphasis on serving our customers and executing across our operations,” Nolan added. “We intend to maintain prudent and disciplined cost management while being thoughtful and selective in pursuing growth investments, prioritizing opportunities with clear strategic alignment and financial returns that support long‑term value creation."
Fourth-Quarter Consolidated Results (Fourth Quarter Fiscal 2026 compared to Fourth Quarter Fiscal 2025)
•Net sales increased 1.6% to $351.4 million, driven by favorable price and mix, partially offset by lower volume.
•Gross margin rose 80 basis points to 22.4%, primarily due to a non-recurring $9.4 million arbitration decision expensed in the prior year, productivity improvements including savings from Project Fortify 2, and lower risk-related insurance expenses, partially offset by higher aluminum costs, impacts from lower volume, and higher health insurance costs.
•Selling, general and administrative (SG&A) expenses as a percentage of net sales decreased 470 basis points to 15.1%, primarily due to a non-recurring impairment charge in the Metals segment in the prior year, lower incentive compensation, acquisition-related expenses incurred in the prior year, and benefits from cost savings of Fortify Phase 2, partially offset by restructuring related expenses.
•Operating income increased to $25.8 million from $6.1 million, and operating margin increased 550 basis points to 7.3%.
•Adjusted EBITDA increased to $42.4 million, compared to $41.1 million, and adjusted EBITDA margin increased to 12.1%, compared to 11.9%. The increase in adjusted EBITDA margin was primarily driven by lower incentive compensation and risk-related insurance expenses, productivity improvements, and benefits from cost savings of Fortify Phase 2, partially offset by higher aluminum costs, reduction in volume, and higher health insurance costs.
•Interest expense decreased to $2.8 million, compared to $3.5 million, primarily due to lower debt.
•Diluted earnings per share (EPS) were $0.78, compared to $0.11, and adjusted diluted EPS increased to $0.92, compared to $0.89.
Full-Year Consolidated Results (Fiscal 2026 compared to Fiscal 2025)
•Net sales increased 3.2% to $1.40 billion, driven by $65.3 million of inorganic sales contribution from the acquisition of UW Solutions, partially offset by lower volume.
•Operating income declined to $84.5 million from $118.1 million, and operating margin decreased by 270 basis points to 6.0%.
•Adjusted EBITDA decreased to $167.3 million, compared to $192.7 million, and adjusted EBITDA margin decreased to 11.9%, compared to 14.2%. The decrease was primarily due to higher aluminum costs, impacts from lower volume, and health insurance costs, partially offset by lower incentive compensation and risk-related insurance expenses, and benefits from cost savings of Fortify Phase 2.
•Diluted EPS was $2.52, compared to $3.89. Adjusted diluted EPS declined to $3.47 from $4.97.
Apogee Enterprises, Inc. • 4400 West 78th Street • Minneapolis, MN 55435 • (952) 835-1874 • www.apog.com
Apogee Enterprises, Inc.
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Fourth Quarter Segment Results (Fourth Quarter Fiscal 2026 Compared to Fourth Quarter Fiscal 2025)
Architectural Metals
Net sales declined 1.9% to $110.0 million, driven by lower volume, partially offset by favorable price and product mix. Adjusted EBITDA was $7.2 million, or 6.5% of net sales, compared to $7.0 million, or 6.3% of net sales. The higher adjusted EBITDA margin was primarily driven by favorable productivity from Fortify Phase 2, and product mix, partially offset by higher aluminum costs and impact from lower volume.
Architectural Services
Net sales increased 7.8% to $127.1 million, primarily due to increased volume, partially offset by price. Adjusted EBITDA was $9.6 million, or 7.5% of net sales, compared to $9.6 million, or 8.2% of net sales. The decrease in adjusted EBITDA margin was primarily driven by lower price, partially offset by the impact from higher volume and improved productivity. Segment backlog1 at the end of the quarter was $693.8 million compared to $774.7 million at the end of the third quarter.
Architectural Glass
Net sales declined 10.4% to $67.4 million, driven by lower volume and price. Adjusted EBITDA was $9.1 million, or 13.5% of net sales, compared to $14.1 million, or 18.8% of net sales. The decrease in adjusted EBITDA margin was primarily driven by impact from lower volume and price and higher material and freight costs, partially offset by productivity improvements, lower incentive compensation and warranty-related expenses.
Performance Surfaces
Net sales increased 13.5% to $54.3 million due to increased volume. Adjusted EBITDA was $10.5 million, or 19.4% of net sales compared to $12.8 million, or 26.8% of net sales. The decrease in adjusted EBITDA margin was primarily driven by higher manufacturing and materials costs, partially offset by impact from higher volume.
Corporate and Other
Corporate and other adjusted EBITDA increased to $6.0 million, compared to expense of $2.5 million, primarily due to lower incentive compensation and risk-related insurance expenses, partially offset by higher health insurance costs.
Financial Condition
Net cash provided by operating activities in the fourth quarter was $55.8 million, compared to $30.0 million in the prior year period. For the full year, net cash provided by operating activities was $122.5 million, compared to $125.2 million last year. Capital expenditures for the full year were $27.3 million, compared to $35.6 million last year.
For the full year, the Company returned $37.2 million of cash to shareholders, through $15.0 million of share repurchases and $22.2 million of dividends.
Quarter-end long-term debt decreased to $232.3 million, an improvement of $52.7 million, bringing the Consolidated Leverage Ratio2 (as defined in the Company’s credit agreement) to 1.3x at the end of the quarter.
Project Fortify
The Company substantially completed Project Fortify Phase 2 during the fourth quarter and incurred $3.9 million of pre-tax charges. Total pre-tax charges incurred under the program were $27.4 million. The Company estimates annualized cost savings of approximately $26 million as a result of the Project Fortify program.
1 Backlog is a non-GAAP financial measure. See Use of Non-GAAP Financial Measures later in this press release for more information.
2 Consolidated Leverage Ratio is a non-GAAP financial measure. See Use of Non-GAAP Financial Measures later in this press release for more information.
Apogee Enterprises, Inc. • 4400 West 78th Street • Minneapolis, MN 55435 • (952) 835-1874 • www.apog.com
Apogee Enterprises, Inc.
Page 4
Fiscal 2027 Outlook
Based on current macroeconomic conditions, the Company expects net sales to be in the range of $1.38 billion to $1.43 billion, and adjusted diluted EPS in the range of $2.70 to $3.25. The Company’s outlook assumes interest expense of approximately $10 million, an adjusted effective tax rate of 26% to 27%, and capital expenditures between $35 million to $40 million.
Conference Call Information
The Company will host a conference call today at 8:00 a.m. Central Time to discuss this earnings release. This call will be webcast and is available in the Investor Relations section of the Company’s website, along with presentation slides, at https://www.apog.com/events-and-presentations. A replay and transcript of the webcast will be available on the Company’s website following the conference call.
About Apogee Enterprises
Apogee Enterprises, Inc. (Nasdaq: APOG) is a leading provider of architectural building products and services, as well as high-performance coated materials used in a variety of applications. Headquartered in Minneapolis, MN, our portfolio of industry-leading products and services includes architectural glass, windows, curtainwall, storefront and entrance systems, integrated project management and installation services, and high-performance coatings that provide protection, innovative design, and enhanced performance. For more information, visit www.apog.com.
Use of Non-GAAP Financial Measures
Management uses non-GAAP measures to evaluate the Company’s historical and prospective financial performance, measure operational profitability on a consistent basis, as a factor in determining executive compensation, and to provide enhanced transparency to the investment community. Non-GAAP measures should be viewed in addition to, and not as a substitute for, the reported financial results of the Company prepared in accordance with GAAP. Other companies may calculate these measures differently, limiting the usefulness of the measures for comparison with other companies. This release and other financial communications may contain the following non-GAAP measures:
•Adjusted operating income, adjusted operating margin, adjusted net earnings, and adjusted diluted EPS are used by the Company to provide meaningful supplemental information about its operating performance by excluding amounts that the Company does not consider to be part of core operating results, to enhance comparability of results from period to period.
•Adjusted EBITDA represents adjusted net earnings before interest, taxes, depreciation, and amortization. The Company believes adjusted EBITDA and adjusted EBITDA margin metrics provide useful information to investors and analysts about the Company’s core operating performance.
•Consolidated Leverage Ratio is calculated as Consolidated Funded Indebtedness minus Unrestricted Cash at the end of the current period, divided by Consolidated EBITDA . All capitalized and undefined terms used in this bullet are defined in the Company’s credit agreement dated July 19, 2024, and defined as an exhibit to our form 10-K for the year ended March 1, 2025. The Company is unable to present a quantitative reconciliation of forward-looking expected Consolidated Leverage Ratio to its most directly comparable forward-looking GAAP financial measure because such information is not available, and management cannot reliably predict all the necessary components of such GAAP financial measure without unreasonable effort or expense. In addition, the Company believes such reconciliation would imply a degree of precision that would be confusing or misleading to investors.
•Backlog is defined as the dollar amount of signed contracts or firm orders, generally as a result of a competitive bidding process, which is expected to be recognized as revenue. Backlog is an operating measure used by management to assess future potential sales revenue. It is most meaningful for the Architectural Services segment, due to the longer-term nature of their projects. Backlog is not a term defined under U.S. GAAP and is not a measure of contract profitability. Backlog should not be used as
Apogee Enterprises, Inc. • 4400 West 78th Street • Minneapolis, MN 55435 • (952) 835-1874 • www.apog.com
Apogee Enterprises, Inc.
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the sole indicator of future revenue because the Company has a substantial number of projects with short lead times that book-and-bill within the same reporting period that are not included in backlog.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. The words “may,” “believe,” “expect,” “anticipate,” “intend,” “estimate,” “forecast,” “project,” “should,” “will,” “continue,” and similar expressions are intended to identify “forward-looking statements”. These statements reflect Apogee management’s expectations or beliefs as of the date of this release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. All forward-looking statements are qualified by factors that may affect the results, performance, financial condition, prospects and opportunities of the Company, including the following: (A) North American and global economic conditions, including the cyclical nature of the North American and Latin American non-residential construction industries and the potential impact of an economic downturn or recession; (B) U.S. and global instability and uncertainty arising from events outside of our control; (C) actions of new and existing competitors; (D) departure of key personnel and ability to source sufficient labor; (E) product performance, reliability and quality issues; (F) project management and installation issues that could affect the profitability of individual contracts; (G) financial and operating results that could differ from market expectations; (H) self-insurance risk related to a material product liability or other events for which the Company is liable; (I) maintaining our information technology systems and potential cybersecurity threats; (J) cost of regulatory compliance, including environmental regulations; (K) supply chain disruptions, including fluctuations in the availability and cost of materials used in our products and the impact of trade policies and regulations, including existing and potential future tariffs; (L) integration and future operating results of acquisitions, including but not limited to the acquisition of UW Solutions, and management of acquired contracts; (M) impairment of goodwill or indefinite-lived intangible assets; (N) our ability to successfully manage and implement our enterprise strategy; (O) our ability to maintain effective internal controls over financial reporting; (P) our judgments regarding accounting for tax positions and resolution of tax disputes; (Q) the impacts of cost inflation and interest rates; and (R) the impact of changes in capital and credit markets on our liquidity and cost of capital. The Company cautions investors that actual future results could differ materially from those described in the forward-looking statements and that other factors may in the future prove to be important in affecting the Company’s results, performance, prospects, or opportunities. New factors emerge from time to time, and it is not possible for management to predict all such factors, nor can it assess the impact of each factor on the business or the extent to which any factor, or a combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. More information concerning potential factors that could affect future financial results is included in the Company’s Annual Report on Form 10-K and in subsequent filings with the U.S. Securities and Exchange Commission.
Contact
Jeremy Steffan
Vice President, Investor Relations & Communications
952.346.3502
ir@apog.com
Apogee Enterprises, Inc. • 4400 West 78th Street • Minneapolis, MN 55435 • (952) 835-1874 • www.apog.com
Apogee Enterprises, Inc.
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| Apogee Enterprises, Inc. | ||||||||||||||||||||||||||||||||||||||
| Consolidated Statements of Income | ||||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||||||||||||
| (In thousands, except per share amounts) | February 28, 2026 | March 1, 2025 | % Change | February 28, 2026 | March 1, 2025 | % Change | ||||||||||||||||||||||||||||||||
| Net sales | $ | 351,354 | $ | 345,694 | 1.6 | % | $ | 1,404,733 | $ | 1,360,994 | 3.2 | % | ||||||||||||||||||||||||||
| Cost of sales | 272,605 | 271,127 | 0.5 | % | 1,085,259 | 1,001,101 | 8.4 | % | ||||||||||||||||||||||||||||||
| Gross profit | 78,749 | 74,567 | 5.6 | % | 319,474 | 359,893 | (11.2) | % | ||||||||||||||||||||||||||||||
| Selling, general and administrative expenses | 52,974 | 68,433 | (22.6) | % | 235,000 | 241,783 | (2.8) | % | ||||||||||||||||||||||||||||||
| Operating income | 25,775 | 6,134 | 320.2 | % | 84,474 | 118,110 | (28.5) | % | ||||||||||||||||||||||||||||||
| Interest expense, net | 2,828 | 3,525 | (19.8) | % | 13,976 | 6,159 | 126.9 | % | ||||||||||||||||||||||||||||||
| Other (income) expense, net | (42) | (130) | (67.7) | % | (6,958) | (623) | 1,016.9 | % | ||||||||||||||||||||||||||||||
| Earnings before income taxes | 22,989 | 2,739 | 739.3 | % | 77,456 | 112,574 | (31.2) | % | ||||||||||||||||||||||||||||||
| Income tax expense | 6,369 | 254 | 2,407.5 | % | 23,325 | 27,522 | (15.2) | % | ||||||||||||||||||||||||||||||
| Net earnings | $ | 16,620 | $ | 2,485 | 568.8 | % | $ | 54,131 | $ | 85,052 | (36.4) | % | ||||||||||||||||||||||||||
| Basic earnings per share | $ | 0.79 | $ | 0.12 | 558.3 | % | $ | 2.54 | $ | 3.91 | (35.0) | % | ||||||||||||||||||||||||||
| Diluted earnings per share | $ | 0.78 | $ | 0.11 | 609.1 | % | $ | 2.52 | $ | 3.89 | (35.2) | % | ||||||||||||||||||||||||||
| Weighted average basic shares outstanding | 21,130 | 21,539 | (1.9) | % | 21,295 | 21,726 | (2.0) | % | ||||||||||||||||||||||||||||||
| Weighted average diluted shares outstanding | 21,454 | 21,793 | (1.6) | % | 21,517 | 21,891 | (1.7) | % | ||||||||||||||||||||||||||||||
| Cash dividends per common share | $ | 0.27 | $ | 0.26 | 3.8 | % | $ | 1.05 | $ | 1.01 | 4.0 | % | ||||||||||||||||||||||||||
| % of Sales | ||||||||||||||||||||||||||||||||||||||
| Gross margin | 22.4 | % | 21.6 | % | 22.7 | % | 26.4 | % | ||||||||||||||||||||||||||||||
| Selling, general and administrative expenses | 15.1 | % | 19.8 | % | 16.7 | % | 17.8 | % | ||||||||||||||||||||||||||||||
| Operating margin | 7.3 | % | 1.8 | % | 6.0 | % | 8.7 | % | ||||||||||||||||||||||||||||||
Apogee Enterprises, Inc. • 4400 West 78th Street • Minneapolis, MN 55435 • (952) 835-1874 • www.apog.com
Apogee Enterprises, Inc.
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| Apogee Enterprises, Inc. | ||||||||||||||
| Consolidated Condensed Balance Sheets | ||||||||||||||
| (Unaudited) | ||||||||||||||
| (In thousands) | February 28, 2026 | March 1, 2025 | ||||||||||||
| Assets | ||||||||||||||
| Current assets | ||||||||||||||
| Cash and cash equivalents | $ | 39,523 | $ | 41,448 | ||||||||||
| Receivables, net | 198,516 | 185,590 | ||||||||||||
| Inventories, net | 98,059 | 92,305 | ||||||||||||
| Contract assets | 59,512 | 71,842 | ||||||||||||
| Other current assets | 43,823 | 50,919 | ||||||||||||
| Total current assets | 439,433 | 442,104 | ||||||||||||
| Property, plant and equipment, net | 255,032 | 268,139 | ||||||||||||
| Operating lease right-of-use assets | 48,736 | 62,314 | ||||||||||||
| Goodwill | 236,744 | 235,775 | ||||||||||||
| Intangible assets, net | 111,261 | 128,417 | ||||||||||||
| Other non-current assets | 31,139 | 38,520 | ||||||||||||
| Total assets | $ | 1,122,345 | $ | 1,175,269 | ||||||||||
| Liabilities and shareholders' equity | ||||||||||||||
| Current liabilities | ||||||||||||||
| Accounts payable | $ | 105,478 | $ | 98,804 | ||||||||||
| Accrued compensation and benefits | 39,667 | 48,510 | ||||||||||||
| Contract liabilities | 60,903 | 35,193 | ||||||||||||
| Operating lease liabilities | 14,729 | 15,290 | ||||||||||||
| Other current liabilities | 46,079 | 87,659 | ||||||||||||
| Total current liabilities | 266,856 | 285,456 | ||||||||||||
| Long-term debt | 232,279 | 285,000 | ||||||||||||
| Non-current operating lease liabilities | 39,375 | 51,632 | ||||||||||||
| Non-current self-insurance reserves | 24,914 | 30,382 | ||||||||||||
| Other non-current liabilities | 47,127 | 34,901 | ||||||||||||
| Total shareholders’ equity | 511,794 | 487,898 | ||||||||||||
| Total liabilities and shareholders’ equity | $ | 1,122,345 | $ | 1,175,269 | ||||||||||
Apogee Enterprises, Inc. • 4400 West 78th Street • Minneapolis, MN 55435 • (952) 835-1874 • www.apog.com
Apogee Enterprises, Inc.
Page 8
| Apogee Enterprises, Inc. | ||||||||||||||
Consolidated Statement of Cash Flows | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Twelve Months Ended | ||||||||||||||
| February 28, 2026 | March 1, 2025 | |||||||||||||
| (In thousands) | ||||||||||||||
| Operating Activities | ||||||||||||||
| Net earnings | $ | 54,131 | $ | 85,052 | ||||||||||
| Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||||||||||||
| Depreciation and amortization | 49,998 | 44,608 | ||||||||||||
| Share-based compensation | 8,246 | 10,725 | ||||||||||||
| Deferred income taxes | 15,483 | 3,836 | ||||||||||||
| Impairment of long-lived assets | 11,477 | 7,634 | ||||||||||||
| Settlement of New Markets Tax Credit transaction | (6,740) | — | ||||||||||||
| Non-cash lease expense | 6,574 | 13,749 | ||||||||||||
| Other, net | (1,671) | (1,247) | ||||||||||||
| Changes in operating assets and liabilities: | ||||||||||||||
| Receivables | (12,409) | (508) | ||||||||||||
| Inventories | (5,340) | (5,810) | ||||||||||||
| Contract assets | 12,583 | (22,625) | ||||||||||||
| Accounts payable | 5,515 | 9,595 | ||||||||||||
| Accrued compensation and benefits | (9,117) | (11,793) | ||||||||||||
| Contract liabilities | 25,649 | 598 | ||||||||||||
| Operating lease liability | (9,706) | (12,703) | ||||||||||||
| Accrued income taxes | 3,858 | (5,120) | ||||||||||||
| Other current assets and liabilities | (26,066) | 9,171 | ||||||||||||
| Net cash provided by operating activities | 122,465 | 125,162 | ||||||||||||
| Investing Activities | ||||||||||||||
| Capital expenditures | (27,308) | (35,593) | ||||||||||||
| Proceeds from sales of property, plant and equipment | 1,632 | 693 | ||||||||||||
| Purchases of marketable securities | (9,670) | (2,394) | ||||||||||||
| Sales/maturities of marketable securities | 4,820 | 3,570 | ||||||||||||
| Acquisition of business, net of cash acquired | — | (232,169) | ||||||||||||
| Net cash used by investing activities | (30,526) | (265,893) | ||||||||||||
| Financing Activities | ||||||||||||||
| Proceeds from revolving credit facilities | 93,000 | 77,201 | ||||||||||||
| Repayment on revolving credit facilities | (143,000) | (57,201) | ||||||||||||
| Proceeds from term loans | — | 250,000 | ||||||||||||
| Repayment of term loans | (2,722) | (47,000) | ||||||||||||
| Payments of debt issuance costs | — | (3,798) | ||||||||||||
| Repurchase of common stock | (15,000) | (45,364) | ||||||||||||
| Dividends paid | (22,216) | (21,737) | ||||||||||||
| Other, net | (6,241) | (6,052) | ||||||||||||
| Net cash (used by) provided by financing activities | (96,179) | 146,049 | ||||||||||||
| Effect of exchange rates on cash | 2,315 | (1,086) | ||||||||||||
| (Decrease) increase in cash and cash equivalents | (1,925) | 4,232 | ||||||||||||
| Cash and cash equivalents at beginning of period | 41,448 | 37,216 | ||||||||||||
| Cash and cash equivalents at end of period | $ | 39,523 | $ | 41,448 | ||||||||||
Apogee Enterprises, Inc. • 4400 West 78th Street • Minneapolis, MN 55435 • (952) 835-1874 • www.apog.com
Apogee Enterprises, Inc.
Page 9
| Apogee Enterprises, Inc. | ||||||||||||||||||||||||||||||||||||||
| Components of Changes in Net Sales | ||||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||||
Three months ended February 28, 2026, compared with the three months ended March 1, 2025 | ||||||||||||||||||||||||||||||||||||||
| (In thousands, except percentages) | Architectural Metals | Architectural Services | Architectural Glass | Performance Surfaces | Intersegment eliminations | Consolidated | ||||||||||||||||||||||||||||||||
| Fiscal 2025 net sales | $ | 112,148 | $ | 117,895 | $ | 75,157 | $ | 47,899 | $ | (7,405) | $ | 345,694 | ||||||||||||||||||||||||||
Organic business (1) | (2,111) | 9,175 | (7,804) | 6,447 | (47) | 5,660 | ||||||||||||||||||||||||||||||||
| Fiscal 2026 net sales | $ | 110,037 | $ | 127,070 | $ | 67,353 | $ | 54,346 | $ | (7,452) | $ | 351,354 | ||||||||||||||||||||||||||
| Total net sales growth (decline) | (1.9) | % | 7.8 | % | (10.4) | % | 13.5 | % | 0.6 | % | 1.6 | % | ||||||||||||||||||||||||||
Twelve months ended February 28, 2026 , compared with the twelve months ended March 1, 2025 | ||||||||||||||||||||||||||||||||||||||
| (In thousands, except percentages) | Architectural Metals | Architectural Services | Architectural Glass | Performance Surfaces | Intersegment eliminations | Consolidated | ||||||||||||||||||||||||||||||||
| Fiscal 2025 net sales | $ | 524,709 | $ | 419,861 | $ | 322,197 | $ | 122,131 | $ | (27,904) | $ | 1,360,994 | ||||||||||||||||||||||||||
Organic business (1) | (20,681) | 19,371 | (38,538) | 10,564 | 7,752 | (21,532) | ||||||||||||||||||||||||||||||||
Acquisition (2) | — | — | — | 65,271 | — | 65,271 | ||||||||||||||||||||||||||||||||
| Fiscal 2026 net sales | $ | 504,028 | $ | 439,232 | $ | 283,659 | $ | 197,966 | $ | (20,152) | $ | 1,404,733 | ||||||||||||||||||||||||||
| Total net sales growth (decline) | (3.9) | % | 4.6 | % | (12.0) | % | 62.1 | % | (27.8) | % | 3.2 | % | ||||||||||||||||||||||||||
Organic business (1) | (3.9) | % | 4.6 | % | (12.0) | % | 8.6 | % | (27.8) | % | (1.6) | % | ||||||||||||||||||||||||||
Acquisition (2) | — | % | — | % | — | % | 53.4 | % | — | % | 4.8 | % | ||||||||||||||||||||||||||
| (1) | Organic business is defined as (declines) growth in net sales from legacy businesses and from acquired businesses, twelve months after the acquisition date. | ||||
| (2) | The acquisition of UW Solutions, completed on November 4, 2024. | ||||
Apogee Enterprises, Inc. • 4400 West 78th Street • Minneapolis, MN 55435 • (952) 835-1874 • www.apog.com
Apogee Enterprises, Inc.
Page 10
| Apogee Enterprises, Inc. | ||||||||||||||||||||||||||||||||||||||
| Business Segment Information | ||||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||||||||||||
| (In thousands) | February 28, 2026 | March 1, 2025 | % Change | February 28, 2026 | March 1, 2025 | % Change | ||||||||||||||||||||||||||||||||
| Segment net sales | ||||||||||||||||||||||||||||||||||||||
| Architectural Metals | $ | 110,037 | $ | 112,148 | (1.9) | % | $ | 504,028 | $ | 524,709 | (3.9) | % | ||||||||||||||||||||||||||
| Architectural Services | 127,070 | 117,895 | 7.8 | % | 439,232 | 419,861 | 4.6 | % | ||||||||||||||||||||||||||||||
| Architectural Glass | 67,353 | 75,157 | (10.4) | % | 283,659 | 322,197 | (12.0) | % | ||||||||||||||||||||||||||||||
| Performance Surfaces | 54,346 | 47,899 | 13.5 | % | 197,966 | 122,131 | 62.1 | % | ||||||||||||||||||||||||||||||
| Intersegment eliminations | (7,452) | (7,405) | 0.6 | % | (20,152) | (27,904) | (27.8) | % | ||||||||||||||||||||||||||||||
| Net sales | $ | 351,354 | $ | 345,694 | 1.6 | % | $ | 1,404,733 | $ | 1,360,994 | 3.2 | % | ||||||||||||||||||||||||||
| Segment adjusted EBITDA | ||||||||||||||||||||||||||||||||||||||
| Architectural Metals | $ | 7,163 | $ | 7,039 | 1.8 | % | $ | 54,109 | $ | 70,591 | (23.3) | % | ||||||||||||||||||||||||||
| Architectural Services | 9,575 | 9,624 | (0.5) | % | 30,856 | 33,533 | (8.0) | % | ||||||||||||||||||||||||||||||
| Architectural Glass | 9,101 | 14,114 | (35.5) | % | 45,699 | 71,664 | (36.2) | % | ||||||||||||||||||||||||||||||
| Performance Surfaces | 10,544 | 12,834 | (17.8) | % | 41,643 | 30,886 | 34.8 | % | ||||||||||||||||||||||||||||||
| Corporate and other | 6,035 | (2,506) | (340.8) | % | (5,004) | (14,021) | (64.3) | % | ||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 42,418 | $ | 41,105 | 3.2 | % | $ | 167,303 | $ | 192,653 | (13.2) | % | ||||||||||||||||||||||||||
| Segment adjusted EBITDA margins | ||||||||||||||||||||||||||||||||||||||
| Architectural Metals | 6.5 | % | 6.3 | % | 10.7 | % | 13.5 | % | ||||||||||||||||||||||||||||||
| Architectural Services | 7.5 | % | 8.2 | % | 7.0 | % | 8.0 | % | ||||||||||||||||||||||||||||||
| Architectural Glass | 13.5 | % | 18.8 | % | 16.1 | % | 22.2 | % | ||||||||||||||||||||||||||||||
| Performance Surfaces | 19.4 | % | 26.8 | % | 21.0 | % | 25.3 | % | ||||||||||||||||||||||||||||||
| Adjusted EBITDA margin | 12.1 | % | 11.9 | % | 11.9 | % | 14.2 | % | ||||||||||||||||||||||||||||||
•Segment net sales is defined as net sales of the segment including revenue related to intersegment transactions.
•Intersegment net sales eliminations are presented separately to exclude these sales from our consolidated total.
Apogee Enterprises, Inc. • 4400 West 78th Street • Minneapolis, MN 55435 • (952) 835-1874 • www.apog.com
Apogee Enterprises, Inc.
Page 11
| Apogee Enterprises, Inc. | ||||||||||||||||||||||||||||||||||||||
| Reconciliation of Non-GAAP Financial Measures | ||||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA and Adjusted EBITDA Margin | ||||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||||
| Three Months Ended February 28, 2026 | ||||||||||||||||||||||||||||||||||||||
| (In thousands) | Architectural Metals | Architectural Services | Architectural Glass | Performance Surfaces | Corporate and Other | Consolidated | ||||||||||||||||||||||||||||||||
| Net earnings (loss) | $ | 968 | $ | 9,339 | $ | 5,782 | $ | 6,533 | $ | (6,002) | $ | 16,620 | ||||||||||||||||||||||||||
| Interest expense (income), net | 401 | (83) | (249) | — | 2,759 | 2,828 | ||||||||||||||||||||||||||||||||
| Income tax expense | — | — | 97 | — | 6,272 | 6,369 | ||||||||||||||||||||||||||||||||
| Depreciation and amortization | 3,584 | 802 | 3,471 | 3,904 | 777 | 12,538 | ||||||||||||||||||||||||||||||||
| EBITDA | 4,953 | 10,058 | 9,101 | 10,437 | 3,806 | 38,355 | ||||||||||||||||||||||||||||||||
Acquisition-related costs (1) | — | — | — | 107 | 65 | 172 | ||||||||||||||||||||||||||||||||
Restructuring costs (2) | 2,210 | (483) | — | — | 2,164 | 3,891 | ||||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 7,163 | $ | 9,575 | $ | 9,101 | $ | 10,544 | $ | 6,035 | $ | 42,418 | ||||||||||||||||||||||||||
| EBITDA margin | 4.5 | % | 7.9 | % | 13.5 | % | 19.2 | % | N/M | 10.9 | % | |||||||||||||||||||||||||||
| Adjusted EBITDA margin | 6.5 | % | 7.5 | % | 13.5 | % | 19.4 | % | N/M | 12.1 | % | |||||||||||||||||||||||||||
| Three Months Ended March 01, 2025 | ||||||||||||||||||||||||||||||||||||||
| (In thousands) | Architectural Metals | Architectural Services | Architectural Glass | Performance Surfaces | Corporate and Other | Consolidated | ||||||||||||||||||||||||||||||||
| Net earnings (loss) | $ | (6,163) | $ | 8,575 | $ | 11,109 | $ | 6,129 | $ | (17,165) | $ | 2,485 | ||||||||||||||||||||||||||
| Interest expense (income), net | 441 | (13) | (91) | — | 3,187 | 3,524 | ||||||||||||||||||||||||||||||||
| Income tax expense | — | — | (22) | — | 276 | 254 | ||||||||||||||||||||||||||||||||
| Depreciation and amortization | 3,859 | 1,092 | 3,118 | 5,041 | 701 | 13,811 | ||||||||||||||||||||||||||||||||
| EBITDA | (1,863) | 9,654 | 14,114 | 11,170 | (13,001) | 20,074 | ||||||||||||||||||||||||||||||||
Acquisition-related costs (1) | — | — | — | 1,664 | 1,230 | 2,894 | ||||||||||||||||||||||||||||||||
Restructuring costs (2) | 1,268 | (30) | — | — | (128) | 1,110 | ||||||||||||||||||||||||||||||||
Impairment expense (3) | 7,634 | — | — | — | — | 7,634 | ||||||||||||||||||||||||||||||||
Arbitration award expense (4) | — | — | — | — | 9,393 | 9,393 | ||||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 7,039 | $ | 9,624 | $ | 14,114 | $ | 12,834 | $ | (2,506) | $ | 41,105 | ||||||||||||||||||||||||||
| EBITDA margin | (1.7 | %) | 8.2 | % | 18.8 | % | 23.3 | % | N/M | 5.8 | % | |||||||||||||||||||||||||||
| Adjusted EBITDA margin | 6.3 | % | 8.2 | % | 18.8 | % | 26.8 | % | N/M | 11.9 | % | |||||||||||||||||||||||||||
| (1) | Acquisition-related costs relate to one-time expenses incurred to integrate the UW Solutions acquisition. In fiscal year 2025, it excludes $1.5 million of backlog amortization added back as part of the depreciation and amortization above. | |||||||||||||
| (2) | Restructuring costs related to Project Fortify. Costs incurred in fiscal year 2025 were associated with Phase 1 and costs incurred in fiscal year 2026 are associated with Phase 2, including $0.6 million of asset impairment charges in fiscal 2026. | |||||||||||||
| (3) | Impairment expense on intangible assets in the Architectural Metals Segment. | |||||||||||||
| (4) | Expense related to an arbitration award, which represents the impact of the award amount net of existing reserves and estimated insurance proceeds. | |||||||||||||
Apogee Enterprises, Inc. • 4400 West 78th Street • Minneapolis, MN 55435 • (952) 835-1874 • www.apog.com
Apogee Enterprises, Inc.
Page 12
| Apogee Enterprises, Inc. | ||||||||||||||||||||||||||||||||||||||
| Reconciliation of Non-GAAP Financial Measures | ||||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA and Adjusted EBITDA Margin | ||||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||||
| Twelve Months Ended February 28, 2026 | ||||||||||||||||||||||||||||||||||||||
| (In thousands) | Architectural Metals | Architectural Services | Architectural Glass | Performance Surfaces | Corporate and Other | Consolidated | ||||||||||||||||||||||||||||||||
| Net earnings (loss) | $ | 37,775 | $ | 12,193 | $ | 32,661 | $ | 24,659 | $ | (53,157) | $ | 54,131 | ||||||||||||||||||||||||||
| Interest expense (income), net | 1,733 | (310) | (699) | — | 13,252 | 13,976 | ||||||||||||||||||||||||||||||||
| Income tax (benefit) expense | (43) | (8) | 295 | — | 23,081 | 23,325 | ||||||||||||||||||||||||||||||||
| Depreciation and amortization | 14,813 | 3,593 | 13,442 | 15,153 | 2,997 | 49,998 | ||||||||||||||||||||||||||||||||
| EBITDA | 54,278 | 15,468 | 45,699 | 39,812 | (13,827) | 141,430 | ||||||||||||||||||||||||||||||||
Acquisition-related costs (1) | — | — | — | 1,831 | 313 | 2,144 | ||||||||||||||||||||||||||||||||
Restructuring costs (2) | 6,571 | 15,388 | — | — | 5,484 | 27,443 | ||||||||||||||||||||||||||||||||
CEO transition costs (3) | — | — | — | — | 3,026 | 3,026 | ||||||||||||||||||||||||||||||||
NMTC settlement gain (4) | (6,740) | — | — | — | — | (6,740) | ||||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 54,109 | $ | 30,856 | $ | 45,699 | $ | 41,643 | $ | (5,004) | $ | 167,303 | ||||||||||||||||||||||||||
| EBITDA margin | 10.8 | % | 3.5 | % | 16.1 | % | 20.1 | % | N/M | 10.1 | % | |||||||||||||||||||||||||||
| Adjusted EBITDA margin | 10.7 | % | 7.0 | % | 16.1 | % | 21.0 | % | N/M | 11.9 | % | |||||||||||||||||||||||||||
| Twelve Months Ended March 01, 2025 | ||||||||||||||||||||||||||||||||||||||
| (In thousands) | Architectural Metals | Architectural Services | Architectural Glass | Performance Surfaces | Corporate and Other | Consolidated | ||||||||||||||||||||||||||||||||
| Net earnings (loss) | $ | 40,345 | $ | 30,035 | $ | 60,451 | $ | 19,611 | $ | (65,390) | $ | 85,052 | ||||||||||||||||||||||||||
| Interest expense (income), net | 2,113 | 10 | (408) | — | 4,444 | 6,159 | ||||||||||||||||||||||||||||||||
| Income tax expense (benefit) | 7 | — | (653) | — | 28,168 | 27,522 | ||||||||||||||||||||||||||||||||
| Depreciation and amortization | 16,471 | 3,978 | 12,274 | 9,086 | 2,799 | 44,608 | ||||||||||||||||||||||||||||||||
| EBITDA | 58,936 | 34,023 | 71,664 | 28,697 | (29,979) | 163,341 | ||||||||||||||||||||||||||||||||
Acquisition-related costs (1) | — | — | — | 2,189 | 5,773 | 7,962 | ||||||||||||||||||||||||||||||||
Restructuring costs (2) | 4,021 | (490) | — | — | 792 | 4,323 | ||||||||||||||||||||||||||||||||
Impairment expense (5) | 7,634 | — | — | — | — | 7,634 | ||||||||||||||||||||||||||||||||
Arbitration award expense (6) | — | — | — | — | 9,393 | 9,393 | ||||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 70,591 | $ | 33,533 | $ | 71,664 | $ | 30,886 | $ | (14,021) | $ | 192,653 | ||||||||||||||||||||||||||
| EBITDA margin | 11.2 | % | 8.1 | % | 22.2 | % | 23.5 | % | N/M | 12.0 | % | |||||||||||||||||||||||||||
| Adjusted EBITDA margin | 13.5 | % | 8.0 | % | 22.2 | % | 25.3 | % | N/M | 14.2 | % | |||||||||||||||||||||||||||
| (1) | Acquisition-related costs include one-time expenses incurred to integrate the UW Solutions acquisition. In fiscal year 2025, it excludes $2.3 million of backlog amortization added back as part of depreciation and amortization above. | |||||||||||||
| (2) | Restructuring costs related to Project Fortify. Costs incurred in fiscal year 2025 were associated with Phase 1 and costs incurred in fiscal year 2026 are associated with Phase 2, including $11.5 million of asset impairment charges in fiscal 2026. | |||||||||||||
| (3) | Transition costs related to departure of Chief Executive Officer during the third quarter of fiscal 2026. | |||||||||||||
| (4) | Gain related to the settlement of a New Market Tax Credit transaction. | |||||||||||||
| (5) | Impairment expense on intangible assets in the Architectural Metals Segment. | |||||||||||||
| (6) | Expense related to an arbitration award, which represents the impact of the award amount net of existing reserves and estimated insurance proceeds. | |||||||||||||
Apogee Enterprises, Inc. • 4400 West 78th Street • Minneapolis, MN 55435 • (952) 835-1874 • www.apog.com
Apogee Enterprises, Inc.
Page 13
| Apogee Enterprises, Inc. | ||
| Reconciliation of Non-GAAP Financial Measures | ||
| Adjusted net earnings and adjusted diluted earnings per share | ||
| (Unaudited) | ||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||
| (In thousands) | February 28, 2026 | March 1, 2025 | February 28, 2026 | March 1, 2025 | ||||||||||||||||||||||
| Net earnings | $ | 16,620 | $ | 2,485 | $ | 54,131 | $ | 85,052 | ||||||||||||||||||
Acquisition-related costs (1) | 172 | 4,429 | 2,144 | 10,302 | ||||||||||||||||||||||
Restructuring costs (2) | 3,891 | 1,110 | 27,443 | 4,323 | ||||||||||||||||||||||
CEO transition costs (3) | — | — | 3,026 | — | ||||||||||||||||||||||
NMTC settlement gain (4) | — | — | (6,740) | — | ||||||||||||||||||||||
Impairment expense (5) | — | 7,634 | — | 7,634 | ||||||||||||||||||||||
Arbitration award expense (6) | — | 9,393 | — | 9,393 | ||||||||||||||||||||||
Income tax impact on above adjustments (7) | (979) | (5,614) | (5,321) | (7,832) | ||||||||||||||||||||||
| Adjusted net earnings | $ | 19,704 | $ | 19,437 | $ | 74,683 | $ | 108,872 | ||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||
| February 28, 2026 | March 1, 2025 | February 28, 2026 | March 1, 2025 | |||||||||||||||||||||||
| Diluted earnings per share | $ | 0.77 | $ | 0.11 | $ | 2.52 | $ | 3.89 | ||||||||||||||||||
Acquisition-related costs (1) | 0.01 | 0.20 | 0.10 | 0.47 | ||||||||||||||||||||||
Restructuring costs (2) | 0.18 | 0.05 | 1.28 | 0.20 | ||||||||||||||||||||||
CEO transition costs (3) | — | — | 0.14 | — | ||||||||||||||||||||||
NMTC settlement gain (4) | — | — | (0.31) | — | ||||||||||||||||||||||
Impairment expense (5) | — | 0.35 | — | 0.35 | ||||||||||||||||||||||
Arbitration award expense (6) | — | 0.43 | — | 0.43 | ||||||||||||||||||||||
Income tax impact on above adjustments (7) | (0.05) | (0.26) | (0.25) | (0.36) | ||||||||||||||||||||||
| Adjusted diluted earnings per share | $ | 0.92 | $ | 0.89 | $ | 3.47 | $ | 4.97 | ||||||||||||||||||
| Weighted average diluted shares outstanding | 21,454 | 21,793 | 21,517 | 21,891 | ||||||||||||||||||||||
| (1) | Acquisition-related costs include one-time expenses incurred to integrate the UW Solutions acquisition. | |||||||||||||
| (2) | Restructuring costs related to Project Fortify. Costs incurred in fiscal year 2025 were associated with Phase 1 and costs incurred in fiscal year 2026 are associated with Phase 2, including $11.5 million of asset impairment charges in fiscal 2026. | |||||||||||||
| (3) | Transition costs related to departure of Chief Executive Officer during the third quarter of fiscal 2026. | |||||||||||||
| (4) | Gain related to the settlement of a New Market Tax Credit transaction. | |||||||||||||
| (5) | Impairment expense on intangible assets in the Architectural Metals Segment. | |||||||||||||
| (6) | Expense related to an arbitration award, which represents the impact of the award amount net of existing reserves and estimated insurance proceeds. | |||||||||||||
| (7) | Income tax impact reflects the estimated blended statutory tax rate for the jurisdictions in which the charge or income occurred. | |||||||||||||
Apogee Enterprises, Inc. • 4400 West 78th Street • Minneapolis, MN 55435 • (952) 835-1874 • www.apog.com
FAQ
How did Apogee Enterprises (APOG) perform in fiscal 2026?
Apogee’s fiscal 2026 net sales rose 3.2% to $1.40 billion, but profitability declined. Net earnings fell to $54.1 million and diluted EPS dropped to $2.52. Adjusted diluted EPS decreased to $3.47, reflecting higher costs, lower volume, and restructuring-related items.
What were Apogee Enterprises’ fourth-quarter 2026 earnings and revenue?
In the fourth quarter, Apogee generated $351.4 million in net sales, up 1.6% year over year. Net earnings increased to $16.6 million, and diluted EPS reached $0.78. Adjusted diluted EPS was $0.92, slightly above the prior year’s $0.89, supported by lower SG&A and prior-year one-time charges.
What guidance did Apogee Enterprises (APOG) give for fiscal 2027?
For fiscal 2027, Apogee expects net sales between $1.38 billion and $1.43 billion and adjusted diluted EPS of $2.70 to $3.25. The outlook assumes interest expense of about $10 million, an adjusted effective tax rate of 26%–27%, and capital spending of $35–$40 million.
How strong was Apogee Enterprises’ cash flow and balance sheet in 2026?
Apogee generated $122.5 million in net cash from operating activities in fiscal 2026 and spent $27.3 million on capital expenditures. It reduced long-term debt to $232.3 million, ending the year with a consolidated leverage ratio of 1.3x, and returned $37.2 million to shareholders.
What is Project Fortify and its impact on Apogee Enterprises’ results?
Project Fortify is Apogee’s cost and productivity program. Fiscal 2026 included $27.4 million in total pre-tax restructuring charges under the program, but the company estimates annualized cost savings of about $26 million, supporting future margin improvement once one-time costs subside.
How did Apogee Enterprises’ business segments perform in 2026?
In fiscal 2026, Architectural Metals net sales declined to $504.0 million, Architectural Services grew to $439.2 million, Architectural Glass fell to $283.7 million, and Performance Surfaces rose to $198.0 million, aided by the UW Solutions acquisition and higher volume.