Apogee Enterprises Posts Q1 Net Loss, But Sales Rise; Lifts Annual Outlook Above View; Stock Up

(RTTNews) - Apogee Enterprises Inc. (APOG), a provider of architectural building products and services, on Friday recorded a net loss for the first quarter, reflecting higher expenses amidst challenging market conditions. However, the company registered an improvement in sales.

In addition, the firm has revised up its annual adjusted earnings and sales guidance.

Ty R. Silberhorn, CEO of Apogee, said: "We are pleased to deliver results ahead of our expectations in the first quarter amid challenging market conditions and year-over-year headwinds. Although tariffs adversely impacted our first quarter results, we continue to execute our mitigation plans and barring any material change to tariff policies, we expect to be able to substantially mitigate the impact of tariffs on the second half of the fiscal year."

For the three-month period to May 31, Apogee recorded a net loss of $2.688 million, or $0.13 per share, compared with a profit of $31.011 million, or $1.41 per share, in the same period last year. Excluding items, profit was $11.850 million, or $0.56 per share, lesser than $31.858 million, or $1.44 per share, in 2024.

Income tax expense was $5.091 million, lower than $10.063 million a year ago. Pre-tax income was $2.403 million as against the prior year's $41.074 million. Operating profit plunged to $6.931 million from $41.381 million in the previous year.

Interest expense moved up to $3.846 million from $0.450 million in 2024.

Selling, general, and administrative expenses were $68.194 million, compared with last year's $57.474 million. This is due to restructuring charges of $8.4 million and increased amortization expense associated with the UW Solutions transaction, partially offset by lower long-term incentive expense.

Cost of sales stood at $271.497 million as against $232.661 million a year ago. The company registered sales of $346.622 million, up from last year's $331.516 million, primarily driven by $22 million of inorganic sales from the acquisition of UW Solutions.

Looking ahead, the company has revised up its annual outlook with an expectation for a stronger second-half performance. Apogee also noted that its recent investments in additional capacity, and the acquisition of UW Solutions, will expand its market reach and broaden product offerings.  

For fiscal 2026, Apogee now anticipates net income per share of $2.59 to $3.12, compared with earlier guidance of $2.54 to $3.19 per share. Excluding items, earnings are now projected to be in the range of $3.80 to $4.20 per share, higher than the previous outlook of $3.55 to $4.10 per share.

The firm now projects sales of $1.40 billion to $1.44 billion, higher than the previous expectation of $1.37 billion to $1.43 billion.

On average, three analysts polled expect the company to register annual earnings of $3.72 per share on revenue of $1.39 billion. Analysts' estimates typically exclude special items.

APOG was up by 15.96% at $46 in the pre-market trade on the Nasdaq.