Apogee Enterprises Reports 9.2% Revenue Growth in Q2 Fiscal 2027

Apogee Enterprises, Inc. reported a notable increase in financial performance for the second quarter and first half of fiscal 2027, with net sales reaching $391.1 million for the three months ended August 29, 2026, a 9.2% increase from $358.2 million in the same period last year. For the first six months, net sales totaled $733.8 million, up 4.1% from $704.8 million. The company’s gross profit also improved, rising to $96.2 million for the quarter, compared to $82.6 million a year earlier, resulting in a gross margin of 24.6%, up from 23.1%. However, net earnings for the quarter decreased slightly to $22.4 million, down from $23.6 million, while earnings for the first half increased to $33.9 million from $21.0 million.

The company attributed its revenue growth to a combination of factors, including a $16.4 million contribution from the recent acquisition of Kalwall, which was completed on July 1, 2026. This acquisition, valued at $112.2 million, is expected to enhance Apogee's offerings in the architectural glass segment. Additionally, the company experienced favorable pricing and product mix, although these gains were partially offset by lower volume in certain segments. Selling, general, and administrative expenses as a percentage of net sales increased to 16.0% from 15.6%, primarily due to higher incentive compensation expenses.

Operationally, Apogee's Architectural Glass segment saw a significant increase in net sales, driven by the Kalwall acquisition, while the Architectural Services segment also reported growth due to increased project volume. The Architectural Metals segment experienced a slight decline in sales, reflecting lower volume despite favorable pricing. The company’s backlog in the Architectural Services segment increased to approximately $833 million, indicating strong future revenue potential.

In terms of liquidity, Apogee reported net cash provided by operating activities of $43.3 million for the first half of fiscal 2027, an increase from $37.3 million in the prior year. However, net cash used in investing activities surged to $121.8 million, primarily due to the Kalwall acquisition. The company’s financing activities generated $74.9 million, reflecting additional proceeds from its revolving credit facility. As of August 29, 2026, Apogee had outstanding borrowings of $206.5 million under its term loan facility and $129.0 million under its revolving credit facility, with available borrowing capacity of $318.4 million.

Looking ahead, Apogee Enterprises remains focused on enhancing its market position through strategic acquisitions and operational improvements. The company plans to continue leveraging its recent acquisitions to drive growth and improve profitability while managing costs effectively. The successful integration of Kalwall and the recent acquisition of Groglass, completed on September 18, 2026, are expected to further strengthen Apogee's competitive edge in the architectural products market.