Apogee Enterprises Reports $2.7 Million Net Loss in Q1 Fiscal 2026 Amid Revenue Growth

Apogee Enterprises, Inc. reported a net loss of $2.7 million for the first quarter of fiscal 2026, a significant decline from net earnings of $31 million in the same period last year. The company's revenue increased by 4.6% to $346.6 million, driven primarily by a $22 million contribution from the acquisition of UW Solutions. However, this growth was offset by lower volumes in the Architectural Glass segment and a less favorable product mix in Architectural Metals. Gross profit margins fell to 21.7% from 29.8% due to restructuring charges and increased costs, particularly in aluminum and tariffs.

The company's operating income also saw a sharp decline, dropping to $6.9 million from $41.4 million year-over-year, with operating margins decreasing by 1,050 basis points to 2.0%. Selling, general, and administrative expenses rose to 19.7% of net sales, up from 17.3%, largely due to restructuring charges and increased amortization expenses related to the UW Solutions acquisition. Interest expenses surged to $3.8 million, reflecting the increased debt load from the acquisition.

In terms of operational developments, Apogee's Architectural Metals segment reported a 3.4% decrease in net sales, while Architectural Services saw a 7.6% increase. The Architectural Glass segment experienced a 15.5% decline in sales, attributed to reduced demand, while the Performance Surfaces segment nearly doubled its sales, reflecting the impact of the UW Solutions acquisition. The company’s backlog in Architectural Services was approximately $682.9 million, down from $720.3 million at the end of the previous quarter.

Looking ahead, Apogee is focused on further optimizing its operations through "Project Fortify Phase 2," which aims to enhance cost efficiencies and is expected to incur pre-tax charges of $24 million to $26 million. The company anticipates annualized pre-tax cost savings of approximately $13 million to $15 million from these initiatives. Despite the current challenges, Apogee remains committed to strengthening its core capabilities and managing its portfolio to drive higher margins and returns. The company believes its liquidity will be sufficient to meet both short-term and long-term needs, supported by a robust credit facility and operational cash flow.