Apogee Enterprises Reports Q1 Fiscal 2027 Results with Increased Operating Income and Acquisition Plans

Apogee Enterprises, Inc. reported its financial results for the first quarter of fiscal 2027, ending May 30, 2026, revealing a net sales figure of $342.7 million, a slight decrease of 1.1% from $346.6 million in the same period last year. The company achieved a gross profit of $75.0 million, resulting in a gross margin of 21.9%, up from 21.7% in the prior year. Operating income saw a significant increase to $18.8 million, compared to $6.9 million in the previous year, reflecting improved operational efficiency and cost management strategies.

The company’s selling, general, and administrative (SG&A) expenses decreased to $56.2 million, or 16.4% of net sales, down from 19.7% in the prior year. This reduction was attributed to cost savings from the ongoing Project Fortify Phase 2 restructuring initiative. Net earnings for the quarter were reported at $11.5 million, a turnaround from a net loss of $2.7 million in the same quarter last year. The effective tax rate also improved significantly to 27.6% from 211.9%, primarily due to higher earnings before income taxes.

In terms of operational developments, Apogee announced a definitive agreement to acquire Keller Companies, Inc. for approximately $105 million, with the transaction expected to close in early July 2026. This acquisition is anticipated to enhance Apogee's capabilities within its Architectural Glass Segment. The company also reported a backlog of approximately $734.5 million in its Architectural Services Segment, an increase from $682.9 million at the end of the previous fiscal year, indicating strong future revenue potential.

The company’s cash flow from operating activities improved significantly, providing $7.4 million compared to a cash outflow of $19.8 million in the prior year. This positive cash flow was driven by higher net earnings and the absence of a prior year arbitration settlement payment. However, net cash used in investing activities increased to $9.8 million, primarily due to purchases of marketable securities. Apogee's total debt as of May 30, 2026, stood at $237.4 million, with available liquidity under its revolving credit facility amounting to $419.4 million.

Looking ahead, Apogee Enterprises aims to continue its focus on enhancing operational efficiencies and expanding its market presence through strategic acquisitions and investments. The company remains optimistic about its growth trajectory, supported by a strong backlog and ongoing improvements in its operational performance.