TLDR
- Apogee Enterprises (APOG) posted Q2 fiscal 2027 adjusted EPS of $1.17, crushing the $0.63 analyst estimate.
- Revenue climbed 9% year over year to $391.1 million, topping forecasts of $359.46 million.
- Shares jumped as much as 23% in pre-market trading after the report.
- The company raised full-year adjusted EPS guidance to $3.00-$3.40, up from $2.70-$3.25.
- Recent Kalwall and Groglass acquisitions added to sales and margins during the quarter.
Apogee Enterprises (APOG) stock jumped as much as 23% in pre-market trading Tuesday after the architectural products maker posted second quarter results that blew past Wall Street estimates.
Apogee Enterprises, Inc., APOG
The Minneapolis-based company reported adjusted earnings per share of $1.17 for its fiscal second quarter. That topped the analyst consensus of $0.63 by a wide margin.
Revenue came in at $391.1 million, up 9% from the same period last year. Analysts had been expecting $359.46 million.
Apogee didn’t just beat the quarter. It also raised its outlook for the rest of the year, which is usually what gets investors excited.
The company now expects fiscal 2027 adjusted EPS between $3.00 and $3.40. That’s up from its prior range of $2.70 to $3.25, and the new midpoint sits well above the $2.87 consensus.
Revenue guidance also moved higher, to a range of $1.46 billion to $1.50 billion. The previous range was $1.38 billion to $1.43 billion.
What Drove the Beat
A big part of the strength came down to pricing and productivity work the company has been doing internally. Apogee calls part of that effort “Project Fortify 2.”
Apogee Enterprises, $APOG, Q2-27.
A huge EPS beat, with stronger margins and a raised outlook.
🟢 Revenue: $391.1M | +9.2% YoY
🟢 Adj. EPS: $1.17 | +19.4% YoY
📈 FY27 adj. EPS guide: $3.00-$3.40, up from $2.70-$3.25
🏗️ Gross margin: 24.6% | +150 bps pic.twitter.com/sJ7hoJ87uq— EarningsTime (@Earnings_Time) October 6, 2026
The recent Kalwall acquisition also pitched in, adding $16.4 million to the quarter’s sales. That was offset somewhat by softer volume in what the company described as a mixed demand environment.
Don Nolan, Apogee’s Executive Chair and CEO, credited the results to execution across the business. He pointed to the first-half momentum as the reason behind the decision to raise guidance.
Operating margin expanded 110 basis points to 8.6% for the quarter. Adjusted EBITDA rose almost 12% to $49.5 million, with margin ticking up to 12.7% from 12.4%.
Gross margin improved 150 basis points to 24.6%. Pricing, productivity gains, and the Kalwall deal all played a part, though higher material and manufacturing costs pushed the other way.
Segment Breakdown
Apogee reports results across four segments, and three of them posted double-digit or high-single-digit sales growth.
Architectural Glass led the pack, with sales up 21% to $87.4 million thanks largely to the Kalwall contribution. Architectural Services grew 8% to $108.5 million on higher project volume.
Performance Surfaces sales rose 14% to $55.3 million on both higher volume and price. Architectural Metals was the laggard, up just 2% to $143.5 million.
Net earnings actually dipped slightly to $22.4 million from $23.6 million a year earlier, and diluted EPS on a GAAP basis slipped to $1.07 from $1.10. The adjusted numbers tell a different story once one-time items are stripped out.
Apogee also closed two acquisitions during the quarter: Kalwall and Groglass. Management said early performance at Kalwall has been encouraging.
On the balance sheet, operating cash flow for the fiscal year so far rose to $43.3 million from $37.3 million. The company returned $27.3 million to shareholders through buybacks and dividends.
Long-term debt stood at $335.5 million at quarter’s end, putting the company’s leverage ratio at 1.7x.
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