Apogee Enterprises (NASDAQ:APOG) saw its stock climb over 6% in pre-market trading Friday after the company reported solid first-quarter results and raised its outlook for the full fiscal year.
The Minneapolis-based manufacturer, which specializes in architectural building products, posted adjusted earnings of $0.56 per share for the quarter ended May 31—comfortably ahead of Wall Street expectations of $0.49. Revenue came in at $346.6 million, marking a 4.6% increase from the same period last year and topping consensus estimates of $331.1 million.
CEO Ty R. Silberhorn noted the company’s performance came in above internal forecasts despite facing challenging economic conditions and headwinds compared to the previous year.
On the back of the stronger-than-expected results, Apogee updated its fiscal 2026 guidance. The company now expects revenue between $1.40 billion and $1.44 billion, up slightly from its earlier range of $1.37 billion to $1.43 billion. It also lifted its adjusted earnings per share guidance to a range of $3.80 to $4.20, compared to the prior estimate of $3.55 to $4.10.
Management acknowledged the company is facing a tariff-related impact of $0.35 to $0.45 per share this fiscal year, most of which will be felt in the first two quarters.
Segment-wise, the Architectural Services division generated $106.5 million in revenue, up 7.6% year-over-year. Meanwhile, the Performance Surfaces segment nearly doubled sales to $42.3 million, largely driven by the recent acquisition of UW Solutions. However, other units—namely Architectural Metals and Architectural Glass—saw a decline in revenues.
Apogee finished the quarter with a backlog of $682.9 million in its Architectural Services segment, slightly down from $720.3 million in the prior quarter.
Despite the revenue gains, the company’s adjusted EBITDA margin dropped to 9.9%, down from 15.9% a year ago, as rising costs and a shift in sales mix weighed on profitability.