Shares of Apogee Enterprises Inc. (NASDAQ:APOG) edged higher in after-hours trading on Friday after the company reported quarterly revenue above expectations, though its forward guidance came in below analyst forecasts.
The architectural building products group posted adjusted earnings per share of $0.92 for the fourth quarter ended February 28, in line with market estimates.
Revenue rose 1.6% to $351.4 million, beating the $339.58 million consensus and increasing from $345.7 million in the same period a year earlier.
Guidance Falls Short of Expectations
For fiscal 2027, Apogee projected earnings per share in the range of $2.70 to $3.25, with a midpoint of $2.98—below the analyst consensus of $3.42.
The company expects revenue between $1.38 billion and $1.43 billion, with the midpoint of $1.405 billion slightly above the $1.39 billion forecast.
“We delivered fourth-quarter results ahead of our expectations and closed out the fiscal year strongly,” said Donald Nolan. “Throughout the fiscal year, we continued to focus on our priorities while actively managing our cost structure and returning cash to shareholders through dividends and share buybacks.”
Margins Improve on Cost Controls
Adjusted EBITDA increased 3.2% to $42.4 million, while the adjusted EBITDA margin expanded to 12.1% from 11.9%.
The margin improvement was driven by lower incentive compensation and insurance costs, as well as savings from the company’s Project Fortify Phase 2 initiative. These gains were partly offset by higher aluminium costs and increased health insurance expenses.
Full-Year Performance and Cost Savings
For the full fiscal year 2026, net sales rose 3.2% to $1.40 billion. However, adjusted diluted earnings per share declined to $3.47 from $4.97 in the previous year.
Apogee said it has largely completed Project Fortify Phase 2 during the quarter, with the programme expected to deliver approximately $26 million in annualised cost savings.