On April 24, 2025, Apogee Enterprises Inc (APOG, Financial) released its 8-K filing detailing its fiscal 2025 fourth-quarter and full-year results. The company, a provider of architectural products and services, reported fourth-quarter net sales of $346 million, surpassing the analyst estimate of $332.91 million. However, the diluted earnings per share (EPS) for the quarter was $0.11, significantly below the estimated $0.73. For the full year, Apogee reported net sales of $1.36 billion, slightly above the annual revenue estimate of $1.348 billion, and a diluted EPS of $3.89, missing the estimated $4.50.
Company Overview and Segment Performance
Apogee Enterprises Inc is a leading provider of architectural products and services, specializing in enclosing buildings and producing high-performance glass and acrylic products. The company operates through four segments: Architectural Metals, Architectural Services, Architectural Glass, and Performance Surfaces. The Architectural Metals segment, which generates the most revenue, experienced a 19.4% decline in net sales to $112.1 million in the fourth quarter, primarily due to lower volume and an unfavorable sales mix.
Financial Achievements and Challenges
Despite the challenges, Apogee achieved a full-year adjusted operating margin of 11.0%, an improvement from the previous year. The company also reported a record adjusted diluted EPS of $4.97, reflecting a 4% growth. However, the fourth quarter presented significant challenges, with a 71.9% decline in operating income to $6.1 million and an 84.2% drop in net earnings to $2.5 million. These declines were attributed to lower sales volumes in key segments and increased expenses related to an arbitration award and acquisition-related costs.
Key Financial Metrics and Analysis
Apogee's gross margin for the fourth quarter declined by 280 basis points to 21.6%, impacted by lower sales volumes and an unfavorable product mix. The company's selling, general, and administrative expenses rose to 19.8% of net sales, driven by impairment charges and acquisition-related expenses. The adjusted EBITDA margin remained stable at 11.9%. The company's long-term debt increased to $285 million, reflecting the acquisition of UW Solutions, which contributed $23.2 million to fourth-quarter sales.
| Metric | Q4 2025 | Q4 2024 | % Change |
|---|---|---|---|
| Net Sales | $345.7 million | $361.8 million | -4.5% |
| Operating Income | $6.1 million | $21.9 million | -71.9% |
| Net Earnings | $2.5 million | $15.7 million | -84.2% |
| Diluted EPS | $0.11 | $0.71 | -84.5% |
CEO Commentary and Future Outlook
Ty R. Silberhorn, Chief Executive Officer, stated, “I am proud of the results our team delivered in fiscal 2025. We expanded adjusted operating margin for the third consecutive year, delivered another year of adjusted ROIC above our targeted level, and achieved record adjusted diluted EPS of $4.97.”
Looking ahead, Apogee anticipates macroeconomic uncertainties to pose challenges in its core non-residential construction market. The company is focused on delivering near-term financial results while investing in growth opportunities. For fiscal 2026, Apogee expects net sales between $1.37 billion and $1.43 billion, with adjusted diluted EPS ranging from $3.55 to $4.10.
Explore the complete 8-K earnings release (here) from Apogee Enterprises Inc for further details.
