Apogee Raises Fiscal 2027 Outlook to $1.46B-$1.5B Sales, $3-$3.40 Adjusted EPS

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Apogee Enterprises raised its fiscal 2027 guidance to net sales of $1.46 billion to $1.5 billion and adjusted diluted EPS of $3 to $3.40, citing stronger-than-expected first-half performance, contributions from its Kalwall and Groglass acquisitions, and current market conditions. The company reported second-quarter net sales up 9.2% to $391.1 million and adjusted diluted EPS up more than 19% to $1.17, helped by favorable price, productivity improvements, Fortify Phase 2 cost savings and the accretive impact of Kalwall, partly offset by higher material and manufacturing costs and lower volume. For the newly added Groglass business, management anticipates approximately $30 million in revenue and a 25% adjusted EBITDA margin in the first 12 months, while Kalwall remains on track to deliver first-12-month targets of approximately $85 million in revenue and a 15% adjusted EBITDA margin. Services backlog ended the quarter at $833 million, up 5% year over year and 13% sequentially, and Glass net sales rose more than 21% to $87.4 million, including a $16.4 million contribution from Kalwall, with adjusted EBITDA margin at 14.9%, improved sequentially from 8.7% in the first quarter. Management said it expects net sales and adjusted diluted EPS to be relatively balanced across the third and fourth quarters, and reported a consolidated leverage ratio of 1.7x with no near-term debt maturities.

Impact on assets 1

Industrials▲
Apogee Enterprises Inc
APOG
▲ PositiveCapitalDemandrelevance

Apogee raised fiscal 2027 guidance and reported Q2 EPS up over 19% on price, productivity, and Fortify cost savings.

Off-coverage companies 2

GroGlassi
Private▲ PositiveCapitalrelevance

Groglass acquisition is expected to add ~$30M revenue at a 25% adjusted EBITDA margin in its first 12 months.

Kalwall Companiesi
Private▲ PositiveCapitalrelevance

Kalwall remains on track to deliver first-12-month targets of ~$85M revenue and 15% adjusted EBITDA margin, contributing $16.4M to Glass sales.