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Apogee (APOG)
NASDAQ:APOG

Apogee (APOG) AI Stock Analysis

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Apogee

(NASDAQ:APOG)

Rating:63Neutral
Price Target:
$44.00
▲(4.49%Upside)
Apogee's overall stock score is driven by robust financial performance and a positive earnings outlook. Technical analysis suggests some caution due to mixed signals, and valuation appears fair but not particularly attractive for growth. The raised guidance and strategic initiatives from the earnings call provide a positive long-term view.

Apogee (APOG) vs. SPDR S&P 500 ETF (SPY)

Apogee Business Overview & Revenue Model

Company DescriptionApogee Enterprises, Inc. designs and develops glass and metal products and services in the United States, Canada, and Brazil. The company operates in four segments: Architectural Framing Systems, Architectural Glass, Architectural Services, and Large-Scale Optical Technologies (LSO). The Architectural Framing Systems segment designs, engineers, fabricates, and finishes the aluminum frames used in customized aluminum and glass window; curtain wall; storefront; and entrance systems, such as the outside skin and entrances of commercial, institutional, and multi-family residential buildings. The Architectural Glass segment fabricates coated and high-performance glass used in customized window and wall systems, including the outside skin of commercial, institutional, and multi-family residential buildings. The Architectural Services segment offers full-service installation of the walls of glass, windows, and other curtain wall products making up the outside skin of commercial and institutional buildings. The LSO segment manufactures value-added glass and acrylic products for framing and display applications. The company's products and services are primarily used in commercial buildings, such as office buildings, hotels, and retail centers; and institutional buildings comprising education facilities, health care facilities, and government buildings, as well as multi-family residential buildings. It markets its architectural products and services through direct sales force, independent sales representatives, and distributors to glazing subcontractors and general contractors; and value-added glass and acrylics through retail chains, picture-framing shops, and independent distributors to museums, galleries, and other customers. The company was incorporated in 1949 and is based in Minneapolis, Minnesota.
How the Company Makes MoneyApogee Enterprises generates revenue through a diversified portfolio of architectural products and services. The company operates through four primary segments: Architectural Glass, Architectural Framing Systems, Architectural Services, and Large-Scale Optical Technologies. Each segment contributes to its revenue by manufacturing and supplying specialized products like high-performance glass, curtainwall, storefront, and entrance systems, as well as providing installation and finishing services. Apogee's earnings are significantly bolstered by strategic partnerships with contractors and developers, enabling it to secure contracts for large-scale commercial and institutional projects. Additionally, Apogee capitalizes on its technological advancements and customized solutions to maintain a competitive edge and drive sales growth.

Apogee Earnings Call Summary

Earnings Call Date:Jun 27, 2025
(Q1-2026)
|
% Change Since: 6.15%|
Next Earnings Date:Sep 23, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view with strong revenue growth and successful tariff mitigation efforts offset by challenges in specific segments like Metals and Glass, and a decline in EBITDA margins. The fiscal outlook has been revised upwards, but there are still significant challenges related to tariffs and input costs.
Q1-2026 Updates
Positive Updates
Revenue and Performance Surges
Revenues came in stronger than expected, led by Glass and Services. Services had significant net sales growth for the fifth consecutive quarter, and the Performance Surfaces segment increased driven by the inorganic sales contribution from the UW Solutions acquisition.
Raised Fiscal Year Outlook
The company raised its fiscal year outlook for both revenue and earnings, expecting net sales between $1.40 billion to $1.44 billion and adjusted diluted EPS in the range of $3.80 to $4.20.
Successful Tariff Mitigation
The impact of tariffs has been mitigated more effectively than initially expected, reducing the anticipated EPS impact from $0.45-$0.55 to $0.35-$0.45.
Project Fortify Phase 2 Savings
Aggressive actions under Phase 2 of Project Fortify are expected to drive $13 million to $15 million of annualized savings.
Negative Updates
Metals and Glass Segment Challenges
Metals net sales declined 3.4% primarily due to a less favorable mix and higher aluminum costs. Glass net sales declined due to reduced volume from lower end-market demand.
Adjusted EBITDA Margin Decline
Consolidated adjusted EBITDA margin decreased to 9.9%, impacted by higher aluminum costs in Metals and higher tariff expenses in Services.
Higher Costs and Expenses
Adjusted diluted EPS declined to $0.56 due to lower adjusted EBITDA, higher interest expense, and a higher adjusted effective tax rate.
Services Backlog Decline
Services backlog declined to $683 million, reflecting market softness and challenges in securing higher-margin projects amidst tariff impacts.
Company Guidance
During the Q1 2026 earnings call for Apogee Enterprises, the company provided updated guidance, reflecting a positive outlook for the fiscal year. Revenues were stronger than expected, with significant growth in the Glass and Services segments. The company is raising its fiscal year outlook for both revenue and earnings, anticipating net sales between $1.40 billion and $1.44 billion, and adjusted diluted EPS between $3.80 and $4.20. This revised outlook incorporates an EPS impact from tariffs, now estimated at $0.35 to $0.45, primarily affecting the first half of the fiscal year. Apogee expects continued sequential improvement in Metals and Glass segments, with strong organic and inorganic growth in Performance Surfaces. The company is executing tariff mitigation plans and aggressive cost-saving actions through Project Fortify, targeting $13 million to $15 million in annualized savings. Despite market challenges, Apogee is focused on productivity improvements and strategic M&A opportunities to support long-term growth.

Apogee Financial Statement Overview

Summary
Apogee presents a solid financial performance with stable profit margins and efficient cost control. The balance sheet indicates a prudent approach to leverage, while cash flow statements reflect robust operational cash generation. Despite concerns such as liability growth and revenue fluctuations, Apogee's financial health remains resilient.
Income Statement
75
Positive
Apogee's income statement shows moderate strength with a stable gross profit margin and improving net profit margin over the years. The company has demonstrated a fluctuating but generally positive revenue growth trajectory, although recent years have shown slight declines. The EBIT and EBITDA margins have been consistent, indicating effective cost management and operational efficiency within the industry context.
Balance Sheet
70
Positive
The balance sheet reflects a sound financial position with a manageable debt-to-equity ratio, indicating controlled leverage. The equity ratio remains healthy, supporting stability. Return on Equity (ROE) is reasonable, reflecting decent profitability for shareholders. However, the increase in total liabilities suggests a need for monitoring potential risk of financial leverage.
Cash Flow
68
Positive
Cash flow analysis reveals strong operating cash flows relative to net income, indicating effective cash generation from operations. The free cash flow has shown growth, though at a slower pace in recent years, signaling potential reinvestment in business activities. The cash flow from financing activities suggests a strategic approach to funding with some reliance on external financing.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue1.36B1.42B1.44B1.31B1.23B
Gross Profit359.89M372.63M335.27M274.16M275.69M
EBITDA166.80M178.83M179.34M80.05M90.75M
Net Income85.05M99.61M104.11M3.49M15.44M
Balance Sheet
Total Assets1.18B884.06M915.37M887.86M1.02B
Cash, Cash Equivalents and Short-Term Investments41.45M37.22M19.92M37.58M47.28M
Total Debt351.92M106.19M181.64M163.00M165.00M
Total Liabilities687.37M413.04M518.96M501.66M522.35M
Stockholders Equity487.90M471.02M396.41M386.20M492.75M
Cash Flow
Free Cash Flow89.57M160.97M57.52M78.63M115.70M
Operating Cash Flow125.16M204.15M102.70M100.47M141.86M
Investing Cash Flow-265.89M-43.67M-27.71M9.28M-2.15M
Financing Cash Flow146.05M-144.61M-91.02M-120.57M-107.88M

Apogee Technical Analysis

Technical Analysis Sentiment
Positive
Last Price42.11
Price Trends
50DMA
39.88
Positive
100DMA
43.40
Negative
200DMA
57.01
Negative
Market Momentum
MACD
0.63
Negative
RSI
57.76
Neutral
STOCH
40.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APOG, the sentiment is Positive. The current price of 42.11 is above the 20-day moving average (MA) of 40.03, above the 50-day MA of 39.88, and below the 200-day MA of 57.01, indicating a neutral trend. The MACD of 0.63 indicates Negative momentum. The RSI at 57.76 is Neutral, neither overbought nor oversold. The STOCH value of 40.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for APOG.

Apogee Risk Analysis

Apogee disclosed 18 risk factors in its most recent earnings report. Apogee reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Apogee Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
$1.84B14.3313.70%-5.13%16.93%
NXNX
67
Neutral
$942.91M34.552.18%1.56%47.66%-75.65%
65
Neutral
$10.81B15.655.50%1.89%3.10%-27.09%
63
Neutral
$931.58M18.4710.68%2.40%-0.77%-52.02%
BXBXC
63
Neutral
$646.19M17.945.96%-4.22%-16.01%
JBJBI
61
Neutral
$1.23B25.199.51%-13.95%-63.37%
46
Neutral
$378.73M-55.39%-14.12%-1264.86%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
APOG
Apogee
42.11
-17.27
-29.08%
BXC
Bluelinx Holdings
80.55
-11.60
-12.59%
ROCK
Gibraltar Industries
60.54
-7.46
-10.97%
NX
Quanex
19.79
-6.66
-25.18%
JELD
JELD-WEN
4.24
-8.84
-67.58%
JBI
Janus International Group
8.80
-3.32
-27.39%

Apogee Corporate Events

M&A TransactionsBusiness Operations and Strategy
Apogee Expands with UW Interco Acquisition
Positive
Nov 4, 2024

Apogee Enterprises, Inc. completed its acquisition of UW Interco, LLC for $242 million, enhancing its Large-Scale Optical segment. The deal is expected to boost fiscal 2026 revenue by $100 million and achieve a 20% adjusted EBITDA margin. While fiscal 2025 may see a dip in EPS due to increased costs, the acquisition promises long-term growth and expanded market opportunities.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 03, 2025