Apogee Enterprises, Inc. has reported its first quarter fiscal 2026 results, highlighting a 4.6% increase in net sales to $346.6 million compared to the same period last year. However, the company reported a diluted loss per share of $0.13, a significant decrease from the diluted earnings per share of $1.41 in the first quarter of fiscal 2025.
The adjusted EBITDA margin also saw a decline, dropping to 9.9% from 15.9% in the previous year. Adjusted EBITDA decreased by 34.7% to $34.4 million, and adjusted diluted earnings per share fell by 61.1% to $0.56.
The company reported that the increase in net sales was primarily driven by $22.0 million of inorganic sales from the acquisition of UW Solutions. However, the gross margin decreased to 21.7% from 29.8%, mainly due to restructuring charges, a less favorable mix, and higher aluminum costs in architectural metals, as well as higher tariff expenses in architectural services.
In terms of segment results, the architectural metals net sales decreased to $128.6 million from $133.2 million, with a lower adjusted EBITDA margin of 7.3% compared to 17.9% in the first quarter of fiscal 2025. The architectural services segment saw a modest increase in net sales to $106.5 million from $99.0 million, but the adjusted EBITDA margin decreased to 5.7% from 6.6%.
Architectural glass net sales also decreased to $73.3 million from $86.7 million, resulting in a lower adjusted EBITDA margin of 18.3% compared to 23.3% in the previous year. However, the performance surfaces segment showed significant growth in net sales to $42.3 million from $21.2 million, including $22.0 million of inorganic sales contribution from the UW Solutions acquisition. Despite the increase in net sales, the adjusted EBITDA margin for this segment decreased to 18.8% from 26.6%.
The company's financial condition also reflected a change, with net cash used in operating activities increasing to $19.8 million compared to net cash provided by operating activities in the prior year period. Additionally, quarter-end long-term debt increased to $311 million, raising the consolidated leverage ratio to 1.6x at the end of the quarter.
Apogee Enterprises, Inc. expressed optimism about the future, stating that it is raising its fiscal year outlook for net sales and adjusted diluted EPS, expecting a stronger second half of the year. The company also emphasized its efforts to mitigate the impact of tariffs and its excitement about the opportunities for growth in the performance surfaces segment following recent investments and acquisitions. Today the company's shares have moved 6.06% to a price of $42.075. Check out the company's full 8-K submission here.
