Architectural products company Apogee (NASDAQ: APOG) missed Wall Street’s revenue expectations in Q4 CY2025 as sales rose 2.1% year on year to $348.6 million. The company’s full-year revenue guidance of $1.39 billion at the midpoint came in 1.4% below analysts’ estimates. Its non-GAAP profit of $1.02 per share was 1% above analysts’ consensus estimates.
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Apogee (APOG) Q4 CY2025 Highlights:
- Revenue: $348.6 million vs analyst estimates of $355.3 million (2.1% year-on-year growth, 1.9% miss)
- Adjusted EPS: $1.02 vs analyst estimates of $1.01 (1% beat)
- Adjusted EBITDA: $46.13 million vs analyst estimates of $44.76 million (13.2% margin, 3.1% beat)
- Adjusted EPS guidance for the full year is $3.45 at the midpoint, missing analyst estimates by 6%
- Operating Margin: 7.1%, down from 10.3% in the same quarter last year
- Free Cash Flow Margin: 6.6%, similar to the same quarter last year
- Market Capitalization: $802.1 million
“I’m proud of our team’s disciplined execution and agility during this transition. Despite a challenging environment, we delivered results in line with expectations and remain focused on serving customers with innovative products and exceptional service. Our strong operational foundation and balance sheet position us to navigate near-term challenges and drive sustainable long-term value,” said Donald Nolan, Executive Chair and CEO.
Company Overview
Involved in the design of the Apple Store on Fifth Avenue in New York City, Apogee (NASDAQ: APOG) sells architectural products and services such as high-performance glass for commercial buildings.
Revenue Growth
Examining a company’s long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Regrettably, Apogee’s sales grew at a sluggish 2.1% compounded annual growth rate over the last five years. This was below our standards and is a rough starting point for our analysis.
We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Apogee’s recent performance shows its demand has slowed as its revenue was flat over the last two years. 
This quarter, Apogee’s revenue grew by 2.1% year on year to $348.6 million, falling short of Wall Street’s estimates.
Looking ahead, sell-side analysts expect revenue to remain flat over the next 12 months. This projection is underwhelming and suggests its newer products and services will not accelerate its top-line performance yet.
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Operating Margin
Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals.
Apogee has done a decent job managing its cost base over the last five years. The company has produced an average operating margin of 8.5%, higher than the broader industrials sector.
Looking at the trend in its profitability, Apogee’s operating margin rose by 2.8 percentage points over the last five years, as its sales growth gave it operating leverage.
This quarter, Apogee generated an operating margin profit margin of 7.1%, down 3.2 percentage points year on year. Since Apogee’s operating margin decreased more than its gross margin, we can assume it was less efficient because expenses such as marketing, R&D, and administrative overhead increased.
Earnings Per Share
Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.
Apogee’s EPS grew at a decent 8.5% compounded annual growth rate over the last five years, higher than its 2.1% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
Diving into Apogee’s quality of earnings can give us a better understanding of its performance. As we mentioned earlier, Apogee’s operating margin declined this quarter but expanded by 2.8 percentage points over the last five years. Its share count also shrank by 17.7%, and these factors together are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth. 
Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.
For Apogee, its two-year annual EPS declines of 12.4% mark a reversal from its five-year trend. We hope Apogee can return to earnings growth in the future.
In Q4, Apogee reported adjusted EPS of $1.02, down from $1.19 in the same quarter last year. This print was close to analysts’ estimates. Over the next 12 months, Wall Street expects Apogee’s full-year EPS of $3.45 to grow 17.4%.
Key Takeaways from Apogee’s Q4 Results
It was encouraging to see Apogee beat analysts’ EBITDA expectations this quarter. On the other hand, its full-year EPS guidance missed and its revenue fell short of Wall Street’s estimates. Overall, this quarter could have been better. The stock traded down 11.4% to $33.05 immediately after reporting.
Apogee’s latest earnings report disappointed. One quarter doesn’t define a company’s quality, so let’s explore whether the stock is a buy at the current price. If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.
