Apogee Enterprises Inc

Apogee Enterprises has agreed to acquire Latvia-based SIA GroGlass for up to €62.5 million, approximately $72.5 million, on a cash-free, debt-free basis, with a €10 million contingent portion payable over three years if financial targets are met. The deal, expected to close in the third quarter of fiscal 2027, would add GroGlass to Apogee's Performance Surfaces segment, bringing proprietary anti-reflective and advanced coating capabilities. GroGlass is projected to contribute about $30 million in revenue in its first 12 months at an adjusted EBITDA margin of roughly 25%, compared with the segment's 14.8% margin in the first quarter of fiscal 2027. Apogee also identified at least $4 million in annualized cost synergies and operating improvements, which could reduce the illustrative maximum-consideration ratio from about 9.7 times to approximately 6.3 times projected first-year adjusted EBITDA. The acquisition will be funded with cash on hand and existing credit, and its success hinges on execution and realizing projected synergies.

Commercial building products stocks reported a strong second quarter, with revenues beating analyst consensus by 1.9% on average. Johnson Controls led with revenues of $6.61 billion, up 9.3% year over year, exceeding expectations by 2.5%, and its stock rose 1.3% to $142.05. Apogee delivered the biggest estimate beat, with revenues of $342.7 million, down 1.1% but outperforming by 3.4%, yet its stock fell 5.9% to $39.97. Janus was the weakest, missing revenue estimates by 2.5% and cutting full-year guidance, with shares down 5.2% to $5.09. AZZ and Insteel also beat expectations, with AZZ raising full-year guidance and Insteel posting the fastest revenue growth at 9.9%.

Zacks Investment Research added five stocks to its Zacks Rank Number 1 Strong Buy list on July 16. B2Gold Corp saw its current-year earnings consensus estimate rise 7.7 percent over the last 60 days. Apogee Enterprises and Azenta each recorded a 7.1 percent increase in their current-year earnings consensus estimates over the same period. Afya's current-year earnings consensus estimate climbed 6.5 percent, while Kinross Gold's rose 6.1 percent.

Apogee Enterprises reported quarterly earnings of $0.57 per share, beating the Zacks Consensus Estimate of $0.43 per share by 32.56%. Revenue came in at $342.68 million, surpassing the consensus estimate by 2.64%. The company has topped consensus EPS estimates three times in the last four quarters. Shares have gained about 16.7% year-to-date, outperforming the S&P 500's 7.5% rise.

Apogee Enterprises has agreed to acquire Kalwall Companies from the Keller family for up to $115 million on a cash-free, debt-free basis. The deal includes an initial cash payment of $105 million at closing and a potential earnout of up to $10 million tied to financial performance through the end of Apogee's fiscal 2027 third quarter. Management expects the acquisition to close during the second quarter of fiscal 2027 and believes it will enhance Apogee's portfolio and expand its capabilities in the building products market. Apogee also provided fiscal 2027 guidance on April 24, forecasting revenue between $1.38 billion and $1.43 billion, with approximately $10 million in interest expense, an adjusted effective tax rate of 26% to 27%, and capital expenditures of $35 million to $40 million.