Apogee Expands Performance Surfaces Segment With Groglass Buyout
Apogee Enterprises, Inc. APOG announced the completion of its prior announced acquisition of SIA GroGlass ("Groglass") for $71.8 million. This deal is expected to solidify APOG’s Performance Surfaces segment.
Apogee Boosts Footprint With Groglass Deal
Apogee inked a deal to acquire Groglass earlier this month. The purchase price includes up to €10 million ($11.6 million) payable over 3 years, subject to Groglass achieving certain financial targets.
Groglass is a provider of high-performance glass surface solutions. It specializes in anti-reflective and other advanced coatings used in display, architectural and technical applications. The company has a solid foundation in materials science and coating technologies.
Apogee will gain from Groglass’ differentiated coating technologies and deep materials science expertise. The addition of Groglass expands Apogee’s capabilities and market reach.
Groglass became part of Apogee’s Performance Surfaces segment, enhancing its coatings and materials science capabilities. The deal expands product offerings and geographic footprint, while supporting Apogee's long-term growth profile.
Apogee expects the deal to generate $30 million in revenues in the first 12 months at an adjusted EBITDA margin of 25%. The company anticipates at least $4 million in annualized cost synergies and operational improvements within three years.
APOG’s Performance in Q1
Revenues in the Performance Surfaces segment rose 4.9% year over year to $44.3 million in the first quarter of fiscal 2027 due to increased volume and favorable pricing. The segment reported adjusted EBITDA of $6.6 million in the fiscal first quarter compared with $8 million in the prior-year quarter.
Apogee reported adjusted earnings of 57 cents per share for first-quarter fiscal 2027, beating the Zacks Consensus Estimate of 43 cents by 32.56%. The bottom line rose 1.8% year over year.
Apogee generated consolidated revenues of $342.7 million in the quarter under review, down 1.1% year over year due to lower volume. This was partially offset by favorable pricing as the company passed on higher material and freight costs, along with a favorable mix. The top line beat the Zacks Consensus Estimate of $334 million.
Apogee’s Stock Price Performance
Shares of the company have lost 18.1% in the past year compared with the industry's decline of 42.9%.
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APOG’s Zacks Rank & Other Stocks to Consider
Apogee currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the Industrial Products sector are Generac Holdings Inc. GNRC, Helios Technologies, Inc. HLIO and Caterpillar Inc. CAT. GNRC sports a Zacks Rank #1 (Strong Buy), while HLIO and CAT have a Zacks Rank #2 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Helios Technologies’ 2026 earnings is pegged at $3.19 per share. The company has a trailing four-quarter average earnings surprise of 24.6%. Helios Technologies shares have gained 25.5% in a year.
Generac delivered a trailing four-quarter average earnings surprise of 13.7%. The Zacks Consensus Estimate for Generac’s 2026 earnings is pinned at $9.74 per share, which indicates year-over-year growth of 53%. Generac’s shares have grown 10.3% in a year.
Caterpillar has an average trailing four-quarter earnings surprise of 18.2%. The Zacks Consensus Estimate for Caterpillar’s 2026 earnings is pinned at $27.37 per share. The company’s shares have gained 72.9% in a year.
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This article originally published on Zacks Investment Research (zacks.com).
