Why Apogee Enterprises Plummeted by Nearly 13% on Thursday

The shares of glass maker Apogee Enterprises (NASDAQ: APOG) were quite brittle on Thursday in the wake of the company's fiscal fourth quarter and full-year 2025 earnings release. Investors didn't take the news well, ultimately trading out of the stock and leaving it with an almost 13% decline in a trading session where the S&P 500 index rose by 2%.

Declines in important metrics

Much of this was due to the fact that Apogee posted declines in key fundamentals; net sales were down by nearly 5% year over year at less than $346 million, while generally accepted accounting principles (GAAP) net income cratered by 84% to almost $2.5 million, or $0.11 per share. The situation wasn't significantly better with operating income, which dipped 22% to $0.89.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

This meant a mixed quarter for Apogee. Collectively, analysts following the company's fortunes were estimating slightly over $336 million for revenue but a higher ($0.92) figure for per-share operating income.

Apogee divides its business into four main segments: architectural metals, architectural services, architectural glass, and performance services. Only two of the four saw increases in net sales with one benefiting from an acquisition. The largest segment in terms of top line, architectural metals, posted a 19% drop in net sales to $112 million for the quarter.

A miss on profitability guidance

Management's guidance for fiscal 2026 didn't provide much comfort to investors. It believes Apogee will earn $1.37 billion to $1.43 billion in net sales, while operating income per share should come in at $3.55 to $4.10. The respective numbers for fiscal 2025 were $1.36 billion and $4.97. Meanwhile, the consensus analyst estimate for operating income is $4.97 per share.

Apogee is clearly in a slump, and I don't think an anticipated slight rise in annual net sales is going to pull it out. Investors obviously want and expect more from this company.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.