Apogee Enterprises (APOG) Q3 2025 earnings summary

Executive summary

• Q3 FY2025 net sales were $341.3 million, up 0.5% year-over-year, driven by the UW Solutions acquisition and growth in Services, offset by softness in Glass and Framing segments.

• Adjusted operating margin declined 70 bps to 10.4%, with diluted EPS at $0.96 and adjusted EPS at $1.19, reflecting acquisition and restructuring costs.

• The $242 million acquisition of UW Solutions was completed, expanding the LSO segment and integrating well.

• The company maintained a strong financial position and healthy cash flow despite market softness.

• Focus remains on productivity, cost management, and diversifying into higher-growth, higher-margin sectors.

Financial highlights

• Q3 net sales: $341.3 million (+0.5% YoY), including $8.8 million from UW Solutions; year-to-date: $1,015.3 million (-3.8% YoY).

• Adjusted operating income: $35.4 million (10.4% margin); adjusted EBITDA: $45.8 million (13.4% margin); adjusted diluted EPS: $1.19.

• Operating income for Q3 was $28.6 million (8.4% margin), with net earnings of $21.0 million.

• Year-to-date cash from operations totaled $95.1 million; Q3 cash from operations was $31 million.

• Free cash flow for nine months was $70.4 million, down from $102.3 million prior year, due to higher working capital.

Outlook and guidance

• FY2025 net sales expected to decline ~5%, including a $30 million contribution from UW Solutions.

• Full-year adjusted diluted EPS expected at the bottom of the $4.90–$5.20 range, including ~$0.05 dilution from UW Solutions.

• Project Fortify to result in $16–$17 million pre-tax charges and $13–$14 million annualized cost savings, with 60% realized in FY2025.

• Capital expenditures forecasted at $40–$45 million; effective tax rate expected at 24.5%.

• Fiscal 2026 headwinds anticipated, especially in glass margins and higher insurance/incentive costs, but all segments expected within target margin ranges.