Apogee Enterprises (APOG) Q3 2025 earnings summary

Executive summary

• Net sales for Q3 FY2025 were $341.3 million, up 0.5% year-over-year, driven by the UW Solutions acquisition and favorable project mix in Architectural Services, offset by lower volumes in other segments.

• Adjusted operating margin declined 70 bps year-over-year to 10.4%, remaining above the 10% target; diluted EPS was $0.96, down 22%, and adjusted diluted EPS was $1.19, down 3.3%.

• Completed the $242 million acquisition of UW Solutions, funded by a $250 million term loan, expanding the LSO segment and contributing to sales and future positioning.

• Maintained a strong financial position and healthy cash flow despite market softness, with ongoing focus on productivity, cost management, and shifting sales mix toward higher-growth institutional verticals.

Financial highlights

• Q3 FY2025 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), down 5.9% YoY; adjusted EBITDA: $45.8 million (13.4% margin), down 3.1% YoY.

• Adjusted diluted EPS: $1.19, down 3.3% YoY; year-to-date: $4.08, up 12.1% YoY.

• Cash from operations was $31 million for the quarter, $95.1 million year-to-date; free cash flow for nine months: $70.4 million.

Outlook and guidance

• FY2025 net sales expected to decline ~5%, including a $30 million contribution from UW Solutions; previous guidance was -4% to -7%.

• 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 restructuring 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%.