Apogee Enterprises (APOG) Q3 2026 earnings summary

Executive summary

• Net sales rose 2.1% year-over-year to $348.6 million, driven by the UW Solutions acquisition and favorable product mix, partially offset by lower volume.

• Adjusted EBITDA margin was 13.2%, slightly down from last year; adjusted diluted EPS was $1.02, down 14.3% year-over-year, mainly due to higher amortization and interest from the UW Solutions acquisition.

• Operating income declined 13.1% to $24.9 million, and net earnings fell 21.2% to $16.5 million.

• CEO transition and Project Fortify Phase 2 restructuring impacted results.

• Focus remains on operational excellence, disciplined execution, and value creation for stakeholders.

Financial highlights

• Net sales for Q3 FY2026 were $348.6 million, up 2.1% year-over-year, with growth driven by the UW Solutions acquisition and organic initiatives.

• Adjusted EBITDA was $46.1 million, up 0.7% year-over-year, with a margin of 13.2% (down 20 bps year-over-year).

• Adjusted diluted EPS was $1.02, down year-over-year, primarily due to higher amortization and interest expense from the UW Solutions acquisition.

• Net cash from operating activities was $29.3 million for Q3, with year-to-date cash from operations at $66.6 million.

• Gross margin decreased to 23.8% from 26.1%, mainly due to lower volume, price, and higher aluminum, restructuring, and health insurance costs.

Outlook and guidance

• Fiscal 2026 net sales expected to be approximately $1.39 billion; adjusted diluted EPS forecasted at $3.40–$3.50, including a $0.30 EPS headwind from tariffs.

• Capital expenditures projected between $25 million and $30 million; adjusted effective tax rate assumed at 27%.

• Project Fortify Phase 2 expanded to offset cost headwinds, with $28–$29 million in pre-tax charges and $25–$26 million in annual pre-tax cost savings expected.

• Tariff impact on EPS estimated at $0.30 for fiscal 2026, not expected to repeat in fiscal 2027.

• Anticipates continued margin and volume pressure in Metals and Glass due to competitive dynamics and rising aluminum prices into Q4 and fiscal 2027.