Apogee Enterprises (APOG) Q4 2025 earnings summary

Executive summary

• Achieved record full-year adjusted EPS of $4.97, up 4.2% year-over-year, and improved adjusted operating margin to 11.0%, capping a multi-year transformation focused on operational execution, cost management, and portfolio optimization.

• Net sales declined 3.9% to $1.36 billion, primarily due to lower volumes in Glass and Metals and the absence of a 53rd week, partially offset by the UW Solutions acquisition.

• Strategic execution included the acquisition and integration of UW Solutions, which contributed $32 million in sales for the year and is expected to drive future growth and diversification.

• All segments operated within or above their long-term target margin ranges, with sustained adjusted ROIC above 12%.

• Project Fortify Phase 1 completed with $16.7 million in charges and $14 million in expected annualized savings; Phase 2 announced with $24–$26 million in charges and $13–$15 million in expected annualized savings.

Financial highlights

• Q4 net sales declined 4.5% year-over-year to $346 million, with adjusted operating income of $28.7 million, down 16.3%.

• Full-year adjusted operating income rose 2.4% to $149.8 million; adjusted EBITDA increased 4.0% to $192.7 million, with a margin of 14.2%.

• Adjusted operating margin for the year improved 70 bps to 11.0%; adjusted diluted EPS grew 4.2% to a record $4.97.

• Generated $125 million in operating cash flow and $89.6 million in free cash flow; returned $67 million to shareholders via dividends and buybacks.

• Consolidated leverage ratio at 1.3x, with no near-term debt maturities and strong liquidity.

Outlook and guidance

• Fiscal 2026 guidance: net sales of $1.37–$1.43 billion and adjusted diluted EPS of $3.55–$4.10, including a $0.45–$0.55 EPS headwind from tariffs, mostly in the first half.

• UW Solutions expected to contribute ~$100 million in net sales at ~20% EBITDA margin in FY26.

• Project Fortify Phase 2 to deliver $13–$15 million in annualized pre-tax cost savings, with $24–$26 million in restructuring charges.

• CapEx planned at $35–$40 million; interest expense projected at $14.5–$15.5 million; effective tax rate ~24.5%.

• Operating cash flow expected to decline in Fiscal 2026 due to arbitration payment, lower EBITDA, and higher interest expense.