Apogee Enterprises, Inc. (Nasdaq: APOG) reported fiscal 2026 third‑quarter results on January 7 2026, with net sales of $348.6 million, up 2.1% from the same period a year earlier, and net earnings of $16.5 million, a 21.2% decline YoY. Adjusted EBITDA rose modestly to $46.1 million, or 13.2% of net sales, down from 13.4% in the prior year, reflecting a slight margin compression amid higher material costs and tariff impacts.
Revenue growth was driven largely by the $18.4 million in sales contributed by the recently acquired UW Solutions, while organic sales fell 3.3% to $330.2 million. The architectural metals segment saw a decline in net sales due to lower volume, but its adjusted EBITDA margin improved. Architectural services remained flat, and architectural glass experienced a marginal increase in sales but a decrease in margin. Performance surfaces, bolstered by the UW Solutions acquisition, grew significantly but its margin slipped as higher input costs weighed on the segment.
Margin compression was driven by a combination of higher aluminum prices, tariff‑related cost increases, and a rise in health‑insurance expenses. The company also incurred higher incentive‑compensation costs, partially offset by lower operating expenses from Project Fortify’s Phase 2 cost‑saving initiatives. These factors together reduced the adjusted EBITDA margin from 13.4% to 13.2% YoY.
Apogee maintained its full‑year net‑sales target of approximately $1.39 billion but lowered its adjusted diluted EPS guidance to $3.40–$3.50, down from the prior range of $4.90–$5.20. The downgrade reflects management’s concern about continued pricing pressure in the architectural glass and metals segments, higher material costs, and the impact of tariffs on the supply chain. The company also noted a modest $0.30 per share impact from tariffs in the current quarter, underscoring the sensitivity of its margins to trade policy.
Chief Financial Officer Matthew J. Osberg resigned effective January 16 2026, and Mark Augdahl was named interim CFO. CEO Donald Nolan said, “I am proud of our team’s disciplined execution and agility during this transition. Despite a challenging environment, we delivered results in line with expectations and remain focused on serving customers with innovative products and exceptional service.” He added, “I thank Matt for his contributions and wish him well.” Augdahl, a long‑time finance executive at Apogee, will oversee the company’s financial operations until a permanent CFO is appointed.
Market reaction was negative, with the stock falling between 10% and 16% in pre‑market trading. The decline was driven by the revenue miss against analyst consensus—$348.6 million versus estimates ranging from $350.06 million to $359.7 million—and the lowered full‑year EPS guidance, which fell below the consensus of $3.67. Investors reacted to the combination of weaker top‑line performance and a more cautious outlook for the remainder of the fiscal year.
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