Financial Data and Key Metrics Changes - Net sales increased by 2.1% to $348.6 million, driven by $18.4 million in inorganic sales from the acquisition of UW Solutions and favorable product mix, partially offset by lower volume in metals [10] - Adjusted EBITDA margin decreased slightly to 13.2%, primarily due to lower volume and price, as well as higher aluminum and health insurance costs [10] - Adjusted diluted EPS was $1.02, down year-over-year, mainly due to higher amortization and interest expense from the UW Solutions acquisition [11] Business Line Data and Key Metrics Changes - Metals segment net sales declined due to lower volume, but adjusted EBITDA margin improved to 13.5% driven by increased productivity and cost savings from Fortify Phase Two [11] - Services segment achieved its seventh consecutive quarter of year-over-year net sales growth, with adjusted EBITDA margin increasing to 9.7% due to lower incentive compensation expense [11] - Glass segment net sales increased slightly to approximately $71 million, driven by increased volume and favorable mix, though adjusted EBITDA margin moderated due to lower price and higher material costs [12] Market Data and Key Metrics Changes - Average aluminum prices rose approximately 13% from Q2 to Q3 and are up over 50% compared to the same quarter last year, impacting volume and margin [15] - Backlog for services ended the quarter at $775 million, down slightly from Q2 but up over 4% compared to Q3 of last year [11] Company Strategy and Development Direction - The company aims to become the economic leader in target markets, manage its portfolio through creative M&A opportunities, and strengthen core operations for sustained profitable growth [8][19] - The acquisition of UW Solutions is expected to expand market reach and provide a platform for growth in fiscal 2027 and beyond [7] Management's Comments on Operating Environment and Future Outlook - Management acknowledges challenging macroeconomic factors but believes the company is well-positioned due to operational excellence, cost-out execution, and a strong balance sheet [8] - The company expects continued pressure from competitive market dynamics in both Metals and Glass segments, with margin compression anticipated to persist into fiscal 2027 [15] Other Important Information - The company is expanding the scope of Project Fortify Phase Two to include further restructuring actions, primarily in Metals and corporate, with expected pre-tax charges of approximately $28-$29 million and annual pre-tax cost savings of $25-$26 million [16] Q&A Session Summary Question: What is the board looking for in new leadership and any changes in strategic direction? - No change in strategy; focus remains on becoming the economic leader, managing the portfolio, and pursuing accretive M&A opportunities [19] Question: How is the company addressing the impact of rising aluminum prices? - Rising aluminum prices are impacting margins, and the company is focused on managing costs and implementing strategies to control expenses [27] Question: What is the company's approach to M&A activity moving forward? - The M&A pipeline is robust, with successful integration of UW Solutions and ongoing efforts to identify strategic acquisitions [36] Question: How does the company view its growth trajectory and ROIC metrics? - The strategy remains unchanged, with a focus on becoming the economic leader and managing the portfolio for growth opportunities [61] Question: What are the near-term priorities for the company? - Delivering results and focusing on Project Fortify Phase Two and the Apogee Management System to drive cost structure improvements [63][64]

Financial Data and Key Metrics Changes - Net sales increased by 2.1% to $348.6 million, driven by $18.4 million in inorganic sales from the acquisition of UW Solutions and favorable product mix, partially offset by lower volume primarily in metals [10] - Adjusted EBITDA margin decreased slightly to 13.2%, impacted by lower volume and price, as well as higher aluminum and health insurance costs [10] - Adjusted diluted EPS was $1.02, down year-over-year due to higher amortization and interest expense from the UW Solutions acquisition [11] Business Line Data and Key Metrics Changes - Metals segment net sales declined due to lower volume, but adjusted EBITDA margin improved to 13.5% driven by increased productivity and cost savings from Fortify Phase Two [11] - Services segment achieved its seventh consecutive quarter of year-over-year net sales growth, with adjusted EBITDA margin increasing to 9.7% due to lower incentive compensation expense [11] - Glass segment net sales increased slightly to approximately $71 million, driven by increased volume and favorable mix, though adjusted EBITDA margin moderated due to lower price and higher material costs [12] Market Data and Key Metrics Changes - Average aluminum prices rose approximately 13% from Q2 to Q3 and are up over 50% compared to the same quarter last year, impacting volume and margin [14] - Backlog for services ended the quarter at $775 million, down slightly from Q2 but up over 4% compared to Q3 of last year [11] Company Strategy and Development Direction - The company aims to become the economic leader in target markets with differentiated offerings and competitive cost structures, while also managing its portfolio through creative M&A opportunities [8] - The acquisition of UW Solutions is expected to contribute to market and geographical expansion, with fiscal 2026 expectations of $100 million in net sales and approximately 20% adjusted EBITDA margin [6] - The company is focused on operational excellence through the Apogee Management System (AMS) to drive productivity improvements and cost savings [7] Management's Comments on Operating Environment and Future Outlook - Management acknowledges challenging macroeconomic factors but believes the company is well-positioned due to operational excellence, cost-out execution, and a strong balance sheet [7] - The outlook for fiscal 2026 has been updated to expect net sales of approximately $1.39 billion and adjusted diluted EPS in the range of $3.40-$3.50, factoring in tariff impacts and cost headwinds [13] - Management anticipates continued margin pressure in the Metals and Glass segments due to competitive market dynamics and rising aluminum prices [14] Other Important Information - The company is expanding the scope of Project Fortify Phase Two to include further restructuring actions, primarily in Metals and corporate, to manage near-term headwinds [15] - The balance sheet remains strong with a consolidated leverage ratio of 1.4 times and no near-term debt maturities [13] Q&A Session Summary Question: What is the board looking for in new leadership? - The company is seeking someone with deep growth and operational excellence experience, particularly in M&A integration, with no change in strategic direction [18][19] Question: How is the updated outlook impacted by aluminum prices? - The primary issue is the continued increase in aluminum prices, which has led to margin pressures in both Metals and Glass segments [20][25] Question: What is the company's stance on M&A activity? - The M&A pipeline is robust, with successful integration of UW Solutions and ongoing efforts to identify new opportunities for growth [32][34] Question: How does the company view pricing discipline in the current market? - The company is focused on maximizing EBITDA dollar contribution while managing costs and maintaining pricing discipline in a competitive environment [40][41] Question: What are the near-term priorities for the company? - Key priorities include delivering results for the current year, expanding Project Fortify, and leveraging AMS for cost structure improvements [59][60]

Financial Performance - Q3 FY26 - Net sales increased by 2.1% year-over-year (YoY) to $348.6 million[12, 13] - Adjusted EBITDA increased by 0.7% YoY to $46.1 million[12, 13] - Adjusted EBITDA margin decreased by 20 basis points (bps) YoY to 13.2%[12, 13] - Adjusted diluted EPS decreased by 14.3% YoY to $1.02[12, 13] Segment Performance - Q3 FY26 - Architectural Metals net sales decreased by 9.9% YoY to $124.4 million[23] - Architectural Services net sales increased by 0.2% YoY to $105.2 million[23] - Architectural Glass net sales increased by 0.9% YoY to $70.9 million[23] - Performance Surfaces net sales increased by 59.6% YoY to $53.0 million[23] Cash Flow and Debt - Free cash flow for the nine months ended November 29, 2025, was $48.3 million, compared to $70.4 million for the same period in the previous year[27] - Total debt as of November 29, 2025, was $255.0 million, down from $285.0 million as of March 1, 2025[27] FY26 Outlook - The company updated its full-year FY26 net sales outlook to approximately $1.39 billion (previously $1.39 billion - $1.42 billion)[41] - The company updated its full-year FY26 adjusted diluted EPS outlook to $3.40 - $3.50 (previously $3.60 - $3.90)[41] - Tariffs are estimated to reduce full-year adjusted diluted EPS by $0.30[45]

Core Viewpoint - Premarket trading is showing significant activity with notable price movements indicating potential investment opportunities before the market opens [1] Premarket Gainers - Ventyx Biosciences, Inc. (VTYX) increased by 57% to $15.79 [3] - Cardio Diagnostics Holdings, Inc. (CDIO) rose by 36% to $4.02 [3] - Monte Rosa Therapeutics, Inc. (GLUE) saw a 28% increase to $20.54 [3] - Momentus Inc. (MNTS) gained 27% reaching $12.50 [3] - BioAge Labs, Inc. (BIOA) went up by 13% to $17.50 [3] - Neumora Therapeutics, Inc. (NMRA) increased by 11% to $2.03 [3] - Mobileye Global Inc. (MBLY) rose by 10% to $13.45 [3] - Society Pass Incorporated (SOPA) increased by 10% to $3.47 [3] - SU Group Holdings Limited (SUGP) saw an 8% rise to $6.32 [3] - Critical Metals Corp. (CRML) gained 7% reaching $12.73 [3] Premarket Losers - Evolution Metals & Technologies Corp. (EMAT) decreased by 28% to $15.20 [4] - Ascent Solar Technologies, Inc. (ASTI) fell by 12% to $4.65 [4] - Apogee Enterprises, Inc. (APOG) saw a 10% decline to $33.30 [4] - Next Technology Holding Inc. (NXTT) dropped by 8% to $8.49 [4] - AST SpaceMobile, Inc. (ASTS) decreased by 7% to $90.45 [4] - Nomadar Corp. (NOMA) fell by 7% to $3.66 [4] - EZGO Technologies Ltd. (EZGO) decreased by 7% to $1.99 [4] - Cohen & Company Inc. (COHN) saw a 6% decline to $28.30 [4] - PMGC Holdings Inc. (ELAB) dropped by 4% to $5.34 [4] - Anghami Inc. (ANGH) decreased by 3% to $4.49 [4]

Financial Performance - Net sales for Q3 fiscal 2026 increased by 2.1% to $348.6 million compared to $341.3 million in Q3 fiscal 2025[4] - Net earnings decreased by 21.2% to $16.5 million, with diluted earnings per share down 19.8% to $0.77[4] - Operating income declined to $24.9 million, with an operating margin of 7.1%, down from 8.4%[8] - Gross profit decreased by 6.9% to $82,992,000 for the three months ended November 29, 2025, down from $89,149,000 in the prior year[24] - Operating income fell by 13.1% to $24,879,000 for the three months ended November 29, 2025, compared to $28,629,000 in 2024[24] - Net earnings for the three months ended November 29, 2025, were $16,549,000, a decline of 21.2% from $20,989,000 in the same period last year[24] - For the nine months ended November 29, 2025, consolidated net earnings were $37,511, a decrease from $82,566 for the same period in 2024, representing a decline of 54.5%[42] - Diluted earnings per share for the nine months ended November 29, 2025, were $1.74, down from $3.76 in the same period of 2024, a decline of 53.8%[46] Segment Performance - Architectural Metals segment net sales were $124.4 million, down from $138.0 million, with adjusted EBITDA margin improving to 13.5%[5] - Architectural Services segment net sales increased to $105.2 million, with a backlog of $774.7 million at the end of the quarter[6] - Performance Surfaces segment net sales rose to $53.0 million, including $18.4 million from the acquisition of UW Solutions[10] - Performance Surfaces segment saw a significant growth of 59.6% in net sales for the three months ended November 29, 2025, reaching $52,980,000 compared to $33,196,000 in the prior year[34] - The Architectural Glass segment experienced a 12.5% decrease in adjusted EBITDA for the three months ended November 29, 2025, totaling $11,534,000 compared to $13,180,000 in the previous year[34] - The Corporate and Other segment reported an adjusted EBITDA loss of $(4,272,000) for the three months ended November 29, 2025[34] - The Architectural Services segment achieved a 2.0% increase in adjusted EBITDA for the three months ended November 29, 2025, totaling $10,198,000 compared to $9,994,000 in the prior year[34] Financial Outlook - The company expects fiscal 2026 net sales to be approximately $1.39 billion, with diluted EPS projected between $2.49 and $2.65[14] - The fiscal 2026 outlook estimates diluted earnings per share to be between $2.49 and $2.65, with adjusted diluted earnings per share projected between $3.40 and $3.50[50] - Acquisition-related costs for fiscal 2026 are estimated to be between $0.09 and $0.12 per share[50] Cost Management and Restructuring - Project Fortify Phase 2 is expected to incur pre-tax charges of $28 million to $29 million, aiming for annualized cost savings of $25 million to $26 million[13] - The restructuring costs related to Project Fortify are expected to continue into fiscal year 2026, with Phase 2 costs anticipated[43] - The company reported restructuring costs of $23,554 for the nine months ended November 29, 2025, significantly higher than $3,213 for the same period in 2024[46] Cash Flow and Capital Expenditures - Net cash provided by operating activities for the nine months ended November 29, 2025, was $66,622,000, down from $95,130,000 in the prior year[28] - Capital expenditures for the nine months ended November 29, 2025, were $18,315,000, compared to $24,696,000 in the same period last year[28] Other Financial Metrics - Adjusted EBITDA increased to $46.1 million, with an adjusted EBITDA margin of 13.2%, down from 13.4%[4] - Adjusted EBITDA for the three months ended November 29, 2025, was $46,131,000, a slight increase of 0.7% from $45,803,000 in the same period last year[34] - Adjusted EBITDA for the nine months ended November 29, 2025, was $124,883, compared to $151,547 for the same period in 2024, reflecting a decrease of 17.6%[42] - The EBITDA margin for the nine months ended November 29, 2025, was 9.8%, down from 14.1% in the same period of 2024[42] Debt and Interest - Interest expense increased to $3.2 million due to a higher average debt balance from the acquisition of UW Solutions[8] Acquisition Impact - The acquisition of UW Solutions was completed on November 4, 2024, contributing to net sales growth in the Performance Surfaces segment[31] - The company plans to integrate the UW Solutions acquisition, which has incurred one-time expenses reflected in the financials[46] - The company incurred a gain of $6,740 related to the settlement of a New Market Tax Credit transaction in the nine months ended November 29, 2025[42]

Core Insights - Apogee Enterprises, Inc. reported a net sales increase of 2.1% to $348.6 million for the third quarter of fiscal 2026, driven by an $18.4 million inorganic sales contribution from the acquisition of UW Solutions and a favorable product mix, despite lower volume [1][9] - Net earnings decreased by 21.2% to $16.5 million, with diluted earnings per share dropping 19.8% to $0.77 [1][20] - The company is focused on cost efficiencies through Project Fortify Phase 2, expecting annualized pre-tax cost savings of approximately $25 million to $26 million [11] Financial Results - Net sales for the third quarter were $348,563,000, compared to $341,344,000 in the same quarter last year, reflecting a 2.1% increase [1] - Net earnings were $16,549,000, down from $20,989,000, marking a 21.2% decline [1] - Diluted earnings per share decreased to $0.77 from $0.96, a 19.8% drop [1] - Adjusted EBITDA increased slightly to $46,131,000 from $45,803,000, with an adjusted EBITDA margin of 13.2%, down from 13.4% [1][9] Segment Performance - **Architectural Metals**: Net sales decreased to $124.4 million from $138.0 million, with adjusted EBITDA of $16.8 million, reflecting a margin increase to 13.5% [4] - **Architectural Services**: Net sales increased to $105.2 million from $104.9 million, with adjusted EBITDA of $10.2 million and a margin increase to 9.7% [5] - **Architectural Glass**: Net sales rose to $70.9 million from $70.2 million, but adjusted EBITDA decreased to $11.5 million, with a margin drop to 16.3% [6] - **Performance Surfaces**: Net sales surged to $53.0 million from $33.2 million, with adjusted EBITDA of $11.9 million, though the margin decreased to 22.5% [7] Financial Condition - Net cash provided by operating activities was $29.3 million, down from $31.0 million in the prior-year period [8] - Year-to-date net cash provided by operating activities totaled $66.6 million, compared to $95.1 million in the prior-year period [8] - Long-term debt decreased by $15 million to $255 million, resulting in a consolidated leverage ratio of 1.4x [10] Outlook - The company expects net sales for fiscal 2026 to be approximately $1.39 billion, with diluted EPS projected in the range of $2.49 to $2.65 [13] - An unfavorable EPS impact from tariffs is projected to be around $0.30 [13] - Capital expenditures are anticipated to be between $25 million to $30 million [13]

Core Viewpoint - Apogee Enterprises, Inc. announced the resignation of Chief Financial Officer Matthew J. Osberg, who will leave to pursue another professional opportunity but will remain until January 16, 2026, for a smooth transition [1] Company Changes - Matthew J. Osberg is resigning as CFO to pursue another opportunity [1] - Mark Augdahl has been appointed as interim Chief Financial Officer effective immediately [1] - Mark Augdahl is described as a finance veteran within Apogee [1]

Core Insights - Crude Value Insights provides an investment service and community focused on the oil and natural gas sectors, emphasizing cash flow and the companies that generate it, which leads to value and growth prospects with real potential [1] Group 1 - The service offers subscribers access to a 50+ stock model account, which includes in-depth cash flow analyses of exploration and production (E&P) firms [1] - Subscribers can participate in live chat discussions about the sector, enhancing community engagement and knowledge sharing [1]

Earnings Report - Apogee Enterprises, Inc. is set to release its third-quarter earnings results on January 7, 2026, before the market opens [1] - Analysts predict earnings of $1.01 per share, a decrease from $1.19 per share in the same quarter last year [1] - Revenue is expected to reach $355.29 million, an increase from $341.34 million year-over-year [1] Analyst Upgrade - DA Davidson analyst Brent Thielman upgraded Apogee Enterprises from Neutral to Buy, setting a price target of $47 [2] - The company currently offers an annual dividend yield of 2.74%, translating to a quarterly dividend of 26 cents per share, or $1.04 annually [2] Dividend Strategy - To generate $500 monthly or $6,000 annually from dividends, an investment of approximately $218,991 or around 5,769 shares is required [2] - For a more modest income of $100 monthly or $1,200 annually, an investment of $43,806 or about 1,154 shares is necessary [2] Dividend Yield Calculation - The dividend yield is calculated by dividing the annual dividend payment by the stock's current price [3] - Changes in stock price affect the dividend yield; for instance, if the stock price increases, the yield decreases, and vice versa [3][4] Stock Performance - Shares of Apogee Enterprises increased by 0.9%, closing at $37.96 [4]

Core Insights - Apogee Enterprises is set to release its third-quarter earnings on January 7, 2026, with expected earnings of $1.01 per share, a decrease from $1.19 per share in the same period last year. Revenue is anticipated to rise to $355.29 million from $341.34 million year-over-year [1] Group 1: Earnings Expectations - Analysts predict a quarterly earnings report of $1.01 per share for Apogee Enterprises, down from $1.19 per share in the previous year [1] - Revenue is expected to increase to $355.29 million, compared to $341.34 million a year earlier [1] Group 2: Analyst Upgrade and Price Target - DA Davidson analyst Brent Thielman upgraded Apogee Enterprises from Neutral to Buy, setting a price target of $47 [2] - The company currently offers an annual dividend yield of 2.74%, translating to a quarterly dividend of 26 cents per share, or $1.04 annually [2] Group 3: Dividend Yield Calculations - To achieve a monthly income of $500 from dividends, an investment of approximately $218,991 or around 5,769 shares is required. For a more modest goal of $100 per month, an investment of $43,806 or about 1,154 shares is necessary [2] - The dividend yield is calculated by dividing the annual dividend payment by the stock's current price, which can fluctuate based on stock price changes [3] Group 4: Impact of Dividend Changes - Changes in dividend payments can affect the yield; an increase in dividends raises the yield if the stock price remains constant, while a decrease lowers it [4] - Apogee Enterprises' shares rose by 0.9% to close at $37.96 [4]