Apogee Enterprises Reports Fiscal 2026 Third Quarter Results

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]