Apogee Enterprises Reports Q3 Financial Results with Increased Sales but Declining Profitability

Apogee Enterprises, Inc. reported its financial results for the third quarter and nine months ended November 29, 2025, revealing a modest increase in net sales but a significant decline in profitability compared to the previous fiscal period. The company achieved net sales of $348.6 million for the third quarter, a 2.1% increase from $341.3 million in the same quarter last year. For the nine-month period, net sales rose 3.8% to $1.05 billion, up from $1.02 billion. However, net earnings fell to $16.5 million, or $0.77 per diluted share, down from $21.0 million, or $0.96 per diluted share, in the prior year’s third quarter. For the nine months, net earnings decreased to $37.5 million from $82.6 million.

The decline in profitability was attributed to several factors, including increased costs associated with higher aluminum prices, restructuring expenses, and health insurance costs. Gross profit margins also contracted, with gross profit for the third quarter at $83.0 million, representing 23.8% of net sales, down from 26.1% in the prior year. Selling, general, and administrative expenses decreased slightly as a percentage of sales, reflecting lower acquisition-related costs, but overall expenses increased due to higher amortization and stock-based compensation related to the transition of the CEO.

Strategically, Apogee has been focusing on integrating its recent acquisition of UW Solutions, which contributed $18.4 million to net sales in the third quarter. The acquisition, completed in November 2024, is expected to enhance Apogee's capabilities in high-performance coated substrates. The company is also undergoing a restructuring initiative known as Project Fortify, aimed at streamlining operations and reducing costs, with an expected annualized savings of approximately $25 million to $26 million. The first phase of this project has been completed, and a second phase is underway.

Operationally, Apogee's Architectural Metals segment saw a 9.9% decline in net sales, while the Architectural Services segment reported a slight increase of 0.2%. The Performance Surfaces segment experienced significant growth, with net sales increasing by 59.6%, largely due to the acquisition of UW Solutions. The Architectural Glass segment's sales remained relatively stable, with a slight increase of 0.9%. The company reported a backlog of approximately $774.7 million in its Architectural Services segment, indicating a strong pipeline of future revenue.

Looking ahead, Apogee anticipates continued challenges due to market conditions and cost pressures but remains optimistic about the long-term benefits of its strategic initiatives and acquisitions. The company is committed to enhancing operational efficiencies and leveraging its expanded product offerings to drive future growth.