Apogee Misses Earnings Estimates in Q3, Lowers FY26 EPS Outlook

Apogee Enterprises, Inc. APOG reported adjusted earnings per share (EPS) of $1.02 for third-quarter fiscal 2026, missing the Zacks Consensus Estimate of $1.03 per share. The bottom line decreased 14.3% from the prior-year quarter.

Including one-time items, the company reported EPS of 77 cents compared with the year-ago quarter's 96 cents.

Apogee generated revenues of $349 million in the quarter under review, up 2.1% year over year due to gains from the acquisition of UW Solutions and a favorable product mix. This was partially negated by lower volume. The top line missed the Zacks Consensus Estimate of $350 million.

APOG’s Q3 Margins Contract Y/Y

Cost of sales in the fiscal third quarter increased 5.3% year over year to $266 million. The gross profit fell 6.9% year over year to $82.9 million. The gross margin decreased to 23.8% from the prior-year quarter's 26.1%.

The selling, general and administrative expenses fell 4% year over year to $58 million. The operating income was $24.8 million in the quarter under review, marking a 13.1% plunge from the prior-year quarter’s $28.6 million.

Apogee’s Q3 Segmental Performance

In the fiscal third quarter, revenues in the Architectural Metals segment moved down 9.9% year over year to $124 million due to lower volumes. This was partially negated by a favorable price and product mix. The segment's adjusted EBITDA was $16.7 million compared with the year-ago quarter's $17.4 million.

Revenues in the Architectural Glass segment grew 0.9% year over year to $70.8 million due to higher volume. This was partially offset by lower prices. The segment's adjusted EBITDA was $11.5 million compared with $13 million in 2025.

Revenues in the Architectural Services segment improved 0.2% year over year to $105 million on improved volumes. The segment reported an adjusted EBITDA of $10 million, up 2% year over year.

Revenues in the Performance Surfaces segment rose 59.6% year over year to $52.9 million, reflecting the contributions from the UW Solutions acquisition. The segment reported an adjusted EBITDA of $11.9 million in the fiscal third quarter compared with the prior-year quarter's $7.8 million.

Apogee’s Backlog Dips in Q3

The Architectural Services segment's backlog came in at $775 million at the end of the fiscal third quarter compared with $792 million at the end of the prior quarter.

APOG’s Cash Position & Balance Sheet

Apogee had cash and cash equivalents of $41 million at the end of the third-quarter fiscal 2026, relatively flat compared with the end of fiscal 2025. Cash provided by operating activities totaled $67 million in the first nine months of the fiscal year compared with the prior-year quarter’s $95 million.

Long-term debt was $255 million at the end of the third quarter of fiscal 2026, lower than $285 million at the end of fiscal 2025.

Apogee’s FY26 Guidance

Apogee is revising its guidance for net revenues to $1.39 from the prior stated $1.39-$1.42 billion. Its updated adjusted EPS guidance is $3.40-$3.50 compared with the prior mentioned $3.60-$3.90. The updated guidance includes unfavorable headwinds of 30 cents from tariffs.

APOG’s Stock Price Performance

Shares of the company have lost 37.1% in the past year against the industry's growth of 18.9%.

Another Glass Stock’s Performance

O-I Glass, Inc. OI reported a third-quarter 2025 adjusted EPS of 48 cents, which beat the Zacks Consensus Estimate of 44 cents.

Revenues were $1.65 billion for the quarter under review, down 1.5% from the year-ago quarter. Gains from higher average selling prices and favorable currency translation were offset by lower sales volume. The top line beat the Zacks Consensus Estimate of $1.64 billion.

Apogee’s Zacks Rank & Stocks to Consider

Apogee currently has a Zacks Rank #4 (Sell).

Some better-ranked stocks from the Industrial Products sector are DNOW Inc. DNOW and Watts Water Technologies, Inc. WTS. These stocks carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

DNOW delivered an average trailing four-quarter earnings surprise of 43.5%. The Zacks Consensus Estimate for DNOW’s 2025 earnings is pinned at 81 cents per share, which indicates year-over-year dip of 10.1%. The company’s shares have gained 1.3% in a year.

Watts Water delivered an average trailing four-quarter earnings surprise of 10.9%. The Zacks Consensus Estimate for WTS’s 2025 earnings is pegged at $10.27 per share, which indicates year-over-year upsurge of 15.9%. WTS’s shares have gained 40.3% in a year.

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This article originally published on Zacks Investment Research (zacks.com).

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