The following is a summary of the Apogee Enterprises, Inc. (APOG) Q3 2025 Earnings Call Transcript:

Financial Performance:

• Net sales were $341 million with $8.8 million of inorganic revenue from UW Solutions.

• Adjusted operating margin declined 70 basis points, driven by unfavorable sales leverage from lower volume, a less favorable product mix, and higher incentive compensation and lease expense.

• Adjusted diluted EPS was down 3%, primarily driven by lower adjusted operating income.

Business Progress:

• Closed the acquisition of UW Solutions, actively integrating and leveraging shared capabilities to drive growth.

• Strengthened the operational foundation and diversified sales mix toward sectors with higher growth rates.

• Continued to execute projects in Services segment with positive margin results.

Opportunities:

• Sees growth opportunities in institutional projects like healthcare and education, which now form the largest share of backlog.

• UW Solutions acquisition helping to expand into higher growth areas with better margins, such as industrial flooring, providing exposure to renovations and new distribution centers.

Risks:

• Soft end market demand in non-residential construction impacting volume, particularly in glass and framing segments.

• Internal forecasts suggest continued pressure in these sectors through the first half of the next fiscal year.

More details: Apogee Enterprises IR

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