Apogee Enterprises, Inc. (NASDAQ:APOG) saw its shares drop sharply on Wednesday after the company reported third-quarter results that missed market expectations and trimmed its full-year guidance.
The architectural products group’s stock sank by more than 10% in pre-market trading following the announcement.
For the third quarter of fiscal 2026, Apogee posted adjusted earnings per share of $1.02, falling short of the $1.05 analysts had forecast. Revenue totaled $348.6 million, representing a 2.1% year-on-year increase but coming in below the consensus estimate of $359.7 million. The increase in sales was largely driven by the acquisition of UW Solutions, which added $18.4 million in revenue, while organic sales declined by 3.3%.
The company also revised down its full-year outlook. Apogee now expects fiscal 2026 revenue of around $1.39 billion, below both its prior guidance and the analyst consensus of $1.41 billion. Adjusted earnings per share are now projected in a range of $3.40 to $3.50, compared with market expectations of $3.67.
Commenting on the results, Executive Chair and CEO Donald Nolan said: “I’m proud of our team’s disciplined execution and agility during this transition. Despite a challenging environment, we delivered results in line with expectations and remain focused on serving customers with innovative products and exceptional service.”
Profitability also came under pressure during the quarter. Adjusted EBITDA margin slipped to 13.2%, down from 13.4% a year earlier, reflecting lower volumes and pricing, higher aluminum costs, and increased health insurance expenses. These factors were partly offset by lower incentive compensation.
Performance varied across segments. Architectural Metals, Apogee’s largest division, reported a 9.9% drop in sales to $124.4 million due to weaker volumes. Meanwhile, the backlog in the Architectural Services segment declined to $774.7 million at the end of the quarter, from $792.3 million at the close of the second quarter.
Apogee said it continues to roll out its Project Fortify Phase 2 restructuring program, which is expected to generate annual pre-tax cost savings of $25 million to $26 million. During the quarter, the company recorded $5.1 million in pre-tax costs related to the initiative.