Apogee Enterprises Inc (NASDAQ:APOG) stock rose 3.18% (As on January 8, 11:28:30 AM UTC-4, Source: Google Finance) though the company reported third-quarter results that fell short of analyst expectations and lowered its full-year outlook. The company’s adjusted EBITDA margin decreased to 13.2% from 13.4% in the same quarter last year, primarily due to lower volume and price, higher aluminum costs, and increased health insurance expenses, partially offset by lower incentive compensation. Architectural Metals, the company’s largest segment, saw a 9.9% decline in sales to $124.4 million due to lower volume. The Architectural Services segment’s backlog stood at $774.7 million at quarter-end, down from $792.3 million at the end of the second quarter. Apogee continues to implement its Project Fortify Phase 2 restructuring initiative, which is expected to deliver annual pre-tax cost savings of $25-$26 million. The company incurred $5.1 million in pre-tax costs associated with this initiative during the quarter. For the third quarter, net cash provided by operating activities was $29.3 million down slightly from $31 million in the third quarter of prior year.

APOG in the third quarter of FY26 has reported the adjusted earnings per share of $1.02, missing the analysts’ estimates for the adjusted earnings per share of $1.05. The company had reported the adjusted revenue growth of 2.1 percent to $348.6 million in the third quarter of FY26, missing the analysts’ estimates for revenue of $359.7 million. The revenue growth was primarily driven by the acquisition of UW Solutions, which contributed $18.4 million in sales, while organic revenue declined by 3.3%. Adjusted EBITDA margin decreased slightly to 13.2%, The year-over-year change was primarily driven by lower volume and price and higher aluminum and health insurance costs. These were partially offset by lower incentive compensation expense and benefits from the cost savings related to Fortify phase two.  Additionally, backlog for services ended the quarter at $775 million down slightly from Q2 but up over 4% compared to Q3 of last year. Glass net sales increased slightly to approximately $71 million primarily driven by increased volume and favorable mix. Partially offset by lower price driven by end market demand softness. Adjusted EBITDA margin moderated from last year primarily due to lower price and higher material costs.

Apogee also reduced its fiscal 2026 guidance, now expecting revenue of approximately $1.39 billion, down from previous estimates and below the analyst consensus of $1.41 billion. The company lowered its adjusted EPS forecast to $3.40-$3.50, compared to the consensus of $3.67.