Executive Summary

Q4 FY25 revenue of $345.7M and adjusted EPS of $0.89 modestly beat S&P Global consensus ($331.8M revenue, $0.87 EPS). GAAP EPS was $0.11 due to one-time items (arbitration charge and impairment), masking underlying performance strength in Services and steady Glass profitability . Consensus values marked with asterisks are from S&P Global.
Segment picture: Services grew 10.9% with 7.2% adjusted operating margin; Metals fell 19.4% on operational disruption and a $7.6M intangible impairment; Glass declined 21.9% on volume but held a 14.6% operating margin; Performance Surfaces rose 76.7% on UW Solutions (inorganic) .
FY26 guide widened: net sales $1.37–$1.43B, diluted EPS $2.54–$3.19, adjusted EPS $3.55–$4.10, including a $0.45–$0.55 tariff headwind concentrated in 1H; management expects sharper Y/Y EPS declines in Q1–Q2 before mitigation actions take hold .
Cash/returns/liquidity: Q4 cash from operations $30.0M; leverage 1.3x on $285M long-term debt; $35.8M returned in Q4 (repurchases and dividends); dividend declared at $0.26 payable May 28, 2025 .
Near-term stock catalysts: tariff mitigation progress and Metals recovery (post standardization launch), delivery of Project Fortify Phase 2 savings ($13–$15M annualized), and UW integration performance .

What Went Well and What Went Wrong

What Went Well

Services outperformed: Sales +10.9% with adjusted operating margin 7.2% as mix improved; team accelerated some project flow (≈$10M pull-in), ending backlog at $720.3M. “Services segment continued to deliver strong top line growth...fourth consecutive quarter of double-digit sales growth” .
UW Solutions performed as modeled: Contributed $23M revenue and >22% adjusted EBITDA margin in Q4; integration “substantially complete” with synergy progress ahead of plan .
Sustained structural profitability: Despite soft demand, full-year adjusted operating margin reached 11.0% and record adjusted EPS of $4.97, reflecting strategy execution and cost discipline .

What Went Wrong

Metals operational disruption: Launching standardized entrance systems across multiple facilities drove production delays and higher freight/labor; Q4 Metals adjusted operating margin fell to 2.8%, with a $7.6M intangible impairment .
One-time arbitration expense: A $9.4M charge (and $24.7M cash paid on April 7) reduced Q4 gross margin to 21.6% and depressed GAAP EPS to $0.11 .
Tariff/macro headwinds: Management quantified a $0.45–$0.55 EPS headwind in FY26 (front-half weighted), driven by Section 232 aluminum and indirect input inflation; mitigation includes footprint moves (closing Toronto manufacturing) and pricing actions .

Financial Results

Consolidated performance vs prior quarter, prior year, and estimates

Metric	Q2 FY25	Q3 FY25	Q4 FY25	Q4 FY25 Consensus
Revenue ($USD Millions)	$342.4	$341.3	$345.7	$331.8*
Diluted EPS (GAAP)	$1.40	$0.96	$0.11	—
Adjusted EPS	$1.44	$1.19	$0.89	$0.87*
Gross Margin %	28.4%	26.1%	21.6%	—
Operating Margin % (GAAP)	12.3%	8.4%	1.8%	—
Adjusted Operating Margin %	12.6%	10.4%	8.3%	—

Notes: Consensus metrics marked with asterisks are from S&P Global, see disclaimer below.

Q4 FY25 vs Q4 FY24 (YoY):

Revenue declined 4.5% (prior year had a 53rd week negative compare of 7.9%) .
GAAP EPS fell to $0.11 from $0.71 on arbitration and impairment; adjusted EPS fell to $0.89 from $1.14 .

Segment breakdown – Q4 FY25 vs Q4 FY24

Segment	Net Sales Q4 FY24 ($M)	Net Sales Q4 FY25 ($M)	Operating Inc Q4 FY24 ($M)	Operating Inc Q4 FY25 ($M)	Adjusted Op Margin Q4 FY24	Adjusted Op Margin Q4 FY25
Architectural Metals	$139.2	$112.1	$6.8	$(5.7)	9.2%	2.8%
Architectural Services	$106.3	$117.9	$3.6	$8.6	5.8%	7.2%
Architectural Glass	$96.2	$75.2	$18.9	$11.0	19.7%	14.6%
Performance Surfaces	$27.1	$47.9	$6.9	$6.1	25.6%	19.5%
Intersegment Eliminations	$(6.9)	$(7.4)	—	—	—	—
Total	$361.8	$345.7	$21.9	$6.1	9.5%	8.3%

Drivers:

Metals: lower volume/mix, productivity drag from standardized product launch; impairment and restructuring .
Services: higher volume/mix; some schedule pull-forward .
Glass: lower volume; margin remained within 10–15% long-term range .
Performance Surfaces: UW Solutions drove sales; margins diluted by lower-margin mix from UW .

KPIs and cash/capital

KPI	Q4 FY25	FY25
Cash from Operations	$30.0M	$125.2M
Capital Expenditure	—	$35.6M
Long-term Debt	$285.0M	$285.0M
Consolidated Leverage Ratio	1.3x	1.3x
Services Backlog (quarter-end)	$720.3M	—
Adjusted EBITDA	$41.1M	$192.7M
Shareholder Returns	$35.8M in Q4 (buybacks + dividends)	$67.1M

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Sales	FY26	N/A	$1.37B–$1.43B	New
Diluted EPS	FY26	N/A	$2.54–$3.19	New
Adjusted Diluted EPS	FY26	N/A	$3.55–$4.10	New
Tariff EPS impact	FY26	N/A	$(0.45)–$(0.55) (mostly 1H)	New
Interest Expense	FY26	N/A	$14.5M–$15.5M	New
Effective Tax Rate	FY26	N/A	~24.5%	New
Capital Expenditures	FY26	N/A	$35M–$40M	New
UW Solutions Contribution	FY26	N/A	≈$100M revenue; ~20% adj EBITDA	New
EPS cadence	FY26	N/A	Larger Y/Y declines in Q1–Q2; sequential improvement 2H as mitigation takes effect	New
Project Fortify Phase 2	FY26	N/A	$24–$26M pre-tax charges; $13–$15M annualized savings; ~75% charges in Q1; ~75% savings realized in FY26	New
Dividend	—	$0.25 (prior year quarterly)	$0.26 declared; payable May 28, 2025	Raised vs prior year

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q4 FY25)	Trend
Tariffs & mitigation	Early monitoring; no quantified impact; FY26 headwinds anticipated	Quantified $(0.45)–$(0.55) EPS headwind; direct (Canada/US flows) and indirect (aluminum billet, paint/chemicals); footprint actions incl. closing Toronto site; price/mix mitigation	Worsening near term; mitigation underway
Nonresidential market	ABI weak; softness in Framing/Glass; institutional verticals stronger	Continued softness in office/commercial; education/healthcare/transportation pockets of growth; cautious outlook	Largely unchanged/slightly softer
Metals operations	Q2: executing Fortify; margins within 10–15% despite volume; Q3: margins moderated on mix	Q4 disruption during standardized product rollout; productivity/margins hit; recovery plan in motion	Deteriorated in Q4; expected recovery
Glass profitability	Record margins in 1H; guided moderation to top half of 10–15%; high variable contribution	Q4 margin 14.6% despite volume pressure; FY26 expected within 10–15%	Moderating to range; resilient structure
Services backlog/execution	Backlog growth then slight Q2 dip; margins approaching 7–9% target	Backlog $720M (down from $742M Q3); 4th straight double-digit sales growth; adjusted margin 7.2%	Healthy but trending down; execution strong
UW Solutions integration	Deal rationale and $100M FY26 revenue at ~20% adj EBITDA; accretive	In line in Q4 (>22% adj EBITDA); integration largely complete; synergy tracking slightly ahead	On track/positive
Cost programs	Project Fortify savings raised; Q3 charges minimal remaining	Fortify Phase 2 announced: $24–$26M charges; $13–$15M annualized savings	Accelerating cost actions

Management Commentary

CEO framing: “We expanded adjusted operating margin for the third consecutive year...and achieved record adjusted diluted EPS of $4.97…[this] will serve as the foundation for our continued success” .
On FY26 headwinds: “We anticipate current macroeconomic uncertainty to create headwinds in our core non-residential construction market...we’re focused on delivering near-term financial results...while continuing to make investments in growth” .
On tariffs and mitigation: “Our operations and supply chain are largely centered in the U.S....biggest indirect impact is the cost of aluminum...we’ve...accelerat[ed] Canadian production...diverting new U.S. project work...driving...productivity improvements and taking price actions” .
On Metals disruption: “Metals...launch of a more standardized product line across multiple facilities...caused operational disruption...We made a decision to power through those change efforts to better position the business for fiscal '26” .
CFO on cadence and savings: “We expect...more significant year-over-year declines in adjusted diluted EPS in the first and second quarters of fiscal '26...We expect ~$24–$26M pretax restructuring...delivering $13–$15M annualized savings” .

Q&A Highlights

Tariff impact breakdown and mitigation: Majority of ~$0.50 EPS headwind in 1H; direct impacts on Services cross-border flows to diminish by end of Q2 as work shifts to U.S.; indirect aluminum billet costs addressed via pricing and productivity .
Services outlook/backlog: Flight-to-quality winning work; backlog down but expected to outperform market even if flat Y/Y; margins sustained within 7–9% target .
Glass margin sustainability: Structural changes (pricing/productivity/mix) support 10–15% margin even in volume downturn; Q4 delivered 14.6% .
Cash flow FY26: Operating cash flow expected down Y/Y given arbitration payment (~$24.7M), lower EBITDA and higher interest; Q1 typically low and expected negative CFO .
UW Solutions: Minimal tariff exposure; double-digit growth in flooring sub-line; integration “substantially complete”; synergies ~ $5M over 12–18 months on track or slightly ahead .

Estimates Context

Q4 FY25 vs S&P Global consensus: Revenue $345.7M vs $331.8M*; Primary (adjusted) EPS $0.89 vs $0.87*. Number of covering estimates: 3 for both revenue and EPS*. Beat on both revenue and adjusted EPS; GAAP EPS ($0.11) was below adjusted due to one-time items . Values marked with asterisks retrieved from S&P Global.

Key Takeaways for Investors

Small adjusted EPS and revenue beat vs consensus, but quality of earnings was obscured by non-recurring arbitration and impairment charges; underlying Services and Glass execution remains solid .
FY26 outlook embeds sizable tariff headwinds and Metals/Glass margin moderation in 1H; watch for evidence of mitigation traction and sequential EPS improvement in 2H .
Metals is the near-term swing factor: execution of recovery from standardized product rollout and footprint optimization will drive upside to consolidated margins .
Fortify Phase 2 should provide a strong cost tailwind ($13–$15M annualized), with most charges front-loaded in Q1—monitor delivery against the savings roadmap .
UW Solutions is tracking in line and supports a pivot to higher-growth/higher-margin adjacencies (industrial flooring); FY26 ~$100M revenue at ~20% adj EBITDA is an important buffer .
Balance sheet remains flexible (1.3x leverage) supporting opportunistic M&A and buybacks even as operating cash flow dips in FY26 due to arbitration outflow .
Near-term trading setup: H1 prints likely under pressure (tariffs, Metals/Glass), but clear 2H improvement path creates a “show-me” catalyst path tied to mitigation, Metals recovery, and cost saves .

S&P Global disclaimer: Consensus estimate values (marked with *) were retrieved from S&P Global.

Citations:

Q4 FY25 8-K press release and financials:
Q4 FY25 earnings call transcript:
Q3 FY25 8-K and transcript:
Q2 FY25 8-K and transcript:
Dividend PR:

APOGEE ENTERPRISES, INC. (APOG)·Q4 2025 Earnings Summary