How did Apogee Enterprises' revenue and expenses trend in Q3 2025?

Apogee Enterprises Inc. (APOG) experienced a slight increase in revenue but a decrease in earnings in Q3 2025 compared to the previous year, reflecting challenges in operational efficiency and market conditions.

1. **Revenue Trend**: Apogee's revenue for Q3 2025 was $341 million, which marked a 0.5% increase from the previous year's $339.714 million. This growth was primarily driven by an acquisition that contributed approximately $8.8 million in sales. However, this increase was slightly below market expectations, which had forecasted revenue at $332.63 million for the quarter.
2. **Expense Trend**: The company's operating income decreased by 24% to $28.6 million in Q3 2025, compared to $37.647 million in the same period of the previous year. This decline in operating income resulted in an operating margin of 8.4% for the quarter, down from 11.1% in the previous year. The adjusted operating margin was 10.4%. This decline in operating margin indicates less efficiency in managing costs relative to sales.
3. **Earnings Trend**: Apogee's diluted earnings per share (EPS) for Q3 2025 were $0.96, which missed the estimated $1.11. This was a 22% decrease from the previous year's EPS of $1.40. The company's net earnings decreased by 22.2% to $20.99 million compared to the previous year.
4. **Cash Flow and Acquisitions**: Apogee reported a year-to-date cash flow from operations of $95 million, indicating healthy liquidity despite the decline in earnings. The company completed the acquisition of UW Solutions for $242 million, which is expected to enhance capabilities in the Large-Scale Optical segment but may have a dilutive effect on short-term earnings.

In conclusion, Apogee Enterprises saw a modest rise in revenue but faced challenges in managing expenses and maintaining profitability in Q3 2025. The company's strategic acquisitions are poised to bolster its long-term growth potential, although they may present short-term hurdles.