Apogee Enterprises, Inc.

Good day and thank you for standing by. Welcome to the Q3 2025 Apogee Enterprises Earnings Conference Call. At this time, all participants are in a listen-only mode. Please be advised that today's conference is being recorded. After the speaker's presentation, there will be a question and answer session. To ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. I would now like to hand the conference over to your speaker today. Jeff Ibsen, Vice President, Investor Relations.

Thank you, Josh. Good morning, everyone, and welcome to Apogee Enterprises' fiscal 2025 third quarter earnings call. With me today are Ty Silverhorn, Apogee's Chief Executive Officer, and Matt Osberg, Chief Financial Officer. I'd like to remind everyone that there are slides to accompany today's remarks. These are available in the Investor Relations section of Apogee's website. During this call, we will reference certain non-GAAP financial measures. Definitions of these measures and a reconciliation to the nearest GAAP measures are provided in the earnings release and slide deck we issued this morning. I'd also like to remind everyone that our call will contain forward-looking statements. These reflect management's expectations based on currently available information. Actual results may differ materially. More information about factors that could affect Apogee's business and financial results can be found in today's press release and in our SEC filings. With that, I'll turn the call over to you, Ty. Thank you, Jeff.

Good morning, everyone. Thanks for joining us today. This morning, I'll share a few highlights from the quarter, discuss what we are seeing in our end markets, and touch on how we're working to position the company for growth. Then I'll hand it over to Matt for more details on the quarter as well as our outlook. Let's start with the quarter highlights on page four of our presentation. Revenue in the quarter was in line with last year, despite seeing continued pressure from soft and market demand in non-residential construction. As expected, this softness is primarily impacting our framing and glass segments. As volumes declined in glass and framing, we saw their margins moderate compared to the first half of the year. Services continued to deliver positive sales and margin results as we executed projects in our backlog. Services' year-to-date adjusted operating margin is now 7% within our 7% to 9% target range. The most notable highlight in the quarter was closing the acquisition of UW Solutions. The team is executing our integration plan, and we are encouraged by the early progress. I'm very optimistic about how the team is coming together and the opportunities they see to leverage their shared capabilities to drive growth. Even after funding the acquisition, our balance sheet remains very strong, and we are well positioned to continue to deploy capital to drive shareholder value. We are actively cultivating our M&A pipeline evaluating opportunities to add differentiated products that fit with our strategy and will be accretive to our long-term financial profile. Now let me offer some comments about the non-residential construction market. As I mentioned earlier, non-residential new construction remains challenging. Leading indicators such as the architectural billing index have pointed to a contracting market for 20-plus months. We have and continue to see this softness in framing systems over the past several quarters, and more recently with awards slowing in our architectural glass segment. I will note that ABI has improved the past two months, which may signal a positive inflection point in the trend. The picture across different building types within non-res construction remains mixed. Interest rate sensitive sectors like office, commercial, lodging, and multifamily housing have been weaker, while verticals like education, healthcare, and transportation continue to see growth. Across our architectural segments, we've continued to shift our mix toward the verticals with the highest growth opportunities. Notably, institutional projects, including healthcare, education, and government, are now the largest share of our backlog. Most industry forecasts call for a continuation of these trends in calendar 25. For example, slide 5 in our presentation shows FMI's forecast for 2025, which now reflects 1% growth in the overall market, with continued declines in interest rate sensitive verticals, and growth in institutional verticals that also benefit from government funding. We continue to take the view that the downturn in construction will be short and shallow. Most likely, we will continue to see pressure through the first half of our next fiscal year, primarily in glass and framing. Services will be executing a backlog that has been secured for much of our fiscal 26. Regardless of what happens in the overall market, our goal remains to outperform the industry. Over the past several years, we've built a much stronger operating foundation, driving sustainable improvements across our business. And our team has demonstrated that we can deliver margin expansion and earnings growth even without meaningful market growth. We are also now executing acquisitions as a growth lever to further enhance and transform our business, providing us with exposure to higher growth areas and higher margins. As we move forward, we intend to build on this foundation to drive long-term profitable growth. We will continue to diversify our sales mix focusing on the best market opportunities. Within our architectural segments, this means continuing to shift towards sectors of the market with higher growth rates. Most importantly, we will leverage the capabilities of UW solutions to further expand into attractive market adjacencies. We are seeing positive momentum in industrial flooring which gives us significant exposure to R&R in addition to new warehouse and distribution center opportunities overall. We will continue to look for acquisition opportunities that accelerate our growth and further diversify our business mix. We will do this while maintaining our focus on productivity, execution, and cost management. These have been the foundation of our improvements over the past few years, and we continue to focus on these areas to ensure we perform at a high level. Fiscal 25 marks the end of the three-year plan we shared in November of calendar 21. As you would expect, our leadership team is working to build the next evolution of our strategy. The new plan will leverage our strong operational foundation but place a bigger emphasis on driving growth while continuing to expand our margin profile. We're still early in our process, but I am encouraged by the opportunities we see to position the company for future growth in both revenue and earnings. We plan to share additional details with you in the new fiscal year. With that, I'll turn it over to Matt.