Apogee Enterprises announced its fiscal 2016 third-quarter results, reporting a record operating margin of 11.7 percent and a record backlog of $545 million.

Revenues for the company were $238.3 million, down 2 percent but flat in constant currency. Its operating income of $27.9 million was up 35 percent.

“Our businesses operated well, and all four segments expanded operating margins – by triple-digit basis points in the architectural segments – as well as backlog,” says Joseph F. Puishys, Apogee CEO. “We continue to make strong gains in manufacturing operational excellence, leveraging our Lean initiative.”

Apogee’s fiscal 2016 year-to-date operating margin is 9.5 percent, up 310 basis points from the prior year. Year-to-date revenues are up 5 percent, and Puishys says the company has had double-digit growth in its U.S. architectural businesses.

“We look for a strong finish to fiscal 2016 – we anticipate a double-digit operating margin with revenue growth in the fourth quarter, positioning us to achieve the goal we set three years ago of $1 billion in revenues at 10 percent operating margin,” he says.

In the architectural glass segment, which consists of fabricator Viracon, revenues of $85.5 million were down 5 percent. Operating income grew to $8.4 million, up 44 percent from $5.8 million. “Operating margin expanded 330 basis points to 9.8 percent, compared to 6.5 percent, due to improved pricing, mix and productivity,” according to a release from the company.

Revenues in the architectural services segment were $61.2 million, up 9 percent. That part of the business consists of contract glazier Harmon. “Operating income grew to $3.7 million with good operational performance and improving project margins,” according to the release. “This compares to $0.3 million last year when operating results were negatively impacted by a few projects in the period.”

In the architectural framing systems segment, revenues were $76.4 million,  down 5 percent, “primarily due to currency exchange and lower volume at the Canadian storefront business,” according to the company. That segment consists of window and curtainwall manufacturer Wausau Window and Wall Systems; storefront and curtainwall fabricator Tubelite; Canadian-based storefront and curtainwall company Alumicor; and paint and anodizing finisher Linetec. In that segment, operating income grew to $9.2 million, up 22 percent from $7.6 million.

Apogee’s other segment is large-scale optical technologies.

“Our achievement of record backlog in the quarter underscores our robust bidding activity,” says Puishys. “This high level of backlog, combined with commitments, bidding and award activity, support our longer-term outlook for revenues of $1.3 billion at an operating margin of at least 12 percent in fiscal 2018.”

He anticipates capital expenditures for the year at $40 million to $45 million as Apogee invests to increase capabilities, capacity and productivity. The gross margin is expected to be at least 24.5 percent.

“I am pleased that our strategies to grow through new geographies, new products and new markets, along with our focus on better project selection, productivity and operational improvements, are delivering positive results,” says Puishys.