Net Sales Growth of ~2% Year-Over-Year
Volumes Tracking Normal Seasonality Patterns
Price vs Cost Imbalance Being Addressed
Executing on Working Capital Management
HOUSTON, June 04, 2026 (GLOBE NEWSWIRE) -- Quanex Building Products Corporation (NYSE:NX) ("Quanex" or the "Company") today announced its results for the three months ended April 30, 2026.
The Company reported the following selected financial results:
| Three Months Ended April 30, | Six Months Ended April 30, | ||||||||||||||
| ($ in millions, except per share data) | 2026 | 2025 | 2026 | 2025 | |||||||||||
| Net Sales | $ | 462.4 | $ | 452.5 | $ | 871.5 | $ | 852.5 | |||||||
| Gross Margin | $ | 117.8 | $ | 131.4 | $ | 216.3 | $ | 223.7 | |||||||
| Gross Margin % | 25.5 | % | 29.0 | % | 24.8 | % | 26.2 | % | |||||||
| Net Income (Loss) | $ | 3.4 | $ | 20.5 | $ | (0.7 | ) | $ | 5.6 | ||||||
| Diluted EPS | $ | 0.07 | $ | 0.44 | $ | (0.02 | ) | $ | 0.12 | ||||||
| Adjusted Net Income | $ | 11.3 | $ | 29.1 | $ | 11.0 | $ | 38.1 | |||||||
| Adjusted Diluted EPS | $ | 0.25 | $ | 0.63 | $ | 0.24 | $ | 0.81 | |||||||
| Adjusted EBITDA | $ | 44.2 | $ | 63.1 | $ | 71.6 | $ | 101.7 | |||||||
| Adjusted EBITDA Margin % | 9.6 | % | 14.0 | % | 8.2 | % | 11.9 | % | |||||||
| Cash Provided By (Used For) Operating Activities | $ | 18.9 | $ | 28.5 | $ | (1.3 | ) | $ | 16.0 | ||||||
| Free Cash Flow | $ | 7.9 | $ | 13.6 | $ | (23.6 | ) | $ | (10.6 | ) | |||||
(See Non-GAAP Terminology Definitions and Disclaimers section, Non-GAAP Financial Measure Disclosure table, Selected Segment Data table and reconciliation tables for additional information)
George Wilson, Chairman, President and Chief Executive Officer, commented, "Despite the headwinds our industry is facing, demand for the products we manufacture was as expected during the second quarter of 2026. Rapid inflationary pressures related to macroeconomic concerns and the ongoing conflict in the Middle East led to an unfavorable price versus cost dynamic, which pressured our margins. As previously disclosed, we utilize surcharges to respond to rapid increases in costs and we have index pricing mechanisms in place in North America to handle fluctuations in major raw material costs, but when costs increase quickly there is a timing lag and margins are negatively impacted. We are addressing the current price versus cost imbalance to minimize further negative impact and expect to recover some of the shortfall to date during the second half of this year, assuming volumes continue to track the normal seasonality of our business, and the rate of inflationary pressure subsides.
"We expected to be a net borrower during the second quarter due to the seasonality of our business, coupled with the longer cash conversion cycle of the legacy Tyman business, but continued execution on managing working capital, coupled with the seasonal uptick in volumes, enabled us to avoid being a net borrower for the quarter. We intend to prioritize debt repayment and opportunistic share repurchases as we generate cash in the second half. In addition, we will continue to focus on the things we can control, which includes identifying operational efficiencies and commercial synergies that we believe will benefit us when consumer confidence improves and demand rebounds."
Second Quarter 2026 Results Summary
Quanex reported net sales of $462.4 million during the three months ended April 30, 2026, which represents an increase of 2.2% compared to $452.5 million for the same period in 2025, mainly due to favorable impacts from pricing, including tariff-related price recoveries, and foreign exchange translation. The Hardware Solutions and Extruded Solutions segments each reported modest increases in net sales for the second quarter of 2026, as lower volumes were offset by favorable impacts from pricing, including tariff-related recoveries and foreign exchange translation. Quanex reported an increase of 6.6% in net sales for the second quarter of 2026 in its Custom Solutions segment, largely due to increased volume and improved pricing. (See Sales Analysis table for additional information)
On a consolidated basis, the decrease in adjusted earnings for the second quarter of 2026 compared to the second quarter of 2025 was mainly due to reduced operating leverage from lower volumes related to ongoing macroeconomic uncertainty combined with weak consumer confidence, tariff-related costs and inflationary pressures. More specifically, due to the ongoing war in the Middle East, the Company realized a significant increase in transportation and raw material costs during the quarter.
Balance Sheet & Liquidity Update
As of April 30, 2026, the Company had total debt of $715.0 million and Quanex's leverage ratio of Net Debt to LTM Adjusted EBITDA was 3.1x. As of April 30, 2026, Quanex reported a LTM Net Loss of $257.2 million, mainly due to the non-cash goodwill impairment charge recorded in the third quarter of 2025, and LTM Adjusted EBITDA of $212.8 million (See Non-GAAP Terminology Definitions and Disclaimers section, Net Debt Reconciliation table and Last Twelve Months Adjusted EBITDA Reconciliation table for additional information)
The Company's liquidity was $328.6 million as of April 30, 2026, consisting of $63.7 million in cash on hand plus availability under its Senior Secured Revolving Credit Facility due 2029, less letters of credit outstanding.
Conference Call and Webcast Information
The Company has scheduled a conference call for Friday, June 5, 2026, at 11:00 a.m. ET (10:00 a.m. CT) to discuss the release. A link to the live audio webcast will be available on Quanex's website at http://www.quanex.com in the Investors section under Presentations & Events.
Participants can pre-register for the conference call using the following link: https://register-conf.media-server.com/register/BIcb9c8924a43d483f9a1238134ae8964f
Registered participants will receive an email containing conference call details for dial-in options. To avoid delays, it is recommended that participants dial into the conference call ten minutes ahead of the scheduled start time. A replay will be available for a limited time on the Company's website at http://www.quanex.com in the Investors section under Presentations & Events.
About Quanex
Quanex is a global manufacturer with core capabilities and broad applications across various end markets. The Company currently collaborates and partners with leading OEMs to provide innovative solutions in the window, door, solar, refrigeration, custom mixing, building access and cabinetry markets. Looking ahead, Quanex plans to leverage its material science expertise and process engineering to expand into adjacent markets.
Contact:
Scott Zuehlke
SVP, Chief Financial Officer & Treasurer
713-877-5327
scott.zuehlke@quanex.com
Non-GAAP Terminology Definitions and Disclaimers
Adjusted Net Income (defined as net income further adjusted to exclude amortization of step-up for purchase price adjustments on inventory, asset impairment charges, transaction, advisory fees and reorganization costs, restructuring charges related to severance and disposal of software, amortization expense related to intangible assets, pension settlement refund and other net adjustments related to foreign currency transaction gain/loss and effective tax rates reflecting impacts of adjustments on a with and without basis) and Adjusted EPS are non-GAAP financial measures that Quanex believes provide a consistent basis for comparison between periods and more accurately reflect operational performance, as they are not influenced by certain income or expense items not affecting ongoing operations. EBITDA (defined as net income or loss before interest, taxes, depreciation and amortization and other, net), Adjusted EBITDA and LTM Adjusted EBITDA (defined as EBITDA further adjusted to exclude purchase price accounting inventory step-ups, transaction costs, certain severance charges, gain/loss on the sale of certain fixed assets, restructuring charges and asset impairment charges) are non-GAAP financial measures that the Company uses to measure operational performance and assist with financial decision-making. Net Debt is defined as total debt (outstanding balance on the revolving credit facility plus financial lease obligations) less cash and cash equivalents. The leverage ratio of Net Debt to LTM Adjusted EBITDA is a financial measure that the Company believes is useful to investors and financial analysts in evaluating Quanex's leverage. In addition, with certain limited adjustments, this leverage ratio is the basis for a key covenant in the Company's credit agreement.
Free Cash Flow is a non-GAAP measure calculated using cash provided by operating activities less capital expenditures. Quanex uses the Free Cash Flow metric to measure operational and cash management performance and assist with financial decision-making. Free Cash Flow is measured before application of certain contractual commitments (including capital lease obligations), and accordingly is not a true measure of the Company's residual cash flow available for discretionary expenditures. Quanex believes Free Cash Flow is useful to investors in understanding and evaluating the Company's financial and cash management performance.
Quanex believes that the presented non-GAAP measures provide a consistent basis for comparison between periods and will assist investors in understanding the Company's financial performance when comparing results to other investment opportunities. These measures allow management and investors to evaluate operational performance and trends without the impact of certain non-cash charges, acquisition-related costs, and other items that may vary significantly from period to period and may not be reflective of Quanex's core operating results. The presented non-GAAP measures may not be the same as those used by other companies. The Company does not intend for this information to be considered in isolation or as a substitute for other measures prepared in accordance with U.S. GAAP.
Forward Looking Statements
This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that use the words "estimated," "expect," "could," "should," "believe," "will," "might," "anticipate," "intend," "plan," "project," "seek," "would," "may," or similar words reflecting future expectations or beliefs are forward-looking statements. The forward-looking statements include, but are not limited to, the following: Quanex's future operating results, future financial condition, future uses of cash and other expenditures, expenses and tax rates, expectations relating to the Company's industry, expectations regarding the recovery of price versus cost imbalances, anticipated debt repayment and share repurchase activity, expected operational efficiencies and synergies and the Company's future growth, including any guidance discussed in this press release. The statements and guidance set forth in this release are based on current expectations. Actual results or events may differ materially from those expressed or implied in these forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. For a complete discussion of factors that may affect the Company's future performance, please refer to Quanex's Annual Report on Form 10-K for the fiscal year ended October 31, 2025, and the Company's Quarterly Reports on Form 10-Q under the sections entitled "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors". Any forward-looking statements in this press release are made as of the date hereof, and the Company undertakes no obligation to update or revise any forward-looking statements, whether written or oral, to reflect new information, developments or events.
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited) | |||||||||||||||
| Three Months Ended April 30, | Six Months Ended April 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Net sales | $ | 462,367 | $ | 452,478 | $ | 871,456 | $ | 852,522 | |||||||
| Cost of sales | 344,575 | 321,096 | 655,137 | 628,824 | |||||||||||
| Selling, general and administrative | 74,432 | 70,333 | 145,858 | 136,983 | |||||||||||
| Restructuring charges | - | 936 | - | 8,840 | |||||||||||
| Depreciation and amortization | 24,650 | 19,192 | 48,899 | 43,932 | |||||||||||
| Operating income | 18,710 | 40,921 | 21,562 | 33,943 | |||||||||||
| Interest expense | (12,042 | ) | (13,940 | ) | (24,409 | ) | (28,126 | ) | |||||||
| Other, net | 448 | (159 | ) | 6,065 | 1,070 | ||||||||||
| Income before income taxes | 7,116 | 26,822 | 3,218 | 6,887 | |||||||||||
| Income tax expense | (3,766 | ) | (6,307 | ) | (3,939 | ) | (1,257 | ) | |||||||
| Net income (loss) | $ | 3,350 | $ | 20,515 | $ | (721 | ) | $ | 5,630 | ||||||
| Earnings (loss) per common share, basic | $ | 0.07 | $ | 0.44 | $ | (0.02 | ) | $ | 0.12 | ||||||
| Earnings (loss) per common share, diluted | $ | 0.07 | $ | 0.44 | $ | (0.02 | ) | $ | 0.12 | ||||||
| Weighted average common shares outstanding: | |||||||||||||||
| Basic | 45,483 | 46,483 | 45,469 | 46,753 | |||||||||||
| Diluted | 45,658 | 46,563 | 45,469 | 46,868 | |||||||||||
| Cash dividends per share | $ | 0.08 | $ | 0.08 | $ | 0.16 | $ | 0.16 | |||||||
| QUANEX BUILDING PRODUCTS CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) | |||||||
| April 30, 2026 | October 31, 2025 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 63,671 | $ | 76,018 | |||
| Restricted Cash | 2,313 | 2,100 | |||||
| Accounts receivable, net | 211,088 | 205,384 | |||||
| Inventories | 278,047 | 254,122 | |||||
| Income taxes receivable | 6,121 | - | |||||
| Prepaid assets | 39,542 | 32,387 | |||||
| Other current assets | 3,651 | 3,764 | |||||
| Total current assets | 604,433 | 573,775 | |||||
| Property, plant and equipment, net | 399,190 | 411,591 | |||||
| Operating lease right-of-use assets | 176,809 | 154,866 | |||||
| Deferred tax assets | 250 | 2,706 | |||||
| Goodwill | 274,750 | 271,346 | |||||
| Intangible assets, net | 533,395 | 549,137 | |||||
| Other assets | 4,348 | 4,812 | |||||
| Total assets | $ | 1,993,175 | $ | 1,968,233 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 127,709 | $ | 131,307 | |||
| Accrued liabilities | 85,666 | 95,155 | |||||
| Income taxes payable | 6,289 | 12,076 | |||||
| Current maturities of long-term debt | 26,545 | 27,561 | |||||
| Current operating lease liabilities | 18,911 | 15,446 | |||||
| Total current liabilities | 265,120 | 281,545 | |||||
| Long-term debt | 678,932 | 665,268 | |||||
| Noncurrent operating lease liabilities | 164,958 | 145,459 | |||||
| Deferred income taxes | 141,104 | 135,993 | |||||
| Other liabilities | 15,703 | 13,789 | |||||
| Total liabilities | 1,265,817 | 1,242,054 | |||||
| Stockholders' equity: | |||||||
| Common stock | 512 | 512 | |||||
| Additional paid-in-capital | 696,391 | 700,029 | |||||
| Retained earnings | 156,641 | 164,710 | |||||
| Accumulated other comprehensive loss | (27,897 | ) | (35,439 | ) | |||
| Treasury stock at cost | (98,289 | ) | (103,633 | ) | |||
| Total stockholders' equity | 727,358 | 726,179 | |||||
| Total liabilities and stockholders' equity | $ | 1,993,175 | $ | 1,968,233 | |||
| QUANEX BUILDING PRODUCTS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (In thousands) (Unaudited) | |||||||
| Six Months Ended April 30, | |||||||
| 2026 | 2025 | ||||||
| Operating activities: | |||||||
| Net (loss) income | $ | (721 | ) | $ | 5,630 | ||
| Adjustments to reconcile net loss to cash used for operating activities: | |||||||
| Depreciation and amortization | 48,899 | 43,932 | |||||
| Stock-based compensation | 2,402 | 1,825 | |||||
| Deferred income tax | 918 | 1,250 | |||||
| Other, net | 3,800 | 7,243 | |||||
| Changes in assets and liabilities: | |||||||
| (Increase) decrease in accounts receivable | (4,479 | ) | 5,322 | ||||
| Increase in inventory | (21,719 | ) | (1,333 | ) | |||
| Increase in other current assets | (6,200 | ) | (7,828 | ) | |||
| Decrease in accounts payable | (2,459 | ) | (14,771 | ) | |||
| Decrease in accrued liabilities | (10,411 | ) | (14,048 | ) | |||
| Change in income taxes | (12,005 | ) | (5,471 | ) | |||
| Other, net | 689 | (5,764 | ) | ||||
| Cash (used for) provided by operating activities | (1,286 | ) | 15,987 | ||||
| Investing activities: | |||||||
| Capital expenditures | (22,322 | ) | (26,544 | ) | |||
| Proceeds from disposition of capital assets | 29 | 376 | |||||
| Cash used for investing activities | (22,293 | ) | (26,168 | ) | |||
| Financing activities: | |||||||
| Borrowings under credit facilities | 119,000 | 125,000 | |||||
| Repayments of credit facility borrowings | (99,500 | ) | (117,500 | ) | |||
| Repayments of other long-term debt | (1,762 | ) | (1,888 | ) | |||
| Common stock dividends paid | (7,277 | ) | (7,552 | ) | |||
| Purchase of treasury stock | - | (27,194 | ) | ||||
| Other, net | (696 | ) | (1,186 | ) | |||
| Cash provided by (used for) financing activities | 9,765 | (30,320 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | 1,680 | 2,303 | |||||
| Decrease in cash, cash equivalents and restricted cash | (12,134 | ) | (38,198 | ) | |||
| Cash, cash equivalents and restricted cash at beginning of period | 78,118 | 102,995 | |||||
| Cash, cash equivalents and restricted cash at end of period | $ | 65,984 | $ | 64,797 | |||
| QUANEX BUILDING PRODUCTS CORPORATION FREE CASH FLOW AND NET DEBT RECONCILIATION (In thousands) (Unaudited) | |||||||
The following table reconciles the Company's calculation of Free Cash Flow, a non-GAAP measure, to its most directly comparable GAAP measure. The Company defines Free Cash Flow as cash provided by operating activities less capital expenditures.
| Three Months Ended April 30, | Six Months Ended April 30, | |||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||
| Cash (used for) provided by operating activities | 18,922 | $ | 28,497 | (1,286 | ) | 15,987 | ||||||
| Capital expenditures | (11,028 | ) | (14,920 | ) | (22,322 | ) | (26,544 | ) | ||||
| Free Cash Flow | 7,894 | $ | 13,577 | (23,608 | ) | (10,557 | ) | |||||
The following table reconciles the Company's Net Debt which is defined as total debt principal of the Company plus finance lease obligations minus cash.
| As of April 30, | |||||||
| 2026 | 2025 | ||||||
| Term loan facility | $ | 456,250 | $ | 481,205 | |||
| Revolving credit facility | 204,500 | 242,500 | |||||
| Finance lease obligations (1) | 54,294 | 61,272 | |||||
| Total debt (2) | 715,044 | 784,977 | |||||
| Less: Cash and cash equivalents | 63,671 | 62,626 | |||||
| Net Debt | 651,373 | 722,351 | |||||
(1) Includes $48.6 million and $57.4 million in real estate lease liabilities considered finance leases under U.S. GAAP as of April 30, 2026 and 2025, respectively.
(2) Excludes outstanding letters of credit.
| QUANEX BUILDING PRODUCTS CORPORATION NON-GAAP FINANCIAL MEASURE DISCLOSURE LAST TWELVE MONTHS ADJUSTED EBITDA RECONCILIATION (In thousands, except per share data) (Unaudited) | ||||||||||||||||||||
| Reconciliation of Last Twelve Months Adjusted EBITDA | Three Months Ended April 30, 2026 | Three Months Ended January 31, 2026 | Three Months Ended October 31, 2025 | Three Months Ended July 31, 2025 | Total | |||||||||||||||
| Reconciliation | Reconciliation | Reconciliation | Reconciliation | Reconciliation | ||||||||||||||||
| Net income (loss) as reported | $ | 3,350 | $ | (4,071 | ) | $ | 19,571 | $ | (276,007 | ) | $ | (257,157 | ) | |||||||
| Income tax expense (benefit) | 3,766 | 173 | 15,147 | (8,191 | ) | 10,895 | ||||||||||||||
| Other, net | (448 | ) | (5,617 | ) | (5,246 | ) | (855 | ) | (12,166 | ) | ||||||||||
| Interest expense | 12,042 | 12,367 | 13,468 | 14,218 | 52,095 | |||||||||||||||
| Depreciation and amortization | 24,650 | 24,249 | 25,630 | 33,882 | 108,411 | |||||||||||||||
| Asset impairment charges | - | - | - | 302,284 | 302,284 | |||||||||||||||
| EBITDA | 43,360 | 27,101 | 68,570 | 65,331 | 204,362 | |||||||||||||||
| Cost of sales (1) | 121 | 407 | 308 | 148 | 984 | |||||||||||||||
| Selling, general and administrative (1),(2) | 688 | (126 | ) | 2,056 | 3,449 | 6,067 | ||||||||||||||
| Restructuring (credit) charges (3) | - | - | (16 | ) | 1,367 | 1,351 | ||||||||||||||
| Adjusted EBITDA | $ | 44,169 | $ | 27,382 | $ | 70,918 | $ | 70,295 | $ | 212,764 | ||||||||||
(1) Expense related to plant closure/relocation.
(2) Transaction, advisory fees, reorganization costs and product recall expenses.
(3) Restructuring (credit) charges related to severance.
| QUANEX BUILDING PRODUCTS CORPORATION NON-GAAP FINANCIAL MEASURE DISCLOSURE (In thousands, except per share data) (Unaudited) | |||||||||||||||||||||||||||||||||||
| Reconciliation of Adjusted Net Income and Adjusted EPS | Three Months Ended April 30, 2026 | Three Months Ended April 30, 2025 | Six Months Ended April 30, 2026 | Six Months Ended April 30, 2025 | |||||||||||||||||||||||||||||||
| Net Income | Diluted EPS | Net Income | Diluted EPS | Net Income | Diluted EPS | Net Income | Diluted EPS | ||||||||||||||||||||||||||||
| Net income (loss) as reported | $ | 3,350 | $ | 0.07 | $ | 20,515 | $ | 0.44 | $ | (721 | ) | $ | (0.02 | ) | $ | 5,630 | $ | 0.12 | |||||||||||||||||
| Net income reconciling items from below | 7,913 | $ | 0.18 | 8,597 | $ | 0.19 | 11,714 | $ | 0.26 | 32,444 | $ | 0.69 | |||||||||||||||||||||||
| Adjusted net income and adjusted EPS | $ | 11,263 | $ | 0.25 | $ | 29,112 | $ | 0.63 | $ | 10,993 | $ | 0.24 | $ | 38,074 | $ | 0.81 | |||||||||||||||||||
| Reconciliation of Adjusted EBITDA | Three Months Ended April 30, 2026 | Three Months Ended April 30, 2025 | Six Months Ended April 30, 2026 | Six Months Ended April 30, 2025 | |||||||||||||||||||||||||||||||
| Reconciliation | Reconciliation | Reconciliation | Reconciliation | ||||||||||||||||||||||||||||||||
| Net income (loss) as reported | $ | 3,350 | $ | 20,515 | $ | (721 | ) | $ | 5,630 | ||||||||||||||||||||||||||
| Income tax expense | 3,766 | 6,307 | 3,939 | 1,257 | |||||||||||||||||||||||||||||||
| Other, net | (448 | ) | 159 | (6,065 | ) | (1,070 | ) | ||||||||||||||||||||||||||||
| Interest expense | 12,042 | 13,940 | 24,409 | 28,126 | |||||||||||||||||||||||||||||||
| Depreciation and amortization | 24,650 | 19,192 | 48,899 | 43,932 | |||||||||||||||||||||||||||||||
| EBITDA | 43,360 | 60,113 | 70,461 | 77,875 | |||||||||||||||||||||||||||||||
| EBITDA reconciling items from below | 809 | 3,022 | 1,090 | 23,802 | |||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 44,169 | $ | 63,135 | $ | 71,551 | $ | 101,677 | |||||||||||||||||||||||||||
| Reconciling Items | Three Months Ended April 30, 2026 | Three Months Ended April 30, 2025 | Six Months Ended April 30, 2026 | Six Months Ended April 30, 2025 | |||||||||||||||||||||||||||||||
| Income Statement | Reconciling Items | Income Statement | Reconciling Items | Income Statement | Reconciling Items | Income Statement | Reconciling Items | ||||||||||||||||||||||||||||
| Net sales | $ | 462,367 | $ | - | $ | 452,478 | $ | - | $ | 871,456 | $ | - | $ | 852,522 | $ | - | |||||||||||||||||||
| Cost of sales | 344,575 | (121 | ) | (1 | ) | 321,096 | (976 | ) | (1 | ) | 655,137 | (528 | ) | (1 | ) | 628,824 | (9,983 | ) | |||||||||||||||||
| Selling, general and administrative | 74,432 | (688 | ) | (1),(3) | 70,333 | (1,110 | ) | (1),(3) | 145,858 | (562 | ) | (1),(3) | 136,983 | (4,979 | ) | ||||||||||||||||||||
| Restructuring charges | - | - | 936 | (936 | ) | (4 | ) | - | - | (5 | ) | 8,840 | (8,840 | ) | |||||||||||||||||||||
| EBITDA | 43,360 | 809 | 60,113 | 3,022 | 70,461 | 1,090 | 77,875 | 23,802 | |||||||||||||||||||||||||||
| Depreciation and amortization | 24,650 | (9,776 | ) | (5 | ) | 19,192 | (6,454 | ) | (5 | ) | 48,899 | (19,533 | ) | (7 | ) | 43,932 | (17,104 | ) | |||||||||||||||||
| Operating income | 18,710 | 10,585 | 40,921 | 9,476 | 21,562 | 20,623 | 33,943 | 40,906 | |||||||||||||||||||||||||||
| Interest expense | (12,042 | ) | - | (13,940 | ) | - | (24,409 | ) | - | (28,126 | ) | - | |||||||||||||||||||||||
| Other, net | 448 | (158 | ) | (6 | ) | (159 | ) | 1,003 | (6 | ) | 6,065 | (5,230 | ) | (6 | ) | 1,070 | 831 | ||||||||||||||||||
| Income before income taxes | 7,116 | 10,427 | 26,822 | 10,479 | 3,218 | 15,393 | 6,887 | 41,737 | |||||||||||||||||||||||||||
| Income tax expense | (3,766 | ) | (2,514 | ) | (7 | ) | (6,307 | ) | (1,882 | ) | (7 | ) | (3,939 | ) | (3,679 | ) | (7 | ) | (1,257 | ) | (9,293 | ) | |||||||||||||
| Net income (loss) | $ | 3,350 | $ | 7,913 | $ | 20,515 | $ | 8,597 | $ | (721 | ) | $ | 11,714 | $ | 5,630 | $ | 32,444 | ||||||||||||||||||
| Diluted earnings per share | $ | 0.07 | $ | 0.44 | $ | (0.02 | ) | $ | 0.12 | ||||||||||||||||||||||||||
(1) Expense related to plant closure/relocation.
(2) Amortization of step-up for purchase price adjustments on inventory.
(3) Transaction, advisory fees, reorganization costs and product recall expenses.
(4) Restructuring charges related to severance and disposal of software.
(5) Amortization expense related to intangible assets.
(6) Foreign currency transaction (gains) losses.
(7) Tax impact of net income reconciling items.
| QUANEX BUILDING PRODUCTS CORPORATION SELECTED SEGMENT DATA (In thousands) (Unaudited) |
This table provides gross margin, operating income (loss), EBITDA, and Adjusted EBITDA by reportable segment. Non-operating expense and income tax expense are not allocated to the reportable segments.
| Hardware Solutions | Extruded Solutions | Custom Solutions | Unallocated Corp & Other | Total | ||||||||||||||||
| Three months ended April 30, 2026 | ||||||||||||||||||||
| Net sales | $ | 203,019 | $ | 164,949 | $ | 103,913 | $ | (9,514 | ) | $ | 462,367 | |||||||||
| Cost of sales | 162,392 | 112,881 | 79,017 | (9,715 | ) | 344,575 | ||||||||||||||
| Gross Margin | 40,627 | 52,068 | 24,896 | 201 | 117,792 | |||||||||||||||
| Gross Margin % | 20.0 | % | 31.6 | % | 24.0 | % | 25.5 | % | ||||||||||||
| Selling, general and administrative (1) | 35,763 | 21,664 | 13,889 | 3,116 | 74,432 | |||||||||||||||
| Depreciation and amortization | 11,693 | 7,341 | 5,404 | 212 | 24,650 | |||||||||||||||
| Operating (loss) income | (6,829 | ) | 23,063 | 5,603 | (3,127 | ) | 18,710 | |||||||||||||
| Depreciation and amortization | 11,693 | 7,341 | 5,404 | 212 | 24,650 | |||||||||||||||
| EBITDA | 4,864 | 30,404 | 11,007 | (2,915 | ) | 43,360 | ||||||||||||||
| Expense related to plant relocation (Cost of sales) | 121 | - | - | - | 121 | |||||||||||||||
| Expense related to plant relocation (SG&A) | 134 | - | - | - | 134 | |||||||||||||||
| Reorganization costs | 75 | - | 1 | 478 | 554 | |||||||||||||||
| Adjusted EBITDA | $ | 5,194 | $ | 30,404 | $ | 11,008 | $ | (2,437 | ) | $ | 44,169 | |||||||||
| Adjusted EBITDA Margin % | 2.6 | % | 18.4 | % | 10.6 | % | 9.6 | % | ||||||||||||
| Three months ended April 30, 2025 | ||||||||||||||||||||
| Net sales | $ | 202,935 | $ | 163,967 | $ | 97,507 | $ | (11,931 | ) | $ | 452,478 | |||||||||
| Cost of sales | 145,533 | 111,637 | 73,702 | (9,776 | ) | 321,096 | ||||||||||||||
| Gross Margin | 57,402 | 52,330 | 23,805 | (2,155 | ) | 131,382 | ||||||||||||||
| Gross Margin % | 28.3 | % | 31.9 | % | 24.4 | % | 29.0 | % | ||||||||||||
| Selling, general and administrative (1) | 32,259 | 21,673 | 10,850 | 5,551 | 70,333 | |||||||||||||||
| Restructuring charges | 896 | - | - | 40 | 936 | |||||||||||||||
| Depreciation and amortization | 10,361 | 7,437 | 5,437 | (4,043 | ) | 19,192 | ||||||||||||||
| Operating income (loss) | 13,886 | 23,220 | 7,518 | (3,703 | ) | 40,921 | ||||||||||||||
| Depreciation and amortization | 10,361 | 7,437 | 5,437 | (4,043 | ) | 19,192 | ||||||||||||||
| EBITDA | 24,247 | 30,657 | 12,955 | (7,746 | ) | 60,113 | ||||||||||||||
| Expense related to plant relocation (Cost of sales) | 976 | - | - | - | 976 | |||||||||||||||
| Expense related to plant relocation (SG&A) | 246 | - | - | - | 246 | |||||||||||||||
| Transaction, advisory fees, reorganization costs, and product recall expenses | 593 | 19 | - | 252 | 864 | |||||||||||||||
| Restructuring charges | 896 | - | - | 40 | 936 | |||||||||||||||
| Adjusted EBITDA | $ | 26,958 | $ | 30,676 | $ | 12,955 | $ | (7,454 | ) | $ | 63,135 | |||||||||
| Adjusted EBITDA Margin % | 13.3 | % | 18.7 | % | 13.3 | % | 14.0 | % | ||||||||||||
| Six months ended April 30, 2026 | ||||||||||||||||||||
| Net sales | $ | 392,131 | $ | 304,749 | $ | 193,055 | $ | (18,479 | ) | $ | 871,456 | |||||||||
| Cost of sales | 313,116 | 210,590 | 150,441 | (19,010 | ) | 655,137 | ||||||||||||||
| Gross Margin | 79,015 | 94,159 | 42,614 | 531 | 216,319 | |||||||||||||||
| Gross Margin % | 20.2 | % | 30.9 | % | 22.1 | % | 24.8 | % | ||||||||||||
| Selling, general and administrative (1) | 69,943 | 42,805 | 27,039 | 6,071 | 145,858 | |||||||||||||||
| Depreciation and amortization | 23,240 | 14,680 | 10,626 | 353 | 48,899 | |||||||||||||||
| Operating (loss) income | (14,168 | ) | 36,674 | 4,949 | (5,893 | ) | 21,562 | |||||||||||||
| Depreciation and amortization | 23,240 | 14,680 | 10,626 | 353 | 48,899 | |||||||||||||||
| EBITDA | 9,072 | 51,354 | 15,575 | (5,540 | ) | 70,461 | ||||||||||||||
| Expense related to plant relocation (Cost of sales) | 528 | - | - | - | 528 | |||||||||||||||
| Credit related to plant relocation (SG&A) | (8 | ) | - | - | - | (8 | ) | |||||||||||||
| Reorganization costs | 146 | - | 1 | 423 | 570 | |||||||||||||||
| Adjusted EBITDA | $ | 9,738 | $ | 51,354 | $ | 15,576 | $ | (5,117 | ) | $ | 71,551 | |||||||||
| Adjusted EBITDA Margin % | 2.5 | % | 16.9 | % | 8.1 | % | 8.2 | % | ||||||||||||
| Six months ended April 30, 2025 | ||||||||||||||||||||
| Net sales | $ | 387,675 | $ | 303,597 | $ | 182,545 | $ | (21,295 | ) | $ | 852,522 | |||||||||
| Cost of sales | 296,318 | 209,317 | 142,000 | (18,811 | ) | 628,824 | ||||||||||||||
| Gross Margin | 91,357 | 94,280 | 40,545 | (2,484 | ) | 223,698 | ||||||||||||||
| Gross Margin % | 23.6 | % | 31.1 | % | 22.2 | % | 26.2 | % | ||||||||||||
| Selling, general and administrative (1) | 65,616 | 40,181 | 22,448 | 8,738 | 136,983 | |||||||||||||||
| Restructuring charges | 7,015 | - | - | 1,825 | 8,840 | |||||||||||||||
| Depreciation and amortization | 21,831 | 15,077 | 10,977 | (3,953 | ) | 43,932 | ||||||||||||||
| Operating (loss) income | (3,105 | ) | 39,022 | 7,120 | (9,094 | ) | 33,943 | |||||||||||||
| Depreciation and amortization | 21,831 | 15,077 | 10,977 | (3,953 | ) | 43,932 | ||||||||||||||
| EBITDA | 18,726 | 54,099 | 18,097 | (13,047 | ) | 77,875 | ||||||||||||||
| Expense related to plant closure (Cost of sales) | 976 | - | - | - | 976 | |||||||||||||||
| Gain related to plant closure (SG&A) | 247 | - | - | - | 247 | |||||||||||||||
| Amortization of step-up for purchase price adjustments on inventory and accounts receivable | 7,509 | 352 | 1,146 | - | 9,007 | |||||||||||||||
| Transaction and advisory fees | 683 | 176 | - | 3,873 | 4,732 | |||||||||||||||
| Restructuring charges | 7,015 | - | - | 1,825 | 8,840 | |||||||||||||||
| Adjusted EBITDA | $ | 35,156 | $ | 54,627 | $ | 19,243 | $ | (7,349 | ) | $ | 101,677 | |||||||||
| Adjusted EBITDA Margin % | 9.1 | % | 18.0 | % | 10.5 | % | 11.9 | % | ||||||||||||
(1) Includes stock-based compensation expense for the three and six months ended April 30, 2026, respectively of $1.5 million and $4.6 million and $0.6 million and $1.8 million for the comparable prior year periods.
| QUANEX BUILDING PRODUCTS CORPORATION SELECTED SEGMENT DATA RECONCILIATION (In thousands) (Unaudited) |
This table reconciles our segment presentation, as previously reported in Exhibit 99.1 to our Current Report Form 8-K dated June 5, 2025 for the three and six months ended April 30, 2025, to the current presentation.
| NA Fenestration | EU Fenestration | NA Cabinet Components | Tyman | Unallocated Corp & Other | Total | |||||||||||||||||||
| Three months ended April 30, 2025 | ||||||||||||||||||||||||
| Net sales | $ | 151,026 | $ | 61,257 | $ | 51,237 | $ | 190,107 | $ | (1,149 | ) | $ | 452,478 | |||||||||||
| Cost of sales | 113,760 | 39,001 | 42,405 | 126,743 | (813 | ) | 321,096 | |||||||||||||||||
| Gross Margin | 37,266 | 22,256 | 8,832 | 63,364 | (336 | ) | 131,382 | |||||||||||||||||
| Gross Margin % | 24.7 | % | 36.3 | % | 17.2 | % | 33.3 | % | 29.0 | % | ||||||||||||||
| Selling, general and administrative | 15,938 | 9,038 | 5,725 | 37,271 | 2,361 | 70,333 | ||||||||||||||||||
| Restructuring charges | - | - | - | 936 | - | 936 | ||||||||||||||||||
| Depreciation and amortization | 4,667 | 2,659 | 3,015 | 8,775 | 76 | 19,192 | ||||||||||||||||||
| Operating income (loss) | 16,661 | 10,559 | 92 | 16,382 | (2,773 | ) | 40,921 | |||||||||||||||||
| Depreciation and amortization | 4,667 | 2,659 | 3,015 | 8,775 | 76 | 19,192 | ||||||||||||||||||
| EBITDA | 21,328 | 13,218 | 3,107 | 25,157 | (2,697 | ) | 60,113 | |||||||||||||||||
| Expense related to plant relocation (Cost of sales) | 976 | - | - | - | - | 976 | ||||||||||||||||||
| Expense related to plant relocation (SG&A) | 246 | - | - | - | - | 246 | ||||||||||||||||||
| Transaction, advisory fees, and reorganization costs | - | - | - | 675 | 189 | 864 | ||||||||||||||||||
| Restructuring charges related to severance and disposal of software | - | - | - | 936 | - | 936 | ||||||||||||||||||
| Adjusted EBITDA | $ | 22,550 | $ | 13,218 | $ | 3,107 | $ | 26,768 | $ | (2,508 | ) | $ | 63,135 | |||||||||||
| Adjusted EBITDA Margin % | 14.9 | % | 21.6 | % | 6.1 | % | 14.1 | % | 14.0 | % | ||||||||||||||
| Hardware Solutions(1) | Extruded Solutions(2) | Custom Solutions(3) | Tyman | Unallocated Corp & Other | Total | |||||||||||||||||||
| Three months ended April 30, 2025 | ||||||||||||||||||||||||
| Net sales | $ | 202,935 | $ | 163,967 | $ | 97,507 | $ | - | $ | (11,931 | ) | $ | 452,478 | |||||||||||
| Cost of sales | 145,533 | 111,637 | 73,702 | - | (9,776 | ) | 321,096 | |||||||||||||||||
| Gross Margin | 57,402 | 52,330 | 23,805 | - | (2,155 | ) | 131,382 | |||||||||||||||||
| Gross Margin % | 28.3 | % | 31.9 | % | 24.4 | % | 29.0 | % | ||||||||||||||||
| Selling, general and administrative | 32,259 | 21,673 | 10,850 | 5,551 | 70,333 | |||||||||||||||||||
| Restructuring charges | 896 | - | - | - | 40 | 936 | ||||||||||||||||||
| Depreciation and amortization | 10,361 | 7,437 | 5,437 | - | (4,043 | ) | 19,192 | |||||||||||||||||
| Operating (loss) income | 13,886 | 23,220 | 7,518 | - | (3,703 | ) | 40,921 | |||||||||||||||||
| Depreciation and amortization | 10,361 | 7,437 | 5,437 | - | (4,043 | ) | 19,192 | |||||||||||||||||
| EBITDA | 24,247 | 30,657 | 12,955 | - | (7,746 | ) | 60,113 | |||||||||||||||||
| Expense related to plant relocation (Cost of sales) | 976 | - | - | - | - | 976 | ||||||||||||||||||
| Expense related to plant relocation (SG&A) | 246 | - | - | - | - | 246 | ||||||||||||||||||
| Transaction, advisory fees, and reorganization costs | 593 | 19 | - | - | 252 | 864 | ||||||||||||||||||
| Restructuring charges related to severance and disposal of software | 896 | - | - | - | 40 | 936 | ||||||||||||||||||
| Adjusted EBITDA | $ | 26,958 | $ | 30,676 | $ | 12,955 | $ | - | $ | (7,454 | ) | $ | 63,135 | |||||||||||
| Adjusted EBITDA Margin % | 13.3 | % | 18.7 | % | 13.3 | % | 14.0 | % | ||||||||||||||||
| NA Fenestration | EU Fenestration | NA Cabinet Components | Tyman | Unallocated Corp & Other | Total | |||||||||||||||||||
| Six months ended April 30, 2025 | ||||||||||||||||||||||||
| Net sales | $ | 285,359 | $ | 109,728 | $ | 95,047 | $ | 365,783 | $ | (3,395 | ) | $ | 852,522 | |||||||||||
| Cost of sales | 220,327 | 69,638 | 81,821 | 259,539 | (2,501 | ) | 628,824 | |||||||||||||||||
| Gross Margin | 65,032 | 40,090 | 13,226 | 106,244 | (894 | ) | 223,698 | |||||||||||||||||
| Gross Margin % | 22.8 | % | 36.5 | % | 13.9 | % | 29.0 | % | 26.2 | % | ||||||||||||||
| Selling, general and administrative | 32,071 | 16,959 | 10,992 | 71,649 | 5,312 | 136,983 | ||||||||||||||||||
| Restructuring charges | - | - | - | 8,840 | - | 8,840 | ||||||||||||||||||
| Depreciation and amortization | 9,446 | 5,269 | 6,024 | 23,038 | 155 | 43,932 | ||||||||||||||||||
| Asset impairment charges | - | - | - | - | - | - | ||||||||||||||||||
| Operating income (loss) | 23,515 | 17,862 | (3,790 | ) | 2,717 | (6,361 | ) | 33,943 | ||||||||||||||||
| Depreciation and amortization | 9,446 | 5,269 | 6,024 | 23,038 | 155 | 43,932 | ||||||||||||||||||
| EBITDA | 32,961 | 23,131 | 2,234 | 25,755 | (6,206 | ) | 77,875 | |||||||||||||||||
| Expense related to plant relocation (Cost of sales) | 976 | - | - | - | - | 976 | ||||||||||||||||||
| Expense related to plant relocation (SG&A) | 247 | - | - | - | - | 247 | ||||||||||||||||||
| Amortization of step-up for purchase price adjustments on inventory and accounts receivable | - | - | - | 9,007 | - | 9,007 | ||||||||||||||||||
| Transaction, advisory fees, and reorganization costs | - | - | - | 2,142 | 2,590 | 4,732 | ||||||||||||||||||
| Restructuring charges related to severance and disposal of software | - | - | - | 8,840 | - | 8,840 | ||||||||||||||||||
| Adjusted EBITDA | $ | 34,184 | $ | 23,131 | $ | 2,234 | $ | 45,744 | $ | (3,616 | ) | $ | 101,677 | |||||||||||
| Adjusted EBITDA Margin % | 12.0 | % | 21.1 | % | 2.4 | % | 12.5 | % | 11.9 | % | ||||||||||||||
| Hardware Solutions(1) | Extruded Solutions(2) | Custom Solutions(3) | Tyman | Unallocated Corp & Other | Total | |||||||||||||||||||
| Six months ended April 30, 2025 | ||||||||||||||||||||||||
| Net sales | $ | 387,675 | $ | 303,597 | $ | 182,545 | $ | - | $ | (21,295 | ) | $ | 852,522 | |||||||||||
| Cost of sales | 296,318 | 209,317 | 142,000 | - | (18,811 | ) | 628,824 | |||||||||||||||||
| Gross Margin | 91,357 | 94,280 | 40,545 | - | (2,484 | ) | 223,698 | |||||||||||||||||
| Gross Margin % | 23.6 | % | 31.1 | % | 22.2 | % | 26.2 | % | ||||||||||||||||
| Selling, general and administrative | 65,616 | 40,181 | 22,448 | - | 8,738 | 136,983 | ||||||||||||||||||
| Restructuring charges | 7,015 | - | - | 1,825 | 8,840 | |||||||||||||||||||
| Depreciation and amortization | 21,831 | 15,077 | 10,977 | - | (3,953 | ) | 43,932 | |||||||||||||||||
| Operating income (loss) | (3,105 | ) | 39,022 | 7,120 | - | (9,094 | ) | 33,943 | ||||||||||||||||
| Depreciation and amortization | 21,831 | 15,077 | 10,977 | - | (3,953 | ) | 43,932 | |||||||||||||||||
| EBITDA | 18,726 | 54,099 | 18,097 | - | (13,047 | ) | 77,875 | |||||||||||||||||
| Expense related to plant relocation (Cost of sales) | 976 | - | - | - | - | 976 | ||||||||||||||||||
| Expense related to plant relocation (SG&A) | 247 | - | - | - | - | 247 | ||||||||||||||||||
| Amortization of step-up for purchase price adjustments on inventory and accounts receivable | 7,509 | 352 | 1,146 | - | - | 9,007 | ||||||||||||||||||
| Transaction and advisory fees | 683 | 176 | - | - | 3,873 | 4,732 | ||||||||||||||||||
| Restructuring charges | 7,015 | - | - | 1,825 | 8,840 | |||||||||||||||||||
| Adjusted EBITDA | $ | 35,156 | $ | 54,627 | $ | 19,243 | $ | - | $ | (7,349 | ) | $ | 101,677 | |||||||||||
| Adjusted EBITDA Margin % | 9.1 | % | 18.0 | % | 10.5 | % | 11.9 | % | ||||||||||||||||
(1) The Hardware Solutions segment contains a portion of the previously reported NA Fenestration segment.
(2) The Extruded Solutions segment contains a portion of the previously reported NA Fenestration and the EU Fenestration segments.
(3) The Custom Solutions segment contains a portion of the previously reported NA Fenestration and the NA Cabinet Components segments.
| QUANEX BUILDING PRODUCTS CORPORATION SALES ANALYSIS (In thousands) (Unaudited) | |||||||||||||||
| Three Months Ended April 30, | Six Months Ended April 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Hardware Solutions:(1) | |||||||||||||||
| Window and door hardware | $ | 109,377 | $ | 104,887 | $ | 234,078 | $ | 227,240 | |||||||
| Screens | 91,482 | 95,860 | 154,081 | 156,414 | |||||||||||
| Other | 2,160 | 2,188 | 3,972 | 4,021 | |||||||||||
| $ | 203,019 | $ | 202,935 | $ | 392,131 | $ | 387,675 | ||||||||
| Extruded Solutions:(2) | |||||||||||||||
| Window profiles | $ | 72,542 | $ | 70,009 | $ | 130,897 | $ | 129,854 | |||||||
| Seals and gaskets | 19,530 | 19,401 | 37,164 | 37,442 | |||||||||||
| Spacers | 52,526 | 50,671 | 100,128 | 93,532 | |||||||||||
| Solar | 5,312 | 7,062 | 9,917 | 12,585 | |||||||||||
| Flashing Tape | 3,228 | 1,599 | 4,746 | 3,713 | |||||||||||
| Window and door hardware | 8,470 | 11,177 | 15,982 | 20,635 | |||||||||||
| Other | 3,341 | 4,048 | 5,915 | 5,836 | |||||||||||
| $ | 164,949 | $ | 163,967 | $ | 304,749 | $ | 303,597 | ||||||||
| Custom Solutions:(3) | |||||||||||||||
| Wood solutions | $ | 56,906 | $ | 51,237 | $ | 103,560 | $ | 95,047 | |||||||
| Access solutions | 26,455 | 23,880 | 49,501 | 46,788 | |||||||||||
| Mixing solutions | 20,552 | 22,390 | 39,994 | 40,710 | |||||||||||
| $ | 103,913 | $ | 97,507 | $ | 193,055 | $ | 182,545 | ||||||||
| Unallocated Corporate & Other: | |||||||||||||||
| Eliminations | $ | (9,514 | ) | $ | (11,931 | ) | $ | (18,479 | ) | $ | (21,295 | ) | |||
| $ | (9,514 | ) | $ | (11,931 | ) | $ | (18,479 | ) | $ | (21,295 | ) | ||||
| Net Sales | $ | 462,367 | $ | 452,478 | $ | 871,456 | $ | 852,522 | |||||||
(1) Reflects an increase of $4.4 million and $6.7 million in revenue associated with foreign currency exchange rate impacts for the three and six months ended April 30, 2026, respectively.
(2) Reflects an increase of $5.9 million and $8.6 million in revenue associated with foreign currency exchange rate impacts for the three and six months ended April 30, 2026, respectively.
(3) Reflects an increase of $0.5 million and $0.3 million in revenue associated with foreign currency exchange rate impacts for the three and six months ended April 30, 2026, respectively.
