HOUSTON, Dec. 11, 2025 (GLOBE NEWSWIRE) -- Quanex Building Products Corporation (NYSE:NX) ("Quanex" or the "Company") today announced its results for the three months and twelve months ended October 31, 2025.
The Company reported the following selected financial results:
Three Months Ended October 31,
Twelve Months Ended October 31,
($ in millions, except per share data)
2025
2024
2025
2024
Net Sales
$489.8
$492.2
$1,837.6
$1,277.9
Gross Margin
$137.6
$117.1
$499.2
$305.6
Gross Margin %
28.1%
23.8%
27.2%
23.9%
Net income (loss)
$19.6
($13.9)
($250.8)
$33.1
Diluted EPS
$0.43
($0.30)
($5.43)
$0.90
Adjusted Net Income
$38.0
$38.5
$106.4
$97.5
Adjusted Diluted EPS
$0.83
$0.82
$2.30
$2.66
Adjusted EBITDA
$70.9
$81.1
$242.9
$182.4
Adjusted EBITDA Margin %
14.5%
16.5%
13.2%
14.3%
Cash Provided by Operating Activities
$88.3
$5.5
$164.9
$88.8
Free Cash Flow
$66.6
($8.2)
$102.3
$51.7
(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, "Our fiscal 2025 can be summarized by the successful integration of Tyman and the re-segmentation of our operating and reporting structure to align with our long-term strategic objectives, all while navigating a challenging macroeconomic environment. We believe the new segmentation represents a critical step in advancing our long-term Profitable Growth strategy and provides a solid framework to drive future revenue and margin expansion, which is consistent with the original thesis for the Tyman acquisition. Inflationary pressures, political instability, high interest rates, tariff uncertainty, housing affordability issues, and geopolitical tensions collectively weakened consumer confidence around the world, causing our end markets to decline meaningfully as compared to 2024. Despite these headwinds, we performed well and achieved another record year of safety performance, with both recordable incident and severity rates reaching historic lows.
"We continue to be encouraged by the overall resilience of the business in the current environment, demonstrated by our strong cash flow, which enabled us to repay a total of $75 million in bank debt in 2025. Our balance sheet remains healthy, and our liquidity improved further during the fourth quarter of 2025. While the integration of the Tyman business is substantially complete, we still believe there is a path to realizing approximately $45 million in cost synergies over time, above our initial projection of $30 million, which has been fully realized. In addition, we have made significant progress towards resolving the isolated operational issue at one of our window and door hardware plants in Mexico and we anticipate that the plant will be fully stabilized in the first half of fiscal 2026. Looking ahead, we continue to be optimistic about our prospects for profitable growth and value creation."
Fourth Quarter and Fiscal 2025 Results Summary
Quanex reported net sales of $489.8 million during the three months ended October 31, 2025, which represents a decrease of 0.5% compared to $492.2 million for the same period of 2024, mainly due to lower volume. The Company reported net sales of $1.84 billion during the twelve months ended October 31, 2025, which represents an increase of 43.8% compared to $1.28 billion for the same period of 2024. The increase for the full year was driven by the contribution from the Tyman acquisition that closed on August 1, 2024. In its Hardware Solutions segment, Quanex reported an increase of 1.4% in net sales for the fourth quarter of 2025, mostly due to foreign exchange and tariff pass-throughs, and an increase of 96.7% in net sales for the full year. In its Extruded Solutions segment, Quanex reported a decrease of 6.4% in net sales for the fourth quarter of 2025, driven by lower volumes, and an increase of 15.5% in net sales for the full year. For its Custom Solutions segment, the Company reported an increase of 2.1% in net sales for the fourth quarter of 2025, largely due to improved pricing, and an increase of 25.5% in net sales for the full year. (See Sales Analysis table for additional information)
On a consolidated basis, the decrease in adjusted earnings for the fourth quarter of 2025 was mainly due to lower volumes related to ongoing macroeconomic uncertainty coupled with low consumer confidence and operational challenges related to Quanex's window and door hardware plant in Monterrey, Mexico. The increase in adjusted earnings for the full year 2025, was primary attributable to the contribution from the Tyman acquisition combined with the realization of related cost synergies.
Balance Sheet & Liquidity Update
As of October 31, 2025, the Company had total debt of $703.9 million and Quanex's leverage ratio of Net Debt to LTM Adjusted EBITDA was unchanged at 2.6x, compared to the prior quarter. As of October 31, 2025, Quanex reported a LTM Net Loss of $250.8 million, mainly due to the non-cash goodwill impairment reported in the third quarter, and LTM Adjusted EBITDA of $242.9 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 increased to $372.4 million as of October 31, 2025, consisting of $76.0 million in cash on hand plus availability under its Senior Secured Revolving Credit Facility due 2029, less letters of credit outstanding.
Share Repurchases
Quanex's Board authorized a $75 million share repurchase program in December of 2021. Repurchases under this program will be made in open market transactions or privately negotiated transactions, subject to market conditions, applicable legal requirements, and other relevant factors. The Company repurchased 199,712 shares of common stock for approximately $3.1 million at an average price of $15.58 per share during the three months ended October 31, 2025. Quanex repurchased 1,709,119 shares of common stock for approximately $32.4 million at an average price of $18.93 per share during the twelve months ended October 31, 2025. As of October 31, 2025, approximately $30.5 million remained under the existing share repurchase authorization.
Outlook
Mr. Wilson stated, "Our long-term view continues to be favorable as the underlying fundamentals for the residential housing market remain positive. We enter fiscal 2026 with a cautious outlook due to the ongoing macroeconomic challenges, but we are optimistic that demand for our products will improve as consumer confidence is restored over time. Our current view is that fiscal 2026 could be flat compared to fiscal 2025 from a revenue and EBITDA perspective, with puts and takes, but the first half of 2026 may be more challenged than the first half of 2025, which would imply a somewhat improved second half year-over-year. Having said that, and consistent with the last few years, based on current macro indicators, recent conversations with our customers, limited transparency, and varying opinions on the macroeconomic outlook for 2026, we are again taking a measured approach to guidance. We believe it would be premature to give official guidance at this time and intend to re-visit guidance for 2026 when we report earnings for the first quarter. As macroeconomic uncertainty subsides and consumer confidence improves, we believe our team is well positioned to capitalize on pent-up demand. In the meantime, we will stay focused on the things that we can control, with an emphasis on generating cash to continue paying down debt and opportunistically repurchasing our stock."
Conference Call and Webcast Information
The Company has also scheduled a conference call for Friday, December 12, 2025 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/BI74e5fd99c2e14c3896a48692a347cd12
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.
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 reflects 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. The presented non-GAAP measures may not be the same as those used by other companies. Quanex 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," or similar words reflecting future expectations or beliefs are forward-looking statements. The forward-looking statements include, but are not limited to, the following: the Company's ability to resolve an isolated operational issue at its window and door hardware plant located in Monterrey, Mexico, timing estimates or any other expectations related to the acquisition of Tyman, 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, and Quanex'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 this release. 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, 2024, 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 Quanex 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 October 31,
Twelve Months Ended October 31,
2025
2024
2025
2024
Net sales
$
489,846
$
492,161
$
1,837,641
$
1,277,862
Cost of sales
352,284
375,111
1,338,413
972,238
Selling, general and administrative
69,008
86,891
277,261
190,470
Restructuring (credit) charges
(16
)
-
10,191
-
Depreciation and amortization
25,630
27,329
103,444
60,328
Goodwill impairment charges
-
-
302,284
-
Operating income (loss)
42,940
2,830
(193,952
)
54,826
Interest expense
(13,468
)
(17,697
)
(55,812
)
(20,593
)
Other, net
5,246
(2,671
)
7,171
7,849
Income (loss) before income taxes
34,718
(17,538
)
(242,593
)
42,082
Income tax (expense) benefit
(15,147
)
3,621
(8,213
)
(9,023
)
Net income (loss)
$
19,571
$
(13,917
)
$
(250,806
)
$
33,059
Earnings (loss) per common share, basic
$
0.43
$
(0.30
)
$
(5.43
)
$
0.91
Earnings (loss) per common share, diluted
$
0.43
$
(0.30
)
$
(5.43
)
$
0.90
Weighted average common shares outstanding:
Basic
45,502
47,015
46,170
36,416
Diluted
45,593
47,015
46,170
36,648
Cash dividends per share
$
0.08
$
0.08
$
0.32
$
0.32
QUANEX BUILDING PRODUCTS CORPORATIONCONDENSED CONSOLIDATED BALANCE SHEETS(In thousands)(Unaudited)
October 31, 2025
October 31, 2024
ASSETS
Current assets:
Cash and cash equivalents
$
76,018
$
97,744
Restricted Cash
2,100
5,251
Accounts receivable, net
205,384
197,689
Inventories
254,122
275,550
Income taxes receivable
-
5,937
Prepaid assets
32,387
23,419
Other current assets
3,764
5,678
Total current assets
573,775
611,268
Property, plant and equipment, net
411,591
402,466
Operating lease right-of-use assets
154,866
126,715
Deferred tax assets
2,706
3,845
Goodwill
271,346
574,711
Intangible assets, net
549,137
597,909
Other assets
4,812
2,874
Total assets
$
1,968,233
$
2,319,788
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
131,307
$
124,404
Accrued liabilities
95,155
103,623
Income taxes payable
12,076
6,620
Current maturities of long-term debt
27,561
25,745
Current operating lease liabilities
15,446
12,475
Total current liabilities
281,545
272,867
Long-term debt
665,268
737,198
Noncurrent operating lease liabilities
145,459
117,560
Deferred income taxes
135,993
162,304
Other liabilities
13,789
19,113
Total liabilities
1,242,054
1,309,042
Stockholders' equity:
Common stock
512
513
Additional paid-in-capital
700,029
701,008
Retained earnings
164,710
430,405
Accumulated other comprehensive loss
(35,439
)
(46,428
)
Treasury stock at cost
(103,633
)
(74,752
)
Total stockholders' equity
726,179
1,010,746
Total liabilities and stockholders' equity
$
1,968,233
$
2,319,788
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW(In thousands)(Unaudited)
Twelve Months Ended October 31,
2025
2024
Operating activities:
Net (loss) income
$
(250,806
)
$
33,059
Adjustments to reconcile net (loss) income to cash provided by operating activities:
Depreciation and amortization
103,444
60,328
Loss (gain) on disposition of capital assets
613
(5,218
)
Stock-based compensation
3,685
2,952
Deferred income tax
(18,535
)
(15,336
)
Goodwill impairment charge
302,284
-
Charge for deferred loan costs and debt discount
-
3,469
Gain on deal contingent foreign exchange forward currency contract
-
(6,512
)
Restructuring charges
4,561
-
Other, net
7,114
4,495
Changes in assets and liabilities:
(Increase) decrease in accounts receivable
(6,878
)
973
Decrease in inventory
23,553
33,484
(Increase) decrease in other current assets
(3,653
)
4,297
Increase (decrease) in accounts payable
3,313
(35,824
)
(Decrease) increase in accrued liabilities
(9,657
)
6,250
Increase in current income taxes payable
11,108
9,139
Decrease in other long-term liabilities
(4,693
)
(7,155
)
Other, net
(556
)
411
Cash provided by operating activities
164,897
88,812
Investing activities:
Business acquisition
-
(398,554
)
Capital expenditures
(62,642
)
(37,086
)
Proceeds from disposition of capital assets
634
15,046
Cash used for investing activities
(62,008
)
(420,594
)
Financing activities:
Borrowings under credit facilities
190,000
785,000
Repayments of credit facility borrowings
(265,000
)
(83,750
)
Debt issuance costs
-
(13,808
)
Repayments of other long-term debt
(4,045
)
(296,206
)
Common stock dividends paid
(14,889
)
(11,972
)
Issuance of common stock
214
573
Proceeds from deal contingent foreign exchange forward currency contract
-
6,512
Payroll tax paid to settle shares forfeited upon vesting of stock
(1,400
)
(1,193
)
Purchase of treasury stock
(32,360
)
-
Cash (used for) provided by financing activities
(127,480
)
385,156
Effect of exchange rate changes on cash and cash equivalents
(286
)
(8,853
)
(Decrease) Increase in cash, cash equivalents and restricted cash
(24,877
)
44,521
Cash, cash equivalents and restricted cash at beginning of period
102,995
58,474
Cash, cash equivalents and restricted cash at end of period
$
78,118
$
102,995
QUANEX BUILDING PRODUCTS CORPORATIONFREE 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 October 31,
Twelve Months Ended October 31,
2025
2024
2025
2024
Cash provided by operating activities
$88,254
$5,479
164,897
$88,812
Capital expenditures
(21,646
)
(13,651
)
(62,642
)
(37,086
)
Free Cash Flow
$66,608
($8,172
)
102,255
$51,726
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 October 31,
2025
2024
Term loan facility
$468,750
$493,750
Revolving credit facility
172,500
222,500
Finance lease obligations (1)
62,619
60,676
Total debt (2)
703,869
776,926
Less: Cash and cash equivalents
76,018
97,744
Net Debt
627,851
679,182
(1) Includes $56.4 million and $50.3 million in real estate lease liabilities considered finance leases under U.S. GAAP as of October 31, 2025 and 2024, respectively.
(2) Excludes outstanding letters of credit.
QUANEX BUILDING PRODUCTS CORPORATIONNON-GAAP FINANCIAL MEASURE DISCLOSURELAST TWELVE MONTHS ADJUSTED EBITDA RECONCILIATION(In thousands, except per share data)(Unaudited)
Reconciliation of Last Twelve Months Adjusted EBITDA
Three Months EndedOctober 31, 2025
Three Months Ended July 31, 2025
Three Months EndedApril 30, 2025
Three Months Ended January 31, 2025
Total
Reconciliation
Reconciliation
Reconciliation
Reconciliation
Reconciliation
Net income (loss) as reported
$
19,571
$
(276,007
)
$
20,515
$
(14,885
)
$
(250,806
)
Income tax expense (benefit)
15,147
(8,191
)
6,307
(5,050
)
8,213
Other, net
(5,246
)
(855
)
159
(1,229
)
(7,171
)
Interest expense
13,468
14,218
13,940
14,186
55,812
Depreciation and amortization
25,630
33,882
19,192
24,740
103,444
Asset impairment charges
-
302,284
-
-
302,284
EBITDA
68,570
65,331
60,113
17,762
211,776
Cost of sales (1),(2)
308
148
976
9,007
10,439
Selling, general and administrative (1),(3)
2,056
3,449
1,110
3,869
10,484
Restructuring (credit) charges (4)
(16
)
1,367
936
7,904
10,191
Adjusted EBITDA
$
70,918
$
70,295
$
63,135
$
38,542
$
242,890
(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.
QUANEX BUILDING PRODUCTS CORPORATIONNON-GAAP FINANCIAL MEASURE DISCLOSURE(In thousands, except per share data)(Unaudited)
Reconciliation of Adjusted Net Income and Adjusted EPS
Three Months Ended October 31, 2025
Three Months Ended October 31, 2024
Twelve Months EndedOctober 31, 2025
Twelve Months EndedOctober 31, 2024
Net Income
Diluted EPS
Net Income
Diluted EPS
Net Income
Diluted EPS
Net Income
Diluted EPS
Net income (loss) as reported
$
19,571
$
0.43
$
(13,917
)
$
(0.30
)
$
(250,806
)
$
(5.43
)
$
33,059
$
0.90
Net income (loss) reconciling items from below
18,454
$
0.40
52,440
$
1.12
357,209
$
7.73
64,462
$
1.76
Adjusted net income and adjusted EPS
$
38,025
$
0.83
$
38,523
$
0.82
