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 ZuehlkeSVP, Chief Financial Officer & Treasurer713-877-5327[email protected]
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 CORPORATIONCONDENSED 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 CORPORATIONCONDENSED 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 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 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 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 EndedApril 30, 2026
Three Months EndedJanuary 31, 2026
Three Months EndedOctober 31, 2025
Three Months EndedJuly 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 CORPORATIONNON-GAAP FINANCIAL MEASURE DISCLOSURE(In thousands, except per share data)(Unaudited)
Reconciliation of Adjusted Net Income and Adjusted EPS
Three Months EndedApril 30, 2026
Three Months EndedApril 30, 2025
Six Months EndedApril 30, 2026
Six Months EndedApril 30, 2025
NetIncome
DilutedEPS
NetIncome
DilutedEPS
NetIncome
DilutedEPS
NetIncome
DilutedEPS
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 EndedApril 30, 2026
Three Months EndedApril 30, 2025
Six Months EndedApril 30, 2026
Six Months EndedApril 30, 2025
Reconciliation
Reconciliation
Reconciliation
