NX 8-K
Quanex Building Products CORP (NX)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM
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CURRENT REPORT
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On September 3, 2026, the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
| 99.1 | Press Release dated September 3, 2026 | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Quanex Building Products Corporation | ||
| Date: September 3, 2026 | By: | /s/ SCOTT ZUEHLKE |
| Scott Zuehlke | ||
| SVP, CFO and Treasurer | ||
EXHIBIT 99.1
Quanex Building Products Announces Third Quarter 2026 Results
Net Sales Growth
Volumes Continue to Track Normal Seasonality Patterns
Margin Expansion Realized in Hardware Solutions Segment and on Consolidated Basis
$42.25 Million of Debt Repaid in 3Q26
Continued Progress and Execution on Working Capital Management
HOUSTON, Sept. 03, 2026 (GLOBE NEWSWIRE) -- Quanex Building Products Corporation (NYSE:NX) (“Quanex” or the “Company”) today announced its results for the three months ended July 31, 2026.
The Company reported the following selected financial results:
| Three Months Ended July 31, | Nine Months Ended July 31, | |||||||
| ($ in millions, except per share data) | 2026 | 2025 | 2026 | 2025 | ||||
| Net Sales | $501.8 | $495.3 | $1,373.3 | $1,347.8 | ||||
| Gross Margin | $141.5 | $138.0 | $357.8 | $361.7 | ||||
| Gross Margin % | 28.2% | 27.9% | 26.1% | 26.8% | ||||
| Operating Income (Loss) | $46.5 | ($270.8) | $68.1 | ($236.9) | ||||
| Net Income (Loss) | $26.5 | ($276.0) | $25.8 | ($270.4) | ||||
| Diluted EPS | $0.58 | ($6.04) | $0.57 | ($5.83) | ||||
| Adjusted Net Income | $36.0 | $31.6 | $47.0 | $68.4 | ||||
| Adjusted Diluted EPS | $0.79 | $0.69 | $1.03 | $1.47 | ||||
| Adjusted EBITDA | $72.7 | $70.3 | $144.3 | $172.0 | ||||
| Adjusted EBITDA Margin % | 14.5% | 14.2% | 10.5% | 12.8% | ||||
| Cash Provided By Operating Activities | $58.6 | $60.7 | $57.3 | $76.6 | ||||
| Free Cash Flow | $47.8 | $46.2 | $24.2 | $35.6 | ||||
(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, stated, “Volumes continued to track normal seasonality patterns during the third quarter of 2026, and we made meaningful progress addressing the price versus cost imbalance that impacted our margins in the second quarter of 2026. Inflationary pressures related to macroeconomic concerns and the ongoing conflict in the Middle East are still having an impact, but the initial rate and magnitude of these pressures have somewhat subsided.
“We stayed focused on managing our working capital during the third quarter of 2026, which when coupled with the seasonal uptick in volumes, enabled us to repay $42.25 million of debt and buy back some of our shares. We will continue to prioritize repaying debt and opportunistically repurchasing our shares as we generate cash in the fourth quarter of 2026. In addition, we will continue to identify operational efficiencies and commercial synergies that we believe will benefit us when consumer confidence and demand improve.”
Third Quarter 2026 Results Summary
Quanex reported net sales of $501.8 million during the three months ended July 31, 2026, which represents an increase of 1.3% compared to $495.3 million for the same period in 2025, mainly due to favorable impacts from pricing, partially offset by the impact of IEEPA tariff reimbursements to customers. The Hardware Solutions segments reported a 2.7% decline in net sales for the third quarter of 2026, driven by lower volumes and the impact of IEEPA tariff reimbursements to customers, which were somewhat offset by favorable impacts from pricing. The Extruded Solutions segments reported net sales growth of 2.8% for the third quarter of 2026, as lower volumes were more than offset by favorable impacts from pricing. Quanex reported an increase of 8.5% in net sales for the third 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 increase in reported earnings for the third quarter of 2026 compared to the third quarter of 2025 was mainly due to improved pricing, lower depreciation and amortization expense and lower interest expense. Results for the third quarter of 2025 were also impacted by a $302.3 million non-cash goodwill impairment.
Balance Sheet & Liquidity Update
As of July 31, 2026, the Company had total debt of $672.2 million and Quanex’s leverage ratio of Net Debt to LTM Adjusted EBITDA was 2.8x. As of July 31, 2026, Quanex reported LTM Net Income of $45.4 million and LTM Adjusted EBITDA of $215.2 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 by 10.5% to $363.1 million as of July 31, 2026, consisting of $62.1 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 99,786 shares of common stock for approximately $1.7 million at an average price of $17.10 per share during the three months ended July 31, 2026. As of July 31, 2026, approximately $28.7 million remained under the existing share repurchase authorization.
Conference Call and Webcast Information
The Company has scheduled a conference call for Friday, September 4, 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/BIac7900426be941999342c141e5049229
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 partners with leading OEMs to provide innovative solutions in 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 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 July 31, | Nine Months Ended July 31, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Net sales | $ | 501,845 | $ | 495,273 | $ | 1,373,301 | $ | 1,347,795 | ||||||||
| Cost of sales | 360,380 | 357,305 | 1,015,517 | 986,129 | ||||||||||||
| Selling, general and administrative | 70,837 | 71,270 | 216,695 | 208,253 | ||||||||||||
| Restructuring charges | - | 1,367 | - | 10,207 | ||||||||||||
| Depreciation and amortization | 24,138 | 33,882 | 73,037 | 77,814 | ||||||||||||
| Asset impairment charges | - | 302,284 | - | 302,284 | ||||||||||||
| Operating income (loss) | 46,490 | (270,835 | ) | 68,052 | (236,892 | ) | ||||||||||
| Interest expense | (11,978 | ) | (14,218 | ) | (36,387 | ) | (42,344 | ) | ||||||||
| Other, net | (93 | ) | 855 | 5,972 | 1,925 | |||||||||||
| Income (loss) before income taxes | 34,419 | (284,198 | ) | 37,637 | (277,311 | ) | ||||||||||
| Income tax (expense) benefit | (7,915 | ) | 8,191 | (11,854 | ) | 6,934 | ||||||||||
| Net income (loss) | $ | 26,504 | $ | (276,007 | ) | $ | 25,783 | $ | (270,377 | ) | ||||||
| Earnings (loss) per common share, basic | $ | 0.58 | $ | (6.04 | ) | $ | 0.57 | $ | (5.83 | ) | ||||||
| Earnings (loss) per common share, diluted | $ | 0.58 | $ | (6.04 | ) | $ | 0.57 | $ | (5.83 | ) | ||||||
| Weighted average common shares outstanding: | ||||||||||||||||
| Basic | 45,461 | 45,691 | 45,466 | 46,395 | ||||||||||||
| Diluted | 45,648 | 45,691 | 45,607 | 46,395 | ||||||||||||
| Cash dividends per share | $ | 0.08 | $ | 0.08 | $ | 0.24 | $ | 0.24 | ||||||||
| QUANEX BUILDING PRODUCTS CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) | ||||||||
| July 31, 2026 | October 31, 2025 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 62,094 | $ | 76,018 | ||||
| Restricted Cash | 2,123 | 2,100 | ||||||
| Accounts receivable, net | 214,768 | 205,384 | ||||||
| Inventories | 276,396 | 254,122 | ||||||
| Income taxes receivable | 5,603 | - | ||||||
| Prepaid assets | 37,452 | 32,387 | ||||||
| Other current assets | 3,847 | 3,764 | ||||||
| Total current assets | 602,283 | 573,775 | ||||||
| Property, plant and equipment, net | 394,021 | 411,591 | ||||||
| Operating lease right-of-use assets | 171,552 | 154,866 | ||||||
| Deferred tax assets | 300 | 2,706 | ||||||
| Goodwill | 273,765 | 271,346 | ||||||
| Intangible assets, net | 522,218 | 549,137 | ||||||
| Other assets | 4,552 | 4,812 | ||||||
| Total assets | $ | 1,968,691 | $ | 1,968,233 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 127,030 | $ | 131,307 | ||||
| Accrued liabilities | 88,209 | 95,155 | ||||||
| Income taxes payable | 9,300 | 12,076 | ||||||
| Current maturities of long-term debt | 26,551 | 27,561 | ||||||
| Current operating lease liabilities | 18,822 | 15,446 | ||||||
| Other liabilities | - | - | ||||||
| Total current liabilities | 269,912 | 281,545 | ||||||
| Long-term debt | 636,814 | 665,268 | ||||||
| Noncurrent operating lease liabilities | 160,290 | 145,459 | ||||||
| Deferred pension benefits | ||||||||
| Deferred income taxes | 137,766 | 135,993 | ||||||
| Liabilities for uncertain tax positions | 1,857 | - | ||||||
| Other liabilities | 16,608 | 13,789 | ||||||
| Total liabilities | 1,223,247 | 1,242,054 | ||||||
| Stockholders’ equity: | ||||||||
| Common stock | 512 | 512 | ||||||
| Additional paid-in-capital | 697,598 | 700,029 | ||||||
| Retained earnings | 179,472 | 164,710 | ||||||
| Accumulated other comprehensive loss | (32,142 | ) | (35,439 | ) | ||||
| Treasury stock at cost | (99,996 | ) | (103,633 | ) | ||||
| Total stockholders’ equity | 745,444 | 726,179 | ||||||
| Total liabilities and stockholders' equity | $ | 1,968,691 | $ | 1,968,233 | ||||
| QUANEX BUILDING PRODUCTS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (In thousands) (Unaudited) | |||||||
| Nine Months Ended July 31, | |||||||
| 2026 | 2025 | ||||||
| Operating activities: | |||||||
| Net (loss) income | $ | 25,783 | $ | (270,377 | ) | ||
| Adjustments to reconcile net loss to cash used for operating activities: | |||||||
| Depreciation and amortization | 73,037 | 77,814 | |||||
| Stock-based compensation | 3,617 | 2,762 | |||||
| Deferred income tax | 664 | (26,440 | ) | ||||
| Goodwill impairment charge | - | 302,284 | |||||
| Other, net | 4,640 | 9,203 | |||||
| Changes in assets and liabilities: | |||||||
| Increase in accounts receivable | (8,685 | ) | (1,727 | ) | |||
| (Increase) decrease in inventory | (21,129 | ) | 5,261 | ||||
| Increase in other current assets | (4,430 | ) | (7,228 | ) | |||
| (Decrease) increase in accounts payable | (2,365 | ) | 144 | ||||
| Decrease in accrued liabilities | (7,601 | ) | (9,725 | ) | |||
| Change in income taxes | (6,629 | ) | (21 | ) | |||
| Other, net | 366 | (5,307 | ) | ||||
| Cash provided by operating activities | 57,268 | 76,643 | |||||
| Investing activities: | |||||||
| Capital expenditures | (33,066 | ) | (40,996 | ) | |||
| Proceeds from disposition of capital assets | 62 | 361 | |||||
| Cash used for investing activities | (33,004 | ) | (40,635 | ) | |||
| Financing activities: | |||||||
| Borrowings under credit facilities | 141,500 | 170,000 | |||||
| Repayments of credit facility borrowings | (164,250 | ) | (213,750 | ) | |||
| Repayments of other long-term debt | (3,316 | ) | (1,962 | ) | |||
| Common stock dividends paid | (10,916 | ) | (11,233 | ) | |||
| Purchase of treasury stock | (1,707 | ) | (29,248 | ) | |||
| Other, net | (704 | ) | (1,186 | ) | |||
| Cash used for financing activities | (39,393 | ) | (87,379 | ) | |||
| Effect of exchange rate changes on cash and cash equivalents | 1,228 | 16,302 | |||||
| Decrease in cash, cash equivalents and restricted cash | (13,901 | ) | (35,069 | ) | |||
| Cash, cash equivalents and restricted cash at beginning of period | 78,118 | 102,995 | |||||
| Cash, cash equivalents and restricted cash at end of period | $ | 64,217 | $ | 67,926 | |||
| 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 July 31, | Nine Months Ended July 31, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Cash provided by operating activities | $ | 58,554 | $ | 60,656 | $ | 57,268 | $ | 76,643 | |||||||
| Capital expenditures | (10,744 | ) | (14,452 | ) | (33,066 | ) | (40,996 | ) | |||||||
| Free Cash Flow | $ | 47,810 | $ | 46,204 | $ | 24,202 | $ | 35,647 | |||||||
| 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 July 31, | |||||||||||||||
| 2026 | 2025 | ||||||||||||||
| Term loan facility | $ | 450,000 | $ | 475,000 | |||||||||||
| Revolving credit facility | 168,500 | 197,500 | |||||||||||||
| Finance lease obligations (1) | 53,697 | 61,194 | |||||||||||||
| Total debt (2) | 672,197 | 733,694 | |||||||||||||
| Less: Cash and cash equivalents | 62,094 | 66,272 | |||||||||||||
| Net Debt | $ | 610,103 | $ | 667,422 | |||||||||||
| (1) Includes $47.9 million and $58.9 million in real estate lease liabilities considered finance leases under U.S. GAAP as of July 31, 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 July 31, 2026 | Three Months Ended April 30, 2026 | Three Months Ended January 31, 2026 | Three Months Ended October 31, 2025 | Total | |||||||||||||||
| Reconciliation | Reconciliation | Reconciliation | Reconciliation | Reconciliation | ||||||||||||||||
| Net income (loss) as reported | $ | 26,504 | $ | 3,350 | $ | (4,071 | ) | $ | 19,571 | $ | 45,354 | |||||||||
| Income tax expense (benefit) | 7,915 | 3,766 | 173 | 15,147 | 27,001 | |||||||||||||||
| Other, net | 93 | (448 | ) | (5,617 | ) | (5,246 | ) | (11,218 | ) | |||||||||||
| Interest expense | 11,978 | 12,042 | 12,367 | 13,468 | 49,855 | |||||||||||||||
| Depreciation and amortization | 24,138 | 24,650 | 24,249 | 25,630 | 98,667 | |||||||||||||||
| EBITDA | 70,628 | 43,360 | 27,101 | 68,570 | 209,659 | |||||||||||||||
| Cost of sales (1) | 1,223 | 121 | 407 | 308 | 2,059 | |||||||||||||||
| Selling, general and administrative (1),(2) | 894 | 688 | (126 | ) | 2,040 | 3,496 | ||||||||||||||
| Adjusted EBITDA | $ | 72,745 | $ | 44,169 | $ | 27,382 | $ | 70,918 | $ | 215,214 | ||||||||||
| (1) Severance and other expenses related to manufacturing footprint and performance optimization. | ||||||||||||||||||||
| (2) Transaction, advisory fees, severance and reorganization costs. | ||||||||||||||||||||
| 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 July 31, 2026 | Three Months Ended July 31, 2025 | Nine Months Ended July 31, 2026 | Nine Months Ended July 31, 2025 | |||||||||||||||||||||||||||||
| Net Income | Diluted EPS | Net Income | Diluted EPS | Net Income | Diluted EPS | Net Income | Diluted EPS | ||||||||||||||||||||||||||
| Net income (loss) as reported | $ | 26,504 | $ | 0.58 | $ | (276,007 | ) | $ | (6.04 | ) | $ | 25,783 | $ | 0.57 | $ | (270,377 | ) | $ | (5.83 | ) | |||||||||||||
| Net income(loss) reconciling items from below | 9,507 | $ | 0.21 | 307,578 | $ | 6.73 | 21,221 | $ | 0.46 | 338,756 | $ | 7.30 | |||||||||||||||||||||
| Adjusted net income and adjusted EPS | $ | 36,011 | $ | 0.79 | $ | 31,571 | $ | 0.69 | $ | 47,004 | $ | 1.03 | $ | 68,379 | $ | 1.47 | |||||||||||||||||
| Reconciliation of Adjusted EBITDA | Three Months Ended July 31, 2026 | Three Months Ended July 31, 2025 | Nine Months Ended July 31, 2026 | Nine Months Ended July 31, 2025 | |||||||||||||||||||||||||||||
| Reconciliation | Reconciliation | Reconciliation | Reconciliation | ||||||||||||||||||||||||||||||
| Net income (loss) as reported | $ | 26,504 | $ | (276,007 | ) | $ | 25,783 | $ | (270,377 | ) | |||||||||||||||||||||||
| Income tax expense | 7,915 | (8,191 | ) | 11,854 | (6,934 | ) | |||||||||||||||||||||||||||
| Other, net | 93 | (855 | ) | (5,972 | ) | (1,925 | ) | ||||||||||||||||||||||||||
| Interest expense | 11,978 | 14,218 | 36,387 | 42,344 | |||||||||||||||||||||||||||||
| Depreciation and amortization | 24,138 | 33,882 | 73,037 | 77,814 | |||||||||||||||||||||||||||||
| Asset impairment charges | - | 302,284 | - | 302,284 | |||||||||||||||||||||||||||||
| EBITDA | 70,628 | 65,331 | 141,089 | 143,206 | |||||||||||||||||||||||||||||
| EBITDA reconciling items from below | 2,117 | 4,964 | 3,207 | 28,766 | |||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 72,745 | $ | 70,295 | $ | 144,296 | $ | 171,972 | |||||||||||||||||||||||||
| Reconciling Items | Three Months Ended July 31, 2026 | Three Months Ended July 31, 2025 | Nine Months Ended July 31, 2026 | Nine Months Ended July 31, 2025 | |||||||||||||||||||||||||||||
| Income Statement | Reconciling Items | Income Statement | Reconciling Items | Income Statement | Reconciling Items | Income Statement | Reconciling Items | ||||||||||||||||||||||||||
| Net sales | $ | 501,845 | $ | - | $ | 495,273 | $ | - | $ | 1,373,301 | $ | - | $ | 1,347,795 | $ | - | |||||||||||||||||
| Cost of sales | 360,380 | (1,223 | ) | (1) | 357,305 | (148 | ) | (1) | 1,015,517 | (1,751 | ) | (1) | 986,129 | (1,124 | ) | (1) | |||||||||||||||||
| Selling, general and administrative | 70,837 | (894 | ) | (1),(3) | 71,270 | (3,449 | ) | (1),(3) | 216,695 | (1,456 | ) | (1),(3) | 208,253 | (17,435 | ) | (1),(2),(3) | |||||||||||||||||
| Restructuring charges | - | - | 1,367 | (1,367 | ) | (4) | - | - | 10,207 | (10,207 | ) | (4) | |||||||||||||||||||||
| EBITDA | 70,628 | 2,117 | 65,331 | 4,964 | 141,089 | 3,207 | 143,206 | 28,766 | |||||||||||||||||||||||||
| Asset impairment charges | - | - | 302,284 | (302,284 | ) | (5) | - | - | 302,284 | (302,284 | ) | (5) | |||||||||||||||||||||
| Depreciation and amortization | 24,138 | (9,758 | ) | (6) | 33,882 | (19,604 | ) | (6) | 73,037 | (29,291 | ) | (6) | 77,814 | (36,708 | ) | (6) | |||||||||||||||||
| Operating income (loss) | 46,490 | 11,875 | (270,835 | ) | 326,852 | 68,052 | 32,498 | (236,892 | ) | 367,758 | |||||||||||||||||||||||
| Interest expense | (11,978 | ) | - | (14,218 | ) | - | (36,387 | ) | - | (42,344 | ) | - | |||||||||||||||||||||
| Other, net | (93 | ) | 288 | (7) | 855 | (949 | ) | (7) | 5,972 | (4,942 | ) | (7) | 1,925 | (118 | ) | (7) | |||||||||||||||||
| Income (loss) before income taxes | 34,419 | 12,163 | (284,198 | ) | 325,903 | 37,637 | 27,556 | (277,311 | ) | 367,640 | |||||||||||||||||||||||
| Income tax (expense) benefit | (7,915 | ) | (2,656 | ) | (8) | 8,191 | (18,325 | ) | (8) | (11,854 | ) | (6,335 | ) | (8) | 6,934 | (28,884 | ) | (8) | |||||||||||||||
| Net income (loss) | $ | 26,504 | 9,507 | $ | (276,007 | ) | $ | 307,578 | $ | 25,783 | 21,221 | $ | (270,377 | ) | $ | 338,756 | |||||||||||||||||
| Diluted earnings (loss) per share | $ | 0.58 | $ | (6.04 | ) | $ | 0.57 | $ | (5.83 | ) | |||||||||||||||||||||||
| (1) Severance and other expenses related to manufacturing footprint and performance optimization. | |||||||||||||||||||||||||||||||||
| (2) Amortization of step-up for purchase price adjustments on inventory. | |||||||||||||||||||||||||||||||||
| (3) Transaction, advisory fees, and severance and reorganization costs. | |||||||||||||||||||||||||||||||||
| (4) Restructuring charges related to severance and disposal of software. | |||||||||||||||||||||||||||||||||
| (5) Goodwill impairment. | |||||||||||||||||||||||||||||||||
| (6) Amortization expense related to intangible assets. | |||||||||||||||||||||||||||||||||
| (7) Foreign currency transaction (gains) losses. | |||||||||||||||||||||||||||||||||
| (8) 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 July 31, 2026 | ||||||||||||||||||||
| Net sales | $ | 220,923 | $ | 179,291 | $ | 111,007 | $ | (9,376 | ) | $ | 501,845 | |||||||||
| Cost of sales | 162,056 | 121,389 | 85,861 | (8,926 | ) | 360,380 | ||||||||||||||
| Gross Margin | 58,867 | 57,902 | 25,146 | (450 | ) | 141,465 | ||||||||||||||
| Gross Margin % | 26.6 | % | 32.3 | % | 22.7 | % | 28.2 | % | ||||||||||||
| Selling, general and administrative (1) | 33,162 | 22,279 | 13,143 | 2,253 | 70,837 | |||||||||||||||
| Depreciation and amortization | 11,386 | 7,213 | 5,330 | 209 | 24,138 | |||||||||||||||
| Operating (loss) income | 14,319 | 28,410 | 6,673 | (2,912 | ) | 46,490 | ||||||||||||||
| Depreciation and amortization | 11,386 | 7,213 | 5,330 | 209 | 24,138 | |||||||||||||||
| EBITDA | 25,705 | 35,623 | 12,003 | (2,703 | ) | 70,628 | ||||||||||||||
| Expense related to plant relocation and closure (Cost of sales) | 1,223 | - | - | - | 1,223 | |||||||||||||||
| Reorganization and severance costs | 127 | 1 | - | 766 | 894 | |||||||||||||||
| Adjusted EBITDA | $ | 27,055 | $ | 35,624 | $ | 12,003 | $ | (1,937 | ) | $ | 72,745 | |||||||||
| Adjusted EBITDA Margin % | 12.2 | % | 19.9 | % | 10.8 | % | 14.5 | % | ||||||||||||
| Three months ended July 31, 2025 | ||||||||||||||||||||
| Net sales | $ | 227,116 | $ | 174,427 | $ | 102,264 | $ | (8,534 | ) | $ | 495,273 | |||||||||
| Cost of sales | 170,282 | 116,597 | 77,755 | (7,329 | ) | 357,305 | ||||||||||||||
| Gross Margin | 56,834 | 57,830 | 24,509 | (1,205 | ) | 137,968 | ||||||||||||||
| Gross Margin % | 25.0 | % | 33.2 | % | 24.0 | % | 27.9 | % | ||||||||||||
| Selling, general and administrative (1) | 32,954 | 20,740 | 11,708 | 5,868 | 71,270 | |||||||||||||||
| Restructuring charges | 1,140 | 34 | 26 | 167 | 1,367 | |||||||||||||||
| Depreciation and amortization | 16,987 | 6,989 | 4,716 | 5,190 | 33,882 | |||||||||||||||
| Asset impairment charges | 163,198 | 54,934 | 84,152 | - | 302,284 | |||||||||||||||
| Operating income (loss) | (157,445 | ) | (24,867 | ) | (76,093 | ) | (12,430 | ) | (270,835 | ) | ||||||||||
| Depreciation and amortization | 16,987 | 6,989 | 4,716 | 5,190 | 33,882 | |||||||||||||||
| Asset impairment charges | 163,198 | 54,934 | 84,152 | - | 302,284 | |||||||||||||||
| EBITDA | 22,740 | 37,056 | 12,775 | (7,240 | ) | 65,331 | ||||||||||||||
| Expense related to plant relocation and closure (Cost of sales) | 148 | - | - | - | 148 | |||||||||||||||
| Transaction, advisory fees, reorganization costs, and product recall expenses | 715 | - | 50 | 2,684 | 3,449 | |||||||||||||||
| Restructuring charges | 1,140 | 34 | 26 | 167 | 1,367 | |||||||||||||||
| Adjusted EBITDA | $ | 24,743 | $ | 37,090 | $ | 12,851 | $ | (4,389 | ) | $ | 70,295 | |||||||||
| Adjusted EBITDA Margin % | 10.9 | % | 21.3 | % | 12.6 | % | 14.2 | % | ||||||||||||
| Nine months ended July 31, 2026 | ||||||||||||||||||||
| Net sales | $ | 613,054 | $ | 484,040 | $ | 304,062 | $ | (27,855 | ) | $ | 1,373,301 | |||||||||
| Cost of sales | 475,172 | 331,979 | 236,302 | (27,936 | ) | 1,015,517 | ||||||||||||||
| Gross Margin | 137,882 | 152,061 | 67,760 | 81 | 357,784 | |||||||||||||||
| Gross Margin % | 22.5 | % | 31.4 | % | 22.3 | % | 26.1 | % | ||||||||||||
| Selling, general and administrative (1) | 103,105 | 65,084 | 40,182 | 8,324 | 216,695 | |||||||||||||||
| Depreciation and amortization | 34,626 | 21,893 | 15,956 | 562 | 73,037 | |||||||||||||||
| Operating (loss) income | 151 | 65,084 | 11,622 | (8,805 | ) | 68,052 | ||||||||||||||
| Depreciation and amortization | 34,626 | 21,893 | 15,956 | 562 | 73,037 | |||||||||||||||
| EBITDA | 34,777 | 86,977 | 27,578 | (8,243 | ) | 141,089 | ||||||||||||||
| Expense related to plant relocation and closure (Cost of sales) | 1,751 | - | - | - | 1,751 | |||||||||||||||
| Credit related to plant relocation (SG&A) | (8 | ) | - | - | - | (8 | ) | |||||||||||||
| Reorganization and severance costs | 273 | 1 | 1 | 1,189 | 1,464 | |||||||||||||||
| Adjusted EBITDA | $ | 36,793 | $ | 86,978 | $ | 27,579 | $ | (7,054 | ) | $ | 144,296 | |||||||||
| Adjusted EBITDA Margin % | 6.0 | % | 18.0 | % | 9.1 | % | 10.5 | % | ||||||||||||
| Nine months ended July 31, 2025 | ||||||||||||||||||||
| Net sales | $ | 614,791 | $ | 478,024 | $ | 284,809 | $ | (29,829 | ) | $ | 1,347,795 | |||||||||
| Cost of sales | 466,600 | 325,914 | 219,755 | (26,140 | ) | 986,129 | ||||||||||||||
| Gross Margin | 148,191 | 152,110 | 65,054 | (3,689 | ) | 361,666 | ||||||||||||||
| Gross Margin % | 24.1 | % | 31.8 | % | 22.8 | % | 26.8 | % | ||||||||||||
| Selling, general and administrative (1) | 98,570 | 60,921 | 34,156 | 14,606 | 208,253 | |||||||||||||||
| Restructuring charges | 8,155 | 34 | 26 | 1,992 | 10,207 | |||||||||||||||
| Depreciation and amortization | 38,818 | 22,066 | 15,693 | 1,237 | 77,814 | |||||||||||||||
| Asset impairment charges | 163,198 | 54,934 | 84,152 | - | 302,284 | |||||||||||||||
| Operating (loss) income | (160,550 | ) | 14,155 | (68,973 | ) | (21,524 | ) | (236,892 | ) | |||||||||||
| Depreciation and amortization | 38,818 | 22,066 | 15,693 | 1,237 | 77,814 | |||||||||||||||
| Asset impairment charges | 163,198 | 54,934 | 84,152 | - | 302,284 | |||||||||||||||
| EBITDA | 41,466 | 91,155 | 30,872 | (20,287 | ) | 143,206 | ||||||||||||||
| Expense related to plant closure (Cost of sales) | 1,124 | - | - | - | 1,124 | |||||||||||||||
| Gain related to plant closure (SG&A) | 247 | - | - | - | 247 | |||||||||||||||
| Amortization of step-up for purchase price adjustments on inventory and accounts receivable | 7,276 | 1,428 | 302 | - | 9,006 | |||||||||||||||
| Transaction and advisory fees | 1,397 | 177 | 50 | 6,558 | 8,182 | |||||||||||||||
| Restructuring charges | 8,155 | 34 | 26 | 1,992 | 10,207 | |||||||||||||||
| Adjusted EBITDA | $ | 59,665 | $ | 92,794 | $ | 31,250 | $ | (11,737 | ) | $ | 171,972 | |||||||||
| Adjusted EBITDA Margin % | 9.7 | % | 19.4 | % | 11.0 | % | 12.8 | % | ||||||||||||
| (1) Includes stock-based compensation expense for the three and nine months ended July 31 2026 of $0.9 million and 5.5 million, respectively, and $1.8 million and $3.6 million for the comparable prior year periods. | ||||||||||||||||||||
| QUANEX BUILDING PRODUCTS CORPORATION SALES ANALYSIS (In thousands) (Unaudited) | ||||||||||||||||
| Three Months Ended July 31, | Nine Months Ended July 31, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Hardware Solutions:(1) | ||||||||||||||||
| Window and door hardware | $ | 133,038 | $ | 148,303 | $ | 387,047 | $ | 405,497 | ||||||||
| Screens | 85,830 | 76,809 | 219,980 | 203,269 | ||||||||||||
| Other | 2,055 | 2,004 | 6,027 | 6,025 | ||||||||||||
| $ | 220,923 | $ | 227,116 | $ | 613,054 | $ | 614,791 | |||||||||
| Extruded Solutions:(2) | ||||||||||||||||
| Window profiles | $ | 75,684 | $ | 76,775 | $ | 206,581 | $ | 206,629 | ||||||||
| Seals and gaskets | 20,241 | 20,415 | 57,405 | 57,857 | ||||||||||||
| Spacers | 59,996 | 55,201 | 160,124 | 148,733 | ||||||||||||
| Solar | 5,375 | 5,250 | 15,292 | 17,835 | ||||||||||||
| Flashing Tape | 2,821 | 3,038 | 7,567 | 6,751 | ||||||||||||
| Window and door hardware | 10,079 | 10,676 | 26,061 | 31,311 | ||||||||||||
| Other | 5,095 | 3,072 | 11,010 | 8,908 | ||||||||||||
| $ | 179,291 | $ | 174,427 | $ | 484,040 | $ | 478,024 | |||||||||
| Custom Solutions:(3) | ||||||||||||||||
| Wood solutions | $ | 59,282 | $ | 53,409 | $ | 162,841 | $ | 148,456 | ||||||||
| Access solutions | 29,483 | 27,370 | 78,984 | 74,158 | ||||||||||||
| Mixing solutions | 22,242 | 21,485 | 62,237 | 62,195 | ||||||||||||
| $ | 111,007 | $ | 102,264 | $ | 304,062 | $ | 284,809 | |||||||||
| Unallocated Corporate & Other: | ||||||||||||||||
| Eliminations | $ | (9,376 | ) | $ | (8,534 | ) | $ | (27,855 | ) | $ | (29,829 | ) | ||||
| $ | (9,376 | ) | $ | (8,534 | ) | $ | (27,855 | ) | $ | (29,829 | ) | |||||
| Net Sales | $ | 501,845 | $ | 495,273 | $ | 1,373,301 | $ | 1,347,795 | ||||||||
| (1) Reflects an unfavorable $0.2 million and favorable $6.5 million impact on revenue associated with foreign currency exchange rate impacts for the three and nine months ended July 31, 2026, respectively. | ||||||||||||||||
| (2) Reflects an unfavorable $0.1 million and favorable $8.3 million impact on revenue associated with foreign currency exchange rate impacts for the three and nine months ended July 31, 2026, respectively. | ||||||||||||||||
| (3) Reflects no impact and favorable $0.3 million impact on revenue associated with foreign currency exchange rate impacts for the three and nine months ended July 31, 2026, respectively. | ||||||||||||||||