Quanex Building Products Announces Fourth Quarter and Full Year 2025 Results

Quanex Building Products Announces Fourth Quarter and Full Year 2025 Results Net Sales Growth of ~44% Year-Over-Year $75 Million of Debt Repaid in Fiscal 2025 Cash Provided by Operating Activities Increased ~86% Year-Over-Year Healthy Balance Sheet and Strong Liquidity Integration of Transformative Acquisition Substantially Complete and Thesis Remains Intact HOUSTON, Dec. 11, 2025 (GLOBE NEWSWIRE) -- Quanex Building Products Corporation (NYSE:NX) (“Quanex” or the “Company”) today announced its results for the three months and twelve months ended October 31, 2025. The Company reported the following selected financial results: Three Months Ended October 31, Twelve Months Ended October 31, ($ 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 CORPORATION CONDENSED 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 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 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 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 October 31, 2025 Three Months Ended July 31, 2025 Three Months Ended April 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 CORPORATION NON-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 Ended October 31, 2025 Twelve Months Ended October 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 $ 106,403 $ 2.30 $ 97,521 $ 2.66 Reconciliation of Adjusted EBITDA Three Months Ended October 31, 2025 Three Months Ended October 31, 2024 Twelve Months Ended October 31, 2025 Twelve Months Ended October 31, 2024 Reconciliation Reconciliation Reconciliation Reconciliation Net income (loss)as reported $ 19,571 $ (13,917 ) $ (250,806 ) $ 33,059 Income tax expense (benefit) 15,147 (3,621 ) 8,213 9,023 Other, net (5,246 ) 2,671 (7,171 ) (7,849 ) Interest expense 13,468 17,697 55,812 20,593 Depreciation and amortization 25,630 27,329 103,444 60,328 Asset impairment charges - - 302,284 - EBITDA 68,570 30,159 211,776 115,154 EBITDA reconciling items from below 2,348 50,891 31,114 67,229 Adjusted EBITDA $ 70,918 $ 81,050 $ 242,890 $ 182,383 Reconciling Items Three Months Ended October 31, 2025 Three Months Ended October 31, 2024 Twelve Months Ended October 31, 2025 Twelve Months Ended October 31, 2024 Income Statement Reconciling Items Income Statement Reconciling Items Income Statement Reconciling Items Income Statement Reconciling Items Net sales $ 489,846 $ - $ 492,161 $ - $ 1,837,641 $ - $ 1,277,862 $ - Cost of sales 352,284 (308 ) (1) 375,111 (29,363 ) (1),(2) 1,338,413 (10,439 ) (1),(2) 972,238 (31,501 ) (1),(2) Selling, general and administrative 69,008 (2,056 ) (1),(3) 86,891 (21,528 ) (1),(3),(4) 277,261 (10,484 ) (1),(3) 190,470 (35,728 ) (1),(3),(4) Restructuring credit (charges) (16 ) 16 (5) - - 10,191 (10,191 ) (5) - - (5) EBITDA 68,570 2,348 30,159 50,891 211,776 31,114 115,154 67,229 Goowill impairment charges - - - - 302,284 (302,284 ) (6) - - Depreciation and amortization 25,630 (9,839 ) (7) 27,329 (12,623 ) (7) 103,444 (46,547 ) (7) 60,328 (21,605 ) (7) Operating income (loss) 42,940 12,187 2,830 63,514 (193,952 ) 379,945 54,826 88,834 Interest expense (13,468 ) - (17,697 ) - (55,812 ) - (20,593 ) - Other, net 5,246 238 (8) (2,671 ) 3,271 (8) 7,171 120 (8) 7,849 (6,738 ) (8) Income (loss) before income taxes 34,718 12,425 (17,538 ) 66,785 (242,593 ) 380,065 42,082 82,096 Income tax (expense) benefit (15,147 ) 6,029 (9) 3,621 (14,345 ) (9) (8,213 ) (22,856 ) (9) (9,023 ) (17,634 ) (9) Net income (loss) $ 19,571 $ 18,454 $ (13,917 ) $ 52,440 $ (250,806 ) $ 357,209 $ 33,059 $ 64,462 Diluted earnings (loss) per share $ 0.43 $ (0.30 ) $ (5.43 ) $ 0.90 (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) Amortization of step-up for purchase price adjustments on accounts receivable. (5) Restructuring credit (charges) related to severance and disposal of software. (6) Goodwill impairment. (7) Amortization expense related to intangible assets and onetime deprecation adjustment. (8) Pension settlement refund and foreign currency transaction gains. (9) 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 October 31, 2025 Net sales $ 226,883 $ 168,603 $ 103,401 $ (9,041 ) $ 489,846 Cost of sales 168,881 114,227 78,561 (9,385 ) 352,284 Gross Margin 58,002 54,376 24,840 344 137,562 Gross Margin % 25.6 % 32.3 % 24.0 % 28.1 % Selling, general and administrative (1) 29,439 22,795 14,117 2,657 69,008 Restructuring (credit) charges (219 ) - 179 24 (16 ) Depreciation and amortization 12,863 7,138 5,555 74 25,630 Operating income (loss) 15,919 24,443 4,989 (2,411 ) 42,940 Depreciation and amortization 12,863 7,138 5,555 74 25,630 EBITDA 28,782 31,581 10,544 (2,337 ) 68,570 Expense related to plant relocation (Cost of sales) 308 - - - 308 Credit related to plant relocation (SG&A) (25 ) - - - (25 ) Transaction, advisory fees, reorganization costs, and product recall expenses 113 87 31 1,850 2,081 Restructuring (credit) charges related to severance (219 ) - 179 24 (16 ) Adjusted EBITDA $ 28,959 $ 31,668 $ 10,754 $ (463 ) $ 70,918 Adjusted EBITDA Margin % 12.8 % 18.8 % 10.4 % 14.5 % Three months ended October 31, 2024 Net sales $ 223,712 $ 180,135 $ 101,240 $ (12,926 ) $ 492,161 Cost of sales 183,427 126,653 77,746 (12,715 ) 375,111 Gross Margin 40,285 53,482 23,494 (211 ) 117,050 Gross Margin % 18.0 % 29.7 % 23.2 % 23.8 % Selling, general and administrative (1) 32,860 12,367 11,612 30,052 86,891 Restructuring charges - Depreciation and amortization 13,049 8,503 5,663 114 27,329 Operating (loss) income (5,624 ) 32,612 6,219 (30,377 ) 2,830 Depreciation and amortization 13,049 8,503 5,663 114 27,329 EBITDA 7,425 41,115 11,882 (30,263 ) 30,159 Expense related to plant closure (Cost of sales) - 887 - - 887 Gain related to plant closure (SG&A) - (5,299 ) - - (5,299 ) Amortization of step-up for purchase price adjustments on inventory and accounts receivable 24,240 1,137 3,699 - 29,076 Transaction and advisory fees 268 88 - 25,871 26,227 Adjusted EBITDA $ 31,933 $ 37,928 $ 15,581 $ (4,392 ) $ 81,050 Adjusted EBITDA Margin % 14.3 % 21.1 % 15.4 % 16.5 % Twelve months ended October 31, 2025 Net sales $ 841,674 $ 646,627 $ 388,210 $ (38,870 ) $ 1,837,641 Cost of sales 635,481 440,141 298,316 (35,525 ) 1,338,413 Gross Margin 206,193 206,486 89,894 (3,345 ) 499,228 Gross Margin % 24.5 % 31.9 % 23.2 % 27.2 % Selling, general and administrative (1) 128,009 83,716 48,273 17,263 277,261 Restructuring charges 7,936 34 205 2,016 10,191 Depreciation and amortization 51,681 29,204 21,248 1,311 103,444 Goodwill impairment charges 163,198 54,934 84,152 - 302,284 Operating (loss) income (144,631 ) 38,598 (63,984 ) (23,935 ) (193,952 ) Depreciation and amortization 51,681 29,204 21,248 1,311 103,444 Asset impairment charges 163,198 54,934 84,152 - 302,284 EBITDA 70,248 122,736 41,416 (22,624 ) 211,776 Expense related to plant relocation (Cost of sales) 1,432 - - - 1,432 Expense related to plant relocation (SG&A) 221 - - - 221 Amortization of step-up for purchase price adjustments on inventory 7,453 365 1,189 - 9,007 Transaction, advisory fees, reorganization costs, and product recall expenses 1,510 263 81 8,409 10,263 Restructuring charges related to severance and disposal of software 7,936 34 205 2,016 10,191 Adjusted EBITDA $ 88,800 $ 123,398 $ 42,891 $ (12,199 ) $ 242,890 Adjusted EBITDA Margin % 10.6 % 19.1 % 11.0 % 13.2 % Twelve months ended October 31, 2024 Net sales $ 427,839 $ 559,995 $ 309,441 $ (19,413 ) $ 1,277,862 Cost of sales 349,379 389,760 252,111 (19,012 ) 972,238 Gross Margin 78,460 170,235 57,330 (401 ) 305,624 Gross Margin % 18.3 % 30.4 % 18.5 % 23.9 % Selling, general and administrative (1) 51,564 58,100 31,068 49,738 190,470 Restructuring charges - - - - - Depreciation and amortization 16,580 25,119 18,348 281 60,328 Operating income (loss) 10,316 87,016 7,914 (50,420 ) 54,826 Depreciation and amortization 16,580 25,119 18,348 281 60,328 EBITDA 26,896 112,135 26,262 (50,139 ) 115,154 Expense related to plant closure (Cost of sales) - 3,025 - - 3,025 Gain related to plant closure (SG&A) - (4,196 ) - - (4,196 ) Amortization of step-up for purchase price adjustments on inventory and accounts receivable 24,240 1,137 3,699 - 29,076 Transaction and advisory fees 268 88 - 38,968 39,324 Adjusted EBITDA $ 51,404 $ 112,189 $ 29,961 $ (11,171 ) $ 182,383 Adjusted EBITDA Margin % 12.0 % 20.0 % 9.7 % 14.3 % (1) Includes stock-based compensation (credit) expense for the three and twelve months ended October 31, 2025, respectively of ($1.2) million and $2.4 million, and $2.0 million and $7.4 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 December 12, 2024 for the three and twelve months ended October 31, 2024, to the current presentation. NA Fenestration EU Fenestration NA Cabinet Components Tyman Unallocated Corp & Other Total Three months ended October 31, 2024 Net sales $ 172,031 $ 65,075 $ 52,761 $ 203,435 $ (1,141 ) $ 492,161 Cost of sales 127,448 40,258 44,136 163,946 (677 ) 375,111 Gross Margin 44,583 24,817 8,625 39,489 (464 ) 117,050 Gross Margin % 25.9 % 38.1 % 16.3 % 19.4 % 23.8 % Selling, general and administrative 10,072 8,310 5,373 44,453 18,683 86,891 Depreciation and amortization 5,107 2,715 3,004 16,438 65 27,329 Operating income (loss) 29,404 13,792 248 (21,402 ) (19,212 ) 2,830 Depreciation and amortization 5,107 2,715 3,004 16,438 65 27,329 EBITDA 34,511 16,507 3,252 (4,964 ) (19,147 ) 30,159 Expense related to plant closure (Cost of sales) 887 - - - - 887 Net gain related to plant closure (SG&A) (5,299 ) - - - - (5,299 ) Amortization of step-up for purchase price adjustments on inventory and accounts receivable - - - 29,076 - 29,076 Transaction and advisory fees - - - 10,359 15,868 26,227 Adjusted EBITDA $ 30,099 $ 16,507 $ 3,252 $ 34,471 $ (3,279 ) $ 81,050 Adjusted EBITDA Margin % 17.5 % 25.4 % 6.2 % 16.9 % 16.5 % Hardware Solutions (1) Extruded Solutions (2) Custom Solutions (3) Tyman Unallocated Corp & Other Total Three months ended October 31, 2024 Net sales $ 223,712 $ 180,135 $ 101,240 $ - $ (12,926 ) $ 492,161 Cost of sales 183,427 126,653 77,746 - (12,715 ) 375,111 Gross Margin 40,285 53,482 23,494 - (211 ) 117,050 Gross Margin % 18.0 % 29.7 % 23.2 % 23.8 % Selling, general and administrative 32,860 12,367 11,612 - 30,052 86,891 Depreciation and amortization 13,049 8,503 5,663 - 114 27,329 Operating income (5,624 ) 32,612 6,219 - (30,377 ) 2,830 Depreciation and amortization 13,049 8,503 5,663 - 114 27,329 EBITDA 7,425 41,115 11,882 - (30,263 ) 30,159 Expense related to plant closure (Cost of sales) - 887 - - - 887 Net gain related to plant closure (SG&A) - (5,299 ) - - - (5,299 ) Amortization of step-up for purchase price adjustments on inventory and accounts receivable 24,240 1,137 3,699 - - - 29,076 Transaction and advisory fees 268 88 - - 25,871 26,227 Adjusted EBITDA $ 31,933 $ 37,928 $ 15,581 $ - $ (4,392 ) $ 81,050 Adjusted EBITDA Margin % 14.3 % 21.1 % 15.4 % 16.5 % NA Fenestration EU Fenestration NA Cabinet Components Tyman Unallocated Corp & Other Total Twelve months ended October 31, 2024 Net sales $ 650,058 $ 230,712 $ 198,424 $ 203,435 $ (4,767 ) $ 1,277,862 Cost of sales 498,378 144,585 168,414 163,946 (3,085 ) 972,238 Gross Margin 151,680 86,127 30,010 39,489 (1,682 ) 305,624 Gross Margin % 23.3 % 37.3 % 15.1 % 19.4 % 23.9 % Selling, general and administrative 56,630 31,318 20,727 44,453 37,342 190,470 Depreciation and amortization 20,994 10,420 12,244 16,438 232 60,328 Operating income (loss) 74,056 44,389 (2,961 ) (21,402 ) (39,256 ) 54,826 Depreciation and amortization 20,994 10,420 12,244 16,438 232 60,328 EBITDA 95,050 54,809 9,283 (4,964 ) (39,024 ) 115,154 Expense related to plant closure (Cost of sales) 3,025 - - - - 3,025 Net gain related to plant closure (SG&A) (4,196 ) - - - - (4,196 ) Amortization of step-up for purchase price adjustments on inventory and accounts receivable - - - 29,076 - 29,076 Transaction and advisory fees - - - 10,359 28,965 39,324 Adjusted EBITDA $ 93,879 $ 54,809 $ 9,283 $ 34,471 $ (10,059 ) $ 182,383 Adjusted EBITDA Margin % 14.4 % 23.8 % 4.7 % 16.9 % 14.3 % Hardware Solutions (1) Extruded Solutions (2) Custom Solutions (3) Tyman Unallocated Corp & Other Total Twelve months ended October 31, 2024 Net sales $ 427,839 $ 559,995 $ 309,441 $ - $ (19,413 ) $ 1,277,862 Cost of sales 349,379 389,760 252,111 - (19,012 ) 972,238 Gross Margin 78,460 170,235 57,330 - (401 ) 305,624 Gross Margin % 18.3 % 30.4 % 18.5 % 23.9 % Selling, general and administrative 51,564 58,100 31,068 - 49,738 190,470 Depreciation and amortization 16,580 25,119 18,348 - 281 60,328 Operating income (loss) 10,316 87,016 7,914 - (50,420 ) 54,826 Depreciation and amortization 16,580 25,119 18,348 - 281 60,328 EBITDA 26,896 112,135 26,262 - (50,139 ) 115,154 Loss on damage to manufacturing facilities (Cost of sales) - 3,025 - - - 3,025 Net gain related to plant closure (SG&A) - (4,196 ) - - - (4,196 ) Amortization of step-up for purchase price adjustments on inventory and accounts receivable 24,240 1,137 3,699 - - 29,076 Transaction and advisory fees 268 88 - - 38,968 39,324 Adjusted EBITDA $ 51,404 $ 112,189 $ 29,961 $ - $ (11,171 ) $ 182,383 Adjusted EBITDA Margin % 12.0 % 20.0 % 9.7 % 14.3 % (1) Contains a portion of the previously reported NA Fenestration segment. (2) Contains a portion of the NA Fenestration segment and the EU Fenestration segment. (3) Contains a portion of the NA Fenestration segment and the NA Cabinet Components segment. QUANEX BUILDING PRODUCTS CORPORATION SALES ANALYSIS (In thousands) (Unaudited) Three Months Ended October 31, Twelve Months Ended October 31, 2025 2024 2025 2024 Hardware Solutions: (1) Window and door hardware $ 141,303 $ 146,187 $ 552,825 $ 146,187 Screens 77,545 75,677 280,814 279,804 Other 8,035 1,848 8,035 1,848 $ 226,883 $ 223,712 $ 841,674 $ 427,839 Extruded Solutions: (2) Window profiles $ 73,526 $ 62,058 $ 278,399 $ 255,816 Seals and gaskets 18,601 21,321 80,916 21,321 Spacers 52,673 51,714 199,217 198,475 Solar 6,245 9,598 24,080 25,672 Flashing Tape 3,074 4,751 9,825 18,263 Window and door hardware 10,032 11,177 39,726 11,177 Other 4,452 19,516 14,464 29,271 $ 168,603 $ 180,135 $ 646,627 $ 559,995 Custom Solutions: (3) Wood solutions $ 51,648 $ 52,761 $ 200,104 $ 198,424 Access solutions 27,746 25,792 101,904 25,792 Mixing solutions 24,007 22,687 86,202 85,225 $ 103,401 $ 101,240 $ 388,210 $ 309,441 Unallocated Corporate & Other: Eliminations $ (9,041 ) $ (12,926 ) $ (38,870 ) $ (19,413 ) $ (9,041 ) $ (12,926 ) $ (38,870 ) $ (19,413 ) Net Sales $ 489,846 $ 492,161 $ 1,837,641 $ 1,277,862 (1) Reflects an increase of $2.5 million in revenue associated with foreign currency exchange rate impacts for the three and twelve months ended October 31, 2025, respectively. (2) Reflects an increase of $2.5 million and $5.4 million in revenue associated with foreign currency exchange rate impacts for the three and twelve months ended October 31, 2025, respectively. (3) Reflects an increase of $0.2 million in revenue associated with foreign currency exchange rate impacts for the three and twelve months ended October 31, 2025, respectively.