Quanex Building Products Announces First Quarter 2026 Results and Provides Full Year 2026 Guidance

Quanex Building Products Announces First Quarter 2026 Results and Provides Full Year 2026 Guidance Net Sales Growth of ~2% Year-Over-Year Healthy Balance Sheet and Strong Liquidity Well Positioned to Capitalize on Pent-Up Demand HOUSTON, March 05, 2026 (GLOBE NEWSWIRE) -- Quanex Building Products Corporation (NYSE:NX) (“Quanex” or the “Company”) today announced its results for the three months ended January 31, 2026. The Company reported the following selected financial results: Three Months Ended January 31, ($ in millions, except per share data) 2026 2025 Net Sales $409.1 $400.0 Gross Margin $98.5 $92.3 Gross Margin % 24.1% 23.1% Net Loss ($4.1) ($14.9) Diluted EPS ($0.09) ($0.32) Adjusted Net (Loss) Income ($0.3) $9.0 Adjusted Diluted EPS ($0.01) $0.19 Adjusted EBITDA $27.4 $38.5 Adjusted EBITDA Margin % 6.7% 9.6% Cash Used For Operating Activities ($20.2) ($12.5) Free Cash Flow ($31.5) ($24.1) (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, “Our results for the first quarter tracked our expectations given the current macroeconomic backdrop. The combination of inflationary pressures, high interest rates, tariff uncertainty, housing affordability issues, and geopolitical tensions continued to weaken consumer confidence around the world, ultimately impacting demand for the products we manufacture. However, we continue to focus on identifying operational efficiencies and commercial synergies that we believe will benefit us when consumer confidence improves and demand rebounds. “Due to the seasonality of our business, coupled with the longer cash conversion cycle of the legacy Tyman business, we expect to be a net borrower during the first half of our fiscal year, which impacts our leverage ratio. Our balance sheet is healthy, and we will remain focused on prioritizing debt repayment as we generate cash. Looking ahead, we continue to be optimistic about our prospects for profitable growth and value creation.” First Quarter 2026 Results Summary Quanex reported net sales of $409.1 million during the three months ended January 1, 2026, which represents an increase of 2.3% compared to $400.0 million for the same period in 2025, mainly due to foreign exchange translation and the pass-through of tariffs. In its Hardware Solutions segment, Quanex reported an increase of 2.4% in net sales for the first quarter of 2026, mostly due to foreign exchange translation and price increases. In its Extruded Solutions segment, net sales were essentially flat for the first quarter of 2026 as lower volumes were offset by foreign exchange translation and price increases. For its Custom Solutions segment, the Company reported an increase of 4.8% in net sales for the first quarter of 2026, 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 first quarter of 2026 compared to the first quarter of 2025 was mainly due to reduced operating leverage from lower volumes related to ongoing macroeconomic uncertainty coupled with low consumer confidence and higher, but temporary, operational costs related to Quanex’s window and door hardware plant in Monterrey, Mexico. Balance Sheet & Liquidity Update As of January 31, 2026, the Company had total debt of $717.5 million and Quanex’s leverage ratio of Net Debt to LTM Adjusted EBITDA was 2.8x. As of January 31, 2026, Quanex reported a LTM Net Loss of $240.0 million, mainly due to the non-cash goodwill impairment charge recorded in the third quarter of 2025, and LTM Adjusted EBITDA of $231.7 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 $331.6 million as of January 31, 2026, consisting of $62.3 million in cash on hand plus availability under its Senior Secured Revolving Credit Facility due 2029, less letters of credit outstanding. Outlook Mr. Wilson commented, “Our long-term view continues to be favorable as the underlying fundamentals for the residential housing market remain positive. We entered fiscal 2026 with a cautious outlook due to the ongoing macroeconomic challenges, but we continue to believe that demand for our products will improve as we expect consumer confidence to be restored over time. Based on conversations with our customers, recent demand trends, and the latest macro data, we are providing guidance for fiscal 2026. Overall, on a consolidated basis, we estimate we will generate net sales of $1.84 billion to $1.87 billion, which we expect will yield approximately $240 million to $245 million in Adjusted EBITDA* in fiscal 2026. As mentioned on our last earnings call, we anticipate the first half of 2026 to be more challenging than the first half of 2025, which implies an improved second half year-over-year. As macroeconomic uncertainty subsides and consumer confidence improves, we believe we are 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 pay down debt and opportunistically repurchasing our stock.” *When Quanex provides expectations for Adjusted EBITDA on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and corresponding GAAP measures is generally not available without unreasonable effort. Certain items required for such a reconciliation are outside of the Company’s control and/or cannot be reasonably predicted or estimated, such as the provision for income taxes related to net income. As a result, Quanex is unable to provide forward-looking net income guidance. Investors are cautioned that the Company’s Adjusted EBITDA excludes significant items, including interest expense, income taxes, depreciation and amortization, and the other adjustments described below, and that net income may differ materially from Adjusted EBITDA. Conference Call and Webcast Information The Company has also scheduled a conference call for Friday, March 6, 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/BIc6562606fc8b4f93a903be54b98e9c71 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, the impact of tariffs, trade restrictions and changes in trade policy on the Company’s raw material costs and supply chain, the impact of elevated interest rates on consumer demand for the Company’s products, 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, 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 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 January 31, 2026 2025 Net sales $ 409,089 $ 400,044 Cost of sales 310,562 307,728 Selling, general and administrative 71,426 66,650 Restructuring charges - 7,904 Depreciation and amortization 24,249 24,740 Operating income (loss) 2,852 (6,978 ) Interest expense (12,367 ) (14,186 ) Other, net 5,617 1,229 Loss before income taxes (3,898 ) (19,935 ) Income tax (expense) benefit (173 ) 5,050 Net loss $ (4,071 ) $ (14,885 ) Loss per common share, basic $ (0.09 ) $ (0.32 ) Loss per common share, diluted $ (0.09 ) $ (0.32 ) Weighted average common shares outstanding: Basic 45,456 47,015 Diluted 45,456 47,015 Cash dividends per share $ 0.08 $ 0.08 QUANEX BUILDING PRODUCTS CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) January 31, 2026 October 31, 2025 ASSETS Current assets: Cash and cash equivalents $ 62,311 $ 76,018 Restricted Cash 2,332 2,100 Accounts receivable, net 189,243 205,384 Inventories 270,597 254,122 Prepaid assets 39,845 32,387 Other current assets 4,345 3,764 Total current assets 568,673 573,775 Property, plant and equipment, net 401,701 411,591 Operating lease right-of-use assets 179,221 154,866 Deferred tax assets 2,959 2,706 Goodwill 275,468 271,346 Intangible assets, net 544,323 549,137 Other assets 5,818 4,812 Total assets $ 1,978,163 $ 1,968,233 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 116,095 $ 131,307 Accrued liabilities 77,325 95,155 Income taxes payable 7,101 12,076 Current maturities of long-term debt 28,566 27,561 Current operating lease liabilities 16,749 15,446 Total current liabilities 245,836 281,545 Long-term debt 678,636 665,268 Noncurrent operating lease liabilities 168,668 145,459 Deferred income taxes 139,804 135,993 Other liabilities 14,865 13,789 Total liabilities 1,247,809 1,242,054 Stockholders’ equity: Common stock 512 512 Additional paid-in-capital 695,426 700,029 Retained earnings 156,963 164,710 Accumulated other comprehensive loss (24,329 ) (35,439 ) Treasury stock at cost (98,218 ) (103,633 ) Total stockholders’ equity 730,354 726,179 Total liabilities and stockholders' equity $ 1,978,163 $ 1,968,233 QUANEX BUILDING PRODUCTS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (In thousands) (Unaudited) Three Months Ended January 31, 2026 2025 Operating activities: Net loss $ (4,071 ) $ (14,885 ) Adjustments to reconcile net loss to cash used for operating activities: Depreciation and amortization 24,249 24,740 Stock-based compensation 1,166 902 Deferred income tax 1,808 2,851 Other, net 1,300 6,173 Changes in assets and liabilities: Decrease in accounts receivable 18,743 30,330 Increase in inventory (13,669 ) (8,602 ) Increase in other current assets (7,043 ) (8,985 ) Decrease in accounts payable (13,982 ) (16,548 ) Decrease in accrued liabilities (19,022 ) (22,558 ) Decrease in current income taxes payable (5,203 ) (5,087 ) Other, net (4,484 ) (841 ) Cash used for operating activities (20,208 ) (12,510 ) Investing activities: Capital expenditures (11,294 ) (11,624 ) Proceeds from disposition of capital assets 55 169 Cash used for investing activities (11,239 ) (11,455 ) Financing activities: Borrowings under credit facilities 57,000 45,000 Repayments of credit facility borrowings (36,250 ) (56,250 ) Repayments of other long-term debt (838 ) (2,026 ) Common stock dividends paid (3,638 ) (3,812 ) Issuance of common stock - 214 Payroll tax paid to settle shares forfeited upon vesting of stock (354 ) (1,400 ) Purchase of treasury stock - (3,698 ) Cash provided by (used for) financing activities 15,920 (21,972 ) Effect of exchange rate changes on cash and cash equivalents 2,052 (1,590 ) Decrease in cash, cash equivalents and restricted cash (13,475 ) (47,527 ) Cash, cash equivalents and restricted cash at beginning of period 78,118 102,995 Cash, cash equivalents and restricted cash at end of period $ 64,643 $ 55,468 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 January 31, 2026 2025 Cash used for operating activities (20,208 ) (12,510 ) Capital expenditures (11,294 ) (11,624 ) Free Cash Flow (31,502 ) (24,134 ) 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 January 31, 2026 2025 Term loan facility $ 462,500 $ 487,500 Revolving credit facility 199,500 217,500 Finance lease obligations (1) 55,505 59,306 Total debt (2) 717,505 764,306 Less: Cash and cash equivalents 62,311 49,982 Net Debt 655,194 714,324 (1) Includes $49.3 million and $55.1 million in real estate lease liabilities considered finance leases under U.S. GAAP as of January 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 January 31, 2026 Three Months Ended October 31, 2025 Three Months Ended July 31, 2025 Three Months Ended April 30, 2025 Total Reconciliation Reconciliation Reconciliation Reconciliation Reconciliation Net (loss) income as reported $ (4,071 ) $ 19,571 $ (276,007 ) $ 20,515 $ (239,992 ) Income tax (benefit) expense 173 15,147 (8,191 ) 6,307 13,436 Other, net (5,617 ) (5,246 ) (855 ) 159 (11,559 ) Interest expense 12,367 13,468 14,218 13,940 53,993 Depreciation and amortization 24,249 25,630 33,882 19,192 102,953 Asset impairment charges - - 302,284 - 302,284 EBITDA 27,101 68,570 65,331 60,113 221,115 Cost of sales (1) 407 308 148 976 1,839 Selling, general and administrative (1),(2) (126 ) 2,056 3,449 1,110 6,489 Restructuring (credit) charges (3) - (16 ) 1,367 936 2,287 Adjusted EBITDA $ 27,382 $ 70,918 $ 70,295 $ 63,135 $ 231,730 (1) Expense related to plant closure/relocation. (2) Transaction, advisory fees, reorganization costs and product recall expenses. (3) Restructuring (credit) charges related to severance. QUANEX BUILDING PRODUCTS CORPORATION NON-GAAP FINANCIAL MEASURE DISCLOSURE (In thousands, except per share data) (Unaudited) Reconciliation of Adjusted Net Income and Adjusted EPS Three Months Ended January 31, 2026 Three Months Ended January 31, 2025 Net Income Diluted EPS Net Income Diluted EPS Net loss as reported $ (4,071 ) $ (0.09 ) $ (14,885 ) $ (0.32 ) Net loss reconciling items from below 3,801 $ 0.08 23,847 $ 0.51 Adjusted net income and adjusted EPS $ (270 ) $ (0.01 ) $ 8,962 $ 0.19 Reconciliation of Adjusted EBITDA Three Months Ended January 31, 2026 Three Months Ended January 31, 2025 Reconciliation Reconciliation Net loss as reported $ (4,071 ) $ (14,885 ) Income tax benefit 173 (5,050 ) Other, net (5,617 ) (1,229 ) Interest expense 12,367 14,186 Depreciation and amortization 24,249 24,740 EBITDA 27,101 17,762 EBITDA reconciling items from below 281 20,780 Adjusted EBITDA $ 27,382 $ 38,542 Reconciling Items Three Months Ended January 31, 2026 Three Months Ended January 31, 2025 Income Statement Reconciling Items Income Statement Reconciling Items Net sales $ 409,089 $ - $ 400,044 $ - Cost of sales 310,562 (407 ) (1) 307,728 (9,007 ) (2) Selling, general and administrative 71,426 126 (1),(3) 66,650 (3,869 ) (1),(3) Restructuring charges - - 7,904 (7,904 ) (4) EBITDA 27,101 281 17,762 20,780 Depreciation and amortization 24,249 (9,757 ) (5) 24,740 (10,650 ) (5) Operating income (loss) 2,852 10,038 (6,978 ) 31,430 Interest expense (12,367 ) - (14,186 ) - Other, net 5,617 (5,072 ) (6) 1,229 (172 ) (6) Loss before income taxes (3,898 ) 4,966 (19,935 ) 31,258 Income tax benefit (173 ) (1,165 ) (7) 5,050 (7,411 ) (7) Net loss $ (4,071 ) $ 3,801 $ (14,885 ) $ 23,847 Diluted loss per share $ (0.09 ) $ (0.32 ) (1) Expense related to plant closure/relocation. (2) Amortization of step-up for purchase price adjustments on inventory. (3) Transaction, advisory fees, reorganization costs and product recall expenses. (4) Restructuring charges related to severance and disposal of software. (5) Amortization expense related to intangible assets. (6) Foreign currency transaction gains. (7) Tax impact of net income reconciling items. QUANEX BUILDING PRODUCTS CORPORATION SELECTED SEGMENT DATA (In thousands) (Unaudited) This table provides gross margin, operating income (loss), EBITDA, and Adjusted EBITDA by reportable segment. Non-operating expense and income tax expense are not allocated to the reportable segments. Hardware Solutions Extruded Solutions Custom Solutions Unallocated Corp & Other Total Three months ended January 31, 2026 Net sales $ 189,112 $ 139,800 $ 89,142 $ (8,965 ) $ 409,089 Cost of sales 150,724 97,709 71,424 (9,295 ) 310,562 Gross Margin 38,388 42,091 17,718 330 98,527 Gross Margin % 20.3 % 30.1 % 19.9 % 24.1 % Selling, general and administrative (1) 34,180 21,141 13,150 2,955 71,426 Depreciation and amortization 11,547 7,339 5,222 141 24,249 Operating (loss) income (7,339 ) 13,611 (654 ) (2,766 ) 2,852 Depreciation and amortization 11,547 7,339 5,222 141 24,249 EBITDA 4,208 20,950 4,568 (2,625 ) 27,101 Expense related to plant relocation (Cost of sales) 407 - - - 407 Credit related to plant relocation (SG&A) (141 ) - - - (141 ) Transaction, advisory fees, reorganization costs, and product recall expenses 70 - - (55 ) 15 Adjusted EBITDA $ 4,544 $ 20,950 $ 4,568 $ (2,680 ) $ 27,382 Adjusted EBITDA Margin % 2.4 % 15.0 % 5.1 % 6.7 % Three months ended January 31, 2025 Net sales $ 184,740 $ 139,630 $ 85,038 $ (9,364 ) $ 400,044 Cost of sales 150,785 97,680 68,298 (9,035 ) 307,728 Gross Margin 33,955 41,950 16,740 (329 ) 92,316 Gross Margin % 18.4 % 30.0 % 19.7 % 23.1 % Selling, general and administrative (1) 33,357 18,508 11,598 3,187 66,650 Restructuring charges 6,119 - - 1,785 7,904 Depreciation and amortization 11,470 7,640 5,540 90 24,740 Operating (loss) income (16,991 ) 15,802 (398 ) (5,391 ) (6,978 ) Depreciation and amortization 11,470 7,640 5,540 90 24,740 EBITDA (5,521 ) 23,442 5,142 (5,301 ) 17,762 Transaction, advisory fees, reorganization costs, and product recall expenses 90 158 - 3,621 3,869 Amortization of step-up for purchase price adjustments on inventory 7,509 352 1,146 - 9,007 Restructuring charges 6,119 - - 1,785 7,904 Adjusted EBITDA $ 8,197 $ 23,952 $ 6,288 $ 105 $ 38,542 Adjusted EBITDA Margin % 4.4 % 17.2 % 7.4 % 9.6 % (1) Includes stock-based compensation expense of $3.0 million and $1.2 million for the three months ended January 31, 2026 and January 31, 2025, respectively. 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 March 10, 2025 for the three months ended January 31, 2025, to the current presentation. NA Fenestration EU Fenestration NA Cabinet Components Tyman Unallocated Corp & Other Total Three months ended January 31, 2025 Net sales $ 134,333 $ 48,471 $ 43,810 $ 175,676 $ (2,246 ) $ 400,044 Cost of sales 106,567 30,638 39,415 132,796 (1,688 ) 307,728 Gross Margin 27,766 17,833 4,395 42,880 (558 ) 92,316 Gross Margin % 20.7 % 36.8 % 10.0 % 24.4 % 23.1 % Selling, general and administrative 16,133 7,920 5,268 34,378 2,951 66,650 Restructuring charges - - - 7,904 - 7,904 Depreciation and amortization 4,779 2,610 3,009 14,263 79 24,740 Operating income (loss) 6,854 7,303 (3,882 ) (13,665 ) (3,588 ) (6,978 ) Depreciation and amortization 4,779 2,610 3,009 14,263 79 24,740 EBITDA 11,633 9,913 (873 ) 598 (3,509 ) 17,762 Amortization of step-up for purchase price adjustments on inventory - - - 9,007 - 9,007 Transaction and advisory fees - - - 1,469 2,400 3,869 Restructuring charges 7,904 - 7,904 Adjusted EBITDA $ 11,633 $ 9,913 $ (873 ) $ 18,978 $ (1,109 ) $ 38,542 Adjusted EBITDA Margin % 8.7 % 20.5 % -2.0 % 10.8 % 9.6 % Hardware Solutions(1) Extruded Solutions(2) Custom Solutions(3) Tyman Unallocated Corp & Other Total Three months ended January 31, 2025 Net sales $ 184,740 $ 139,630 $ 85,038 $ - $ (9,364 ) $ 400,044 Cost of sales 150,785 97,680 68,298 - (9,035 ) 307,728 Gross Margin 33,955 41,950 16,740 - (329 ) 92,316 Gross Margin % 18.4 % 30.0 % 19.7 % 23.1 % Selling, general and administrative 33,357 18,508 11,598 3,187 66,650 Restructuring charges 6,119 - - - 1,785 7,904 Depreciation and amortization 11,470 7,640 5,540 - 90 24,740 Operating (loss) income (16,991 ) 15,802 (398 ) - (5,391 ) (6,978 ) Depreciation and amortization 11,470 7,640 5,540 - 90 24,740 EBITDA (5,521 ) 23,442 5,142 - (5,301 ) 17,762 Reorganization costs (SG&A) 2,400 2,400 Amortization of step-up for purchase price adjustments on inventory 7,509 352 1,146 - - 9,007 Transaction and advisory fees 90 158 - - 1,221 1,469 Restructuring charges 6,119 1,785 7,904 Adjusted EBITDA $ 8,197 $ 23,952 $ 6,288 $ - $ 105 $ 38,542 Adjusted EBITDA Margin % 4.4 % 17.2 % 7.4 % 9.6 % (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 January 31, 2026 2025 Hardware Solutions:(1) Window and door hardware $ 124,701 $ 122,353 Screens 62,599 60,554 Other 1,812 1,833 $ 189,112 $ 184,740 Extruded Solutions:(2) Window profiles $ 58,355 $ 59,845 Seals and gaskets 17,634 18,041 Spacers 47,602 42,861 Solar 4,605 5,523 Flashing Tape 1,518 2,114 Window and door hardware 7,512 9,458 Other 2,574 1,788 $ 139,800 $ 139,630 Custom Solutions:(3) Wood solutions $ 46,654 $ 43,810 Access solutions 23,045 22,908 Mixing solutions 19,443 18,320 $ 89,142 $ 85,038 Unallocated Corporate & Other: Eliminations $ (8,965 ) $ (9,364 ) $ (8,965 ) $ (9,364 ) Net Sales $ 409,089 $ 400,044 (1) Reflects an increase of $4.3 million in revenue associated with foreign currency exchange rate impacts for the three months ended January 31, 2026. (2) Reflects an increase of $3.3 million in revenue associated with foreign currency exchange rate impacts for the three months ended January 31, 2026. (3) Reflects an increase of $0.2 million in revenue associated with foreign currency exchange rate impacts for the three months ended January 31, 2026.