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

Rhea-AI Summary

Quanex (NYSE:NX) reported Q1 FY2026 results with net sales of $409.1M, up 2.3% year-over-year, and a GAAP net loss of $4.1M (diluted loss $0.09). Adjusted EBITDA was $27.4M. Liquidity was $331.6M and net debt leverage was 2.8x as of January 31, 2026.

The company issued fiscal 2026 guidance of $1.84B–$1.87B in net sales and $240M–$245M in Adjusted EBITDA, while noting seasonal cash needs and a focus on debt reduction and opportunistic repurchases.

Positive

• Fiscal 2026 net sales guidance of $1.84B–$1.87B
• Fiscal 2026 Adjusted EBITDA guidance of $240M–$245M
• Liquidity of $331.6M as of January 31, 2026

Negative

• Adjusted EBITDA declined to $27.4M from $38.5M (≈28.8% decrease)
• Free cash flow worsened to ($31.5M) from ($24.1M) (≈30.7% decline)
• LTM Net Loss of $240.0M driven by goodwill impairment recorded Q3 2025

News Market Reaction – NX

-7.71%

10 alerts

-7.71% News Effect

-14.3% Trough in 15 hr 21 min

-$72M Valuation Impact

$864M Market Cap

0.2x Rel. Volume

On the day this news was published, NX declined 7.71%, reflecting a notable negative market reaction. Argus tracked a trough of -14.3% from its starting point during tracking. Our momentum scanner triggered 10 alerts that day, indicating notable trading interest and price volatility. This price movement removed approximately $72M from the company's valuation, bringing the market cap to $864M at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Q1 2026 Net Sales: $409.1M Q1 2025 Net Sales: $400.0M Q1 2026 Net Loss: $4.1M +5 more

8 metrics

Q1 2026 Net Sales $409.1M Three months ended January 31, 2026

Q1 2025 Net Sales $400.0M Three months ended January 31, 2025

Q1 2026 Net Loss $4.1M Three months ended January 31, 2026

Q1 2026 Adjusted EBITDA $27.4M Three months ended January 31, 2026

Total Debt $717.5M As of January 31, 2026

LTM Net Loss $240.0M As of January 31, 2026

Liquidity $331.6M Cash plus revolver availability as of January 31, 2026

FY2026 Net Sales Guidance $1.84–$1.87B Company’s full-year 2026 outlook

Market Reality Check

Price: $17.71 Vol: Volume 452,109 is slightl...

normal vol

$17.71 Last Close

Volume Volume 452,109 is slightly below the 20-day average of 531,476 ahead of the earnings release. normal

Technical Shares at $19.67 are trading above the 200-day MA of $17.37, and about 14.4% below the 52-week high.

Peers on Argus

NX showed a modest gain of 0.77% while key peers like JELD, ASPN, APOG, and SWIM...

NX showed a modest gain of 0.77% while key peers like JELD, ASPN, APOG, and SWIM declined between roughly 1–9%, indicating a stock-specific reaction to its earnings and guidance rather than a broad sector move.

Previous Earnings Reports

5 past events · Latest: Dec 11 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 11	Q4/FY25 earnings	Positive	+9.6%	Strong full-year sales growth and higher operating cash flow post-Tyman acquisition.
Sep 04	Q3 2025 earnings	Negative	-13.1%	Large non-cash goodwill impairment driving substantial net loss despite higher sales.
Jun 05	Q2 2025 earnings	Positive	+10.6%	Strong sales growth, margin expansion, higher guidance and increased synergy targets.
Mar 10	Q1 2025 earnings	Positive	-9.2%	Sales growth from Tyman with reaffirmed guidance but underlying organic softness.
Dec 12	Q4/FY24 earnings	Neutral	-2.4%	Acquisition-driven growth offset by a net loss and elevated leverage levels.

Pattern Detected

Earnings releases have produced mixed reactions: several strong positive moves on constructive updates, but also sharp selloffs when losses or impairments dominated, indicating that the market reacts sensitively to the quality of earnings and outlook detail.

Recent Company History

Recent earnings news for Quanex has centered on integrating the Tyman acquisition, managing leverage, and delivering growth. Past updates highlighted large net sales increases (e.g., to $1.84B in FY2025) and improving cash generation, but also sizeable non-cash goodwill impairments that drove net losses and elevated leverage ratios. Guidance has typically framed mid-$1.8B revenue and mid-$200M Adjusted EBITDA ranges. Today’s Q1 2026 results and FY2026 guidance continue this focus on integration benefits, profitability, and balance sheet discipline against a softer macro backdrop.

Historical Comparison

-0.9% avg move · Over the last five earnings releases, NX’s average move was about -0.9%. Today’s roughly 0.8% gain r...

earnings

-0.9%

Average Historical Move earnings

Over the last five earnings releases, NX’s average move was about -0.9%. Today’s roughly 0.8% gain represents a modest, well-within-range reaction to another earnings-and-guidance update.

Earnings updates trace a path from initial Tyman-driven growth with higher leverage and losses toward steadier integration, rising sales near $1.8B+, targeted cost synergies, and a clearer balance between growth, cash generation, and de-leveraging.

Market Pulse Summary

The stock moved -7.7% in the session following this news. A negative reaction despite the modest Q1 ...

Analysis

The stock moved -7.7% in the session following this news. A negative reaction despite the modest Q1 2026 sales growth to $409.1M would fit the pattern seen when Quanex reports losses or emphasizes macro headwinds. The company still carries LTM net loss of $240.0M and total debt of $717.5M, which can heighten sensitivity to earnings quality. Even with FY2026 guidance of $1.84–$1.87B in net sales and $240–$245M Adjusted EBITDA, any market concern about margins, cash generation, or de-leveraging pace could pressure the shares.

Key Terms

adjusted ebitda, goodwill impairment, leverage ratio, senior secured revolving credit facility, +2 more

6 terms

adjusted ebitda financial

"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"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

goodwill impairment financial

"mainly due to the non-cash goodwill impairment charge recorded in the third quarter of 2025"

Goodwill impairment occurs when a company’s valued reputation or brand strength, known as goodwill, is found to be worth less than previously recorded on its financial statements. This usually happens when the company's performance declines or market conditions change, signaling that the expected benefits from acquisitions or brand value are no longer as strong. It matters to investors because it can indicate that a company's assets are less valuable than initially thought, potentially affecting its overall financial health.

leverage ratio financial

"Quanex’s leverage ratio of Net Debt to LTM Adjusted EBITDA was 2.8x"

Leverage ratio measures how much a company relies on borrowed money compared with its own funds or assets, typically expressed as debt relative to equity or total assets. Like a homeowner with a mortgage, higher leverage can amplify returns when business is strong but also raises the chance of big losses or default if revenue falls, so investors use it to judge financial risk and resilience.

senior secured revolving credit facility financial

"availability under its Senior Secured Revolving Credit Facility due 2029, less letters of credit outstanding"

A senior secured revolving credit facility is a multi‑use bank lending line that a company can draw, repay and redraw as needed, backed by specific assets and ranked first in repayment order if the company defaults. Think of it like a collateralized credit card that gives flexible short‑term cash while lenders hold priority to recover their money; investors watch it because it affects a company’s liquidity, borrowing cost, and who gets paid first in financial distress.

ltm financial

"Quanex’s leverage ratio of Net Debt to LTM Adjusted EBITDA was 2.8x"

Last twelve months (LTM) is a way of measuring a company's financial performance using the most recent 12 months of results rather than a fixed calendar or fiscal year. Investors use LTM to see the company's current trend — like looking at the last 12 months on a rolling odometer — which helps compare firms with different reporting cycles and spot recent improvements or declines in revenue, profit, or cash flow.

non-gaap financial

"See Non-GAAP Terminology Definitions and Disclaimers section, Non-GAAP Financial Measure Disclosure table"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

AI-generated analysis. Not financial advice.

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.

FAQ

What were Quanex (NX) Q1 2026 sales and earnings results?

Quanex reported Q1 FY2026 net sales of $409.1M and a GAAP net loss of $4.1M. According to the company, Adjusted EBITDA was $27.4M, reflecting lower operating leverage and temporary operational costs in Monterrey, Mexico.

How did Quanex (NX) describe its balance sheet and liquidity on January 31, 2026?

Quanex reported liquidity of $331.6M and total debt of $717.5M as of January 31, 2026. According to the company, leverage measured as Net Debt to LTM Adjusted EBITDA was 2.8x.

What guidance did Quanex (NX) give for fiscal 2026 net sales and Adjusted EBITDA?

Quanex guided fiscal 2026 net sales of $1.84B–$1.87B and Adjusted EBITDA of $240M–$245M. According to the company, guidance assumes a tougher first half and an improved second half year-over-year.

Why did Quanex (NX) report a large LTM net loss of $240M?

The company reported a LTM Net Loss of $240.0M mainly due to a non-cash goodwill impairment recorded in Q3 2025. According to the company, this charge drove the year-over-year LTM net loss figure.

What cash flow trends did Quanex (NX) report for Q1 2026 and what are the implications?

Quanex used $20.2M in operating cash and reported free cash flow of ($31.5M) in Q1 FY2026. According to the company, seasonality and a longer cash conversion cycle will make it a net borrower in H1 2026 while prioritizing debt repayment.