Quanex Building Products Announces Second Quarter 2025 Results and Reaffirms Full Year 2025 Guidance

Rhea-AI Summary

Quanex Building Products (NYSE:NX) reported strong Q2 2025 results with net sales of $452.5M, up 70% YoY, primarily driven by the Tyman acquisition. The company's gross margin improved to 29.0% from 24.9%, while net income reached $20.5M. The Tyman integration is progressing ahead of schedule, with cost synergy targets increased from $30M to $45M. European Fenestration segment showed volume growth, though North American sales declined 5.5%. The company maintained its FY2025 guidance, projecting net sales of $1.84-1.86B and Adjusted EBITDA of $270-280M. During Q2, Quanex repurchased 1.26M shares for $23.5M at an average price of $18.66. The company's leverage ratio decreased to 3.2x, with total debt of $785M and liquidity of $289M as of April 30, 2025.

Positive

• Tyman acquisition cost synergy target increased to $45M from original $30M target
• Net sales increased 70% YoY to $452.5M in Q2 2025
• Gross margin improved to 29.0% from 24.9% YoY
• Volume growth achieved in European Fenestration segment
• Strong liquidity position of $289M as of April 30, 2025
• Active share repurchase program with $23.5M spent in Q2

Negative

• North American Fenestration segment sales declined 5.5%
• Net income per diluted share decreased to $0.44 from $0.46 YoY
• Free cash flow declined to $13.6M from $25.5M YoY
• High leverage with total debt of $785M
• Six-month net income dropped to $5.6M from $21.6M YoY

Insights

Financial Analyst

Quanex reports solid Q2 results with improved margins, faster-than-expected Tyman integration, and increased synergy targets despite mixed volume performance.

Quanex's Q2 2025 results demonstrate significant topline growth, with revenue increasing 70% year-over-year to $452.5 million, primarily driven by the Tyman acquisition that closed in August 2024. The acquisition's integration is progressing ahead of schedule, with management increasing cost synergy targets from $30 million to approximately $45 million.

From a profitability perspective, gross margin expanded 410 basis points to 29.0% compared to 24.9% in Q2 2024. This translated to adjusted EBITDA of $61.9 million, representing a 54.8% increase from the prior year, though adjusted EBITDA margin contracted slightly to 13.7% from 15.0%.

Underlying business trends show a mixed picture. Excluding Tyman, organic sales declined 1.4%, with North American Fenestration sales down 5.5%, highlighting ongoing demand challenges in the residential construction market. However, European Fenestration showed encouraging 7.9% volume growth when excluding foreign exchange impacts.

The company's leverage position is worth monitoring, with total debt at $785 million and a net debt to LTM adjusted EBITDA ratio of 3.2x. For covenant purposes, this ratio stands at 2.7x, comfortably below the 3.75x requirement. Management is prioritizing debt reduction alongside share repurchases, having bought back 1.26 million shares for $23.5 million during the quarter.

The sequential revenue improvement (March 6% higher than February, April 9% higher than March) indicates normal seasonality is unfolding as expected. Management has reaffirmed full-year 2025 guidance of $1.84-1.86 billion in revenue and $270-280 million in adjusted EBITDA, suggesting confidence in continued seasonal improvement through summer despite macroeconomic headwinds.

Seasonal Uptick Unfolding as Expected
Volume Growth in European Fenestration Segment
Results Again Lifted by Contribution from Tyman Acquisition
Tyman Integration Ahead of Timeline
Cost Synergy Target Increased to ~$45 Million

HOUSTON, June 05, 2025 (GLOBE NEWSWIRE) -- Quanex Building Products Corporation (NYSE:NX) (“Quanex” or the “Company”) today announced its results for the three months ended April 30, 2025.  

The Company reported the following selected financial results:

			Three Months Ended April 30,				Six Months Ended April 30,
($ in millions, except per share data)			2025		2024		2025		2024
Net Sales			$452.5		$266.2		$852.5		$505.4
Gross Margin			$131.4		$66.2		$223.7		$117.7
Gross Margin %			29.0%		24.9%		26.2%		23.3%
Net Income			$20.5		$15.4		$5.6		$21.6
Diluted EPS			$0.44		$0.46		$0.12		$0.65
Adjusted Net Income			$27.9		$24.0		$36.8		$32.3
Adjusted Diluted EPS			$0.60		$0.73		$0.79		$0.98
Adjusted EBITDA			$61.9		$40.0		$100.5		$59.3
Adjusted EBITDA Margin %			13.7%		15.0%		11.8%		11.7%
Cash Provided by Operating Activities			$28.5		$33.1		$16.0		$36.9
Free Cash Flow			$13.6		$25.5		($10.6)		$19.8
(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 results for the second quarter of 2025 came in as expected and reflected normal seasonality in our business. Revenue in March was approximately 6% higher than February and revenue in April was approximately 9% higher than March. It was also encouraging to see volume growth in our European Fenestration segment during the second quarter of 2025. We continue to be pleased with the integration of Tyman, and are now confident we will deliver approximately $45 million in cost synergies over time, compared to our original target of $30 million within the first two years post-acquisition. On a run-rate basis, we see a path to achieving the original $30 million cost synergy target by early fiscal 2026. We also took advantage of our low stock price during the second quarter and spent over $23 million repurchasing our shares.

“Overall, despite the challenging macroeconomic environment, we expect the seasonal uptick in demand we witnessed in the second quarter to continue through the summer, and we are confident in our ability to mitigate any potential margin impact related to tariffs. In addition, any unexpected weakness in demand in the second half of 2025 could be somewhat offset by the realization of cost synergies faster than originally planned. Our near-term priorities remain unchanged, which include staying focused on the Tyman integration, capturing synergies, and generating cash flow to repurchase our stock and pay down debt.   Longer-term, we continue to expect that we will benefit from the release of pent-up demand as consumer confidence improves.”  

Second Quarter Results Summary   

Quanex reported net sales of $452.5 million during the three months ended April 30, 2025, which represents an increase of 70.0% compared to $266.2 million for the same period of 2024. The increase reflects the contribution from the Tyman acquisition that closed on August 1, 2024. Excluding the contribution from Tyman, net sales would have declined by 1.4% for the second quarter of 2025, mainly due to lower volume in North America. The Company reported a decrease in net sales of 5.5% for the second quarter of 2025 in its North American Fenestration segment. In its North American Cabinet Components segment, Quanex reported a marginal increase in net sales for the second quarter of 2025. Excluding foreign exchange impact, net sales increased by 7.9% in its European Fenestration segment. In addition, Quanex reported net sales of $190.1 million related to the Tyman acquisition during the second quarter of 2025. (See Sales Analysis table for additional information)

The increase in net income and EBITDA for the three months ended April 30, 2025, was mostly related to the contribution from the Tyman acquisition combined with the realization of related cost synergies.  

Balance Sheet & Liquidity Update

As of April 30, 2025, the Company had total debt of $785.0 million and Quanex’s leverage ratio of Net Debt to LTM Adjusted EBITDA decreased to 3.2x.   As of April 30, 2025, the Company’s LTM Net Income was $17.1 million and LTM Adjusted EBITDA was $223.5 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 leverage ratio for Quanex’s quarterly debt covenant compliance (“Debt Covenant Leverage Ratio”) for its lenders was 2.7x as of April 30, 2025. The Debt Covenant Leverage Ratio calculation is defined in the Company’s Amendment No. 1 to its Second Amended and Restated Credit Agreement (“Credit Agreement”), which was filed with the SEC on June 12, 2024. In general, the main difference is that the Debt Covenant Leverage Ratio excludes real-estate leases that are considered “finance” leases under U.S. GAAP and is calculated on a proforma basis to include Adjusted EBITDA from the Tyman acquisition, $30 million of EBITDA for the synergy target related to the acquisition, less realized synergies, and only cash from domestic subsidiaries.   Note that per the terms of the Credit Agreement, the quarterly Debt Covenant Leverage Ratio must be less than 3.75x through the fourth quarter of 2025 and less than 3.25x starting in the first fiscal quarter of 2026. The Debt Covenant Leverage Ratio would be 2.4x if calculated using the total cash and cash equivalents amount on the balance sheet as of April 30, 2024, and adjusting for the cash used to repurchase stock during the quarter.  

Quanex’s liquidity was $289.0 million as of April 30, 2025, consisting of $62.6 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 1,259,407 shares of common stock for approximately $23.5 million at an average price of $18.66 per share during the three months ended April 30, 2025. As of April 30, 2025, approximately $35.6 million remained under the existing share repurchase authorization.   

Outlook        

Mr. Wilson stated, “Based on our results year-to-date, combined with our operational execution, cost synergy realization, recent demand trends, and conversations with our customers, we are once again reaffirming our guidance for fiscal 2025. On a consolidated basis for fiscal 2025, we continue to estimate that we will generate net sales of approximately $1.84 billion to $1.86 billion, which we expect will yield Adjusted EBITDA* of $270 million to $280 million.

“The finance and accounting teams continue to work with our external auditors on re-segmenting the business and our goal is to report in the new operating segments this year.”

*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.

Conference Call and Webcast Information

The Company has also scheduled a conference call for Friday, June 6, 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/BI5c78744cb292420a807e6c6762cb6343

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, 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

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: impacts from public health issues (including pandemics) on the economy and the demand for Quanex’s products, timing estimates or any other expectations related to the acquisition of Tyman, the Company’s future operating results, future financial condition, future uses of cash and other expenditures, expenses and tax rates, expectations relating to Quanex’s industry, and the Company’s future growth, including any guidance discussed in this press release. The statements and guidance set forth in this release are based on current expectations. Actual results or events may differ materially from this release. For a complete discussion of factors that may affect Quanex’s future performance, please refer to the Company’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 to reflect new information or events.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited)
		Three Months Ended April 30,								Six Months Ended April 30,
			2025				2024				2025				2024
Net sales		$	452,478			$	266,201			$	852,522			$	505,356
Cost of sales			321,096				199,963				628,824				387,686
Selling, general and administrative			70,333				34,707				136,983				67,070
Restructuring charges			936				-				8,840				-
Depreciation and amortization			19,192				10,894				43,932				22,046
Operating income			40,921				20,637				33,943				28,554
Interest expense			(13,940	)			(950	)			(28,126	)			(2,018	)
Other, net			(159	)			4				1,070				1,046
Income before income taxes			26,822				19,691				6,887				27,582
Income tax expense			(6,307	)			(4,314	)			(1,257	)			(5,956	)
Net income		$	20,515			$	15,377			$	5,630			$	21,626
Earnings per common share, basic		$	0.44			$	0.47			$	0.12			$	0.66
Earnings per common share, diluted		$	0.44			$	0.46			$	0.12			$	0.65
Weighted average common shares outstanding:
Basic			46,483				32,870				46,753				32,847
Diluted			46,563				33,103				46,868				33,076
Cash dividends per share		$	0.08			$	0.08			$	0.16			$	0.16

QUANEX BUILDING PRODUCTS CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited)
		April 30, 2025				October 31, 2024
ASSETS
Current assets:
Cash and cash equivalents		$	62,626			$	97,744
Restricted Cash			2,171				5,251
Accounts receivable, net			195,264				197,689
Inventories			279,482				275,550
Income taxes receivable			6,108				5,937
Prepaid and other current assets			42,825				29,097
Total current assets			588,476				611,268
Property, plant and equipment, net			417,104				402,466
Operating lease right-of-use assets			149,322				126,715
Deferred tax assets			4,049				3,845
Goodwill			579,110				574,711
Intangible assets, net			567,148				597,909
Other assets			3,057				2,874
Total assets		$	2,308,266			$	2,319,788
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	112,484			$	124,404
Accrued liabilities			91,573				103,623
Income taxes payable			-				6,620
Current maturities of long-term debt			26,124				25,745
Current operating lease liabilities			14,184				12,475
Total current liabilities			244,365				272,867
Long-term debt			746,387				737,198
Noncurrent operating lease liabilities			139,955				117,560
Deferred income taxes			163,591				162,304
Other liabilities			12,305				19,113
Total liabilities			1,306,603				1,309,042
Stockholders’ equity:
Common stock			512				513
Additional paid-in-capital			698,238				701,008
Retained earnings			428,483				430,405
Accumulated other comprehensive loss			(27,034	)			(46,428	)
Treasury stock at cost			(98,536	)			(74,752	)
Total stockholders’ equity			1,001,663				1,010,746
Total liabilities and stockholders' equity		$	2,308,266			$	2,319,788

QUANEX BUILDING PRODUCTS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (In thousands) (Unaudited)
	Six Months Ended April 30,
		2025				2024
Operating activities:
Net income	$	5,630			$	21,626
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization		43,932				22,046
Stock-based compensation		1,825				1,365
Deferred income tax		1,250				(155	)
Other, net		7,243				162
Changes in assets and liabilities:
Decrease in accounts receivable		5,322				10,832
Increase in inventory		(1,333	)			(3,008	)
Increase in other current assets		(7,828	)			(1,124	)
Decrease in accounts payable		(14,771	)			(12,619	)
Decrease in accrued liabilities		(14,048	)			(4,602	)
(Decrease) increase in income taxes receivable		(5,471	)			1,856
(Decrease) increase in other long-term liabilities		(6,268	)			9
Other, net		504				557
Cash provided by operating activities		15,987				36,945
Investing activities:
Capital expenditures		(26,544	)			(17,183	)
Proceeds from disposition of capital assets		376				93
Cash used for investing activities		(26,168	)			(17,090	)
Financing activities:
Borrowings under credit facilities		125,000				-
Repayments of credit facility borrowings		(117,500	)			(15,000	)
Repayments of other long-term debt		(1,888	)			(954	)
Common stock dividends paid		(7,552	)			(5,294	)
Issuance of common stock		214				554
Payroll tax paid to settle shares forfeited upon vesting of stock		(1,400	)			(1,193	)
Purchase of treasury stock		(27,194	)			-
Cash used for financing activities		(30,320	)			(21,887	)
Effect of exchange rate changes on cash and cash equivalents		2,303				(293	)
Decrease in cash, cash equivalents and restricted cash		(38,198	)			(2,325	)
Cash, cash equivalents and restricted cash at beginning of period		102,995				58,474
Cash, cash equivalents and restricted cash at end of period	$	64,797			$	56,149

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 April 30,				Six Months Ended April 30,
			2025		2024		2025		2024
Cash provided by operating activities			$28,497		$33,091		$15,987		$36,945
Capital expenditures			(14,920)		(7,603)		(26,544)		(17,183)
Free Cash Flow			$13,577		$25,488		($10,557)		$19,762
The following table reconciles the Company's Net Debt which is defined as total debt principal of the Company plus finance lease obligations minus cash.
			As of April 30,
			2025		2024
Term loan facility			$481,205		$0
Revolving credit facility			242,500		-
Finance lease obligations (1)			61,272		55,217
Total debt (2)			784,977		55,217
Less: Cash and cash equivalents			62,626		56,149
Net Debt			$722,351		($932)
(1) Includes $57.4 million and $51.0 million in real estate lease liabilities considered finance leases under U.S. GAAP as of April 30 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 April 30, 2025			Three Months Ended January 31, 2025				Three Months Ended October 31, 2024				Three Months Ended July 31, 2024				Total
		Reconciliation			Reconciliation				Reconciliation				Reconciliation				Reconciliation
Net income (loss) as reported		$	20,515		$	(14,885	)		$	(13,917	)		$	25,350			$	17,063
Income tax expense (benefit)			6,307			(5,050	)			(3,621	)			6,688				4,324
Other, net			159			(1,229	)			2,671				(9,474	)			(7,873	)
Interest expense			13,940			14,186				17,697				878				46,701
Depreciation and amortization			19,192			24,740				27,329				10,953				82,214
EBITDA			60,113			17,762				30,159				34,395				142,429
Cost of sales (1)			-			-				887				1,507				2,394
Selling, general and administrative (1),(2),(3)			864			12,876				50,004				6,133				69,877
Restructuring charges (4)			936			7,904				-				-				8,840
Adjusted EBITDA		$	61,913		$	38,542			$	81,050			$	42,035			$	223,540
(1) Expense (gain) related to plant closure.
(2) Transaction, advisory fees, and reorganization costs.
(3) Amortization of step-up for purchase price adjustments on inventory.
(4) Restructuring charges related to severeance and disposal of software.

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 April 30, 2025								Three Months Ended April 30, 2024								Six Months Ended April 30, 2025								Six Months Ended April 30, 2024
		Net Income				Diluted EPS				Net Income				Diluted EPS				Net Income				Diluted EPS				Net Income				Diluted EPS
Net income as reported		$	20,515			$	0.44			$	15,377			$	0.46			$	5,630			$	0.12			$	21,626			$	0.65
Net income reconciling items from below			7,372			$	0.16				8,664			$	0.27				31,218			$	0.67				10,680			$	0.33
Adjusted net income and adjusted EPS		$	27,887			$	0.60			$	24,041			$	0.73			$	36,848			$	0.79			$	32,306			$	0.98
Reconciliation of Adjusted EBITDA		Three Months Ended April 30, 2025								Three Months Ended April 30, 2024								Six Months Ended April 30, 2025								Six Months Ended April 30, 2024
		Reconciliation								Reconciliation								Reconciliation								Reconciliation
Net income as reported		$	20,515							$	15,377							$	5,630							$	21,626
Income tax (benefit) expense			6,307								4,314								1,257								5,956
Other, net			159								(4	)							(1,070	)							(1,046	)
Interest expense			13,940								950								28,126								2,018
Depreciation and amortization			19,192								10,894								43,932								22,046
EBITDA			60,113								31,531								77,875								50,600
EBITDA reconciling items from below			1,800								8,493								22,579								8,698
Adjusted EBITDA		$	61,913							$	40,024							$	100,454							$	59,298
Reconciling Items		Three Months Ended April 30, 2025								Three Months Ended April 30, 2024								Six Months Ended April 30, 2025								Six Months Ended April 30, 2024
		Income Statement				Reconciling Items				Income Statement				Reconciling Items				Income Statement				Reconciling Items				Income Statement				Reconciling Items
Net sales		$	452,478			$	-			$	266,201			$	-			$	852,522			$	-			$	505,356			$	-
Cost of sales			321,096				-				199,963				(631	)	(1)		628,824				-				387,686				(631	)	(1)
Selling, general and administrative			70,333				(864	)	(2)		34,707				(7,862	)	(1),(2)		136,983				(13,739	)	(2),(3)		67,070				(8,067	)	(1),(2)
Restructuring charges			936				(936	)	(4)		-				-				8,840				(8,840	)	(4)		-				-
EBITDA			60,113				1,800				31,531				8,493				77,875				22,579				50,600				8,698
Depreciation and amortization			19,192				(6,451	)	(5)		10,894				(2,956	)	(5)		43,932				(17,101	)	(5)		22,046				(6,185	)	(5)
Operating income			40,921				8,251				20,637				11,449				33,943				39,680				28,554				14,883
Interest expense			(13,940	)			-				(950	)			-				(28,126	)			-				(2,018	)			-
Other, net			(159	)			1,003		(6)		4				(92	)	(6)		1,070				831		(6)		1,046				(847	)	(6)
Income before income taxes			26,822				9,254				19,691				11,357				6,887				40,511				27,582				14,036
Income tax expense			(6,307	)			(1,882	)	(7)		(4,314	)			(2,693	)	(7)		(1,257	)			(9,293	)	(7)		(5,956	)			(3,356	)	(7)
Net income		$	20,515			$	7,372			$	15,377			$	8,664			$	5,630			$	31,218			$	21,626			$	10,680
Diluted earnings per share		$	0.44							$	0.46							$	0.12							$	0.65
(1) Expense (gain) related to plant closure.
(2) Transaction, advisory fees, and reorganization costs.
(3) Amortization of step-up for purchase price adjustments on inventory.
(4) Restructuring charges related to severeance and disposal of software.
(5) Amortization expense related to intangible assets.
(6) Pension settlement refund and foreign currency transaction losses (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.
		NA Fenestration				EU Fenestration				NA Cabinet Components				Tyman				Unallocated Corp & Other				Total
Three months ended April 30, 2025
Net sales		$	151,026			$	61,257			$	51,237			$	190,107			$	(1,149	)		$	452,478
Cost of sales			113,760				39,001				42,405				126,743				(813	)			321,096
Gross Margin			37,266				22,256				8,832				63,364				(336	)			131,382
Gross Margin %			24.7%				36.3%				17.2%				33.3%								29.0%
Selling, general and administrative (1)			15,938				9,038				5,725				37,271				2,361				70,333
Restructuring charges			-				-				-				936				-				936
Depreciation and amortization			4,667				2,659				3,015				8,775				76				19,192
Operating income (loss)			16,661				10,559				92				16,382				(2,773	)			40,921
Depreciation and amortization			4,667				2,659				3,015				8,775				76				19,192
EBITDA			21,328				13,218				3,107				25,157				(2,697	)			60,113
Transaction, advisory fees, and reorganization costs			-				-				-				675				189				864
Restructuring charges related to severance and disposal of software			-				-				-				936				-				936
Adjusted EBITDA		$	21,328			$	13,218			$	3,107			$	26,768			$	(2,508	)		$	61,913
Adjusted EBITDA Margin %			14.1%				21.6%				6.1%				14.1%								13.7%
Three months ended April 30, 2024
Net sales		$	159,774			$	56,583			$	51,078			$	-			$	(1,234	)		$	266,201
Cost of sales			122,261				35,694				42,624				-				(616	)			199,963
Gross Margin			37,513				20,889				8,454				-				(618	)			66,238
Gross Margin %			23.5%				36.9%				16.6%												24.9%
Selling, general and administrative (1)			13,730				7,873				5,066				-				8,038				34,707
Depreciation and amortization			5,218				2,538				3,082				-				56				10,894
Operating income (loss)			18,565				10,478				306				-				(8,712	)			20,637
Depreciation and amortization			5,218				2,538				3,082				-				56				10,894
EBITDA			23,783				13,016				3,388				-				(8,656	)			31,531
Expense related to plant closure (Cost of sales)			631				-				-				-				-				631
Expense related to plant closure (SG&A)			978				-				-				-				-				978
Transaction and advisory fees			-				-				-				-				6,884				6,884
Adjusted EBITDA		$	25,392			$	13,016			$	3,388			$	-			$	(1,772	)		$	40,024
Adjusted EBITDA Margin %			15.9%				23.0%				6.6%												15.0%
Six months ended April 30, 2025
Net sales		$	285,359			$	109,728			$	95,047			$	365,783			$	(3,395	)		$	852,522
Cost of sales			220,327				69,638				81,821				259,539				(2,501	)			628,824
Gross Margin			65,032				40,090				13,226				106,244				(894	)			223,698
Gross Margin %			22.8%				36.5%				13.9%				29.0%								26.2%
Selling, general and administrative (1)			32,071				16,959				10,992				71,649				5,312				136,983
Restructuring charges			-				-				-				8,840				-				8,840
Depreciation and amortization			9,446				5,269				6,024				23,038				155				43,932
Operating income (loss)			23,515				17,862				(3,790	)			2,717				(6,361	)			33,943
Depreciation and amortization			9,446				5,269				6,024				23,038				155				43,932
EBITDA			32,961				23,131				2,234				25,755				(6,206	)			77,875
Amortization of step-up for purchase price adjustments on inventory			-				-				-				9,007				-				9,007
Transaction, advisory fees, and reorganization costs			-				-				-				2,142				2,590				4,732
Restructuring charges related to severance and disposal of software			-				-				-				8,840				-				8,840
Adjusted EBITDA		$	32,961			$	23,131			$	2,234			$	45,744			$	(3,616	)		$	100,454
Adjusted EBITDA Margin %			11.6%				21.1%				2.4%				12.5%								11.8%
Six months ended April 30, 2024
Net sales		$	307,769			$	106,020			$	94,215			$	-			$	(2,648	)		$	505,356
Cost of sales			240,629				67,397				81,367				-				(1,707	)			387,686
Gross Margin			67,140				38,623				12,848				-				(941	)			117,670
Gross Margin %			21.8%				36.4%				13.6%												23.3%
Selling, general and administrative (1)			29,640				15,618				10,192				-				11,620				67,070
Depreciation and amortization			10,693				5,096				6,147				-				110				22,046
Operating income (loss)			26,807				17,909				(3,491	)			-				(12,671	)			28,554
Depreciation and amortization			10,693				5,096				6,147				-				110				22,046
EBITDA			37,500				23,005				2,656				-				(12,561	)			50,600
Expense related to plant closure (Cost of sales)			631				-				-				-				-				631
Expense related to plant closure (SG&A)			978				-				-				-				-				978
Transaction and advisory fees			-				-				-				-				7,089				7,089
Adjusted EBITDA		$	39,109			$	23,005			$	2,656			$	-			$	(5,472	)		$	59,298
Adjusted EBITDA Margin %			12.7%				21.7%				2.8%												11.7%
(1) Includes stock-based compensation expense for the three and six months ended April 30, 2025, respectively of $0.6 million and $1.8 million and $1.5 million and $4.1 million for the comparable prior year periods.

QUANEX BUILDING PRODUCTS CORPORATION SALES ANALYSIS (In thousands) (Unaudited)
		Three Months Ended April 30,								Six Months Ended April 30,
			2025				2024				2025				2024
NA Fenestration:
	United States - fenestration	$	112,261			$	119,646			$	212,690			$	231,280
	International - fenestration		8,054				7,465				13,913				13,609
	United States - non-fenestration		26,751				27,532				49,956				53,323
	International - non-fenestration		3,960				5,131				8,800				9,557
		$	151,026			$	159,774			$	285,359			$	307,769
EU Fenestration: (1)
	International - fenestration	$	50,687			$	46,968			$	92,743			$	88,719
	International - non-fenestration		10,570				9,615				16,985				17,301
		$	61,257			$	56,583			$	109,728			$	106,020
NA Cabinet Components:
	United States - fenestration	$	3,507			$	3,737			$	6,959			$	7,412
	United States - non-fenestration		47,364				46,990				87,427				86,169
	International - non-fenestration		366				351				661				634
		$	51,237			$	51,078			$	95,047			$	94,215
Tyman:
	United States - fenestration	$	113,950			$	-			$	219,541			$	-
	International - fenestration		75,547				-				144,829				-
	United States - non-fenestration		610				-				1,395				-
	International - non-fenestration		-				-				18				-
		$	190,107			$	-			$	365,783			$	-
Unallocated Corporate & Other:
	Eliminations	$	(1,149	)		$	(1,234	)		$	(3,395	)		$	(2,648	)
		$	(1,149	)		$	(1,234	)		$	(3,395	)		$	(2,648	)
Net Sales		$	452,478			$	266,201			$	852,522			$	505,356
(1) Reflects an increase of $0.2 million in revenue associated with foreign currency exchange rate impacts for the three and six months ended April 30, 2025, respectively.

FAQ

What were Quanex's (NX) Q2 2025 earnings results?

Quanex reported Q2 2025 net sales of $452.5M, net income of $20.5M, and diluted EPS of $0.44. Adjusted EBITDA was $61.9M with a margin of 13.7%.

How much cost synergy is expected from Quanex's Tyman acquisition?

Quanex increased its cost synergy target from the Tyman acquisition to approximately $45M, up from the original target of $30M, with expectations to achieve the initial $30M target by early fiscal 2026.

What is Quanex's (NX) financial guidance for fiscal 2025?

Quanex reaffirmed its fiscal 2025 guidance, projecting net sales of $1.84-1.86B and Adjusted EBITDA of $270-280M.

How much debt does Quanex (NX) currently have?

As of April 30, 2025, Quanex had total debt of $785.0M with a leverage ratio of Net Debt to LTM Adjusted EBITDA of 3.2x.

What was Quanex's (NX) share repurchase activity in Q2 2025?

Quanex repurchased 1,259,407 shares for approximately $23.5M at an average price of $18.66 per share, with $35.6M remaining under the existing authorization.