Quanex Building Products Announces Third Quarter 2026 Results

Q: How did Quanex (NX) perform financially in the third quarter of 2026?

For Q3 2026, Quanex reported net sales of $501.8 million and diluted EPS of $0.58. Net income was $26.5 million, versus a loss in the prior year period, and adjusted net income rose to $36.0 million, with adjusted diluted EPS of $0.79.

Q: How did Quanex’s Q3 2026 results compare to the same quarter in 2025 for NX?

Compared with Q3 2025, net sales increased 1.3% to $501.8 million, gross margin improved to 28.2% from 27.9%, and operating income rose to $46.5 million from a prior-year loss affected by a goodwill impairment. Adjusted diluted EPS increased to $0.79 from $0.69.

Q: What were the segment sales trends for Quanex (NX) in Q3 2026?

In Q3 2026, Hardware Solutions net sales fell 2.7% due to lower volumes and tariff reimbursements. Extruded Solutions net sales grew 2.8%, as pricing offset lower volumes, and the Custom Solutions segment grew 8.5%, driven by higher volume and improved pricing.

Q: What cash flow and free cash flow did Quanex (NX) generate in Q3 2026?

Quanex generated $58.6 million of cash provided by operating activities in Q3 2026 and reported free cash flow of $47.8 million, up from $46.2 million in the same quarter of 2025, based on its definition of free cash flow.

Q: What is Quanex’s debt and leverage position as of July 31, 2026 for NX?

As of July 31, 2026, Quanex had total debt of $672.2 million. The Company reported a Net Debt to last twelve months (LTM) Adjusted EBITDA leverage ratio of 2.8x and highlighted repayment of $42.25 million of debt during the third quarter.

Q: How much liquidity does Quanex (NX) have and how did it change in Q3 2026?

Quanex reported liquidity of $363.1 million as of July 31, 2026, consisting of cash on hand plus revolver availability less letters of credit. This represented an increase of 10.5% compared to the prior period referenced.

Q: What share repurchases did Quanex (NX) execute in the third quarter of 2026?

During the three months ended July 31, 2026, Quanex repurchased 99,786 shares of common stock for approximately $1.7 million at an average price of $17.10 per share. About $28.7 million remained available under its $75 million repurchase authorization.

Quanex grew Q3 2026 sales and margins, generated strong free cash flow, reduced leverage, and continued share repurchases while navigating mixed segment trends.

Rhea-AI Impact

(Moderate)

Rhea-AI Sentiment

(Neutral)

Rhea-AI Summary

Quanex Building Products (NX) reported third quarter 2026 net sales of $501.8 million and diluted EPS of $0.58 for the period ended July 31, 2026.

Net sales rose 1.3% year over year, driven mainly by favorable pricing, partly offset by IEEPA tariff reimbursements to customers. Consolidated gross margin improved to 28.2% from 27.9%, and operating income reached $46.5 million versus a prior-year operating loss largely driven by a $302.3 million non-cash goodwill impairment in 2025. Adjusted net income increased to $36.0 million from $31.6 million, with adjusted diluted EPS up to $0.79 from $0.69 and adjusted EBITDA at $72.7 million, a 14.5% margin.

The Company generated $58.6 million of cash from operating activities and $47.8 million of free cash flow in the quarter, enabling repayment of $42.25 million of debt. Total debt stood at $672.2 million with a Net Debt to LTM Adjusted EBITDA leverage ratio of 2.8x, and liquidity increased 10.5% to $363.1 million. Quanex repurchased 99,786 shares for approximately $1.7 million, leaving $28.7 million under its $75 million authorization.

Positive

Net sales +1.3% YoY to $501.8 million in Q3 2026
Gross margin expansion to 28.2% from 27.9% in Q3 2025
Adjusted diluted EPS rose to $0.79 from $0.69 in Q3 2025
Adjusted EBITDA increased to $72.7 million with a 14.5% margin in Q3 2026
Debt reduction of $42.25 million during the quarter; leverage at 2.8x Net Debt/LTM Adjusted EBITDA
Liquidity up 10.5% to $363.1 million as of July 31, 2026
Free cash flow improved to $47.8 million from $46.2 million in Q3 2025

Negative

Hardware Solutions net sales declined 2.7% in Q3 2026 on lower volumes and tariff reimbursements
Nine-month gross margin decreased to 26.1% from 26.8% year over year
Nine-month adjusted net income fell to $47.0 million from $68.4 million
Nine-month adjusted EBITDA declined to $144.3 million from $172.0 million; margin down to 10.5% from 12.8%
Cash from operations for nine months decreased to $57.3 million from $76.6 million
Nine-month free cash flow dropped to $24.2 million from $35.6 million
Total debt remained high at $672.2 million as of July 31, 2026

Market Context

Earnings-tagged releases averaged -2.81% over 24 hours, adding a cautious historical benchmark to th...

Analysis

Earnings-tagged releases averaged -2.81% over 24 hours, adding a cautious historical benchmark to this quarter’s improved GAAP results. The key risk remained weaker nine-month profitability; debt reduction and liquidity warranted continued monitoring.

Key Figures

Net Sales: $501.8 million Gross Margin: 28.2% Net Income: $26.5 million +5 more

8 metrics

Net Sales $501.8 million Q3 2026; versus $495.3 million in Q3 2025

Gross Margin 28.2% Q3 2026; versus 27.9% in Q3 2025

Net Income $26.5 million Q3 2026; versus a $276.0 million net loss in Q3 2025

Diluted EPS $0.58 Q3 2026; versus a $6.04 loss per share in Q3 2025

Adjusted EBITDA $72.7 million Q3 2026; versus $70.3 million in Q3 2025

Free Cash Flow $47.8 million Q3 2026; versus $46.2 million in Q3 2025

Debt Repaid $42.25 million Q3 2026

Net Debt to LTM Adjusted EBITDA 2.8x As of July 31, 2026

Previous Earnings Reports

5 past events · Latest: Jun 04 (Negative)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jun 04	Q2 earnings report	Negative	-13.4%	Margin compression and lower adjusted EBITDA accompanied modest sales growth.
Mar 05	Q1 earnings report	Negative	-7.7%	Quarterly loss accompanied full-year guidance and elevated seasonal cash needs.
Dec 11	Q4 earnings report	Positive	+9.6%	Acquisition-driven sales growth, debt repayment, and integration synergies highlighted.
Sep 04	Q3 earnings report	Negative	-13.1%	Goodwill impairment produced a substantial net loss despite improved gross margin.
Jun 05	Q2 earnings report	Positive	+10.6%	Sales growth, margin expansion, synergy increases, and debt reduction supported results.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Earnings-tagged events averaged a -2.81% 24-hour move, with the five listed reactions aligned with their reported sentiment.

Key Terms

adjusted ebitda, leverage ratio, free cash flow

3 terms

adjusted ebitda financial

"Adjusted EBITDA | $72.7 | $70.3 | $144.3 | $172.0"

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.

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.

View in glossary

free cash flow financial

"Free Cash Flow | $47.8 | $46.2 | $24.2 | $35.6"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

View in glossary

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google

09/03/2026 - 04:15 PM

Net Sales Growth
Volumes Continue to Track Normal Seasonality Patterns
Margin Expansion Realized in Hardware Solutions Segment and on Consolidated Basis
$42.25 Million of Debt Repaid in 3Q26
Continued Progress and Execution on Working Capital Management

HOUSTON, Sept. 03, 2026 (GLOBE NEWSWIRE) -- Quanex Building Products Corporation (NYSE:NX) (“Quanex” or the “Company”) today announced its results for the three months ended July 31, 2026.

The Company reported the following selected financial results:

	Three Months Ended July 31,		Nine Months Ended July 31,
($ in millions, except per share data)	2026	2025	2026	2025
Net Sales	$501.8	$495.3	$1,373.3	$1,347.8
Gross Margin	$141.5	$138.0	$357.8	$361.7
Gross Margin %	28.2%	27.9%	26.1%	26.8%
Operating Income (Loss)	$46.5	($270.8)	$68.1	($236.9)
Net Income (Loss)	$26.5	($276.0)	$25.8	($270.4)
Diluted EPS	$0.58	($6.04)	$0.57	($5.83)

Adjusted Net Income	$36.0	$31.6	$47.0	$68.4
Adjusted Diluted EPS	$0.79	$0.69	$1.03	$1.47
Adjusted EBITDA	$72.7	$70.3	$144.3	$172.0
Adjusted EBITDA Margin %	14.5%	14.2%	10.5%	12.8%

Cash Provided By Operating Activities	$58.6	$60.7	$57.3	$76.6
Free Cash Flow	$47.8	$46.2	$24.2	$35.6

(See Non-GAAP Terminology Definitions and Disclaimers section, Non-GAAP Financial Measure Disclosure table, Selected Segment Data table and reconciliation tables for additional information)

George Wilson, Chairman, President and Chief Executive Officer, stated, “Volumes continued to track normal seasonality patterns during the third quarter of 2026, and we made meaningful progress addressing the price versus cost imbalance that impacted our margins in the second quarter of 2026. Inflationary pressures related to macroeconomic concerns and the ongoing conflict in the Middle East are still having an impact, but the initial rate and magnitude of these pressures have somewhat subsided.

“We stayed focused on managing our working capital during the third quarter of 2026, which when coupled with the seasonal uptick in volumes, enabled us to repay $42.25 million of debt and buy back some of our shares. We will continue to prioritize repaying debt and opportunistically repurchasing our shares as we generate cash in the fourth quarter of 2026. In addition, we will continue to identify operational efficiencies and commercial synergies that we believe will benefit us when consumer confidence and demand improve.”

Third Quarter 2026 Results Summary

Quanex reported net sales of $501.8 million during the three months ended July 31, 2026, which represents an increase of 1.3% compared to $495.3 million for the same period in 2025, mainly due to favorable impacts from pricing, partially offset by the impact of IEEPA tariff reimbursements to customers. The Hardware Solutions segments reported a 2.7% decline in net sales for the third quarter of 2026, driven by lower volumes and the impact of IEEPA tariff reimbursements to customers, which were somewhat offset by favorable impacts from pricing. The Extruded Solutions segments reported net sales growth of 2.8% for the third quarter of 2026, as lower volumes were more than offset by favorable impacts from pricing. Quanex reported an increase of 8.5% in net sales for the third quarter of 2026 in its Custom Solutions segment, largely due to increased volume and improved pricing. (See Sales Analysis table for additional information)

On a consolidated basis, the increase in reported earnings for the third quarter of 2026 compared to the third quarter of 2025 was mainly due to improved pricing, lower depreciation and amortization expense and lower interest expense. Results for the third quarter of 2025 were also impacted by a $302.3 million non-cash goodwill impairment.

Balance Sheet & Liquidity Update

As of July 31, 2026, the Company had total debt of $672.2 million and Quanex’s leverage ratio of Net Debt to LTM Adjusted EBITDA was 2.8x. As of July 31, 2026, Quanex reported LTM Net Income of $45.4 million and LTM Adjusted EBITDA of $215.2 million (See Non-GAAP Terminology Definitions and Disclaimers section, Net Debt Reconciliation table and Last Twelve Months Adjusted EBITDA Reconciliation table for additional information)

The Company’s liquidity increased by 10.5% to $363.1 million as of July 31, 2026, consisting of $62.1 million in cash on hand plus availability under its Senior Secured Revolving Credit Facility due 2029, less letters of credit outstanding.

Share Repurchases

Quanex’s Board authorized a $75 million share repurchase program in December of 2021. Repurchases under this program will be made in open market transactions or privately negotiated transactions, subject to market conditions, applicable legal requirements, and other relevant factors. The Company repurchased 99,786 shares of common stock for approximately $1.7 million at an average price of $17.10 per share during the three months ended July 31, 2026. As of July 31, 2026, approximately $28.7 million remained under the existing share repurchase authorization.

Conference Call and Webcast Information

The Company has scheduled a conference call for Friday, September 4, 2026, at 11:00 a.m. ET (10:00 a.m. CT) to discuss the release. A link to the live audio webcast will be available on Quanex’s website at http://www.quanex.com in the Investors section under Presentations & Events.

Participants can pre-register for the conference call using the following link:
https://register-conf.media-server.com/register/BIac7900426be941999342c141e5049229

Registered participants will receive an email containing conference call details for dial-in options. To avoid delays, it is recommended that participants dial into the conference call ten minutes ahead of the scheduled start time. A replay will be available for a limited time on the Company’s website at http://www.quanex.com in the Investors section under Presentations & Events.

About Quanex

Quanex is a global manufacturer with core capabilities and broad applications across various end markets. The Company currently partners with leading OEMs to provide innovative solutions in window, door, solar, refrigeration, custom mixing, building access and cabinetry markets. Looking ahead, Quanex plans to leverage its material science expertise and process engineering to expand into adjacent markets.

Non-GAAP Terminology Definitions and Disclaimers

Adjusted Net Income (defined as net income further adjusted to exclude amortization of step-up for purchase price adjustments on inventory, asset impairment charges, transaction, advisory fees and reorganization costs, restructuring charges related to severance and disposal of software, amortization expense related to intangible assets, pension settlement refund and other net adjustments related to foreign currency transaction gain/loss and effective tax rates reflecting impacts of adjustments on a with and without basis) and Adjusted EPS are non-GAAP financial measures that Quanex believes provide a consistent basis for comparison between periods and more accurately reflect operational performance, as they are not influenced by certain income or expense items not affecting ongoing operations. EBITDA (defined as net income or loss before interest, taxes, depreciation and amortization and other, net), Adjusted EBITDA and LTM Adjusted EBITDA (defined as EBITDA further adjusted to exclude purchase price accounting inventory step-ups, transaction costs, certain severance charges, gain/loss on the sale of certain fixed assets, restructuring charges and asset impairment charges) are non-GAAP financial measures that the Company uses to measure operational performance and assist with financial decision-making. Net Debt is defined as total debt (outstanding balance on the revolving credit facility plus financial lease obligations) less cash and cash equivalents. The leverage ratio of Net Debt to LTM Adjusted EBITDA is a financial measure that the Company believes is useful to investors and financial analysts in evaluating Quanex’s leverage. In addition, with certain limited adjustments, this leverage ratio is the basis for a key covenant in the Company’s credit agreement.

Free Cash Flow is a non-GAAP measure calculated using cash provided by operating activities less capital expenditures. Quanex uses the Free Cash Flow metric to measure operational and cash management performance and assist with financial decision-making. Free Cash Flow is measured before application of certain contractual commitments (including capital lease obligations), and accordingly is not a true measure of the Company’s residual cash flow available for discretionary expenditures. Quanex believes Free Cash Flow is useful to investors in understanding and evaluating the Company’s financial and cash management performance.

Quanex believes that the presented non-GAAP measures provide a consistent basis for comparison between periods and will assist investors in understanding the Company’s financial performance when comparing results to other investment opportunities. These measures allow management and investors to evaluate operational performance and trends without the impact of certain non-cash charges, acquisition-related costs, and other items that may vary significantly from period to period and may not be reflective of Quanex’s core operating results. The presented non-GAAP measures may not be the same as those used by other companies. The Company does not intend for this information to be considered in isolation or as a substitute for other measures prepared in accordance with U.S. GAAP.

Forward Looking Statements

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that use the words “estimated,” “expect,” “could,” “should,” “believe,” “will,” “might,” “anticipate,” “intend,” “plan,” “project,” “seek,” “would,” “may,” or similar words reflecting future expectations or beliefs are forward-looking statements. The forward-looking statements include, but are not limited to, the following: Quanex’s future operating results, future financial condition, future uses of cash and other expenditures, expenses and tax rates, expectations relating to the Company’s industry, expectations regarding the recovery of price versus cost imbalances, anticipated debt repayment and share repurchase activity, expected operational efficiencies and synergies and the Company’s future growth, including any guidance discussed in this press release. The statements and guidance set forth in this release are based on current expectations. Actual results or events may differ materially from those expressed or implied in these forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. For a complete discussion of factors that may affect the Company’s future performance, please refer to Quanex’s Annual Report on Form 10-K for the fiscal year ended October 31, 2025, and the Company’s Quarterly Reports on Form 10-Q under the sections entitled “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors”. Any forward-looking statements in this press release are made as of the date hereof, and the Company undertakes no obligation to update or revise any forward-looking statements, whether written or oral, to reflect new information, developments or events.


CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited)

	Three Months Ended July 31,						Nine Months Ended July 31,
	2026			2025			2026			2025

Net sales	$	501,845		$	495,273		$	1,373,301		$	1,347,795
Cost of sales		360,380			357,305			1,015,517			986,129
Selling, general and administrative		70,837			71,270			216,695			208,253
Restructuring charges		-			1,367			-			10,207
Depreciation and amortization		24,138			33,882			73,037			77,814
Asset impairment charges		-			302,284			-			302,284
Operating income (loss)		46,490			(270,835	)		68,052			(236,892	)
Interest expense		(11,978	)		(14,218	)		(36,387	)		(42,344	)
Other, net		(93	)		855			5,972			1,925
Income (loss) before income taxes		34,419			(284,198	)		37,637			(277,311	)
Income tax (expense) benefit		(7,915	)		8,191			(11,854	)		6,934
Net income (loss)	$	26,504		$	(276,007	)	$	25,783		$	(270,377	)

Earnings (loss) per common share, basic	$	0.58		$	(6.04	)	$	0.57		$	(5.83	)
Earnings (loss) per common share, diluted	$	0.58		$	(6.04	)	$	0.57		$	(5.83	)

Weighted average common shares outstanding:
Basic		45,461			45,691			45,466			46,395
Diluted		45,648			45,691			45,607			46,395

Cash dividends per share	$	0.08		$	0.08		$	0.24		$	0.24


QUANEX BUILDING PRODUCTS CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited)

	July 31, 2026			October 31, 2025
ASSETS
Current assets:
Cash and cash equivalents	$	62,094		$	76,018
Restricted Cash		2,123			2,100
Accounts receivable, net		214,768			205,384
Inventories		276,396			254,122
Income taxes receivable		5,603			-
Prepaid assets		37,452			32,387
Other current assets		3,847			3,764
Total current assets		602,283			573,775
Property, plant and equipment, net		394,021			411,591
Operating lease right-of-use assets		171,552			154,866
Deferred tax assets		300			2,706
Goodwill		273,765			271,346
Intangible assets, net		522,218			549,137
Other assets		4,552			4,812
Total assets	$	1,968,691		$	1,968,233

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	127,030		$	131,307
Accrued liabilities		88,209			95,155
Income taxes payable		9,300			12,076
Current maturities of long-term debt		26,551			27,561
Current operating lease liabilities		18,822			15,446
Other liabilities		-			-
Total current liabilities		269,912			281,545
Long-term debt		636,814			665,268
Noncurrent operating lease liabilities		160,290			145,459
Deferred pension benefits
Deferred income taxes		137,766			135,993
Liabilities for uncertain tax positions		1,857			-
Other liabilities		16,608			13,789
Total liabilities		1,223,247			1,242,054
Stockholders’ equity:
Common stock		512			512
Additional paid-in-capital		697,598			700,029
Retained earnings		179,472			164,710
Accumulated other comprehensive loss		(32,142	)		(35,439	)
Treasury stock at cost		(99,996	)		(103,633	)
Total stockholders’ equity		745,444			726,179
Total liabilities and stockholders' equity	$	1,968,691		$	1,968,233


QUANEX BUILDING PRODUCTS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (In thousands) (Unaudited)

	Nine Months Ended July 31,
	2026			2025
Operating activities:
Net (loss) income	$	25,783		$	(270,377	)
Adjustments to reconcile net loss to cash used for operating activities:
Depreciation and amortization		73,037			77,814
Stock-based compensation		3,617			2,762
Deferred income tax		664			(26,440	)
Goodwill impairment charge		-			302,284
Other, net		4,640			9,203
Changes in assets and liabilities:
Increase in accounts receivable		(8,685	)		(1,727	)
(Increase) decrease in inventory		(21,129	)		5,261
Increase in other current assets		(4,430	)		(7,228	)
(Decrease) increase in accounts payable		(2,365	)		144
Decrease in accrued liabilities		(7,601	)		(9,725	)
Change in income taxes		(6,629	)		(21	)
Other, net		366			(5,307	)
Cash provided by operating activities		57,268			76,643
Investing activities:
Capital expenditures		(33,066	)		(40,996	)
Proceeds from disposition of capital assets		62			361
Cash used for investing activities		(33,004	)		(40,635	)
Financing activities:
Borrowings under credit facilities		141,500			170,000
Repayments of credit facility borrowings		(164,250	)		(213,750	)
Repayments of other long-term debt		(3,316	)		(1,962	)
Common stock dividends paid		(10,916	)		(11,233	)
Purchase of treasury stock		(1,707	)		(29,248	)
Other, net		(704	)		(1,186	)
Cash used for financing activities		(39,393	)		(87,379	)
Effect of exchange rate changes on cash and cash equivalents		1,228			16,302
Decrease in cash, cash equivalents and restricted cash		(13,901	)		(35,069	)
Cash, cash equivalents and restricted cash at beginning of period		78,118			102,995
Cash, cash equivalents and restricted cash at end of period	$	64,217		$	67,926


QUANEX BUILDING PRODUCTS CORPORATION FREE CASH FLOW AND NET DEBT RECONCILIATION (In thousands) (Unaudited)

The following table reconciles the Company's calculation of Free Cash Flow, a non-GAAP measure, to its most directly comparable GAAP measure. The Company defines Free Cash Flow as cash provided by operating activities less capital expenditures.

	Three Months Ended July 31,						Nine Months Ended July 31,
	2026			2025			2026			2025
Cash provided by operating activities	$	58,554		$	60,656		$	57,268		$	76,643
Capital expenditures	(10,744		)	(14,452		)	(33,066		)	(40,996		)
Free Cash Flow	$	47,810		$	46,204		$	24,202		$	35,647


The following table reconciles the Company's Net Debt which is defined as total debt principal of the Company plus finance lease obligations minus cash.

	As of July 31,
	2026			2025
Term loan facility	$	450,000		$	475,000
Revolving credit facility	168,500			197,500
Finance lease obligations (1)	53,697			61,194
Total debt (2)	672,197			733,694
Less: Cash and cash equivalents	62,094			66,272
Net Debt	$	610,103		$	667,422

(1) Includes $47.9 million and $58.9 million in real estate lease liabilities considered finance leases under U.S. GAAP as of July 31, 2026 and 2025, respectively.
(2) Excludes outstanding letters of credit.


QUANEX BUILDING PRODUCTS CORPORATION NON-GAAP FINANCIAL MEASURE DISCLOSURE LAST TWELVE MONTHS ADJUSTED EBITDA RECONCILIATION (In thousands, except per share data) (Unaudited)

Reconciliation of Last Twelve Months Adjusted EBITDA	Three Months Ended July 31, 2026		Three Months Ended April 30, 2026			Three Months Ended January 31, 2026			Three Months Ended October 31, 2025			Total
	Reconciliation		Reconciliation			Reconciliation			Reconciliation			Reconciliation
Net income (loss) as reported	$	26,504	$	3,350		$	(4,071	)	$	19,571		$	45,354
Income tax expense (benefit)		7,915		3,766			173			15,147			27,001
Other, net		93		(448	)		(5,617	)		(5,246	)		(11,218	)
Interest expense		11,978		12,042			12,367			13,468			49,855
Depreciation and amortization		24,138		24,650			24,249			25,630			98,667
EBITDA		70,628		43,360			27,101			68,570			209,659
Cost of sales (1)		1,223		121			407			308			2,059
Selling, general and administrative (1),(2)		894		688			(126	)		2,040			3,496
Adjusted EBITDA	$	72,745	$	44,169		$	27,382		$	70,918		$	215,214

(1) Severance and other expenses related to manufacturing footprint and performance optimization.
(2) Transaction, advisory fees, severance and reorganization costs.


QUANEX BUILDING PRODUCTS CORPORATION NON-GAAP FINANCIAL MEASURE DISCLOSURE (In thousands, except per share data) (Unaudited)

Reconciliation of Adjusted Net Income and Adjusted EPS	Three Months Ended July 31, 2026							Three Months Ended July 31, 2025							Nine Months Ended July 31, 2026							Nine Months Ended July 31, 2025
	Net Income			Diluted EPS				Net Income			Diluted EPS				Net Income			Diluted EPS				Net Income			Diluted EPS
Net income (loss) as reported	$	26,504		$	0.58			$	(276,007	)	$	(6.04	)		$	25,783		$	0.57			$	(270,377	)	$	(5.83	)
Net income(loss) reconciling items from below		9,507		$	0.21				307,578		$	6.73				21,221		$	0.46				338,756		$	7.30
Adjusted net income and adjusted EPS	$	36,011		$	0.79			$	31,571		$	0.69			$	47,004		$	1.03			$	68,379		$	1.47

Reconciliation of Adjusted EBITDA	Three Months Ended July 31, 2026							Three Months Ended July 31, 2025							Nine Months Ended July 31, 2026							Nine Months Ended July 31, 2025
	Reconciliation							Reconciliation							Reconciliation							Reconciliation
Net income (loss) as reported	$	26,504						$	(276,007	)					$	25,783						$	(270,377	)
Income tax expense		7,915							(8,191	)						11,854							(6,934	)
Other, net		93							(855	)						(5,972	)						(1,925	)
Interest expense		11,978							14,218							36,387							42,344
Depreciation and amortization		24,138							33,882							73,037							77,814
Asset impairment charges		-							302,284							-							302,284
EBITDA		70,628							65,331							141,089							143,206
EBITDA reconciling items from below		2,117							4,964							3,207							28,766
Adjusted EBITDA	$	72,745						$	70,295						$	144,296						$	171,972

Reconciling Items	Three Months Ended July 31, 2026							Three Months Ended July 31, 2025							Nine Months Ended July 31, 2026							Nine Months Ended July 31, 2025
	Income Statement			Reconciling Items				Income Statement			Reconciling Items				Income Statement			Reconciling Items				Income Statement			Reconciling Items
Net sales	$	501,845		$	-			$	495,273		$	-			$	1,373,301		$	-			$	1,347,795		$	-
Cost of sales		360,380			(1,223	)	(1)		357,305			(148	)	(1)		1,015,517			(1,751	)	(1)		986,129			(1,124	)	(1)
Selling, general and administrative		70,837			(894	)	(1),(3)		71,270			(3,449	)	(1),(3)		216,695			(1,456	)	(1),(3)		208,253			(17,435	)	(1),(2),(3)
Restructuring charges		-			-				1,367			(1,367	)	(4)		-			-				10,207			(10,207	)	(4)
EBITDA		70,628			2,117				65,331			4,964				141,089			3,207				143,206			28,766
Asset impairment charges		-			-				302,284			(302,284	)	(5)		-			-				302,284			(302,284	)	(5)
Depreciation and amortization		24,138			(9,758	)	(6)		33,882			(19,604	)	(6)		73,037			(29,291	)	(6)		77,814			(36,708	)	(6)
Operating income (loss)		46,490			11,875				(270,835	)		326,852				68,052			32,498				(236,892	)		367,758
Interest expense		(11,978	)		-				(14,218	)		-				(36,387	)		-				(42,344	)		-
Other, net		(93	)		288		(7)		855			(949	)	(7)		5,972			(4,942	)	(7)		1,925			(118	)	(7)
Income (loss) before income taxes		34,419			12,163				(284,198	)		325,903				37,637			27,556				(277,311	)		367,640
Income tax (expense) benefit		(7,915	)		(2,656	)	(8)		8,191			(18,325	)	(8)		(11,854	)		(6,335	)	(8)		6,934			(28,884	)	(8)
Net income (loss)	$	26,504			9,507			$	(276,007	)	$	307,578			$	25,783			21,221			$	(270,377	)	$	338,756

Diluted earnings (loss) per share	$	0.58						$	(6.04	)					$	0.57						$	(5.83	)


(1) Severance and other expenses related to manufacturing footprint and performance optimization.
(2) Amortization of step-up for purchase price adjustments on inventory.
(3) Transaction, advisory fees, and severance and reorganization costs.
(4) Restructuring charges related to severance and disposal of software.
(5) Goodwill impairment.
(6) Amortization expense related to intangible assets.
(7) Foreign currency transaction (gains) losses.
(8) Tax impact of net income reconciling items.


QUANEX BUILDING PRODUCTS CORPORATION SELECTED SEGMENT DATA (In thousands) (Unaudited)

This table provides gross margin, operating income (loss), EBITDA, and Adjusted EBITDA by reportable segment. Non-operating expense and income tax expense are not allocated to the reportable segments.

	Hardware Solutions			Extruded Solutions			Custom Solutions			Unallocated Corp & Other			Total
Three months ended July 31, 2026
Net sales	$	220,923		$	179,291		$	111,007		$	(9,376	)	$	501,845
Cost of sales		162,056			121,389			85,861			(8,926	)		360,380
Gross Margin		58,867			57,902			25,146			(450	)		141,465
Gross Margin %		26.6	%		32.3	%		22.7	%					28.2	%
Selling, general and administrative (1)		33,162			22,279			13,143			2,253			70,837
Depreciation and amortization		11,386			7,213			5,330			209			24,138
Operating (loss) income		14,319			28,410			6,673			(2,912	)		46,490
Depreciation and amortization		11,386			7,213			5,330			209			24,138
EBITDA		25,705			35,623			12,003			(2,703	)		70,628
Expense related to plant relocation and closure (Cost of sales)		1,223			-			-			-			1,223
Reorganization and severance costs		127			1			-			766			894
Adjusted EBITDA	$	27,055		$	35,624		$	12,003		$	(1,937	)	$	72,745
Adjusted EBITDA Margin %		12.2	%		19.9	%		10.8	%					14.5	%

Three months ended July 31, 2025
Net sales	$	227,116		$	174,427		$	102,264		$	(8,534	)	$	495,273
Cost of sales		170,282			116,597			77,755			(7,329	)		357,305
Gross Margin		56,834			57,830			24,509			(1,205	)		137,968
Gross Margin %		25.0	%		33.2	%		24.0	%					27.9	%
Selling, general and administrative (1)		32,954			20,740			11,708			5,868			71,270
Restructuring charges		1,140			34			26			167			1,367
Depreciation and amortization		16,987			6,989			4,716			5,190			33,882
Asset impairment charges		163,198			54,934			84,152			-			302,284
Operating income (loss)		(157,445	)		(24,867	)		(76,093	)		(12,430	)		(270,835	)
Depreciation and amortization		16,987			6,989			4,716			5,190			33,882
Asset impairment charges		163,198			54,934			84,152			-			302,284
EBITDA		22,740			37,056			12,775			(7,240	)		65,331
Expense related to plant relocation and closure (Cost of sales)		148			-			-			-			148
Transaction, advisory fees, reorganization costs, and product recall expenses		715			-			50			2,684			3,449
Restructuring charges		1,140			34			26			167			1,367
Adjusted EBITDA	$	24,743		$	37,090		$	12,851		$	(4,389	)	$	70,295
Adjusted EBITDA Margin %		10.9	%		21.3	%		12.6	%					14.2	%

Nine months ended July 31, 2026
Net sales	$	613,054		$	484,040		$	304,062		$	(27,855	)	$	1,373,301
Cost of sales		475,172			331,979			236,302			(27,936	)		1,015,517
Gross Margin		137,882			152,061			67,760			81			357,784
Gross Margin %		22.5	%		31.4	%		22.3	%					26.1	%
Selling, general and administrative (1)		103,105			65,084			40,182			8,324			216,695
Depreciation and amortization		34,626			21,893			15,956			562			73,037
Operating (loss) income		151			65,084			11,622			(8,805	)		68,052
Depreciation and amortization		34,626			21,893			15,956			562			73,037
EBITDA		34,777			86,977			27,578			(8,243	)		141,089
Expense related to plant relocation and closure (Cost of sales)		1,751			-			-			-			1,751
Credit related to plant relocation (SG&A)		(8	)		-			-			-			(8	)
Reorganization and severance costs		273			1			1			1,189			1,464
Adjusted EBITDA	$	36,793		$	86,978		$	27,579		$	(7,054	)	$	144,296
Adjusted EBITDA Margin %		6.0	%		18.0	%		9.1	%					10.5	%

Nine months ended July 31, 2025
Net sales	$	614,791		$	478,024		$	284,809		$	(29,829	)	$	1,347,795
Cost of sales		466,600			325,914			219,755			(26,140	)		986,129
Gross Margin		148,191			152,110			65,054			(3,689	)		361,666
Gross Margin %		24.1	%		31.8	%		22.8	%					26.8	%
Selling, general and administrative (1)		98,570			60,921			34,156			14,606			208,253
Restructuring charges		8,155			34			26			1,992			10,207
Depreciation and amortization		38,818			22,066			15,693			1,237			77,814
Asset impairment charges		163,198			54,934			84,152			-			302,284
Operating (loss) income		(160,550	)		14,155			(68,973	)		(21,524	)		(236,892	)
Depreciation and amortization		38,818			22,066			15,693			1,237			77,814
Asset impairment charges		163,198			54,934			84,152			-			302,284
EBITDA		41,466			91,155			30,872			(20,287	)		143,206
Expense related to plant closure (Cost of sales)		1,124			-			-			-			1,124
Gain related to plant closure (SG&A)		247			-			-			-			247
Amortization of step-up for purchase price adjustments on inventory and accounts receivable		7,276			1,428			302			-			9,006
Transaction and advisory fees		1,397			177			50			6,558			8,182
Restructuring charges		8,155			34			26			1,992			10,207
Adjusted EBITDA	$	59,665		$	92,794		$	31,250		$	(11,737	)	$	171,972
Adjusted EBITDA Margin %		9.7	%		19.4	%		11.0	%					12.8	%

(1) Includes stock-based compensation expense for the three and nine months ended July 31 2026 of $0.9 million and 5.5 million, respectively, and $1.8 million and $3.6 million for the comparable prior year periods.


QUANEX BUILDING PRODUCTS CORPORATION SALES ANALYSIS (In thousands) (Unaudited)

		Three Months Ended July 31,						Nine Months Ended July 31,
		2026			2025			2026			2025

Hardware Solutions:(1)
	Window and door hardware	$	133,038		$	148,303		$	387,047		$	405,497
	Screens		85,830			76,809			219,980			203,269
	Other		2,055			2,004			6,027			6,025
		$	220,923		$	227,116		$	613,054		$	614,791
Extruded Solutions:(2)
	Window profiles	$	75,684		$	76,775		$	206,581		$	206,629
	Seals and gaskets		20,241			20,415			57,405			57,857
	Spacers		59,996			55,201			160,124			148,733
	Solar		5,375			5,250			15,292			17,835
	Flashing Tape		2,821			3,038			7,567			6,751
	Window and door hardware		10,079			10,676			26,061			31,311
	Other		5,095			3,072			11,010			8,908
		$	179,291		$	174,427		$	484,040		$	478,024
Custom Solutions:(3)
	Wood solutions	$	59,282		$	53,409		$	162,841		$	148,456
	Access solutions		29,483			27,370			78,984			74,158
	Mixing solutions		22,242			21,485			62,237			62,195
		$	111,007		$	102,264		$	304,062		$	284,809

Unallocated Corporate & Other:
	Eliminations	$	(9,376	)	$	(8,534	)	$	(27,855	)	$	(29,829	)
		$	(9,376	)	$	(8,534	)	$	(27,855	)	$	(29,829	)

Net Sales		$	501,845		$	495,273		$	1,373,301		$	1,347,795

(1) Reflects an unfavorable $0.2 million and favorable $6.5 million impact on revenue associated with foreign currency exchange rate impacts for the three and nine months ended July 31, 2026, respectively.
(2) Reflects an unfavorable $0.1 million and favorable $8.3 million impact on revenue associated with foreign currency exchange rate impacts for the three and nine months ended July 31, 2026, respectively.
(3) Reflects no impact and favorable $0.3 million impact on revenue associated with foreign currency exchange rate impacts for the three and nine months ended July 31, 2026, respectively.

FAQ

How did Quanex (NX) perform financially in the third quarter of 2026?

For Q3 2026, Quanex reported net sales of $501.8 million and diluted EPS of $0.58. Net income was $26.5 million, versus a loss in the prior year period, and adjusted net income rose to $36.0 million, with adjusted diluted EPS of $0.79.

How did Quanex’s Q3 2026 results compare to the same quarter in 2025 for NX?

Compared with Q3 2025, net sales increased 1.3% to $501.8 million, gross margin improved to 28.2% from 27.9%, and operating income rose to $46.5 million from a prior-year loss affected by a goodwill impairment. Adjusted diluted EPS increased to $0.79 from $0.69.

What were the segment sales trends for Quanex (NX) in Q3 2026?

In Q3 2026, Hardware Solutions net sales fell 2.7% due to lower volumes and tariff reimbursements. Extruded Solutions net sales grew 2.8%, as pricing offset lower volumes, and the Custom Solutions segment grew 8.5%, driven by higher volume and improved pricing.

What cash flow and free cash flow did Quanex (NX) generate in Q3 2026?

Quanex generated $58.6 million of cash provided by operating activities in Q3 2026 and reported free cash flow of $47.8 million, up from $46.2 million in the same quarter of 2025, based on its definition of free cash flow.

What is Quanex’s debt and leverage position as of July 31, 2026 for NX?

As of July 31, 2026, Quanex had total debt of $672.2 million. The Company reported a Net Debt to last twelve months (LTM) Adjusted EBITDA leverage ratio of 2.8x and highlighted repayment of $42.25 million of debt during the third quarter.

How much liquidity does Quanex (NX) have and how did it change in Q3 2026?

Quanex reported liquidity of $363.1 million as of July 31, 2026, consisting of cash on hand plus revolver availability less letters of credit. This represented an increase of 10.5% compared to the prior period referenced.