Quanex Building Products Announces First Quarter 2025 Results and Reaffirms Full Year 2025 Guidance
Quanex Building Products (NYSE:NX) reported its Q1 2025 financial results, highlighting significant growth driven by the Tyman acquisition. Net sales increased 67.3% to $400.0 million, though excluding Tyman's contribution, sales would have declined 6.2%. The company has repaid $65 million in debt since the Tyman acquisition closed on August 1, 2024.
Key financial metrics include a leverage ratio of 3.6x Net Debt to LTM Adjusted EBITDA, with total debt at $764.3 million and liquidity of $301.5 million as of January 31, 2025. The company reaffirmed its fiscal 2025 guidance, projecting net sales of $1.84-1.86 billion and Adjusted EBITDA of $270-280 million.
During Q1, the company repurchased 150,000 shares for approximately $3.7 million at an average price of $24.66 per share, with $59.1 million remaining under the current share repurchase authorization.
Quanex Building Products (NYSE:NX) ha riportato i risultati finanziari del primo trimestre 2025, evidenziando una crescita significativa grazie all'acquisizione di Tyman. Le vendite nette sono aumentate del 67,3% a 400,0 milioni di dollari, sebbene, escludendo il contributo di Tyman, le vendite sarebbero diminuite del 6,2%. L'azienda ha rimborsato 65 milioni di dollari di debito da quando l'acquisizione di Tyman si è conclusa il 1 agosto 2024.
I principali indicatori finanziari includono un rapporto di leva di 3,6x Debito Netto rispetto all'EBITDA Rettificato degli ultimi dodici mesi, con un debito totale di 764,3 milioni di dollari e una liquidità di 301,5 milioni di dollari al 31 gennaio 2025. L'azienda ha confermato le previsioni fiscali per il 2025, prevedendo vendite nette tra 1,84-1,86 miliardi di dollari e un EBITDA Rettificato tra 270-280 milioni di dollari.
Durante il primo trimestre, l'azienda ha riacquistato 150.000 azioni per circa 3,7 milioni di dollari a un prezzo medio di 24,66 dollari per azione, con 59,1 milioni di dollari rimanenti sotto l'attuale autorizzazione per il riacquisto di azioni.
Quanex Building Products (NYSE:NX) informó sus resultados financieros del primer trimestre de 2025, destacando un crecimiento significativo impulsado por la adquisición de Tyman. Las ventas netas aumentaron un 67.3% a 400.0 millones de dólares, aunque excluyendo la contribución de Tyman, las ventas habrían disminuido un 6.2%. La compañía ha reembolsado 65 millones de dólares en deuda desde que se cerró la adquisición de Tyman el 1 de agosto de 2024.
Los principales indicadores financieros incluyen un ratio de apalancamiento de 3.6x Deuda Neta respecto al EBITDA Ajustado de los últimos doce meses, con una deuda total de 764.3 millones de dólares y una liquidez de 301.5 millones de dólares a partir del 31 de enero de 2025. La compañía reafirmó su guía fiscal para 2025, proyectando ventas netas de 1.84-1.86 mil millones de dólares y un EBITDA Ajustado de 270-280 millones de dólares.
Durante el primer trimestre, la compañía recompró 150,000 acciones por aproximadamente 3.7 millones de dólares a un precio promedio de 24.66 dólares por acción, con 59.1 millones de dólares restantes bajo la autorización actual de recompra de acciones.
Quanex Building Products (NYSE:NX)는 2025년 1분기 재무 결과를 발표하며 Tyman 인수에 의해 주도된 중요한 성장을 강조했습니다. 순매출은 67.3% 증가하여 4억 달러에 달했으나, Tyman의 기여를 제외하면 매출은 6.2% 감소했을 것입니다. 이 회사는 2024년 8월 1일 Tyman 인수가 완료된 이후 6,500만 달러의 부채를 상환했습니다.
주요 재무 지표에는 3.6배의 순부채 대비 조정 EBITDA 비율이 포함되며, 총 부채는 7억 6,430만 달러, 2025년 1월 31일 기준 유동성은 3억 1,500만 달러입니다. 이 회사는 2025 회계연도 가이던스를 재확인하며, 순매출을 18.4억-18.6억 달러, 조정 EBITDA를 2.7억-2.8억 달러로 예상하고 있습니다.
1분기 동안 이 회사는 평균 주가 24.66달러에 약 370만 달러에 해당하는 150,000주를 재매입했으며, 현재 주식 재매입 승인 하에 5,910만 달러가 남아 있습니다.
Quanex Building Products (NYSE:NX) a annoncé ses résultats financiers pour le premier trimestre 2025, mettant en avant une croissance significative grâce à l'acquisition de Tyman. Les ventes nettes ont augmenté de 67,3 % pour atteindre 400,0 millions de dollars, bien qu'en excluant la contribution de Tyman, les ventes auraient diminué de 6,2 %. L'entreprise a remboursé 65 millions de dollars de dettes depuis la clôture de l'acquisition de Tyman le 1er août 2024.
Les principaux indicateurs financiers incluent un ratio d'endettement de 3,6x Dette Nette par rapport à l'EBITDA Ajusté des douze derniers mois, avec une dette totale de 764,3 millions de dollars et une liquidité de 301,5 millions de dollars au 31 janvier 2025. L'entreprise a réaffirmé ses prévisions pour l'exercice 2025, projetant des ventes nettes de 1,84-1,86 milliard de dollars et un EBITDA Ajusté de 270-280 millions de dollars.
Au cours du premier trimestre, l'entreprise a racheté 150 000 actions pour environ 3,7 millions de dollars à un prix moyen de 24,66 dollars par action, avec 59,1 millions de dollars restants sous l'autorisation actuelle de rachat d'actions.
Quanex Building Products (NYSE:NX) hat seine finanziellen Ergebnisse für das erste Quartal 2025 veröffentlicht und dabei ein signifikantes Wachstum hervorgehoben, das durch die Übernahme von Tyman vorangetrieben wurde. Der Nettoumsatz stieg um 67,3% auf 400,0 Millionen Dollar, wobei die Umsätze ohne den Beitrag von Tyman um 6,2% gesunken wären. Das Unternehmen hat seit dem Abschluss der Tyman-Übernahme am 1. August 2024 65 Millionen Dollar Schulden zurückgezahlt.
Zu den wichtigsten finanziellen Kennzahlen gehören ein Verschuldungsgrad von 3,6x Nettoverschuldung zu bereinigtem EBITDA der letzten zwölf Monate, mit einer Gesamtschuld von 764,3 Millionen Dollar und einer Liquidität von 301,5 Millionen Dollar zum 31. Januar 2025. Das Unternehmen hat seine Prognose für das Geschäftsjahr 2025 bestätigt und rechnet mit einem Nettoumsatz von 1,84-1,86 Milliarden Dollar und einem bereinigten EBITDA von 270-280 Millionen Dollar.
Im ersten Quartal hat das Unternehmen 150.000 Aktien für ungefähr 3,7 Millionen Dollar zu einem durchschnittlichen Preis von 24,66 Dollar pro Aktie zurückgekauft, wobei noch 59,1 Millionen Dollar unter der aktuellen Genehmigung zum Rückkauf von Aktien verbleiben.
- Significant revenue growth of 67.3% to $400.0 million in Q1 2025
- Successfully repaid $65 million in debt since Tyman acquisition
- Margin expansion achieved on consolidated basis
- Strong liquidity position of $301.5 million
- On track to deliver $30 million cost synergy target from Tyman integration
- Organic sales declined 6.2% excluding Tyman acquisition
- High leverage with total debt of $764.3 million
- North American Fenestration segment sales declined 9.2%
- Soft macro backdrop affecting demand
Insights
Quanex's Q1 2025 results reflect a company in transition, with net sales of $400.0 million representing a substantial
The company's balance sheet carries significant acquisition-related debt with a leverage ratio of 3.6x, but management has demonstrated commitment to deleveraging by repaying
Margin expansion during the quarter is particularly noteworthy as it suggests successful cost management and early realization of acquisition synergies, even amid volume challenges. Management's reaffirmation of full-year guidance (
The continuation of share repurchases (150,000 shares for
Quanex's first quarter performance reveals several important industry dynamics at play. The
Management's expectation of demand improvement entering the spring selling season aligns with typical industry seasonality, but their reference to a "soft macro backdrop" acknowledges broader housing market constraints. Their mention of "unwinding of pent-up demand as consumer confidence improves" suggests a realistic assessment of market conditions - consumers have been deferring building product purchases during periods of economic uncertainty.
The Tyman acquisition significantly expands Quanex's scale and product portfolio, enhancing their competitive position. Their confidence in achieving
The company's mention of re-segmenting the business signals a strategic realignment of operational reporting that likely reflects the combined entity's new market positioning and product portfolio structure.
Margin Expansion Realized on Consolidated Basis
Results Lifted by Contribution from Tyman Acquisition
Realization of Cost Synergies from Tyman Acquisition Progressing Well
HOUSTON, March 10, 2025 (GLOBE NEWSWIRE) -- Quanex Building Products Corporation (NYSE:NX) (“Quanex” or the “Company”) today announced its results for the three months ended January 31, 2025.
The Company reported the following selected financial results:
| Three Months Ended January 31, | ||||
| ($ in millions, except per share data) | 2025 | 2024 | ||
| Net Sales | ||||
| Gross Margin | ||||
| Gross Margin % | 21.5% | |||
| Net (Loss) Income | ( | |||
| Diluted EPS | ( | |||
| Adjusted Net Income | ||||
| Adjusted Diluted EPS | ||||
| Adjusted EBITDA | ||||
| Adjusted EBITDA Margin % | 9.6% | 8.1% | ||
| Cash (Used For) Provided by Operating Activities | ( | |||
| Free Cash Flow | ( | ( | ||
(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, “The first quarter of 2025 was a very busy time for Quanex internally and I would like to thank all my Quanex teammates for their continuous efforts as we navigate through the process of integrating legacy Quanex with legacy Tyman. The integration gained speed and traction during the quarter, and we remain confident in our ability to deliver on the
“Looking ahead, despite the soft macro backdrop, we continue to expect an improvement in demand as we enter the spring selling season and through the summer. Longer-term we also expect to benefit from the unwinding of pent-up demand as consumer confidence improves. Our near-term priorities are staying focused on the Tyman integration, capturing the targeted synergies, and generating cash flow to pay down debt.”
First Quarter Results Summary
Quanex reported net sales of
The increase in adjusted earnings for the three months ended January 31, 2025 was mostly attributable to the contribution from the Tyman acquisition combined with the realization of costs synergies.
Balance Sheet & Liquidity Update
The Company borrowed
The leverage ratio for Quanex’s quarterly debt covenant compliance (“Debt Covenant Leverage Ratio”) for its lenders was 2.2x as of January 31, 2025. The Debt Covenant Leverage Ratio calculation is defined in the Company’s Amendment No. 1 to its Second Amended and Restated 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,
Quanex’s liquidity was
Share Repurchases
Quanex’s Board authorized a
Outlook
Mr. Wilson commented, “We issued official guidance for 2025 as part of our Investor Day held at the New York Stock Exchange on February 6, 2025. Based on our results year-to-date, combined with our operational execution, recent demand trends and conversations with our customers, we are 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
“Our capital allocation priorities continue to be paying down debt, evaluating growth opportunities and opportunistically buying back our stock. In addition, the finance and accounting teams are logging long hours working hard in conjunction with our external auditors on re-segmenting the business, so we will report in the new operating segments as soon as practical.”
*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 Tuesday, March 11, 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.vevent.com/register/BIafe91a1501e44eaaadfb84ddc0982237
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 January 31, | ||||||||
| 2025 | 2024 | |||||||
| Net sales | $ | 400,044 | $ | 239,155 | ||||
| Cost of sales | 307,728 | 187,723 | ||||||
| Selling, general and administrative | 66,650 | 32,363 | ||||||
| Restructuring charges | 7,904 | - | ||||||
| Depreciation and amortization | 24,740 | 11,152 | ||||||
| Operating income | (6,978 | ) | 7,917 | |||||
| Interest expense | (14,186 | ) | (1,068 | ) | ||||
| Other, net | 1,229 | 1,042 | ||||||
| (Loss) income before income taxes | (19,935 | ) | 7,891 | |||||
| Income tax benefit (expense) | 5,050 | (1,642 | ) | |||||
| Net (loss) income | $ | (14,885 | ) | $ | 6,249 | |||
| (Loss) earnings per common share, basic | $ | (0.32 | ) | $ | 0.19 | |||
| (Loss) earnings per common share, diluted | $ | (0.32 | ) | $ | 0.19 | |||
| Weighted average common shares outstanding: | ||||||||
| Basic | 47,015 | 32,825 | ||||||
| Diluted | 47,015 | 33,043 | ||||||
| Cash dividends per share | $ | 0.08 | $ | 0.08 | ||||
| QUANEX BUILDING PRODUCTS CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) | ||||||||
| January 31, 2025 | October 31, 2024 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 49,982 | $ | 97,744 | ||||
| Restricted Cash | 5,486 | 5,251 | ||||||
| Accounts receivable, net | 164,347 | 197,689 | ||||||
| Inventories | 280,580 | 275,550 | ||||||
| Income taxes receivable | 5,283 | 5,937 | ||||||
| Prepaid and other current assets | 41,943 | 29,097 | ||||||
| Total current assets | 547,621 | 611,268 | ||||||
| Property, plant and equipment, net | 391,118 | 402,466 | ||||||
| Operating lease right-of-use assets | 125,002 | 126,715 | ||||||
| Deferred tax assets | 3,709 | 3,845 | ||||||
| Goodwill | 569,688 | 574,711 | ||||||
| Intangible assets, net | 580,081 | 597,909 | ||||||
| Other assets | 3,270 | 2,874 | ||||||
| Total assets | $ | 2,220,489 | $ | 2,319,788 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 108,374 | $ | 124,404 | ||||
| Accrued liabilities | 81,302 | 103,623 | ||||||
| Income taxes payable | - | 6,620 | ||||||
| Current maturities of long-term debt | 25,827 | 25,745 | ||||||
| Current operating lease liabilities | 13,275 | 12,475 | ||||||
| Total current liabilities | 228,778 | 272,867 | ||||||
| Long-term debt | 725,231 | 737,198 | ||||||
| Noncurrent operating lease liabilities | 115,517 | 117,560 | ||||||
| Deferred income taxes | 162,846 | 162,304 | ||||||
| Other liabilities | 16,001 | 19,113 | ||||||
| Total liabilities | 1,248,373 | 1,309,042 | ||||||
| Stockholders’ equity: | ||||||||
| Common stock | 512 | 513 | ||||||
| Additional paid-in-capital | 697,358 | 701,008 | ||||||
| Retained earnings | 411,708 | 430,405 | ||||||
| Accumulated other comprehensive loss | (62,379 | ) | (46,428 | ) | ||||
| Treasury stock at cost | (75,083 | ) | (74,752 | ) | ||||
| Total stockholders’ equity | 972,116 | 1,010,746 | ||||||
| Total liabilities and stockholders' equity | $ | 2,220,489 | $ | 2,319,788 | ||||
| QUANEX BUILDING PRODUCTS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (In thousands) (Unaudited) | |||||||
| ` | Three Months Ended January 31, | ||||||
| 2025 | 2024 | ||||||
| Operating activities: | |||||||
| Net (loss) income | $ | (14,885 | ) | $ | 6,249 | ||
| Adjustments to reconcile net income to cash provided by operating activities: | |||||||
| Depreciation and amortization | 24,740 | 11,152 | |||||
| Stock-based compensation | 902 | 583 | |||||
| Deferred income tax | 2,851 | 1,136 | |||||
| Other, net | 6,173 | 1,790 | |||||
| Changes in assets and liabilities: | |||||||
| Decrease in accounts receivable | 30,330 | 18,147 | |||||
| Increase in inventory | (8,602 | ) | (8,756 | ) | |||
| Increase in other current assets | (8,985 | ) | (1,680 | ) | |||
| Decrease in accounts payable | (16,548 | ) | (19,044 | ) | |||
| Decrease in accrued liabilities | (22,558 | ) | (7,181 | ) | |||
| (Decrease) increase in income taxes receivable | (5,087 | ) | 264 | ||||
| (Decrease) increase in other long-term liabilities | (247 | ) | 852 | ||||
| Other, net | (594 | ) | 342 | ||||
| Cash (used for) provided by operating activities | (12,510 | ) | 3,854 | ||||
| Investing activities: | |||||||
| Business acquisition | |||||||
| Capital expenditures | (11,624 | ) | (9,580 | ) | |||
| Proceeds from disposition of capital assets | 169 | 31 | |||||
| Cash used for investing activities | (11,455 | ) | (9,549 | ) | |||
| Financing activities: | |||||||
| Borrowings under credit facilities | 45,000 | - | |||||
| Repayments of credit facility borrowings | (56,250 | ) | (5,000 | ) | |||
| Repayments of other long-term debt | (2,026 | ) | (679 | ) | |||
| Common stock dividends paid | (3,812 | ) | (2,645 | ) | |||
| Issuance of common stock | 214 | 400 | |||||
| Payroll tax paid to settle shares forfeited upon vesting of stock | (1,400 | ) | (1,193 | ) | |||
| Purchase of treasury stock | (3,698 | ) | - | ||||
| Cash used for financing activities | (21,972 | ) | (9,117 | ) | |||
| Effect of exchange rate changes on cash and cash equivalents | (1,590 | ) | 760 | ||||
| Increase in cash, cash equivalents and restricted cash | (47,527 | ) | (14,052 | ) | |||
| Cash, cash equivalents and restricted cash at beginning of period | 102,995 | 58,474 | |||||
| Cash, cash equivalents and restricted cash at end of period | $ | 55,468 | $ | 44,422 | |||
| 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, | |||||||||
| 2025 | 2024 | ||||||||
| Cash (used for) provided by operating activities | ( | ) | |||||||
| Capital expenditures | (11,624 | ) | (9,580 | ) | |||||
| Free Cash Flow | ($24,134 | ) | ($5,726 | ) | |||||
| The following table reconciles the Company's Net Debt which is defined as total debt principal of the Company plus finance lease obligations minus cash. | |||||||||
| As of January 31, | |||||||||
| 2025 | 2024 | ||||||||
| Term loan facility | |||||||||
| Revolving credit facility | 217,500 | ||||||||
| Finance lease obligations(1) | 59,306 | 55,211 | |||||||
| Total debt(2) | 764,306 | 65,211 | |||||||
| Less: Cash and cash equivalents | 49,982 | 44,422 | |||||||
| Net Debt | $714,324 | $20,789 | |||||||
| (1) Includes | |||||||||
| (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, 2025 | Three Months Ended October 31, 2024 | Three Months Ended July 31, 2024 | Three Months Ended April 30, 2024 | Total | |||||||||||||||
| Reconciliation | Reconciliation | Reconciliation | Reconciliation | Reconciliation | ||||||||||||||||
| Net (loss) income as reported | $ | (14,885 | ) | $ | (13,917 | ) | $ | 25,350 | $ | 15,377 | $ | 11,925 | ||||||||
| Income tax (benefit) expense | (5,050 | ) | (3,621 | ) | 6,688 | 4,314 | 2,331 | |||||||||||||
| Other, net | (1,229 | ) | 2,671 | (9,474 | ) | (4 | ) | (8,036 | ) | |||||||||||
| Interest expense | 14,186 | 17,697 | 878 | 950 | 33,711 | |||||||||||||||
| Depreciation and amortization | 24,740 | 27,329 | 10,953 | 10,894 | 73,916 | |||||||||||||||
| EBITDA | 17,762 | 30,159 | 34,395 | 31,531 | 113,847 | |||||||||||||||
| Cost of sales (1) | - | 887 | 1,507 | 631 | 3,025 | |||||||||||||||
| Selling, general and administrative (1),(2),(3) | 12,876 | 50,004 | 6,133 | 7,862 | 76,875 | |||||||||||||||
| Restructuring charges (4) | 7,904 | - | - | - | 7,904 | |||||||||||||||
| Adjusted EBITDA | $ | 38,542 | $ | 81,050 | $ | 42,035 | $ | 40,024 | $ | 201,651 | ||||||||||
| (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 severance 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 January 31, 2025 | Three Months Ended January 31, 2024 | |||||||||||||||
| Net Income | Diluted EPS | Net Income | Diluted EPS | ||||||||||||||
| Net (loss) income as reported | $ | (14,885 | ) | $ | (0.32 | ) | $ | 6,249 | $ | 0.19 | |||||||
| Net (loss) income reconciling items from below | 23,847 | $ | 0.51 | 2,121 | $ | 0.06 | |||||||||||
| Adjusted net income and adjusted EPS | $ | 8,962 | $ | 0.19 | $ | 8,370 | $ | 0.25 | |||||||||
| Reconciliation of Adjusted EBITDA | Three Months Ended January 31, 2025 | Three Months Ended January 31, 2024 | |||||||||||||||
| Reconciliation | Reconciliation | ||||||||||||||||
| Net (loss) income as reported | $ | (14,885 | ) | $ | 6,249 | ||||||||||||
| Income tax (benefit) expense | (5,050 | ) | 1,642 | ||||||||||||||
| Other, net | (1,229 | ) | (1,042 | ) | |||||||||||||
| Interest expense | 14,186 | 1,068 | |||||||||||||||
| Depreciation and amortization | 24,740 | 11,152 | |||||||||||||||
| EBITDA | 17,762 | 19,069 | |||||||||||||||
| EBITDA reconciling items from below | 20,780 | 205 | |||||||||||||||
| Adjusted EBITDA | $ | 38,542 | $ | 19,274 | |||||||||||||
| Reconciling Items | Three Months Ended January 31, 2025 | Three Months Ended January 31, 2024 | |||||||||||||||
| Income Statement | Reconciling Items | Income Statement | Reconciling Items | ||||||||||||||
| Net sales | $ | 400,044 | $ | - | $ | 239,155 | $ | - | |||||||||
| Cost of sales | 307,728 | - | 187,723 | - | |||||||||||||
| Selling, general and administrative | 66,650 | (12,876 | ) | (1),(2) | 32,363 | (205 | ) | (2) | |||||||||
| Restructuring charges | 7,904 | (7,904 | ) | (3) | - | - | |||||||||||
| EBITDA | 17,762 | 20,780 | 19,069 | 205 | |||||||||||||
| Depreciation and amortization | 24,740 | (10,650 | ) | (4) | 11,152 | (3,229 | ) | (4) | |||||||||
| Operating income | (6,978 | ) | 31,430 | 7,917 | 3,434 | ||||||||||||
| Interest expense | (14,186 | ) | - | (1,068 | ) | - | |||||||||||
| Other, net | 1,229 | (172 | ) | (5) | 1,042 | (755 | ) | (5) | |||||||||
| (Loss) Income before income taxes | (19,935 | ) | 31,258 | 7,891 | 2,679 | ||||||||||||
| Income tax benefit (expense) | 5,050 | (7,411 | ) | (6) | (1,642 | ) | (558 | ) | (6) | ||||||||
| Net (loss) income | $ | (14,885 | ) | $ | 23,847 | $ | 6,249 | $ | 2,121 | ||||||||
| Diluted (loss) earnings per share | $ | (0.32 | ) | $ | 0.19 | ||||||||||||
| (1) Amortization of step-up for purchase price adjustments on inventory. | |||||||||||||||||
| (2) Transaction, advisory fees, and reorganization costs. | |||||||||||||||||
| (3) Restructuring charges related to severance and disposal of software. | |||||||||||||||||
| (4) Amortization expense related to intangible assets. | |||||||||||||||||
| (5) Pension settlement refund and foreign currency transaction losses (gains). | |||||||||||||||||
| (6) 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 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(1) | 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 | ||||||||||||||||
| Expense related to plant closure (Cost of sales) | - | - | - | - | - | - | ||||||||||||||||||
| Net gain related to plant closure (SG&A) | - | - | - | - | - | - | ||||||||||||||||||
| Amortization of step-up for purchase price adjustments on inventory | - | - | - | 9,007 | - | 9,007 | ||||||||||||||||||
| Transaction, advisory fees, and reorganization costs | - | - | - | 1,469 | 2,400 | 3,869 | ||||||||||||||||||
| Restructuring charges related to severance and disposal of software | 7,904 | - | 7,904 | |||||||||||||||||||||
| Adjusted EBITDA | $ | 11,633 | $ | 9,913 | $ | (873 | ) | $ | 18,978 | $ | (1,109 | ) | $ | 38,542 | ||||||||||
| Adjusted EBITDA Margin % | 8.7% | 20.5% | - | 10.8% | 9.6% | |||||||||||||||||||
| Three months ended January 31, 2024 | ||||||||||||||||||||||||
| Net sales | $ | 147,995 | $ | 49,437 | $ | 43,137 | $ | - | $ | (1,414 | ) | $ | 239,155 | |||||||||||
| Cost of sales | 118,368 | 31,703 | 38,743 | - | (1,091 | ) | 187,723 | |||||||||||||||||
| Gross Margin | 29,627 | 17,734 | 4,394 | - | (323 | ) | 51,432 | |||||||||||||||||
| Gross Margin % | 20.0% | 35.9% | 10.2% | 21.5% | ||||||||||||||||||||
| Selling, general and administrative(1) | 15,910 | 7,745 | 5,126 | - | 3,582 | 32,363 | ||||||||||||||||||
| Depreciation and amortization | 5,475 | 2,558 | 3,065 | - | 54 | 11,152 | ||||||||||||||||||
| Operating income (loss) | 8,242 | 7,431 | (3,797 | ) | - | (3,959 | ) | 7,917 | ||||||||||||||||
| Depreciation and amortization | 5,475 | 2,558 | 3,065 | - | 54 | 11,152 | ||||||||||||||||||
| EBITDA | 13,717 | 9,989 | (732 | ) | - | (3,905 | ) | 19,069 | ||||||||||||||||
| Transaction and advisory fees | - | - | - | - | 205 | 205 | ||||||||||||||||||
| Adjusted EBITDA | $ | 13,717 | $ | 9,989 | $ | (732 | ) | $ | - | $ | (3,700 | ) | $ | 19,274 | ||||||||||
| Adjusted EBITDA Margin % | 9.3% | 20.2% | - | 8.1% | ||||||||||||||||||||
| (1) Includes stock-based compensation expense of | ||||||||||||||||||||||||
| QUANEX BUILDING PRODUCTS CORPORATION SALES ANALYSIS (In thousands) (Unaudited) | ||||||||
| Three Months Ended January 31, | ||||||||
| 2025 | 2024 | |||||||
| NA Fenestration: | ||||||||
| United States - fenestration | $ | 100,429 | $ | 111,634 | ||||
| International - fenestration | 5,859 | 6,144 | ||||||
| United States - non-fenestration | 23,205 | 25,791 | ||||||
| International - non-fenestration | 4,840 | 4,426 | ||||||
| $ | 134,333 | $ | 147,995 | |||||
| EU Fenestration:(1) | ||||||||
| International - fenestration | $ | 42,056 | $ | 41,751 | ||||
| International - non-fenestration | 6,415 | 7,686 | ||||||
| $ | 48,471 | $ | 49,437 | |||||
| NA Cabinet Components: | ||||||||
| United States - fenestration | $ | 3,452 | $ | 3,675 | ||||
| United States - non-fenestration | 40,063 | 39,179 | ||||||
| International - non-fenestration | 295 | 283 | ||||||
| $ | 43,810 | $ | 43,137 | |||||
| Tyman: | ||||||||
| United States - fenestration | $ | 105,591 | $ | - | ||||
| International - fenestration | 69,282 | - | ||||||
| United States - non-fenestration | 785 | - | ||||||
| International - non-fenestration | 18 | - | ||||||
| $ | 175,676 | $ | - | |||||
| Unallocated Corporate & Other: | ||||||||
| Eliminations | $ | (2,246 | ) | $ | (1,414 | ) | ||
| $ | (2,246 | ) | $ | (1,414 | ) | |||
| Net Sales | $ | 400,044 | $ | 239,155 | ||||
| (1) Reflects a decrease of | ||||||||
FAQ
What is Quanex's Q1 2025 revenue growth and how much was attributed to the Tyman acquisition?
How much debt has Quanex NX repaid since the Tyman acquisition?
What is Quanex's (NX) full-year 2025 financial guidance?
What is the status of Quanex's share repurchase program as of Q1 2025?
