Quanex beats Q2 estimates, reaffirms full-year outlook

Investing.com -- Quanex Building Products Corporation (NYSE:NX) reported better-than-expected second quarter results and reaffirmed its full-year guidance, sending shares up 1.8% in after-hours trading.

The building products manufacturer posted adjusted earnings per share of $0.60 for the quarter ended April 30, 2025, surpassing analyst estimates of $0.48. Revenue came in at $452.5 million, beating the consensus forecast of $440.05 million and representing a 70% increase from $266.2 million in the same quarter last year.

The substantial revenue growth was primarily attributed to the contribution from Quanex’s acquisition of Tyman, which closed on August 1, 2024. Excluding Tyman, the company’s net sales would have declined by 1.4% YoY, mainly due to lower volume in North America.

"Our results for the second quarter of 2025 came in as expected and reflected normal seasonality in our business," said George Wilson, Chairman, President and CEO of Quanex. He noted that revenue in March was approximately 6% higher than February, while April revenue was about 9% higher than March.

The company reported volume growth in its European Fenestration segment during Q2. However, net sales in the North American Fenestration segment decreased by 5.5% YoY.

Quanex reaffirmed its fiscal 2025 guidance, projecting net sales between $1.84 billion and $1.86 billion. This outlook aligns with the current analyst consensus of $1.847 billion.

Wilson expressed confidence in the Tyman integration, stating, "We 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."

The company’s net debt to LTM adjusted EBITDA ratio decreased to 3.2x as of April 30, 2025. During the quarter, Quanex repurchased 1,259,407 shares for approximately $23.5 million at an average price of $18.66 per share.

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