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HOUSTON - Quanex Building Products Corporation (NYSE:NX) saw its shares climb 3.1% after the company reported better-than-expected first quarter results and reaffirmed its full-year 2025 guidance.
The building products manufacturer posted adjusted earnings per share of $0.19 for the first quarter, surpassing analyst estimates of -$0.05. Revenue came in at $400 million, beating the consensus forecast of $385.27 million and representing a 67.3% YoY increase. The strong top-line growth was primarily driven by contributions from the Tyman acquisition, which closed in August 2024.
Excluding Tyman’s impact, Quanex’s organic revenue declined 6.2% YoY due to lower volumes. However, the company achieved margin expansion on a consolidated basis, with gross margin improving to 23.1% from 21.5% a year ago.
"We were pleased with the margin expansion and the overall impact of the cost synergies we have realized to date," said George Wilson, Chairman, President and CEO of Quanex. He noted that the integration of Tyman is progressing well, with the company remaining confident in its ability to deliver $30 million in targeted cost synergies.
Quanex reaffirmed its fiscal 2025 guidance, projecting revenue between $1.84-$1.86 billion and adjusted EBITDA of $270-$280 million. The revenue outlook aligns with the current analyst consensus of $1.849 billion.
The company also reported repaying approximately $65 million in debt since closing the Tyman acquisition, including $12 million during the first quarter. As of January 31, 2025, Quanex’s net debt to LTM adjusted EBITDA ratio stood at 3.6x.
Looking ahead, Wilson expressed optimism about improving demand as the company enters the spring selling season, despite the current soft macroeconomic environment.
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