Core Insights - Quanex Building Products (NX) reported quarterly earnings of $0.61 per share, exceeding the Zacks Consensus Estimate of $0.53 per share, but down from $0.95 per share a year ago, indicating an earnings surprise of 15.09% [1] - The company achieved revenues of $492.16 million for the quarter ended October 2024, surpassing the Zacks Consensus Estimate by 0.59% and significantly up from $295.49 million year-over-year [2] - The stock has underperformed the market, losing about 4% since the beginning of the year compared to the S&P 500's gain of 27.6% [4] Earnings Performance - Over the last four quarters, Quanex has consistently surpassed consensus EPS estimates, achieving this four times [2] - The current consensus EPS estimate for the upcoming quarter is $0.20 on revenues of $426.8 million, and for the current fiscal year, it is $2.26 on revenues of $1.86 billion [8] Market Outlook - The estimate revisions trend for Quanex is currently unfavorable, resulting in a Zacks Rank 5 (Strong Sell), indicating expected underperformance in the near future [7] - The outlook for the Building Products - Miscellaneous industry is weak, ranking in the bottom 36% of over 250 Zacks industries, which may negatively impact the stock's performance [9]

Financial Performance - Quanex reported net sales of $492.2 million for Q4 2024, a 66.6% increase from $295.5 million in Q4 2023, and $1.28 billion for the full year, up 13.0% from $1.13 billion in 2023[3][5]. - The company experienced a net loss of $13.9 million in Q4 2024, compared to a net income of $27.4 million in Q4 2023, with diluted EPS at ($0.30) versus $0.83[3][5]. - Adjusted EBITDA for Q4 2024 was $81.1 million, up from $50.8 million in Q4 2023, reflecting a margin of 16.5%[3][5]. - Total net sales for the twelve months ended October 31, 2024, reached $1,277,862 million, compared to $1,130,583 million for the same period in 2023, indicating a growth of approximately 13%[31]. - Adjusted EBITDA for the twelve months ended October 31, 2024, was $182,383 million, compared to $109,662 million in 2023[28]. - The company reported a net loss of $13,917 thousand for the three months ended October 31, 2024, compared to a net income of $27,382 thousand in the same period of 2023[19]. - The diluted earnings per share (EPS) for the three months ended October 31, 2024, was $(0.30), down from $0.83 in the prior year[34]. - Cash provided by operating activities for the twelve months ended October 31, 2024, was $88,812 thousand, down from $147,052 thousand in 2023[22]. - Free Cash Flow for the three months ended October 31, 2024, was $(8,172) thousand, compared to $29,553 thousand in the same period of 2023[25]. Debt and Liquidity - Quanex repaid $53.75 million in debt since the Tyman acquisition, with total debt standing at $776.9 million as of October 31, 2024[3][6]. - The leverage ratio of Net Debt to LTM Adjusted EBITDA was 3.7x, while the Debt Covenant Leverage Ratio was 2.3x as of October 31, 2024[6][7]. - Quanex's liquidity was reported at $343.3 million, consisting of $97.7 million in cash and available credit[8]. - The company’s total debt as of October 31, 2024, was $776,926 thousand, a significant increase from $70,000 thousand in 2023[26]. - Total liabilities increased to $1,309,042 thousand as of October 31, 2024, compared to $285,589 thousand as of October 31, 2023[21]. Operational Insights - The Tyman acquisition contributed $203.4 million in net sales during Q4 2024, with overall sales growth attributed to this acquisition[5]. - The company aims to capture targeted synergies from the Tyman acquisition and is focused on integrating the legacy Tyman business[4]. - The company plans to focus on new product development and market expansion strategies to improve future performance[31]. - An Investor and Analyst Day is scheduled for February 6, 2025, to present the new operating structure and guidance for 2025[4][9]. Segment Performance - The United States fenestration segment reported sales of $128,633 million for 2024, down from $138,783 million in 2023, representing a decrease of about 8%[39]. - International fenestration sales increased to $9,323 million in 2024 from $8,081 million in 2023, marking a growth of approximately 15%[39]. - The EU fenestration segment saw a decline in sales from $180,446 million in 2023 to $172,031 million in 2024, a decrease of about 5%[39]. - The United States non-fenestration segment reported sales of $29,050 million in 2024, slightly down from $29,267 million in 2023, a decrease of about 1%[39]. - International non-fenestration sales increased to $5,025 million in 2024 from $4,315 million in 2023, reflecting a growth of approximately 16%[39]. - Tyman's sales for 2024 were $52,761 million, compared to $51,868 million in 2023, indicating a growth of about 2%[39]. - The United States non-fenestration segment reported $49,038 million in sales for 2024, up from $47,092 million in 2023, representing an increase of approximately 4%[39]. Expenses and Margins - Selling, general and administrative expenses for the three months ended October 31, 2024, were $86,891 million, compared to $29,326 million in the same period last year, reflecting a substantial increase[31]. - Interest expense for the three months ended October 31, 2024, was $17,697 million, compared to $1,565 million in the prior year, indicating a significant rise[31]. - The company reported an operating income of $2,830 million for the three months ended October 31, 2024, down from $39,499 million in the same period of 2023[31]. - The company incurred transaction and advisory fees of $26,227 thousand for the three months ended October 31, 2024, compared to $50,767 thousand in the same period last year[35]. - Gross margin for the three months ended October 31, 2024, was $117,050 thousand, with a gross margin percentage of 23.8%, compared to 27.1% in the prior year[35]. - The adjusted net income for the twelve months ended October 31, 2024, was $80,362 million, compared to $90,902 million in the previous year, showing a decrease[31].

Core Insights - Quanex Building Products Corporation reported significant financial results for the fourth quarter and full year ended October 31, 2024, driven by the Tyman acquisition, which closed on August 1, 2024 [1][2]. Financial Performance - Net sales for Q4 2024 reached $492.2 million, a 66.6% increase from $295.5 million in Q4 2023. For the full year, net sales were $1.28 billion, up 13.0% from $1.13 billion in 2023 [2]. - The contribution from the Tyman acquisition accounted for $203.4 million in net sales during Q4 2024. Excluding Tyman, net sales would have declined by 2.3% in Q4 and 5.0% for the full year [2]. - Adjusted net income for Q4 2024 was $28.6 million, compared to $31.2 million in Q4 2023. For the full year, adjusted net income was $80.4 million, down from $90.9 million in 2023 [1][2]. Margin and Profitability - Gross margin for Q4 2024 was $117.1 million, with a gross margin percentage of 23.8%, down from 27.1% in Q4 2023. For the full year, gross margin was $305.6 million, with a margin percentage of 23.9% [1][2]. - Adjusted EBITDA for Q4 2024 was $81.1 million, compared to $50.8 million in Q4 2023, while the full year adjusted EBITDA was $182.4 million, up from $159.6 million in 2023 [1][2]. Debt and Liquidity - The company repaid $53.75 million in debt during Q4 2024, with total debt standing at $776.9 million as of October 31, 2024. The leverage ratio of net debt to LTM adjusted EBITDA was 3.7x [3][4]. - As of October 31, 2024, Quanex's liquidity was $343.3 million, consisting of $97.7 million in cash and availability under its revolving credit facility [4]. Future Outlook - The company anticipates continued demand softness until the spring selling season of 2025, with expectations for improvement in the second half of 2025 due to seasonal trends and improving consumer confidence [1][2]. - An Investor and Analyst Day is scheduled for February 6, 2025, to present the new operating structure and provide guidance for 2025 [5].

Group 1 - Quanex Building Products Corporation plans to release its fourth quarter and full year 2024 results on December 12, 2024, after trading closes on the New York Stock Exchange [1] - A conference call is scheduled for December 13, 2024, at 11:00 a.m. ET to discuss the results, with a live audio webcast available on the company's website [2] - Participants are encouraged to pre-register for the conference call and will receive details for dial-in options via email [2] Group 2 - Quanex is a global manufacturer with capabilities across various end markets, collaborating with leading OEMs to provide innovative solutions in multiple sectors [3] - The company aims to leverage its material science expertise and process engineering to expand into adjacent markets [3]

Financial Performance - Net sales for the three months ended July 31, 2024, were $280,345, a decrease of 6.3% compared to $299,640 for the same period in 2023[4] - Operating income for the three months ended July 31, 2024, was $23,442, down 37.4% from $37,463 in the prior year[4] - Net income for the three months ended July 31, 2024, was $25,350, a decline of 20.0% compared to $31,698 for the same period in 2023[4] - Basic earnings per share for the three months ended July 31, 2024, were $0.77, down from $0.97 in the same period last year, representing a decrease of 20.6%[4] - Comprehensive income for the three months ended July 31, 2024, was $29,850, compared to $34,776 for the same period in 2023, indicating a decrease of 14.1%[6] - Net income for the nine months ended July 31, 2024, was $46,976, a decrease of 14.5% compared to $55,119 in the same period of 2023[8] - Operating income for the nine months ended July 31, 2024, was $51,996 million, down from $71,202 million in the same period of 2023, representing a decline of 26.9%[85] - Net sales for the three months ended July 31, 2024, decreased by $19.3 million, or 6%, compared to the same period in 2023, primarily due to a decrease in volumes driven by weaker consumer confidence[110] - Operating income for the same period fell to $23.4 million, a decrease of $14.0 million, or 37%, compared to $37.5 million in the prior year[110] Assets and Liabilities - Total current assets increased to $301,399 as of July 31, 2024, compared to $273,600 as of October 31, 2023, reflecting a growth of 10.1%[3] - Total assets rose to $872,450 as of July 31, 2024, compared to $831,143 as of October 31, 2023, marking an increase of 4.9%[3] - Total liabilities decreased to $278,314 as of July 31, 2024, down from $285,589 as of October 31, 2023, a reduction of 2.5%[3] - Total stockholders' equity increased to $594,136 as of July 31, 2024, up from $525,955 a year earlier, representing a growth of 12.9%[12] - Long-term debt decreased to $51,406 as of July 31, 2024, down from $66,435 on October 31, 2023, a reduction of 22.7%[44] - Total lease liabilities rose to $120,541 as of July 31, 2024, compared to $102,570 on October 31, 2023, marking an 17.5% increase[33] Cash Flow - Cash provided by operating activities decreased to $83,333 from $102,559, reflecting a decline of 18.7%[8] - Cash and cash equivalents increased to $93,966 as of July 31, 2024, compared to $58,474 as of October 31, 2023, reflecting a significant increase of 60.7%[3] - Cash provided by operating activities for the nine months ended July 31, 2024, was $83,333, compared to $102,559 for the same period in 2023, representing a decrease of 18.7%[8] - Cash used for investing activities decreased by $90.2 million for the nine months ended July 31, 2024, with no business acquisitions compared to $91.3 million in the prior year[137] Sales and Market Performance - North American Fenestration sales in the U.S. decreased to $131.4 million from $138.1 million year-over-year, representing a decline of 5.0%[23] - International Fenestration sales decreased to $6.9 million from $8.5 million, a decline of 18.6% year-over-year[23] - The company reported a total of $478.0 million in North American sales for the nine months ended July 31, 2024, down from $487.0 million in the prior year[23] - The North American Fenestration segment reported net sales of $170.3 million, down $6.8 million, or 4%, primarily due to an $8.8 million decrease in volumes[111] Acquisitions and Investments - The company completed the acquisition of Tyman plc on August 1, 2024, which is expected to enhance market presence and operational capabilities[45] - The company acquired LMI Custom Mixing for $91.3 million in cash on November 1, 2022, enhancing its polymer mixing and rubber compound production capabilities[27] - The Tyman Acquisition is expected to create a leading comprehensive solutions provider in the building products industry, although integration costs and potential delays may impact financial results[157] Expenses and Cost Management - Selling, general, and administrative expenses increased by $6.0 million, or 20%, to $36.5 million for the three months ended July 31, 2024[110] - Cost of sales decreased by $4.8 million, or 4%, for the three months ended July 31, 2024, mainly due to a decrease in volumes, partially offset by pricing and inflation of raw materials[112] - Selling, general and administrative expenses increased by $2.7 million, or 19%, for the three months ended July 31, 2024, primarily due to increases in labor costs and professional fees[112] Foreign Currency and Taxation - The company reported a foreign currency translation gain of $4,500 for the three months ended July 31, 2024, compared to $3,078 in the same period last year, an increase of 46.2%[6] - The estimated annual effective tax rate for the nine months ended July 31, 2024, was 21.2%, an increase from 18.2% in 2023[53] - The effective income tax rate increased to 20.9% for the three months ended July 31, 2024, compared to 11.5% for the same period in 2023, primarily due to an increase in non-deductible permanent differences[121] Stock and Compensation - The total compensation expense related to stock-based awards for the nine months ended July 31, 2024, was $5.346 million, down from $7.635 million in the prior year[75] - The company reported stock-based compensation expense of $583 for the nine months ended January 31, 2024[10] - The total weighted-average grant-date fair value of restricted stock awards that vested during the nine months ended July 31, 2024, was $1.4 million, compared to $1.0 million in 2023[64] Strategic Focus - The company continues to evaluate business acquisitions to expand its fenestration and cabinet component footprint and enhance product offerings[99] - The ongoing geopolitical tensions and military conflicts may lead to market disruptions and increased commodity prices, impacting the company's operations[103] - The company has begun implementing additional programs for raw materials pricing to reduce exposure to material cost fluctuations, although some are subject to timing lags[152]

Core Viewpoint - Quanex Building Products Corporation (NX) reported better-than-expected third-quarter results for fiscal 2024, with adjusted earnings and net sales exceeding the Zacks Consensus Estimate, although both metrics declined year-over-year [1][4]. Financial Performance - Adjusted earnings were 73 cents per share, surpassing the consensus estimate of 70 cents by 4.3%, but down from 97 cents in the prior-year quarter [4]. - Net sales reached $280.3 million, slightly above the consensus mark of $278 million by 0.8%, but a decline of 6.4% from the previous year [4]. - Gross profit decreased to $70.9 million from $78.6 million year-over-year, with a consolidated gross margin contraction of 90 basis points to 25.3% [8]. Segment Analysis - North American Fenestration segment saw net sales decline by 3.9% to $170.3 million, with gross profit margin contracting to 23.5% [5]. - European Fenestration segment's net sales fell 10.8% to $59.6 million, with gross profit margin down to 38.1% [6]. - North American Cabinet Components segment reported a decline in net sales to $51.4 million from $55.4 million, with gross profit margin contracting to 16.6% [6][7]. Operational Highlights - Selling and administrative expenses increased to $36.5 million from $30.5 million in the prior-year quarter [8]. - Adjusted EBITDA was $42 million, down 13.4% year-over-year, with adjusted EBITDA margin declining to 15% from 16.2% [8]. Financial Position - As of July 31, 2024, cash and cash equivalents were $94 million, up from $58.5 million at the end of fiscal 2023, while long-term debt decreased to $51.4 million from $66.4 million [9]. - Net cash provided by operating activities for the first nine months of fiscal 2024 was $83.3 million, compared to $102.6 million a year ago [10]. Future Outlook - NX expects consolidated net sales for fiscal 2024 to range between $1.275 billion and $1.285 billion, compared to $1,130.6 million in the previous year [11]. - Adjusted EBITDA is anticipated to be between $171 million and $176 million, up from $159.6 million reported in fiscal 2023 [11].

Quanex Building Products Corporation (NYSE:NX) Q3 2024 Results Conference Call September 6, 2024 11:00 AM ET Company Participants Scott Zuehlke - SVP, CFO & Treasurer George Wilson - Chairman, President & CEO Conference Call Participants Steven Ramsey - TRG Julio Romero - Sidoti & Company Reuben Garner - Benchmark Adam Thalhimer - Thompson Davis Operator Good day, and thank you for standing by, and welcome to the Q3 2024 Quanex Building Products Corporation Earnings Conference Call. At this time, our partic ...

Results point to better times ahead. Quanex Building Products (NX 18.66%) topped Wall Street expectations for the quarter and raised its fullyear outlook, predicting big things from its recently closed acquisition. Wall Street reacted favorably to the news, sending Quanex shares up 20% as of 10:30 a.m. ET. Solid quarter, better guidance Quanex manufactures a wide range of building materials, including windows, doors, vinyl fencing, refrigeration, and cabinetry. Last month, the company closed a $1.1 billion ...

Quanex Building Products (NX) came out with quarterly earnings of $0.73 per share, beating the Zacks Consensus Estimate of $0.70 per share. This compares to earnings of $0.97 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 4.29%. A quarter ago, it was expected that this housing materials maker would post earnings of $0.53 per share when it actually produced earnings of $0.66, delivering a surprise of 24.53%. Over the last fou ...

Quanex Building Products Announces Third Quarter 2024 Results and Updates Full Year 2024 Guidance EXHIBIT 99.1 Results Consistent with Expectations Transformative Tyman Acquisition Closed August 1, 2024 Acquisition Integration Underway HOUSTON, Sept. 05, 2024 (GLOBE NEWSWIRE) -- Quanex Building Products Corporation (NYSE:NX) ("Quanex" or the "Company") today announced its results for the three months ended July 31, 2024. The Company reported the following selected financial results: | --- | --- | --- | --- ...