Quanex Building Products (NX) - 2025 Q2 - Quarterly Results

Financial Performance - Quanex reported net sales of $452.5 million for Q2 2025, a 70.0$266.2 million in Q2 2024, primarily driven by the Tyman acquisition[4] - Gross margin for Q2 2025 was $131.4 million, representing a gross margin percentage of 29.0$61.9 million, with an adjusted EBITDA margin of 13.7%[2] - The company achieved a net income of $20.5 million in Q2 2025, compared to$15.4 million in Q2 2024[2] - Reported net income for the quarter was $20,515 million, with diluted EPS of$0.44, compared to $15,377 million and$0.46 in the same quarter last year[35] - Adjusted net income reached $27,887 million, with adjusted EPS of$0.60, up from $24,041 million and$0.73 year-over-year[35] - EBITDA for the quarter was $60,113 million, with adjusted EBITDA of$61,913 million, reflecting a significant increase from $31,531 million and$40,024 million respectively in the prior year[35] - Net sales totaled $452,478 million, compared to$266,201 million in the same quarter last year, indicating a substantial growth[35] - Operating income for the quarter was $40,921 million, showing an increase from$20,637 million year-over-year[35] Debt and Liabilities - Quanex's total debt as of April 30, 2025, was $785.0 million, with a leverage ratio of Net Debt to LTM Adjusted EBITDA decreasing to 3.2x[5] - Total liabilities remained relatively stable at$1,306,603 thousand as of April 30, 2025, compared to $1,309,042 thousand on October 31, 2024[22] - Net Debt increased to$722,351 thousand as of April 30, 2025, from a net cash position of ($932) thousand in the prior year, indicating a significant shift in financial leverage[29] - The company’s total current liabilities decreased to$244,365 thousand as of April 30, 2025, from $272,867 thousand on October 31, 2024, a reduction of approximately 10.5$28.5 million, while free cash flow was $13.6 million[2] - Cash provided by operating activities for the six months ended April 30, 2025, was$15,987 thousand, down 56.7% from $36,945 thousand in the prior year[28] - Free Cash Flow for the six months ended April 30, 2025, was negative at ($10,557) thousand, compared to positive $19,762 thousand for the same period in 2024[28] - Capital expenditures for the six months ended April 30, 2025, were$26,544 thousand, an increase of 54.5% compared to $17,183 thousand in the same period of 2024[24] - The company reported a decrease in cash, cash equivalents, and restricted cash by$38,198 thousand during the six months ended April 30, 2025, compared to a decrease of $2,325 thousand in the prior year[24] Integration and Strategic Initiatives - The integration of Tyman is ahead of schedule, with cost synergy targets increased to approximately$45 million[1] - The company is actively pursuing strategic initiatives, including potential acquisitions, to enhance its market position[35] - Future outlook includes continued focus on market expansion and new product development to drive revenue growth[35] Segment Performance - The company reported a decrease in net sales of 5.5% in its North American Fenestration segment for Q2 2025[4] - The North American fenestration segment generated net sales of $151.026 million for the three months ended April 30, 2025, down from$159.774 million in the same period of 2024[42] - The international fenestration segment in the EU reported net sales of $61.257 million for the three months ended April 30, 2025, compared to$56.583 million in the same period of 2024, showing a growth of 3.0%[42] Expenses and Charges - Selling, general and administrative expenses for the three months ended April 30, 2025, totaled $70.333 million, up from$34.707 million in the same period of 2024[39] - The company incurred restructuring charges of $936,000 during the three months ended April 30, 2025, reflecting ongoing operational adjustments[39] - Cost of sales was$321,096 million, leading to a gross margin that supports the overall profitability of the company[35] - Cost of sales for the six months ended April 30, 2025, was $628.824 million, compared to$387.686 million in the same period of 2024, indicating an increase of 62.1%[40] - The company reported a gross margin of $223.698 million for the six months ended April 30, 2025, with a gross margin percentage of 26.2$117.670 million and 23.3% in the same period of 2024[40]