Overview

* Quanex Building Products Corp ( NX ) fiscal Q3 net sales rise 76.7% yr/yr, beating analyst expectations, per LSEG data

* Adjusted EPS for fiscal Q3 misses analyst estimates, per LSEG data

* Company repaid $51.25 mln in debt, strengthening balance sheet

Outlook

* Quanex forecasts fiscal 2025 net sales of about $1.82 bln

* Company expects fiscal 2025 Adjusted EBITDA of approximately $235 mln

* Quanex focuses on Tyman integration and capturing synergies

Result Drivers

* TYMAN ACQUISITION - Net sales increased 76.7% yr/yr, driven by the Tyman acquisition, with contributions across all segments

* GOODWILL IMPAIRMENT - Reported earnings impacted by a $302.3 mln non-cash goodwill impairment due to re-segmentation

* LOWER VOLUMES - Excluding Tyman, net sales growth was 1.4%, attributed to increased pricing and tariff passthroughs, offset by lower volumes

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales Beat $495.30 $491.60

mln mln (4

Analysts

)

Q3 Miss $0.69 $0.84 (4

Adjusted Analysts

EPS )

Q3 Miss $31.60 $38.20

Adjusted mln mln (2

Net Analysts

Income )

Q3 Miss $70.30 $80.60

Adjusted mln mln (3

EBITDA Analysts

)

Q3 Gross 27.9%

Margin

Q3 Free $46.20

Cash mln

Flow

Analyst Coverage

* The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the construction supplies & fixtures peer group is "buy."

* Wall Street's median 12-month price target for Quanex Building Products Corp ( NX ) is $34.50, about 41.8% above its September 3 closing price of $20.09

* The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 6 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)