| Metric | Value ($ M) | Q2 FY25 | Q3 FY24 |
|---|---|---|---|
| Revenue | 495.27 | 9.5% | 76.7% |
| Total Income | 495.27 | 9.5% | 76.7% |
| Expenditure | 766.11 | 86.2% | 198.2% |
| PBT | — | ||
| Net Profit | -276.01 | 1445.1% | 1188.8% |
| OPM | -54.68% | 63.73pp | 63.05pp |
| NPM | -55.73% | 60.26pp | 64.77pp |
| EPS | -6.04 | 1472.7% | 884.4% |
Quanex Reports Q3 2025 Net Sales of $495.3 Million, Up 76.7% YoY
04 May 2026 · 4 May, 9:08 am
Summary
Quanex Building Products reported a significant increase in net sales for the third quarter of 2025, reaching $495.3 million, a 76.7% increase compared to the same period in 2024, driven by the Tyman acquisition. Adjusted EBITDA for the quarter was $70.3 million, representing a 14.2% margin. The company repaid over $51 million in bank debt during the quarter and reaffirmed its cost synergy target of approximately $45 million. Quanex updated its fiscal year 2025 guidance, projecting net sales of approximately $1.82 billion and Adjusted EBITDA of approximately $235 million.
Key Highlights
- 1
Net sales for the third quarter of 2025 increased by 76.7% to $495.3 million compared to $280.3 million in the same period of 2024.
- 2
Excluding the contribution from Tyman, net sales would have increased by 1.4% for the third quarter of 2025.
- 3
Adjusted EBITDA was $70.3 million with a margin of 14.2% for the three months ended July 31, 2025.
- 4
The company repaid over $51 million in bank debt in the third quarter of 2025.
- 5
The company reaffirms its cost synergy target of approximately $45 million over time.
- 6
The Company repurchased 100,000 shares of common stock for approximately $2.1 million during the three months ended July 31, 2025.
- 7
Quanex updates its guidance for fiscal 2025, estimating net sales of approximately $1.82 billion and Adjusted EBITDA of approximately $235 million.
Management Comments
George Wilson
A significant amount of work had to be done to re-segment the business, so we are pleased that the work is now complete, and we are operating and reporting in our new segments. We are encouraged by the overall resilience of the business in the current environment, demonstrated by our strong cash flow, which enabled us to repay over $51 million in bank debt in the third quarter of 2025. Our balance sheet is healthy, and our liquidity improved meaningfully during the quarter. We continue to make substantial progress on the integration of the Tyman business. After identifying additional target synergies and adjusting for lower expected volumes and pushing out the timing of when we expect to realize procurement savings, we still believe there is a path to realizing approximately $45 million in cost synergies over time, which is above our initial projection of $30 million. Although macroeconomic uncertainty and low consumer confidence, as well as operational issues related to the legacy Tyman window and door hardware business in Mexico that are ongoing but temporary in nature, posed challenges for us in our third quarter, we remain optimistic about our prospects for profitable growth and value creation. Looking ahead, we believe Quanex is well positioned due to our solid, flexible financial foundation and advantaged strategic positioning. Despite the macroeconomic uncertainty, our near-term priorities remain unchanged, which include staying focused on the Tyman integration, capturing synergies, generating cash flow to pay down debt and opportunistically repurchasing our stock. As macroeconomic uncertainty subsides and consumer confidence improves, our team is well positioned to capitalize on pent-up demand. We have a strong team with a proven track record and a breadth of products that are unmatched in the industry, which gives us confidence in our ability to execute on our long-term operational and financial objectives.
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