| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 462.37 | 13.0% | 2.2% |
| Total Income | 462.37 | 13.0% | 2.2% |
| Expenditure | 443.66 | 9.2% | 7.8% |
| PBT | — | ||
| Net Profit | 3.35 | 182.3% | 83.7% |
| OPM | 4.05% | 3.35pp | 5.00pp |
| NPM | 0.72% | 1.72pp | 3.81pp |
| EPS | 0.07 | 177.8% | 84.1% |
Quanex Building Products Announces Second Quarter 2026 Results
05 Jun 2026 · 5 Jun, 1:55 am
Summary
Quanex Building Products Corporation announced its second quarter 2026 results, reporting net sales of $462.4 million, a 2.2% increase year-over-year, driven by favorable pricing and foreign exchange. However, net income decreased to $3.4 million from $20.5 million in the prior year, with diluted EPS falling to $0.07 from $0.44, impacted by reduced operating leverage, macroeconomic uncertainty, and inflationary pressures. Adjusted EBITDA also saw a decline to $44.2 million from $63.1 million, and gross margin decreased to 25.5% from 29.0%. Management is addressing price versus cost imbalances and expects to recover some of the shortfall in the second half of the year, while prioritizing debt repayment and opportunistic share repurchases.
Key Highlights
- 1
Quanex Building Products Corporation reported net sales of $462.4 million for the three months ended April 30, 2026, an increase of 2.2% compared to $452.5 million for the same period in 2025.
- 2
The Company reported a net income of $3.4 million for the three months ended April 30, 2026, compared to $20.5 million for the same period in 2025.
- 3
Diluted EPS for the three months ended April 30, 2026, was $0.07, down from $0.44 in the prior year period.
- 4
Adjusted EBITDA for the second quarter of 2026 was $44.2 million, a decrease from $63.1 million in the second quarter of 2025.
- 5
Gross Margin percentage for the three months ended April 30, 2026, was 25.5%, down from 29.0% in the same period of 2025.
- 6
The Company's liquidity was $328.6 million as of April 30, 2026, consisting of $63.7 million in cash on hand plus availability under its Senior Secured Revolving Credit Facility.
Management Comments
George Wilson
Despite the headwinds our industry is facing, demand for the products we manufacture was as expected during the second quarter of 2026. Rapid inflationary pressures related to macroeconomic concerns and the ongoing conflict in the Middle East led to an unfavorable price versus cost dynamic, which pressured our margins. As previously disclosed, we utilize surcharges to respond to rapid increases in costs and we have index pricing mechanisms in place in North America to handle fluctuations in major raw material costs, but when costs increase quickly there is a timing lag and margins are negatively impacted. We are addressing the current price versus cost imbalance to minimize further negative impact and expect to recover some of the shortfall to date during the second half of this year, assuming volumes continue to track the normal seasonality of our business, and the rate of inflationary pressure subsides. We expected to be a net borrower during the second quarter due to the seasonality of our business, coupled with the longer cash conversion cycle of the legacy Tyman business, but continued execution on managing working capital, coupled with the seasonal uptick in volumes, enabled us to avoid being a net borrower for the quarter. We intend to prioritize debt repayment and opportunistic share repurchases as we generate cash in the second half. In addition, we will continue to focus on the things we can control, which includes identifying operational efficiencies and commercial synergies that we believe will benefit us when consumer confidence improves and demand rebounds.
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