NX

Image source: The Motley Fool. Friday, Sept. 4, 2026, at 11:00 a.m. ET Senior vice president, CFO, and treasurer - Scott Michael Zuehlke President and CEO - George L. Wilson Operator: Good day, and thank you for standing by. Welcome to the third quarter 2 thousand 26 Quanex Building Corporation Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question and answer session. To ask a question during the session, you will need to press *11 on your telephone. Will then hear a automated message advising your hand is raised. To withdraw your question, please press *11 again. Please be advised that today's conference is being recorded. I would like to hand the conference over to your speaker today, Scott Michael Zuehlke. Senior vice president, CFO, and treasurer. Please go ahead. Scott Michael Zuehlke: Thanks for joining the call this morning. On the call with me today is George L. Wilson, our president and CEO. This conference call will contain forward-looking statements and some discussion of non-GAAP measures. Forward looking statements and guidance discussed on this call and in our earnings release are based on current expectations. Actual results or events may differ materially from such statements and guidance. And Quanex undertakes no obligation to update or revise any forward-looking statement to reflect new information or events. For a more detailed description of our forward-looking statement disclaimer, and a reconciliation of non-GAAP measures to the most directly comparable GAAP measures, please see our earnings release issued yesterday and posted to our website. I will now turn the call over to George for his prepared remarks. George L. Wilson: Thanks, Scott, and good morning to everyone on the call. Similar to prior calls, I will start with our perspective on the current macroeconomic environment, then I will walk through our results for the quarter, and I will close my prepared remarks with our priorities for the balance of the fiscal year. 3 months ago, I described housing demand in North America and Europe as showing early signs of stabilization with a recovery that would proceed gradually. Since then, the data has been mixed. On the new construction side of the market, activity has been weaker than we anticipated, The July new residential construction report single family starts at an annual rate of 808 thousand which is down roughly 16% from a year ago and the lowest monthly reading since late 22. Single family completions, the more direct driver of demand for our products, came in at 878 thousand which represents a decrease of about 13% year over year and down about 10% year to date. Units under construction were down roughly 7% from a year ago. That said, there is a moderately positive signal underneath these numbers. Permits have held up nicely. Total permits in Julio were up 3% year over year, Single family permits were modestly higher, and the number of homes authorized but not yet started is up about 10% from a year ago. This means that builders are keeping their entitlement pipelines intact but are choosing not to break ground. That is a decision that can reverse relatively quickly when affordability and consumer confidence improve, and it is why we continue to view the current market as being demand deferred rather than demand destroyed. In The UK and Europe, we see the same general dynamics as in North America, though the impact varies significantly by region. We believe recovery is underway in the new build blazing and finish fenestration markets in both Iberia and Scandinavia, while softness persists in The UK, Germany, France, and Italy. We expect that future recovery in this segment will be driven by consumer confidence improvements and government sponsored social housing initiatives across the continent. Turning to the ongoing inflationary pressures around input costs, the picture remains highly variable. The inflation we described on our last call in June has not stopped, but it does appear that the pace has diminished. Raw material, energy, freight and logistic costs all remain elevated, and the disruption to international shipping routes continues to add both cost and lead time. Our response has not changed since we last discussed this issue in June. We said then that we would implement targeted price increases in the mid single digit to low teens range phased in through the third quarter and tailored by product line. And we have executed on that plan. Scott will provide more color in his comments but we believe we have meaningfully narrowed the cost price gap. That said, we also recognize that any further change in this dynamic will require additional discussions with our customers or additional surcharges to protect margins. Moving on to operational performance for the quarter. Despite the macro headwinds the market continues to face, volumes were in line with our expectations, and our operational teams performed well. As you know, shortly after we acquired Time in a little over 2 years ago, we initiated a project to resegment our business units to better support our customers enable organic growth, and improve both operational and financial performance. A great deal of heavy lifting and integration work goes into this type of project, and I am pleased with the progress to date. Since the acquisition, the plan has always been to execute our strategy in 3 stages, stabilization, optimization, and growth. I am extremely pleased with the progress made across all our reporting segments as we have worked to steady the combined business over the past 2 years. As we now move into the optimization stage, we continue to advance strategic projects built around the 80/20 principle and are completing several value stream mapping exercises. These projects are designed to improve our customer performance, optimize our footprint and cost structure, and strengthen our margins. We will continue focusing on serving our customers while improving our footprint and cost structure so that when the markets do improve, we are ready to capitalize on those opportunities. Finally, I would like to comment on free cash flow generation and capital allocation priorities. As we have said previously, most of our free cash flow is generated in our final 2 fiscal quarters And given the normal seasonality we have been experiencing, this year should be no different. I am very pleased with the work of our team in managing working capital. Which enabled us to pay down debt and repurchase shares during the quarter. Going forward, our focus on reducing inventory through 80/20 projects simplifying our footprint, and reducing intercompany transfers should translate into stronger cash flow generation. For the current quarter, our cash priorities will be to continue paying down debt and to fund organic projects that drive financial returns. I will now turn the call over to Scott, who will discuss our financial results in more detail. Scott Michael Zuehlke: Thanks, George. On a consolidated basis, we reported net sales of $502 million during the third quarter of 26. Which represents an increase of 1.3% compared to 495 million for the same period of 2025. The increase was mainly due to favorable impacts from pricing, partially offset by the impact of the IEPA tariff reimbursements to customers. We estimate that volumes were flat pricing was up about 3%, and the negative tariff refund impact was approximately 2%. Foreign exchange did not really influence the quarter. We reported net income of 26.5 million or $0.58 per diluted share during the 3 months ended July 31, 2026 compared to a net loss of $276 million or $6.04 per diluted share during the 3 months ended 07/31/2025. The reported net loss during the third quarter of 25 was primarily the result of a 302 million noncash goodwill impairment related to the resegmentation of our business. The effective tax rate in the third quarter of 26 excluding discrete items, was approximately 23%, which matched our expectation. On an adjusted basis, reported net income of 36 million or $0.79 per diluted share during the third quarter of 26 compared to net income of 31.6 million or 69¢ per diluted share during the third quarter of 25. The adjustments being made to net income are primarily related to severance and other expenses associated with manufacturing footprint and operational performance optimization, including reorganizational and restructuring charges, transaction and advisory fees, amortization expense related to intangible assets, foreign currency impacts, and goodwill impairment. On a consolidated basis, the increase in reported earnings for the third quarter of 26 compared to the third quarter of 25 was mainly due to improved pricing, lower depreciation and amortization expense, and lower interest expense. On an adjusted basis, EBITDA for the quarter was $72.7 million compared to $70.3 million during the same period of last year. Now for results by operating segment. We generated net sales of $221 million in our Hardware Solutions segment for the third quarter of 26. A slight decrease compared to $227 million in the third quarter of 25. We estimate that volumes were down about 0.5% Pricing was up by about 1.5% in this segment. Negative tariff impact due to customer reimbursements was roughly 4% The absence of the operational issues we had in Monterrey, Mexico last year had a positive impact of about 0.5%. And foreign exchange translation had a negligible impact. Adjusted EBITDA was $27.1 million in this segment for the third quarter of 26. Compared to $24.7 million in the same period of 2025. The increase was largely due to improved pricing and the absence of operational issues in Monterrey, Mexico, that impacted Q3 of last year. Our Extruded Solutions segment generated revenue of $170 million in Q3 of this year. An increase of 2.8% compared to 174 million in Q3 of last year. We estimate that volumes for the quarter were down about 0.5% year over year in this segment, with pricing up almost 3.5% and a very minor negative foreign exchange translation impact. Adjusted EBITDA declined slightly to $35.6 million in this segment for the quarter, versus $37.1 million during the same period of last year. Mainly due to general inflationary pressures partially offset by improved pricing. We reported net sales of $111 million in our Custom Solutions segment during the quarter. Which represented growth of 8.5% compared to prior-year revenue of $102 million For the quarter, we estimate that volumes were up about 3% pricing increased by about 5.5%, and the pass through of tariffs was a minor benefit. Adjusted EBITDA declined to 12 million from $12.9 million in this segment for the quarter. Mostly due to inflationary pressures we have already discussed partially offset by improved pricing. Moving on to cash flow and the balance sheet. Cash provided by operating activities was $58.6 million for the third quarter 26, which compares to $60.7 million for the third quarter of 25. Our free cash flow increased by 3.5% to $47.8 million in Q3 of 26 compared to $46.2 million in Q3 of 25. We generated sufficient cash to repay 42.3 million of debt during the third quarter of 26, and we also repurchased 1.7 million of our stock. As of 07/31/2026, our liquidity which is really just the borrowing capacity under our revolver, combined with the cash on the balance sheet, was approximately 363 million an increase of 10.5% versus Q2 of this year. We expect liquidity to improve again in the fourth quarter. As of 07/31/2026, our leverage ratio of net debt to the last 12 months adjusted EBITDA decreased to 2.8 times. We continue to believe we will exit 2026 with an even lower net leverage ratio as we continue to generate cash and repay debt. Our long term view for the residential housing market remains positive. However, due to the ongoing macroeconomic challenges, we remain cautious on the near term outlook. We continue to monitor the situation in The Middle East which is still having an impact on transportation costs the price of raw materials and energy. We do believe that the initial rate and magnitude of inflationary cost pressures have somewhat subsided. For modeling purposes, please use the following cadence for the fourth quarter of 26 versus the fourth quarter of 25. On a consolidated basis, we expect revenue growth of 2% to 3% and adjusted EBITDA margin expansion of 50 to 75 basis points. In addition, we believe an estimated tax rate of approximately 24% should be reasonable for the fourth quarter of 26. As always, we will stay focused on the things that we can control with near term emphasis on generating cash to reduce debt while opportunistically repurchasing our stock repurchasing our stock and identifying further operational improvements and efficiencies that can benefit us when economic conditions improve. Operator, we are now ready to take questions. Operator: Thank you. At this time, we will conduct a question and answer session. As a reminder to us, question, you will need to press *11 on your telephone and wait for your name to be announced. To withdraw your question, please press *11 again. Our first question comes from the line of Julio Romero of Sidoti. Your line is now open. Julio Romero: Great, thanks. Good morning, George and Scott. George L. Wilson: Good morning. Julio Romero: Wanted to start on Good morning. Wanted to start on the hardware solutions segment. You realized year over year gross margin improvement of about 160 basis points there. Can you speak to how much of the margin expansion reflects price realization from the increases phased in during the third quarter. Versus operational improvements versus eightytwenty initiatives? And then also, can you speak to how much of the announced price increases were realized and how much of the benefit is there to come in the fourth? So do not know if I can get into specifics about that. Scott Michael Zuehlke: But in general, I would say that the price increases we implemented in the third quarter were phased so that we do expect a bigger or a more impact or full impact in the fourth quarter of this year. Since we will get the full quarter impact there. From a pricing standpoint, I would say that year over year, quarter over quarter in hardware solutions, talking about adjusted EBITDA. Price improved by about 3.1 million of the of the increase. Okay. Julio Romero: And how much was if we are speaking about the EBITDA line, can you speak to the eightytwenty benefit the quarter for that segment? George L. Wilson: Yeah. So as it relates to the 80/20 projects that we have going on right now, I would say the benefits are minimal versus prior year because they are just now starting. I would I would say, you know, we have taken some actions on reducing some SG&A. But we are in the infancy stages of that, so I think you will see those continue to pick up in the fourth quarter. And then in the next year, you will see more meaningful benefits. So pretty negligible, year over year for Q3. But the momentum and progress of those projects will continue to pick up and continue to add benefit as we go forward. Julio Romero: Okay. Great. And then last 1 for me is Scott, I think you called out in the prepared that the tariff reimbursements to customers was a 2% headwind in the quarter. How much of a headwind remains for the fourth quarter? Scott Michael Zuehlke: A lot less than that. So magnitude really mostly in the hardware solution segments was roughly $9 million on the revenue side. Impact in the third quarter. So something significantly less than that in the fourth quarter is expected. Got it. Julio Romero: I will pass it on. Thanks, guys. George L. Wilson: Thank you. Operator: Thank you. 1 moment for our next question. And our next question comes from the line of Adam Thalhimer of Thompson Davis. Your line is now open. Adam Thalhimer: Hey, good morning, guys. Congrats on the solid Q3. George L. Wilson: Thank you. Adam Thalhimer: Hey, Scott. The Your margin guidance for Q4 struck me as particularly impressive. You know, at least up 50-basis-points, I guess, sequentially and year over year. Is that where should we model that from a segment standpoint? Where do you think that strength comes through? Scott Michael Zuehlke: Yeah. I would focus more on the hardware solution segment. mainly because if you think back to last year, 4 q, we still had a pretty big impact from the Monterrey issues. That should not be there this year. And then the other piece along with that we just talked about with Julio is that you are obviously gonna get the full benefit of a full quarter's worth of the pricing impact. So those 2 things compared on an annual year over year basis should especially in the hardware segment stick out the most? Adam Thalhimer: Okay. And you had good SG&A control in the third quarter, so I guess that continues in Q4. George L. Wilson: it is obviously a focus of ours. As we have gotten all of the new segments, stabilized, finalized, and we are operating, in a really pretty efficient manner, we can identify opportunities to continue to improve. Obviously, the basis of everything that we are doing from an 80/20 perspective, evaluates the amount of SG&A that you are using to support very little levels of revenue, and we are trying to address those. So, appreciate the comment. I think that, you know, it is a focus of ours, and you will continue to see improvements, both in fixed cost and SG&A. Adam Thalhimer: Great. And then I wanted to ask about because the revenue growth was impressive in Custom Solutions. And within Custom Solutions, it is particularly impressive within Wood Solutions. So I was curious Within Wood Solutions, how does the growth breakdown between kind of core volume price, and then the outsourcing opportunity that you had this year? And what is the outlook for that segment? Scott Michael Zuehlke: So, yeah, for wood, I would there is a couple things playing into the improvement in revenue. From a volume perspective, the market in general is still soft in that in that business. However, we were and I think we have commented on this before, we were able to win some new business that started hitting us earlier this year. To the tune of, like, $10 million a year. So that is definitely helping that business this year. Which is in contrast to what the market is doing. George L. Wilson: Okay. Now on a go-forward basis, you know, so we started picking up that business at the very end of our Q4 and really Q1 of this year. So you will probably see 1 more quarter of year over year benefit. And as we discussed the tariffs and obviously, what is going on between The U.S. and Canada, depending on where all those tariffs settle out, you know, that could be an opportunity for more insourcing of cabinet products because of the reliance on the wood and the wood tariffs between the 2 countries. So more to come. it is fluid as it relates to the tariffs, and it seems to change every day. So, could be some upside there, but more to come. Adam Thalhimer: Are you having active discussions on those? Or you are just saying that the backdrop remains favorable? George L. Wilson: What I would tell you is that the quoting activity is significant and I think, you know, customers that are sourcing product from Canada, are trying to find options to determine what it needs to be on a go forward basis. So they are going there. They are doing their due diligence by finding opportunities, and we are actively quoting. So, again, really fluid. Every day is different. Okay. Adam Thalhimer: Sounds great. And then, lastly, you know, obviously, very good cash flow, debt pay down. George L. Wilson: I just wanted to think kind of big picture multiyear Because before you bought Tymon, you would actually flipped to net cash. And I just wonder as you let the model run out here, maybe we get a better demand environment Is getting back to net cash a goal? Or do you think you would rather get back to doing tuck in M&A? 1 of the important part of our thesis in acquiring time and in resegmenting is that we have identified opportunities for future growth down the road. So I do not think it would be prudent for us to be in a net cash plus position. You know, I think if we cannot find opportunities to grow both organically and inorganically, in adjacent markets. We are not doing our job. So I think we would, if we get down to 1 to 1.5x I think you would see us probably looking to do more transformative type of things. But, again, we are a fairly conservative company in that regards, and we manage our debt I think, very prudently. So I think you will see the near term focus continue to be on paying down debt and using reducing the interest expense so we can grow organically. And then once we continue to drive it down, our goal is to expand into adjacent markets both organically and inorganically. So I do not think you will ever find us or it is not a goal to be in a net cash plus position. Adam Thalhimer: Okay. Good color. Thanks, guys. Scott Michael Zuehlke: You. Operator: 1 moment for the next question. Our next question comes from the line of Steven Ramsey of Thomas Research Group. Your line is now open. Steven Ramsey: Hey. Good morning, everyone. I wanted to start-- yeah. George L. Wilson: Wanted to start with the spacers product within extruded. Very strong results year to date. And, again, in the quarter, and it is a high margin product for you, Can you go into some details on the demand and the pricing in that category? And can you talk about the mix impact it is bringing to the segment margins? Yes. Scott Michael Zuehlke: As we look, obviously, I think we gave any breakdown of by product line, but that is obviously a part of the Extruded Solutions segment. And that market has grown, very nicely. And the warm edge spacer markets are very much tied to, high end energy efficient windows. So I think as energy cost, continue to be elevated and our people are being able to, justify replacing windows to get energy, savings. That the demand for our spacer product will continue to grow. You know, that started long ago in Europe, which has always been kind of the leading indicator for what is happened in North America, and I think we are seeing that. You know, it is it is been influenced in most of that product especially in North America, are on index pricing mechanisms, and a lot of that is petroleum based. So, you know, a lot of the price of that product, we have been able to pass through and cover inflation very good. So the you know, overall, I would say our margins have done well. it is a very efficient plant, and we have pricing mechanisms in place to protect us from inflationary pressures. George L. Wilson: Yeah. Scott Michael Zuehlke: The only thing I will add there, Steven, is within that extruded solution segment, yes, you have the IG spacers Business, which everybody knows is a good profitability business for us. But you also have the Liniar business in the U.K. is the vinyl extrusion business, which is also a very good, highly profitable business. So the reasons for those that segment being high margins is because of the product mix. Those 2 product lines make up from a revenue perspective, like, 65% to 70% of the revenue of that segment. So that should give you some color. George L. Wilson: Yep. Steven Ramsey: that is great color and great performance there. Also wanted to dig into the screen's performance Very good. In the quarter and up on a I believe, up on a year to date basis. Can you talk about the screens performance within hardware, what the outlook is implied there in the fourth quarter? And do you see the strength sustaining beyond this fiscal year? George L. Wilson: You know, the screens segment and product line within the hardware segment has been a good growing business for us. We continue to service the customers well. It is an area that at times, has outpaced market growth because the OE window makers, the ones that insource that, it is 1 of the first things that they can look to outsource if they are having a hard time getting labor, or taking up too much floor space in their manufacturing facilities. So we have been able to grow share probably a little faster than the market has grown, and we continue to like that business. I think we are working very hard on footprint optimization things to drive to drive more efficiency. So you know, over the course of the last couple years, we closed a couple facilities in the West Coast and are able to service that area from bigger plants and get some operational performance benefits out of that. And I think we will continue to focus on that. So, in terms of our portfolio, the entry level or the entry level screens business is probably the is near commodity product that we sell, but I think we are doing some really nice things to continue to buffer that margin. And, I think the future is great for that group. Steven Ramsey: Okay. that is helpful. Thanks for the color. Thanks. Scott Michael Zuehlke: Thanks. Operator: Thank you. 1 moment for our next question. Our next question comes from the line of Reuben Garner of Stonex. Your line is now open. Kevin Gainey: Hey, good morning, guys. This is John McLean on for Ruben Garner. George L. Wilson: Hey, John. Kevin Gainey: Hi. So most of my questions have been asked or at least touched on to an extent. Just 1 quick 1. Just kind of based on the prepared remarks there, it sounded like the tariff refunds and pass throughs were a detriment to, hardware solutions, but then it sounded like you said there was a benefit in custom. I was just wondering if you could kind of outline, you know, was that a full pass through you did to customers? Was it kind of product by product? Or categorized in some extent? Any details there? Just you know, we have seen a lot of companies, like, kind of hold on to those refunds. And kinda justify that in the sense of, new tariff policies and the inflationary pressures? Just anything you could provide color wise on the impacts there and the strategy of, passing those along. George L. Wilson: Yeah. So the tariff refunds really only impacted the hardware solutions business during the quarter. The slight improvement or benefit in the Custom Solutions segment, we are just talking about passing through tariffs like we had done prior to last quarter in most of other businesses. So it is just a nuance there. And on your last point, I think it is important that I do know, as it relates to giving back or retaining and holding tariffs, you know, our philosophy has been we are not trying to use tariffs as a margin generating item. Especially in a in a market or an environment where the consumers are pressured so hard. So our philosophy has always been that we are going to be very transparent with our customers. I think it is the way we try to do business. And so, you know, if we have passed through or pushed a tariff through and we have gotten a refund as a result of it, it is not our money to keep. And, you know, it is just a core operating philosophy of how we are going to treat our customers. So everything we have done, has been a direct pass through. And if we get refunds, we will pass it directly back through the customer. Not meant to be a margin grab for us. Kevin Gainey: Alright. that is great color, and I, I am sure your customers appreciate that as well. Good luck in the quarter ahead, guys. George L. Wilson: Thanks. Scott Michael Zuehlke: Thank you. Operator: Thank you. I am showing no further questions at this time. I will now turn it back to George L. Wilson for closing remarks. George L. Wilson: I would like to thank everyone for joining the call today, and we look forward to providing the update in early December. Thank you. Operator: Thank you for participation in today's conference. This does conclude the program. You may now disconnect. Before you buy stock in Quanex Building Products, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Quanex Building Products wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $414,015!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,385,459!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of September 9, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Quanex (NX) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Net Sales: $501.8 million in Q3 2026, up 1.3% from $495.3 million in Q3 2025. Net Income: $26.5 million, or $0.58 per diluted share, compared to a net loss of $276 million, or $6.04 per diluted share, in Q3 2025. Adjusted Net Income: $36 million, or $0.79 per diluted share, versus $31.6 million, or $0.69 per diluted share, in the prior-year quarter. Adjusted EBITDA: $72.7 million, up from $70.3 million in Q3 2025. Hardware Solutions Net Sales: $220.9 million, a slight decrease from $227.1 million in Q3 2025. Hardware Solutions Adjusted EBITDA: $27.1 million, up from $24.7 million in the prior-year period. Extruded Solutions Revenue: $179.3 million, up 2.8% from $174.4 million in Q3 2025. Extruded Solutions Adjusted EBITDA: $35.6 million, down from $37.1 million in Q3 2025. Custom Solutions Net Sales: $111 million, up 8.5% from $102.3 million in the prior-year quarter. Custom Solutions Adjusted EBITDA: $12 million, down from $12.9 million in Q3 2025. Cash Provided by Operating Activities: $58.6 million in Q3 2026, compared to $60.7 million in Q3 2025. Free Cash Flow: $47.8 million, up 3.5% from $46.2 million in Q3 2025. Debt Repayment: Repaid $42.25 million of debt during Q3 2026. Share Repurchases: Repurchased $1.7 million of stock during the quarter. Liquidity: Approximately $363 million as of July 31, 2026, up 10.5% versus Q2 of this year. Leverage Ratio: Net debt-to-last 12 months adjusted EBITDA decreased to 2.8 times. Warning! GuruFocus has detected 8 Warning Signs with NX. Is NX fairly valued? Test your thesis with our free DCF calculator. Release Date: September 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Quanex Building Products Corp (NYSE:NX) reported a 1.3% increase in net sales to $501.8 million, with adjusted EBITDA rising to $72.7 million from $70.3 million in the prior year. The company successfully implemented targeted price increases, which helped narrow the cost-price gap and contributed to a 3% overall pricing benefit in the quarter. Free cash flow increased by 3.5% to $47.8 million, enabling the company to repay $42.25 million of debt and repurchase $1.7 million of its stock. The Custom Solutions segment delivered strong growth, with net sales up 8.5% year-over-year, driven by a 3% increase in volumes and new business wins in the wood products line. Management is optimistic about future growth, citing a strong pipeline of quoting activity for insourcing opportunities due to tariffs and the potential for market recovery as permits and authorized-but-not-started homes remain elevated. The company's leverage ratio improved to 2.8 times net debt-to-EBITDA, and liquidity increased by 10.5% to approximately $363 million, with expectations for further improvement in Q4. Quanex Building Products Corp (NYSE:NX) noted that new construction activity was weaker than anticipated, with single-family starts down roughly 16% year-over-year and completions down 13%. The company continues to face elevated raw material, energy, freight, and logistics costs, along with disruptions to international shipping routes, which are adding to both costs and lead times. Volumes were flat overall and down about 0.5% in both the Hardware Solutions and Extruded Solutions segments, reflecting persistent softness in key markets like the UK, Germany, France, and Italy. The company experienced a negative impact of approximately 2% on consolidated revenue due to tariff reimbursements to customers, which acted as a headwind to reported sales growth. Adjusted EBITDA declined in the Extruded Solutions and Custom Solutions segments due to general inflationary pressures, which were only partially offset by improved pricing. Management remains cautious on the near-term outlook due to ongoing macroeconomic challenges, including the situation in the Middle East, which continues to impact transportation costs and raw material prices. Q: Can you provide more detail on the margin expansion in the Hardware Solutions segment, specifically how much is from price realization versus operational improvements, and how much of the announced price increases will benefit the fourth quarter? A: Scott Zuehlke (CFO): The price increases were phased in during the third quarter, so we expect a larger, full-quarter impact in the fourth quarter. Year-over-year, pricing improved adjusted EBITDA by about $3.1 million in the Hardware Solutions segment. George Wilson (CEO) added that 80/20 initiative benefits are currently minimal versus prior year as they are in their infancy, but momentum will pick up in Q4 and become more meaningful next year. Q: Your Q4 margin guidance is impressive. Where should we model that strength coming from from a segment standpoint? A: Scott Zuehlke (CFO): The strength should be modeled primarily in the Hardware Solutions segment. Last year's Q4 was significantly impacted by operational issues in Monterrey, Mexico, which should not repeat this year. George Wilson (CEO) added that the segment will also benefit from a full quarter's worth of pricing impact, making the year-over-year comparison in Hardware Solutions the most favorable. Q: Within the Custom Solutions segment, how does the growth in Wood Solutions break down between core volume, price, and the outsourcing opportunity? What is the outlook? A: Scott Zuehlke (CFO): The market remains soft, but we won new business worth approximately $10 million a year that began hitting earlier this year. George Wilson (CEO) noted that this provides a year-over-year benefit for one more quarter. He also highlighted that ongoing US-Canada tariff discussions could present an upside opportunity for more insourcing of cabinet products, noting that quoting activity has significantly picked up as customers seek alternatives to Canadian sourcing. Q: Given your strong cash flow and debt paydown, is getting back to a net cash position a goal, or would you prefer to return to tuck-in M&A? A: George Wilson (CEO): It is not a goal to be in a net cash plus position. The thesis for acquiring Tyman included identifying opportunities for future growth. If we can't find opportunities to grow organically and inorganically in adjacent markets, we aren't doing our job. Once we get leverage down to 1.0-1.5 times, we would likely look at more transformative actions. The near-term focus remains paying down debt and reducing interest expense to fund organic growth. Q: Can you provide details on the demand and pricing for the spacers product within Extruded Solutions and its impact on segment margins? A: George Wilson (CEO): The warm-edge spacer market is tied to high-end, energy-efficient windows, and demand continues to grow as energy costs remain elevated. Europe has been a leading indicator for North America. Most of that product line, especially in North America, operates on index pricing mechanisms tied to petroleum, allowing us to pass through inflation effectively. Scott Zuehlke (CFO) added that the segment's high margins are due to product mix, with IG spacers and the UK vinyl extrusion business making up 65-70% of segment revenue. Q: Can you discuss the strong performance of the screens business within Hardware Solutions and its outlook? A: George Wilson (CEO): The screens business has been a good grower for us, often outpacing market growth. OEM window makers frequently look to outsource screen production to free up labor and floor space, allowing us to gain share. We have optimized our footprint by closing a couple of West Coast facilities and servicing that area from larger plants, improving operational performance. While it is near a commodity product, we are doing nice things to buffer margins, and the future is bright for that group. Q: Can you clarify the impact of tariff refunds and pass-throughs, which seemed to be a detriment to Hardware Solutions but a benefit to Custom Solutions? What is your strategy on passing these along? A: Scott Zuehlke (CFO): The tariff refund only impacted the Hardware Solutions business during the quarter. The slight benefit in Custom Solutions was just the standard pass-through of tariffs. George Wilson (CEO) emphasized the company's philosophy: "We are not trying to use tariffs as a margin generating item." If we pass a tariff through and receive a refund, it is not our money to keep. The company operates with transparency, providing direct pass-throughs and returning refunds to customers. Q: How much of a headwind remains from tariff reimbursements to customers in the fourth quarter? A: Scott Zuehlke (CFO): The headwind will be significantly less than the third quarter. The impact was roughly $9 million on the revenue side in the Hardware Solutions segment during Q3, and we expect something significantly less than that in Q4. Q: You had good SG&A control in the third quarter. Does that continue into Q4? A: George Wilson (CEO): It is a focus of ours. Now that the new segments are stabilized and operating efficiently, we can identify opportunities for improvement. The 80/20 principle evaluates the amount of SG&A used to support low levels of revenue, and we are addressing those areas. You will continue to see improvements in both fixed costs and SG&A. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Quanex Building Products Corporation? Here are five stocks we like better. Quanex returned to profitability in Q3 fiscal 2026: Sales rose 1.3% to $501.8 million, while adjusted EPS increased to $0.79 from $0.69 and adjusted EBITDA reached $72.7 million. The prior-year net loss was largely caused by a $302.3 million non-cash goodwill impairment. Housing demand remains uneven and costs continue to pressure margins. U.S. single-family starts declined about 16% year over year, although permits and homes authorized but not started improved; pricing actions helped offset elevated raw-material, energy and logistics costs. Management expects modest Q4 growth and continued deleveraging: Quanex projects revenue growth of 2%–3% and adjusted EBITDA margin expansion of 50–75 basis points, supported by pricing benefits and lower tariff reimbursements. The company repaid $42.25 million of debt during the quarter, reducing leverage to 2.8 times. Powering the AI Boom: Uranium’s $95 Spark Quanex Building Products (NYSE:NX) reported third-quarter fiscal 2026 sales of $501.8 million, up 1.3% from $495.3 million a year earlier, as higher pricing offset the effects of tariff reimbursements to customers. The company said volumes were flat, pricing increased about 3%, and tariff refunds reduced revenue by approximately 2%. Net income for the quarter ended July 31 totaled $26.5 million, or $0.58 per diluted share, compared with a net loss of $276 million, or $6.04 per diluted share, in the prior-year period. The 2025 loss primarily reflected a $302.3 million non-cash goodwill impairment tied to the company’s business resegmentation. → From High Dividend Growth to High Yield, These 3 Stocks Just Boosted Dividend Payouts Why These 3 Nuclear ETFs Are Getting a Fresh Look as AI Power Demand Rises On an adjusted basis, Quanex posted net income of $36 million, or $0.79 per diluted share, compared with $31.6 million, or $0.69 per diluted share, a year earlier. Adjusted EBITDA rose to $72.7 million from $70.3 million. President and CEO George Wilson said the company continues to see an uneven housing backdrop in North America and Europe. U.S. single-family starts in July were running at an annualized rate of 808,000, down roughly 16% from a year earlier and the lowest monthly level since late 2022, he said. Single-family completions declined about 13% year over year, while units under construction fell roughly 7%. → Striking Oil: How the U.S. Play for Venezuela Fuels Supermajors 3 Bargain Stocks Under $20 With Major Growth Potential Wilson said permits offered a more constructive signal. Total permits rose 3% year over year in July, single-family permits were modestly higher, and homes authorized but not yet started increased about 10%. He characterized the environment as “demand deferred rather than demand destroyed,” saying builders have maintained entitlement pipelines while delaying new construction starts. In Europe, the company sees recovery emerging in new-build glazing and fenestration markets in Iberia and Scandinavia, while softness continues in the United Kingdom, Germany, France and Italy. Wilson said future recovery could be supported by improved consumer confidence and government-sponsored social-housing initiatives. → GitLab’s Earnings Beat Just Gave Software Bulls a New SaaSpocalypse Test Quanex also said raw-material, energy, freight and logistics costs remain elevated, though the pace of inflation has moderated. The company implemented targeted price increases ranging from the mid-single digits to low teens during the third quarter and said it had meaningfully narrowed the gap between costs and pricing. Management said further changes in costs could require additional customer discussions or surcharges. Hardware Solutions: Revenue declined 2.7% to $220.9 million. Volumes were down about 0.5%, while pricing increased about 1.5%. Tariff reimbursements to customers reduced segment revenue by roughly 4%. Adjusted EBITDA increased to $27.1 million from $24.7 million, helped by pricing and the absence of operational issues at the company’s Monterrey, Mexico, facility that affected the prior-year quarter. Extruded Solutions: Revenue rose 2.8% to $179.3 million, with volumes down about 0.5% and pricing up nearly 3.5%. Adjusted EBITDA slipped to $35.6 million from $37.1 million as inflationary costs more than offset some of the pricing benefit. Custom Solutions: Revenue increased 8.5% to $111 million. Volumes grew about 3% and pricing rose about 5.5%. Adjusted EBITDA declined to $12 million from $12.9 million, primarily due to inflationary pressure. During the question-and-answer session, Chief Financial Officer Scott Zuehlke said Hardware Solutions pricing contributed approximately $3.1 million to year-over-year adjusted EBITDA improvement. He said third-quarter pricing actions were phased in, meaning the company expects a fuller-quarter benefit in the fourth quarter. Wilson said benefits from the company’s 80/20 operational initiatives were still minimal in the third quarter because projects are in their early stages. However, he said Quanex has begun taking actions to reduce selling, general and administrative costs and expects more meaningful benefits to develop during the fourth quarter and into the next fiscal year. Cash provided by operating activities was $58.6 million, compared with $60.7 million in the prior-year quarter. Free cash flow increased 3.5% to $47.8 million. The company used its cash generation to repay $42.25 million of debt and repurchase $1.7 million of stock during the quarter. Liquidity was approximately $363 million as of July 31, up 10.5% from the preceding quarter. Its net debt-to-last-12-month adjusted EBITDA leverage ratio declined to 2.8 times. Wilson said Quanex intends to continue prioritizing debt repayment and organic investments that generate returns. Longer term, he said the company expects to pursue growth in adjacent markets through organic and inorganic opportunities rather than seek a net-cash position. For the fourth quarter of fiscal 2026, Quanex expects consolidated revenue growth of 2% to 3% from the year-earlier period and adjusted EBITDA margin expansion of 50 to 75 basis points. The company expects a tax rate of approximately 24%. Zuehlke said the expected margin improvement should be weighted toward Hardware Solutions, reflecting the absence of the prior-year Monterrey disruption and the full-quarter effect of pricing actions. He also said the roughly $9 million revenue impact from tariff reimbursements in Hardware Solutions during the third quarter should be substantially smaller in the fourth quarter. Management said it remains cautious on near-term market conditions while maintaining a positive long-term view of residential housing demand. Quanex Building Products Corporation engages in the design, manufacture and distribution of components for the window, door and building products industries in North America. The company operates through two primary segments: Window Products and Door & Building Products. Its Window Products segment supplies vinyl window profiles and related accessories, while its Door & Building Products segment offers engineered door skins, panels, siding products, specialty moldings and other exterior building components. Within its Window Products segment, Quanex produces extrusion profiles used by window fabricators to assemble vinyl casement, double-hung, slider and picture windows. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Quanex Building Products Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for September 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management characterizes the current North American housing market as 'demand deferred' rather than 'demand destroyed,' noting that while single-family completions are down 13% year-over-year, permit activity remains resilient. Performance was driven by successful execution of mid-single digit to low-teens price increases, which meaningfully narrowed the cost-price gap created by persistent inflation in energy, freight, and raw materials. The company is transitioning from a 'stabilization' phase to 'optimization' following the Tymon acquisition, utilizing 80/20 principles and value stream mapping to improve footprint and cost structures. Volume trends remained flat overall, but the company saw specific strength in energy-efficient 'warm edge' spacers and new business wins in the Wood Solutions segment totaling approximately $10 million annually. Management maintains a transparent pass-through philosophy regarding tariffs, choosing to refund reimbursements to customers to maintain long-term relationships rather than utilizing them for margin expansion. Operational improvements in Monterrey, Mexico, provided a year-over-year tailwind by eliminating previous production inefficiencies that hampered the Hardware Solutions segment. Q4 guidance assumes revenue growth of 2% to 3% and adjusted EBITDA margin expansion of 50 to 75 basis points, driven by the full-quarter impact of realized price increases. Management expects liquidity to improve further in the fourth quarter, prioritizing debt repayment and organic projects over large-scale M&A in the immediate term. The company anticipates more meaningful financial benefits from current 80/20 and SG&A reduction initiatives to materialize in fiscal 2027. Future recovery in European markets is expected to be catalyzed by improvements in consumer confidence and government-sponsored social housing initiatives. Management targets a net leverage ratio of 1.0x to 1.5x before considering more 'transformative' inorganic growth or expansion into adjacent markets. The reported net loss in the prior year period was primarily due to a $302 million non-cash goodwill impairment related to business resegmentation. Tariff reimbursements to customers acted as a $9 million revenue headwind in the Hardware Solutions segment during Q3, though this impact is expected to diminish significantly in Q4. Ongoing disruption to international shipping routes continues to add both cost and lead time to the supply chain, requiring constant monitoring of the Middle East situation. Potential changes in U.S.-Canada wood tariffs represent a fluid situation that could drive further insourcing opportunities for the Custom Solutions segment. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that Q3 margin gains were primarily driven by $3.1 million in pricing improvements in the Hardware segment. Current 80/20 project benefits are currently 'minimal' as they are in the infancy stages, with momentum expected to build through Q4 and into next year. Revenue growth was bolstered by $10 million in new business wins that offset general market softness. Management noted significant quoting activity as customers seek domestic options to avoid the volatility of U.S.-Canada wood tariffs. Management stated it is not a goal to be in a 'net cash plus' position long-term, as that would suggest a failure to find growth opportunities. The company intends to remain conservative, focusing on debt reduction to lower interest expenses before pursuing adjacent market expansion. Demand for 'warm edge' spacers is tied to high-end energy-efficient windows, which remains a growth area as consumers seek to offset elevated energy costs. The segment benefits from index-based pricing mechanisms that protect margins from fluctuations in petroleum-based raw material costs.

Net Sales GrowthVolumes Continue to Track Normal Seasonality PatternsMargin Expansion Realized in Hardware Solutions Segment and on Consolidated Basis$42.25 Million of Debt Repaid in 3Q26Continued Progress and Execution on Working Capital Management HOUSTON, Sept. 03, 2026 (GLOBE NEWSWIRE) -- Quanex Building Products Corporation (NYSE:NX) (“Quanex” or the “Company”) today announced its results for the three months ended July 31, 2026. The Company reported the following selected financial results: (See Non-GAAP Terminology Definitions and Disclaimers section, Non-GAAP Financial Measure Disclosure table, Selected Segment Data table and reconciliation tables for additional information) George Wilson, Chairman, President and Chief Executive Officer, stated, “Volumes continued to track normal seasonality patterns during the third quarter of 2026, and we made meaningful progress addressing the price versus cost imbalance that impacted our margins in the second quarter of 2026. Inflationary pressures related to macroeconomic concerns and the ongoing conflict in the Middle East are still having an impact, but the initial rate and magnitude of these pressures have somewhat subsided. “We stayed focused on managing our working capital during the third quarter of 2026, which when coupled with the seasonal uptick in volumes, enabled us to repay $42.25 million of debt and buy back some of our shares. We will continue to prioritize repaying debt and opportunistically repurchasing our shares as we generate cash in the fourth quarter of 2026. In addition, we will continue to identify operational efficiencies and commercial synergies that we believe will benefit us when consumer confidence and demand improve.” Third Quarter 2026 Results Summary Quanex reported net sales of $501.8 million during the three months ended July 31, 2026, which represents an increase of 1.3% compared to $495.3 million for the same period in 2025, mainly due to favorable impacts from pricing, partially offset by the impact of IEEPA tariff reimbursements to customers. The Hardware Solutions segments reported a 2.7% decline in net sales for the third quarter of 2026, driven by lower volumes and the impact of IEEPA tariff reimbursements to customers, which were somewhat offset by favorable impacts from pricing. The Extruded Solutions segments reported net sales growth of 2.8% for the third quarter of 2026, as lower volumes were more than offset by favorable impacts from pricing. Quanex reported an increase of 8.5% in net sales for the third quarter of 2026 in its Custom Solutions segment, largely due to increased volume and improved pricing. (See Sales Analysis table for additional information) On a consolidated basis, the increase in reported earnings for the third quarter of 2026 compared to the third quarter of 2025 was mainly due to improved pricing, lower depreciation and amortization expense and lower interest expense. Results for the third quarter of 2025 were also impacted by a $302.3 million non-cash goodwill impairment. Balance Sheet & Liquidity Update As of July 31, 2026, the Company had total debt of $672.2 million and Quanex’s leverage ratio of Net Debt to LTM Adjusted EBITDA was 2.8x. As of July 31, 2026, Quanex reported LTM Net Income of $45.4 million and LTM Adjusted EBITDA of $215.2 million (See Non-GAAP Terminology Definitions and Disclaimers section, Net Debt Reconciliation table and Last Twelve Months Adjusted EBITDA Reconciliation table for additional information) The Company’s liquidity increased by 10.5% to $363.1 million as of July 31, 2026, consisting of $62.1 million in cash on hand plus availability under its Senior Secured Revolving Credit Facility due 2029, less letters of credit outstanding. Share Repurchases Quanex’s Board authorized a $75 million share repurchase program in December of 2021. Repurchases under this program will be made in open market transactions or privately negotiated transactions, subject to market conditions, applicable legal requirements, and other relevant factors. The Company repurchased 99,786 shares of common stock for approximately $1.7 million at an average price of $17.10 per share during the three months ended July 31, 2026. As of July 31, 2026, approximately $28.7 million remained under the existing share repurchase authorization. Conference Call and Webcast Information The Company has scheduled a conference call for Friday, September 4, 2026, at 11:00 a.m. ET (10:00 a.m. CT) to discuss the release. A link to the live audio webcast will be available on Quanex’s website at http://www.quanex.com in the Investors section under Presentations & Events. Participants can pre-register for the conference call using the following link: https://register-conf.media-server.com/register/BIac7900426be941999342c141e5049229 Registered participants will receive an email containing conference call details for dial-in options. To avoid delays, it is recommended that participants dial into the conference call ten minutes ahead of the scheduled start time. A replay will be available for a limited time on the Company’s website at http://www.quanex.com in the Investors section under Presentations & Events. About Quanex Quanex is a global manufacturer with core capabilities and broad applications across various end markets. The Company currently partners with leading OEMs to provide innovative solutions in window, door, solar, refrigeration, custom mixing, building access and cabinetry markets.  Looking ahead, Quanex plans to leverage its material science expertise and process engineering to expand into adjacent markets. Non-GAAP Terminology Definitions and Disclaimers Adjusted Net Income (defined as net income further adjusted to exclude amortization of step-up for purchase price adjustments on inventory, asset impairment charges, transaction, advisory fees and reorganization costs, restructuring charges related to severance and disposal of software, amortization expense related to intangible assets, pension settlement refund and other net adjustments related to foreign currency transaction gain/loss and effective tax rates reflecting impacts of adjustments on a with and without basis) and Adjusted EPS are non-GAAP financial measures that Quanex believes provide a consistent basis for comparison between periods and more accurately reflect operational performance, as they are not influenced by certain income or expense items not affecting ongoing operations. EBITDA (defined as net income or loss before interest, taxes, depreciation and amortization and other, net), Adjusted EBITDA and LTM Adjusted EBITDA (defined as EBITDA further adjusted to exclude purchase price accounting inventory step-ups, transaction costs, certain severance charges, gain/loss on the sale of certain fixed assets, restructuring charges and asset impairment charges) are non-GAAP financial measures that the Company uses to measure operational performance and assist with financial decision-making.  Net Debt is defined as total debt (outstanding balance on the revolving credit facility plus financial lease obligations) less cash and cash equivalents. The leverage ratio of Net Debt to LTM Adjusted EBITDA is a financial measure that the Company believes is useful to investors and financial analysts in evaluating Quanex’s leverage. In addition, with certain limited adjustments, this leverage ratio is the basis for a key covenant in the Company’s credit agreement. Free Cash Flow is a non-GAAP measure calculated using cash provided by operating activities less capital expenditures. Quanex uses the Free Cash Flow metric to measure operational and cash management performance and assist with financial decision-making.   Free Cash Flow is measured before application of certain contractual commitments (including capital lease obligations), and accordingly is not a true measure of the Company’s residual cash flow available for discretionary expenditures. Quanex believes Free Cash Flow is useful to investors in understanding and evaluating the Company’s financial and cash management performance. Quanex believes that the presented non-GAAP measures provide a consistent basis for comparison between periods and will assist investors in understanding the Company’s financial performance when comparing results to other investment opportunities.  These measures allow management and investors to evaluate operational performance and trends without the impact of certain non-cash charges, acquisition-related costs, and other items that may vary significantly from period to period and may not be reflective of Quanex’s core operating results. The presented non-GAAP measures may not be the same as those used by other companies. The Company does not intend for this information to be considered in isolation or as a substitute for other measures prepared in accordance with U.S. GAAP. Forward Looking Statements This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995.   Statements that use the words “estimated,” “expect,” “could,” “should,” “believe,” “will,” “might,” “anticipate,” “intend,” “plan,” “project,” “seek,” “would,” “may,” or similar words reflecting future expectations or beliefs are forward-looking statements. The forward-looking statements include, but are not limited to, the following: Quanex’s future operating results, future financial condition, future uses of cash and other expenditures, expenses and tax rates, expectations relating to the Company’s industry, expectations regarding the recovery of price versus cost imbalances, anticipated debt repayment and share repurchase activity, expected operational efficiencies and synergies and the Company’s future growth, including any guidance discussed in this press release. The statements and guidance set forth in this release are based on current expectations. Actual results or events may differ materially from those expressed or implied in these forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. For a complete discussion of factors that may affect the Company’s future performance, please refer to Quanex’s Annual Report on Form 10-K for the fiscal year ended October 31, 2025, and the Company’s Quarterly Reports on Form 10-Q under the sections entitled “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors”. Any forward-looking statements in this press release are made as of the date hereof, and the Company undertakes no obligation to update or revise any forward-looking statements, whether written or oral, to reflect new information, developments or events.

Quanex Building Products (NX) came out with quarterly earnings of $0.79 per share, beating the Zacks Consensus Estimate of $0.68 per share. This compares to earnings of $0.69 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +16.18%. A quarter ago, it was expected that this housing materials maker would post earnings of $0.22 per share when it actually produced earnings of $0.25, delivering a surprise of +13.64%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Quanex, which belongs to the Zacks Building Products - Miscellaneous industry, posted revenues of $501.85 million for the quarter ended July 2026, surpassing the Zacks Consensus Estimate by 0.77%. This compares to year-ago revenues of $495.27 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Quanex shares have added about 23.1% since the beginning of the year versus the S&P 500's gain of 12%. While Quanex has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Quanex was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.74 on $491.4 million in revenues for the coming quarter and $1.66 on $1.86 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Miscellaneous is currently in the bottom 34% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Worthington Enterprises (WOR), another stock in the broader Zacks Construction sector, has yet to report results for the quarter ended August 2026. The results are expected to be released on September 22. This metal manufacturer is expected to post quarterly earnings of $0.76 per share in its upcoming report, which represents a year-over-year change of +2.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Worthington Enterprises' revenues are expected to be $332.1 million, up 9.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Quanex Building Products Corporation (NX) : Free Stock Analysis Report Worthington Enterprises, Inc. (WOR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Matrix Service (MTRX) came out with quarterly earnings of $0.16 per share, missing the Zacks Consensus Estimate of $0.17 per share. This compares to a loss of $0.28 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -5.88%. A quarter ago, it was expected that this energy services company would post earnings of $0.07 per share when it actually produced earnings of $0.13, delivering a surprise of +85.71%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Matrix Service, which belongs to the Zacks Engineering - R and D Services industry, posted revenues of $244.53 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 1.02%. This compares to year-ago revenues of $216.38 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Matrix Service shares have lost about 8.6% since the beginning of the year versus the S&P 500's gain of 11.5%. While Matrix Service has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Matrix Service was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.18 on $233.91 million in revenues for the coming quarter and $0.70 on $948.11 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Engineering - R and D Services is currently in the top 42% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Quanex Building Products (NX), another stock in the broader Zacks Construction sector, has yet to report results for the quarter ended July 2026. The results are expected to be released on September 3. This housing materials maker is expected to post quarterly earnings of $0.68 per share in its upcoming report, which represents a year-over-year change of -1.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Quanex Building Products' revenues are expected to be $498 million, up 0.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Matrix Service Company (MTRX) : Free Stock Analysis Report Quanex Building Products Corporation (NX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Building products company Quanex (NYSE:NX) will be announcing earnings results this Thursday afternoon. Here’s what you need to know. Quanex beat analysts’ revenue expectations last quarter, reporting revenues of $462.4 million, up 2.2% year on year. It was a very strong quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates. Is Quanex a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members. This quarter, the market is expecting Quanex’s revenue to be flat year on year, slowing from the 76.7% increase it recorded in the same quarter last year. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Quanex has a history of exceeding Wall Street’s expectations. Looking at Quanex’s peers in the home construction materials segment, some have already reported their Q2 results, giving us a hint as to what we can expect. JELD-WEN posted flat year-on-year revenue, beating analysts’ expectations by 3.2%, and Owens Corning reported flat revenue, topping estimates by 4%. JELD-WEN traded up 25.7% following the results while Owens Corning was also up 3.5%. Read our full analysis of JELD-WEN’s results here and Owens Corning’s results here. In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the home construction materials stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 6.6% on average over the last month. Quanex is down 3.8% during the same time and is heading into earnings with an average analyst price target of $27.25 (compared to the current share price of $18.50). ONE MORE THING: 3 Hidden Platforms Growing 3X Faster than Amazon, Google, and PayPal. Amazon, Google, and Meta all followed the same playbook: Dominate an ignored market. Build an unbeatable moat. Scale until you’re unstoppable. These three platforms are running that exact playbook right now. The early investors in Amazon made fortunes. The early investors in these could do the same. Get All 3 Stocks Here for FREE.