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Quanex Building Products Announces Second Quarter 2025 Results and Reaffirms Full Year 2025 Guidance

1. Quanex reported net sales of $452.5 million, a 70% increase. 2. Tyman acquisition contributed to revenue growth and cost synergies. 3. Adjusted EBITDA was $61.9 million, driven by operational improvements. 4. Seasonal demand is expected to continue despite macroeconomic challenges. 5. Share repurchases totaled $23 million, indicating confidence in stock value.

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Why Bullish?

The significant increase in net sales and cost synergies from the Tyman acquisition should positively influence NX's stock performance, similar to how past acquisitions have benefitted companies in the sector.

How important is it?

The article highlights significant financial milestones and future expectations, which are crucial for investor decisions, contributing to its importance.

Why Short Term?

The immediate impact from quarterly results and seasonal demand is likely to be reflected quickly in NX's stock price, similar to past earnings seasons where immediate market reactions were observed.

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Seasonal Uptick Unfolding as ExpectedVolume Growth in European Fenestration SegmentResults Again Lifted by Contribution from Tyman AcquisitionTyman Integration Ahead of TimelineCost Synergy Target Increased to ~$45 Million HOUSTON, June 05, 2025 (GLOBE NEWSWIRE) -- Quanex Building Products Corporation (NYSE:NX) (“Quanex” or the “Company”) today announced its results for the three months ended April 30, 2025.   The Company reported the following selected financial results:    Three Months Ended April 30, Six Months Ended April 30,($ in millions, except per share data)  2025 2024 2025 2024Net Sales  $452.5 $266.2 $852.5 $505.4Gross Margin  $131.4 $66.2 $223.7 $117.7Gross Margin %  29.0% 24.9% 26.2% 23.3%Net Income  $20.5 $15.4 $5.6 $21.6Diluted EPS  $0.44 $0.46 $0.12 $0.65          Adjusted Net Income  $27.9 $24.0 $36.8 $32.3Adjusted Diluted EPS  $0.60 $0.73 $0.79 $0.98Adjusted EBITDA  $61.9 $40.0 $100.5 $59.3Adjusted EBITDA Margin %  13.7% 15.0% 11.8% 11.7%          Cash Provided by Operating Activities  $28.5 $33.1 $16.0 $36.9Free Cash Flow  $13.6 $25.5 ($10.6) $19.8(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, commented, “Our results for the second quarter of 2025 came in as expected and reflected normal seasonality in our business. Revenue in March was approximately 6% higher than February and revenue in April was approximately 9% higher than March. It was also encouraging to see volume growth in our European Fenestration segment during the second quarter of 2025. We continue to be pleased with the integration of Tyman, and are now confident we will deliver approximately $45 million in cost synergies over time, compared to our original target of $30 million within the first two years post-acquisition. On a run-rate basis, we see a path to achieving the original $30 million cost synergy target by early fiscal 2026. We also took advantage of our low stock price during the second quarter and spent over $23 million repurchasing our shares. “Overall, despite the challenging macroeconomic environment, we expect the seasonal uptick in demand we witnessed in the second quarter to continue through the summer, and we are confident in our ability to mitigate any potential margin impact related to tariffs. In addition, any unexpected weakness in demand in the second half of 2025 could be somewhat offset by the realization of cost synergies faster than originally planned. Our near-term priorities remain unchanged, which include staying focused on the Tyman integration, capturing synergies, and generating cash flow to repurchase our stock and pay down debt.   Longer-term, we continue to expect that we will benefit from the release of pent-up demand as consumer confidence improves.”   Second Quarter Results Summary    Quanex reported net sales of $452.5 million during the three months ended April 30, 2025, which represents an increase of 70.0% compared to $266.2 million for the same period of 2024. The increase reflects the contribution from the Tyman acquisition that closed on August 1, 2024. Excluding the contribution from Tyman, net sales would have declined by 1.4% for the second quarter of 2025, mainly due to lower volume in North America. The Company reported a decrease in net sales of 5.5% for the second quarter of 2025 in its North American Fenestration segment. In its North American Cabinet Components segment, Quanex reported a marginal increase in net sales for the second quarter of 2025. Excluding foreign exchange impact, net sales increased by 7.9% in its European Fenestration segment. In addition, Quanex reported net sales of $190.1 million related to the Tyman acquisition during the second quarter of 2025. (See Sales Analysis table for additional information) The increase in net income and EBITDA for the three months ended April 30, 2025, was mostly related to the contribution from the Tyman acquisition combined with the realization of related cost synergies.   Balance Sheet & Liquidity Update As of April 30, 2025, the Company had total debt of $785.0 million and Quanex’s leverage ratio of Net Debt to LTM Adjusted EBITDA decreased to 3.2x.   As of April 30, 2025, the Company’s LTM Net Income was $17.1 million and LTM Adjusted EBITDA was $223.5 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 leverage ratio for Quanex’s quarterly debt covenant compliance (“Debt Covenant Leverage Ratio”) for its lenders was 2.7x as of April 30, 2025. The Debt Covenant Leverage Ratio calculation is defined in the Company’s Amendment No. 1 to its Second Amended and Restated Credit Agreement (“Credit Agreement”), which was filed with the SEC on June 12, 2024. In general, the main difference is that the Debt Covenant Leverage Ratio excludes real-estate leases that are considered “finance” leases under U.S. GAAP and is calculated on a proforma basis to include Adjusted EBITDA from the Tyman acquisition, $30 million of EBITDA for the synergy target related to the acquisition, less realized synergies, and only cash from domestic subsidiaries.   Note that per the terms of the Credit Agreement, the quarterly Debt Covenant Leverage Ratio must be less than 3.75x through the fourth quarter of 2025 and less than 3.25x starting in the first fiscal quarter of 2026. The Debt Covenant Leverage Ratio would be 2.4x if calculated using the total cash and cash equivalents amount on the balance sheet as of April 30, 2024, and adjusting for the cash used to repurchase stock during the quarter.   Quanex’s liquidity was $289.0 million as of April 30, 2025, consisting of $62.6 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 1,259,407 shares of common stock for approximately $23.5 million at an average price of $18.66 per share during the three months ended April 30, 2025. As of April 30, 2025, approximately $35.6 million remained under the existing share repurchase authorization.    Outlook         Mr. Wilson stated, “Based on our results year-to-date, combined with our operational execution, cost synergy realization, recent demand trends, and conversations with our customers, we are once again reaffirming our guidance for fiscal 2025. On a consolidated basis for fiscal 2025, we continue to estimate that we will generate net sales of approximately $1.84 billion to $1.86 billion, which we expect will yield Adjusted EBITDA* of $270 million to $280 million. “The finance and accounting teams continue to work with our external auditors on re-segmenting the business and our goal is to report in the new operating segments this year.” *When Quanex provides expectations for Adjusted EBITDA on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and corresponding GAAP measures is generally not available without unreasonable effort. Certain items required for such a reconciliation are outside of the Company’s control and/or cannot be reasonably predicted or estimated, such as the provision for income taxes related to net income. Conference Call and Webcast Information The Company has also scheduled a conference call for Friday, June 6, 2025 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/BI5c78744cb292420a807e6c6762cb6343 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 collaborates and partners with leading OEMs to provide innovative solutions in the 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, 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 reflects 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.  The presented non-GAAP measures may not be the same as those used by other companies. Quanex 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 Statements that use the words “estimated,” “expect,” “could,” “should,” “believe,” “will,” “might,” or similar words reflecting future expectations or beliefs are forward-looking statements. The forward-looking statements include, but are not limited to, the following: impacts from public health issues (including pandemics) on the economy and the demand for Quanex’s products, timing estimates or any other expectations related to the acquisition of Tyman, the Company’s future operating results, future financial condition, future uses of cash and other expenditures, expenses and tax rates, expectations relating to Quanex’s industry, 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 this release. For a complete discussion of factors that may affect Quanex’s future performance, please refer to the Company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2024, 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 Quanex undertakes no obligation to update or revise any forward-looking statements to reflect new information or events.          CONDENSED CONSOLIDATED STATEMENTS OF INCOME(In thousands, except per share data)(Unaudited)           Three Months Ended April 30, Six Months Ended April 30,   2025   2024   2025   2024          Net sales $452,478  $266,201  $852,522  $505,356 Cost of sales  321,096   199,963   628,824   387,686 Selling, general and administrative  70,333   34,707   136,983   67,070 Restructuring charges  936   -   8,840   - Depreciation and amortization  19,192   10,894   43,932   22,046 Operating income  40,921   20,637   33,943   28,554 Interest expense  (13,940)  (950)  (28,126)  (2,018)Other, net  (159)  4   1,070   1,046 Income before income taxes  26,822   19,691   6,887   27,582 Income tax expense  (6,307)  (4,314)  (1,257)  (5,956)Net income $20,515  $15,377  $5,630  $21,626          Earnings per common share, basic $0.44  $0.47  $0.12  $0.66 Earnings per common share, diluted $0.44  $0.46  $0.12  $0.65          Weighted average common shares outstanding:       Basic  46,483   32,870   46,753   32,847 Diluted  46,563   33,103   46,868   33,076          Cash dividends per share $0.08  $0.08  $0.16  $0.16           QUANEX BUILDING PRODUCTS CORPORATIONCONDENSED CONSOLIDATED BALANCE SHEETS(In thousands)(Unaudited)       April 30, 2025 October 31, 2024ASSETS    Current assets:    Cash and cash equivalents $62,626  $97,744 Restricted Cash  2,171   5,251 Accounts receivable, net  195,264   197,689 Inventories  279,482   275,550 Income taxes receivable  6,108   5,937 Prepaid and other current assets  42,825   29,097 Total current assets  588,476   611,268 Property, plant and equipment, net  417,104   402,466 Operating lease right-of-use assets  149,322   126,715 Deferred tax assets  4,049   3,845 Goodwill  579,110   574,711 Intangible assets, net  567,148   597,909 Other assets  3,057   2,874 Total assets $2,308,266  $2,319,788      LIABILITIES AND STOCKHOLDERS' EQUITY    Current liabilities:    Accounts payable $112,484  $124,404 Accrued liabilities  91,573   103,623 Income taxes payable  -   6,620 Current maturities of long-term debt  26,124   25,745 Current operating lease liabilities  14,184   12,475 Total current liabilities  244,365   272,867 Long-term debt  746,387   737,198 Noncurrent operating lease liabilities  139,955   117,560 Deferred income taxes  163,591   162,304 Other liabilities  12,305   19,113 Total liabilities  1,306,603   1,309,042 Stockholders’ equity:    Common stock  512   513 Additional paid-in-capital  698,238   701,008 Retained earnings  428,483   430,405 Accumulated other comprehensive loss  (27,034)  (46,428)Treasury stock at cost  (98,536)  (74,752)Total stockholders’ equity  1,001,663   1,010,746 Total liabilities and stockholders' equity $2,308,266  $2,319,788       QUANEX BUILDING PRODUCTS CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW(In thousands)(Unaudited)     Six Months Ended April 30,  2025   2024 Operating activities:   Net income$5,630  $21,626 Adjustments to reconcile net income to cash provided by operating activities:   Depreciation and amortization 43,932   22,046 Stock-based compensation 1,825   1,365 Deferred income tax 1,250   (155)Other, net 7,243   162 Changes in assets and liabilities:   Decrease in accounts receivable 5,322   10,832 Increase in inventory (1,333)  (3,008)Increase in other current assets (7,828)  (1,124)Decrease in accounts payable (14,771)  (12,619)Decrease in accrued liabilities (14,048)  (4,602)(Decrease) increase in income taxes receivable (5,471)  1,856 (Decrease) increase in other long-term liabilities (6,268)  9 Other, net 504   557 Cash provided by operating activities 15,987   36,945 Investing activities:   Capital expenditures (26,544)  (17,183)Proceeds from disposition of capital assets 376   93 Cash used for investing activities (26,168)  (17,090)Financing activities:   Borrowings under credit facilities 125,000   - Repayments of credit facility borrowings (117,500)  (15,000)Repayments of other long-term debt (1,888)  (954)Common stock dividends paid (7,552)  (5,294)Issuance of common stock 214   554 Payroll tax paid to settle shares forfeited upon vesting of stock (1,400)  (1,193)Purchase of treasury stock (27,194)  - Cash used for financing activities (30,320)  (21,887)Effect of exchange rate changes on cash and cash equivalents 2,303   (293)Decrease in cash, cash equivalents and restricted cash (38,198)  (2,325)Cash, cash equivalents and restricted cash at beginning of period 102,995   58,474 Cash, cash equivalents and restricted cash at end of period$64,797  $56,149      QUANEX BUILDING PRODUCTS CORPORATIONFREE CASH FLOW AND NET DEBT RECONCILIATION(In thousands)(Unaudited)            The following table reconciles the Company's calculation of Free Cash Flow, a non-GAAP measure, to its most directly comparable GAAP measure. The Company defines Free Cash Flow as cash provided by operating activities less capital expenditures.               Three Months Ended April 30, Six Months Ended April 30,    2025 2024 2025 2024 Cash provided by operating activities  $28,497 $33,091 $15,987 $36,945 Capital expenditures  (14,920) (7,603) (26,544) (17,183) Free Cash Flow  $13,577 $25,488 ($10,557) $19,762                       The following table reconciles the Company's Net Debt which is defined as total debt principal of the Company plus finance lease obligations minus cash.                   As of April 30,      2025 2024     Term loan facility  $481,205 $0     Revolving credit facility  242,500 -     Finance lease obligations (1)  61,272 55,217     Total debt (2)  784,977 55,217     Less: Cash and cash equivalents  62,626 56,149     Net Debt  $722,351 ($932)                (1) Includes $57.4 million and $51.0 million in real estate lease liabilities considered finance leases under U.S. GAAP as of April 30 2025 and 2024, respectively.     (2) Excludes outstanding letters of credit.                      QUANEX BUILDING PRODUCTS CORPORATIONNON-GAAP FINANCIAL MEASURE DISCLOSURELAST TWELVE MONTHS ADJUSTED EBITDA RECONCILIATION(In thousands, except per share data)(Unaudited)           Reconciliation of Last Twelve Months Adjusted EBITDA Three Months EndedApril 30, 2025 Three Months EndedJanuary 31, 2025 Three Months EndedOctober 31, 2024 Three Months EndedJuly 31, 2024 Total  Reconciliation Reconciliation Reconciliation Reconciliation ReconciliationNet income (loss) as reported $20,515 $(14,885) $(13,917) $25,350  $17,063 Income tax expense (benefit)  6,307  (5,050)  (3,621)  6,688   4,324 Other, net  159  (1,229)  2,671   (9,474)  (7,873)Interest expense  13,940  14,186   17,697   878   46,701 Depreciation and amortization  19,192  24,740   27,329   10,953   82,214 EBITDA  60,113  17,762   30,159   34,395   142,429 Cost of sales (1)  -  -   887   1,507   2,394 Selling, general and administrative (1),(2),(3)  864  12,876   50,004   6,133   69,877 Restructuring charges (4)  936  7,904   -   -   8,840 Adjusted EBITDA $61,913 $38,542  $81,050  $42,035  $223,540            (1) Expense (gain) related to plant closure.(2) Transaction, advisory fees, and reorganization costs.(3) Amortization of step-up for purchase price adjustments on inventory.(4) Restructuring charges related to severeance and disposal of software.            QUANEX BUILDING PRODUCTS CORPORATIONNON-GAAP FINANCIAL MEASURE DISCLOSURE(In thousands, except per share data)(Unaudited)                  Reconciliation of Adjusted Net Income and Adjusted EPSThree Months EndedApril 30, 2025 Three Months EndedApril 30, 2024 Six Months EndedApril 30, 2025 Six Months EndedApril 30, 2024   Net Income Diluted EPS Net Income Diluted EPS Net Income Diluted EPS Net Income Diluted EPS Net income as reported $20,515  $0.44  $15,377  $0.46  $5,630  $0.12  $21,626  $0.65  Net income reconciling items from below  7,372  $0.16   8,664  $0.27   31,218  $0.67   10,680  $0.33  Adjusted net income and adjusted EPS $27,887  $0.60  $24,041  $0.73  $36,848  $0.79  $32,306  $0.98                    Reconciliation of Adjusted EBITDA Three Months EndedApril 30, 2025 Three Months EndedApril 30, 2024 Six Months EndedApril 30, 2025 Six Months EndedApril 30, 2024   Reconciliation   Reconciliation   Reconciliation   Reconciliation   Net income as reported $20,515    $15,377    $5,630    $21,626    Income tax (benefit) expense  6,307     4,314     1,257     5,956    Other, net  159     (4)    (1,070)    (1,046)   Interest expense  13,940     950     28,126     2,018    Depreciation and amortization  19,192     10,894     43,932     22,046    EBITDA  60,113     31,531     77,875     50,600    EBITDA reconciling items from below  1,800     8,493     22,579     8,698    Adjusted EBITDA $61,913    $40,024    $100,454    $59,298                      Reconciling Items Three Months EndedApril 30, 2025 Three Months EndedApril 30, 2024 Six Months EndedApril 30, 2025 Six Months EndedApril 30, 2024   Income Statement Reconciling Items Income Statement Reconciling Items Income Statement Reconciling Items Income Statement Reconciling Items Net sales $452,478  $-  $266,201  $-  $852,522  $-  $505,356  $-  Cost of sales  321,096   -   199,963   (631)(1) 628,824   -   387,686   (631)(1)Selling, general and administrative  70,333   (864)(2) 34,707   (7,862)(1),(2) 136,983   (13,739)(2),(3) 67,070   (8,067)(1),(2)Restructuring charges  936   (936)(4) -   -   8,840   (8,840)(4) -   -  EBITDA  60,113   1,800   31,531   8,493   77,875   22,579   50,600   8,698  Depreciation and amortization  19,192   (6,451)(5) 10,894   (2,956)(5) 43,932   (17,101)(5) 22,046   (6,185)(5)Operating income  40,921   8,251   20,637   11,449   33,943   39,680   28,554   14,883  Interest expense  (13,940)  -   (950)  -   (28,126)  -   (2,018)  -  Other, net  (159)  1,003 (6) 4   (92)(6) 1,070   831 (6) 1,046   (847)(6)Income before income taxes  26,822   9,254   19,691   11,357   6,887   40,511   27,582   14,036  Income tax expense  (6,307)  (1,882)(7) (4,314)  (2,693)(7) (1,257)  (9,293)(7) (5,956)  (3,356)(7)Net income $20,515  $7,372  $15,377  $8,664  $5,630  $31,218  $21,626  $10,680                    Diluted earnings per share $0.44    $0.46    $0.12    $0.65                                        (1) Expense (gain) related to plant closure. (2) Transaction, advisory fees, and reorganization costs. (3) Amortization of step-up for purchase price adjustments on inventory. (4) Restructuring charges related to severeance and disposal of software. (5) Amortization expense related to intangible assets. (6) Pension settlement refund and foreign currency transaction losses (gains). (7) Tax impact of net income reconciling items.  QUANEX BUILDING PRODUCTS CORPORATIONSELECTED SEGMENT DATA(In thousands)(Unaudited)             This table provides gross margin, operating income (loss), EBITDA, and Adjusted EBITDA by reportable segment. Non-operating expense and income tax expense are not allocated to the reportable segments.  NA Fenestration EU Fenestration NA Cabinet Components Tyman Unallocated Corp & Other TotalThree months ended April 30, 2025            Net sales $151,026  $61,257  $51,237  $190,107  $(1,149) $452,478 Cost of sales  113,760   39,001   42,405   126,743   (813)  321,096 Gross Margin  37,266   22,256   8,832   63,364   (336)  131,382 Gross Margin %  24.7%   36.3%   17.2%   33.3%     29.0% Selling, general and administrative (1)  15,938   9,038   5,725   37,271   2,361   70,333 Restructuring charges  -   -   -   936   -   936 Depreciation and amortization  4,667   2,659   3,015   8,775   76   19,192 Operating income (loss)  16,661   10,559   92   16,382   (2,773)  40,921 Depreciation and amortization  4,667   2,659   3,015   8,775   76   19,192 EBITDA  21,328   13,218   3,107   25,157   (2,697)  60,113 Transaction, advisory fees, and reorganization costs  -   -   -   675   189   864 Restructuring charges related to severance and disposal of software  -   -   -   936   -   936 Adjusted EBITDA $21,328  $13,218  $3,107  $26,768  $(2,508) $61,913 Adjusted EBITDA Margin %  14.1%   21.6%   6.1%   14.1%     13.7%              Three months ended April 30, 2024            Net sales $159,774  $56,583  $51,078  $-  $(1,234) $266,201 Cost of sales  122,261   35,694   42,624   -   (616)  199,963 Gross Margin  37,513   20,889   8,454   -   (618)  66,238 Gross Margin %  23.5%   36.9%   16.6%       24.9% Selling, general and administrative (1)  13,730   7,873   5,066   -   8,038   34,707 Depreciation and amortization  5,218   2,538   3,082   -   56   10,894 Operating income (loss)  18,565   10,478   306   -   (8,712)  20,637 Depreciation and amortization  5,218   2,538   3,082   -   56   10,894 EBITDA  23,783   13,016   3,388   -   (8,656)  31,531 Expense related to plant closure (Cost of sales)  631   -   -   -   -   631 Expense related to plant closure (SG&A)  978   -   -   -   -   978 Transaction and advisory fees  -   -   -   -   6,884   6,884 Adjusted EBITDA $25,392  $13,016  $3,388  $-  $(1,772) $40,024 Adjusted EBITDA Margin %  15.9%   23.0%   6.6%       15.0%              Six months ended April 30, 2025            Net sales $285,359  $109,728  $95,047  $365,783  $(3,395) $852,522 Cost of sales  220,327   69,638   81,821   259,539   (2,501)  628,824 Gross Margin  65,032   40,090   13,226   106,244   (894)  223,698 Gross Margin %  22.8%   36.5%   13.9%   29.0%     26.2% Selling, general and administrative (1)  32,071   16,959   10,992   71,649   5,312   136,983 Restructuring charges  -   -   -   8,840   -   8,840 Depreciation and amortization  9,446   5,269   6,024   23,038   155   43,932 Operating income (loss)  23,515   17,862   (3,790)  2,717   (6,361)  33,943 Depreciation and amortization  9,446   5,269   6,024   23,038   155   43,932 EBITDA  32,961   23,131   2,234   25,755   (6,206)  77,875 Amortization of step-up for purchase price adjustments on inventory  -   -   -   9,007   -   9,007 Transaction, advisory fees, and reorganization costs  -   -   -   2,142   2,590   4,732 Restructuring charges related to severance and disposal of software  -   -   -   8,840   -   8,840 Adjusted EBITDA $32,961  $23,131  $2,234  $45,744  $(3,616) $100,454 Adjusted EBITDA Margin %  11.6%   21.1%   2.4%   12.5%     11.8%              Six months ended April 30, 2024            Net sales $307,769  $106,020  $94,215  $-  $(2,648) $505,356 Cost of sales  240,629   67,397   81,367   -   (1,707)  387,686 Gross Margin  67,140   38,623   12,848   -   (941)  117,670 Gross Margin %  21.8%   36.4%   13.6%       23.3% Selling, general and administrative (1)  29,640   15,618   10,192   -   11,620   67,070 Depreciation and amortization  10,693   5,096   6,147   -   110   22,046 Operating income (loss)  26,807   17,909   (3,491)  -   (12,671)  28,554 Depreciation and amortization  10,693   5,096   6,147   -   110   22,046 EBITDA  37,500   23,005   2,656   -   (12,561)  50,600 Expense related to plant closure (Cost of sales)  631   -   -   -   -   631 Expense related to plant closure (SG&A)  978   -   -   -   -   978 Transaction and advisory fees  -   -   -   -   7,089   7,089 Adjusted EBITDA $39,109  $23,005  $2,656  $-  $(5,472) $59,298 Adjusted EBITDA Margin %  12.7%   21.7%   2.8%       11.7%              (1) Includes stock-based compensation expense for the three and six months ended April 30, 2025, respectively of $0.6 million and $1.8 million and $1.5 million and $4.1 million for the comparable prior year periods.              QUANEX BUILDING PRODUCTS CORPORATIONSALES ANALYSIS(In thousands)(Unaudited)           Three Months Ended April 30, Six Months Ended April 30,   2025   2024   2025   2024          NA Fenestration:        United States - fenestration$112,261  $119,646  $212,690  $231,280  International - fenestration 8,054   7,465   13,913   13,609  United States - non-fenestration 26,751   27,532   49,956   53,323  International - non-fenestration 3,960   5,131   8,800   9,557   $151,026  $159,774  $285,359  $307,769 EU Fenestration: (1)        International - fenestration$50,687  $46,968  $92,743  $88,719  International - non-fenestration 10,570   9,615   16,985   17,301   $61,257  $56,583  $109,728  $106,020 NA Cabinet Components:        United States - fenestration$3,507  $3,737  $6,959  $7,412  United States - non-fenestration 47,364   46,990   87,427   86,169  International - non-fenestration 366   351   661   634   $51,237  $51,078  $95,047  $94,215 Tyman:        United States - fenestration$113,950  $-  $219,541  $-  International - fenestration 75,547   -   144,829   -  United States - non-fenestration 610   -   1,395   -  International - non-fenestration -   -   18   -   $190,107  $-  $365,783  $-          Unallocated Corporate & Other:        Eliminations$(1,149) $(1,234) $(3,395) $(2,648)  $(1,149) $(1,234) $(3,395) $(2,648)         Net Sales$452,478  $266,201  $852,522  $505,356          (1) Reflects an increase of $0.2 million in revenue associated with foreign currency exchange rate impacts for the three and six months ended April 30, 2025, respectively.         

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