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Quanex Building Products Announces Third Quarter 2025 Results

1. NX reported a 76.7% increase in net sales year-over-year. 2. The company's adjusted net income rose despite a significant goodwill impairment. 3. Cash flow improved, allowing NX to repay over $51 million in debt. 4. Cost synergy targets are updated to approximately $45 million. 5. NX faces operational challenges but maintains optimistic growth outlook.

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FAQ

Why Bullish?

Despite a substantial loss, NX demonstrated solid sales growth and improving cash flow, suggesting resilience. Such performance can attract investor confidence, similar to previous recoveries post-earnings dips.

How important is it?

The focus on improved cash flow and higher sales figures, despite challenges, indicates resilience and positive future prospects for NX, impacting investor confidence and, accordingly, stock prices. Historical patterns suggest companies with strong sales growth rebound positively.

Why Long Term?

With improved synergy targets and cash flow stabilization, NX is positioned for future growth. Historically, companies that manage integration and cost synergies effectively have seen long-term stock recovery.

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TYMNHUDMAS
New Segment Reporting ImplementedBalance Sheet Further Strengthened with $51.25 Million of Debt Repaid in 3Q25Cost Synergy Target ReaffirmedFull Year Guidance Updated HOUSTON, Sept. 04, 2025 (GLOBE NEWSWIRE) -- Quanex Building Products Corporation (NYSE:NX) (“Quanex” or the “Company”) today announced its results for the three months ended July 31, 2025.   The Company reported the following selected financial results:  Three Months Ended July 31, Nine Months Ended July 31,($ in millions, except per share data)2025 2024 2025 2024Net Sales$495.3 $280.3 $1,347.8 $785.7Gross Margin$138.0 $70.9 $361.7 $188.6Gross Margin %27.9% 25.3% 26.8% 24.0%Net (loss) income($276.0) $25.4 ($270.4) $47.0Diluted EPS($6.04) $0.77 ($5.83) $1.42        Adjusted Net Income$31.6 $26.9 $68.4 $60.7Adjusted Diluted EPS$0.69 $0.81 $1.47 $1.84Adjusted EBITDA$70.3 $42.0 $172.0 $101.3Adjusted EBITDA Margin %14.2% 15.0% 12.8% 12.9%        Cash Provided by Operating Activities$60.7 $46.4 $76.6 $83.3Free Cash Flow$46.2 $40.1 $35.6 $59.9         (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, “A significant amount of work had to be done to re-segment the business, so we are pleased that the work is now complete, and we are operating and reporting in our new segments. We are encouraged by the overall resilience of the business in the current environment, demonstrated by our strong cash flow, which enabled us to repay over $51 million in bank debt in the third quarter of 2025. Our balance sheet is healthy, and our liquidity improved meaningfully during the quarter. We continue to make substantial progress on the integration of the Tyman business. After identifying additional target synergies and adjusting for lower expected volumes and pushing out the timing of when we expect to realize procurement savings, we still believe there is a path to realizing approximately $45 million in cost synergies over time, which is above our initial projection of $30 million. Although macroeconomic uncertainty and low consumer confidence, as well as operational issues related to the legacy Tyman window and door hardware business in Mexico that are ongoing but temporary in nature, posed challenges for us in our third quarter, we remain optimistic about our prospects for profitable growth and value creation. Looking ahead, we believe Quanex is well positioned due to our solid, flexible financial foundation and advantaged strategic positioning. Despite the macroeconomic uncertainty, our near-term priorities remain unchanged, which include staying focused on the Tyman integration, capturing synergies, generating cash flow to pay down debt and opportunistically repurchasing our stock. As macroeconomic uncertainty subsides and consumer confidence improves, our team is well positioned to capitalize on pent-up demand.” Third Quarter Results Summary Quanex generated net sales of $495.3 million during the three months ended July 31, 2025, which represents an increase of 76.7% compared to $280.3 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 increased by 1.4% for the third quarter of 2025, mainly due to increased pricing and tariff passthroughs, offset by lower volumes. Inclusive of contributions from the Tyman acquisition, the Company reported increases in net sales of 201.0%, 29.6% and 40.7% for the third quarter of 2025 in its Hardware Solutions, Extruded Solutions and Custom Solutions segments, respectively.   (See Sales Analysis table for additional information) On a consolidated basis, the decrease in reported earnings for the three months ended July 31, 2025, was primarily the result of a $302.3 million non-cash goodwill impairment related to the re-segmentation of the business. The re-segmentation occurred at a point in time when consumer confidence is low, and equity values for building products companies are depressed. The non-cash goodwill impairment is not related to any performance indicators or revisions to long-term expectations. In addition, ongoing macroeconomic uncertainty, low consumer confidence and operational challenges related to the legacy Tyman window and door hardware business in Mexico impacted results more than expected during the third quarter of 2025. The seasonal uptick Quanex started to see in the second quarter of 2025 didn’t continue to materialize to the degree the Company anticipated, and procurement related cost synergies were lower than expected. The increase in adjusted earnings during the third quarter of 2025, compared to the same period of 2024, was mostly due to the contribution from the Tyman acquisition combined with the realization of related cost synergies. Balance Sheet & Liquidity Update As of July 31, 2025, the Company had total debt of $733.7 million and Quanex’s leverage ratio of Net Debt to LTM Adjusted EBITDA decreased to 2.6x. As of July 31, 2025, the Company reported a LTM Net Loss of $284.3 million, mainly due to the non-cash goodwill impairment and LTM Adjusted EBITDA was $251.8 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 2.4x as of July 31, 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 2.3x if calculated using the full $66.3 million cash and cash equivalents balance as of July 31, 2025, and adjusting for the $2.1 million in cash used to repurchase stock during the quarter. Quanex’s liquidity improved to $337.7 million as of July 31, 2025, consisting of $66.3 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 100,000 shares of common stock for approximately $2.1 million at an average price of $20.54 per share during the three months ended July 31, 2025. As of July 31, 2025, approximately $33.6 million remained under the existing share repurchase authorization. Outlook Quanex is updating its guidance for fiscal 2025 based on year-to-date results, recent demand trends, an updated cost synergy realization tracking and timing model, conversations with its customers, and a realistic timeline to address operational issues in the window and door hardware business in Mexico. On a consolidated basis for fiscal 2025, the Company now estimates that it will generate net sales of approximately $1.82 billion, which Quanex expects will yield Adjusted EBITDA* of approximately $235 million. Mr. Wilson commented, “We have a strong team with a proven track record and a breadth of products that are unmatched in the industry, which gives us confidence in our ability to execute on our long-term operational and financial objectives.” *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, September 5, 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/BI1e90103192034399a255d44d3a7eb162 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, 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 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 July 31, Nine Months Ended July 31,  2025 2024 2025 2024         Net sales $495,273  $280,345  $1,347,795  $785,701 Cost of sales  357,305   209,441   986,129   597,127 Selling, general and administrative  71,270   36,509   208,253   103,579 Restructuring charges  1,367   -   10,207   - Depreciation and amortization  33,882   10,953   77,814   32,999 Asset impairment charges  302,284   -   302,284   - Operating (loss) income  (270,835)  23,442   (236,892)  51,996 Interest expense  (14,218)  (878)  (42,344)  (2,896)Other, net  855   9,474   1,925   10,520 (Loss) income before income taxes  (284,198)  32,038   (277,311)  59,620 Income tax benefit (expense)  8,191   (6,688)  6,934   (12,644)Net (loss) income $(276,007) $25,350  $(270,377) $46,976          (Loss) earnings per common share, basic $(6.04) $0.77  $(5.83) $1.43 (Loss) earnings per common share, diluted $(6.04) $0.77  $(5.83) $1.42          Weighted average common shares outstanding:       Basic  45,691   32,876   46,395   32,857 Diluted  45,691   33,106   46,395   33,087          Cash dividends per share $0.08  $0.08  $0.24  $0.24            QUANEX BUILDING PRODUCTS CORPORATIONCONDENSED CONSOLIDATED BALANCE SHEETS(In thousands)(Unaudited)       July 31, 2025 October 31, 2024ASSETS    Current assets:    Cash and cash equivalents $66,272  $97,744 Restricted Cash  1,654   5,251 Accounts receivable, net  201,837   197,689 Inventories  272,222   275,550 Income taxes receivable  -   5,937 Prepaid and other current assets  41,339   29,097 Total current assets  583,324   611,268 Property, plant and equipment, net  405,510   402,466 Operating lease right-of-use assets  147,829   126,715 Deferred tax assets  3,654   3,845 Goodwill  271,459   574,711 Intangible assets, net  558,768   597,909 Other assets  2,133   2,874 Total assets $1,972,677  $2,319,788      LIABILITIES AND STOCKHOLDERS' EQUITY    Current liabilities:    Accounts payable $126,486  $124,404 Accrued liabilities  95,378   103,623 Income taxes payable  1,273   6,620 Current maturities of long-term debt  26,313   25,745 Current operating lease liabilities  15,243   12,475 Total current liabilities  264,693   272,867 Long-term debt  695,605   737,198 Noncurrent operating lease liabilities  138,246   117,560 Deferred income taxes  143,576   162,304 Other liabilities  13,166   19,113 Total liabilities  1,255,286   1,309,042 Stockholders’ equity:    Common stock  512   513 Additional paid-in-capital  699,106   701,008 Retained earnings  148,795   430,405 Accumulated other comprehensive loss  (30,501)  (46,428)Treasury stock at cost  (100,521)  (74,752)Total stockholders’ equity  717,391   1,010,746 Total liabilities and stockholders' equity $1,972,677  $2,319,788        QUANEX BUILDING PRODUCTS CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW(In thousands)(Unaudited)     Nine Months Ended July 31, 2025 2024Operating activities:   Net (loss) income$(270,377) $46,976 Adjustments to reconcile net (loss) income to cash provided by operating activities:   Depreciation and amortization 77,814   32,999 Stock-based compensation 2,762   2,159 Deferred income tax (26,440)  (2,321)Asset impairment charge 302,284   - Gain on deal contingent foreign exchange forward currency contract -   (9,200)Other, net 9,203   886 Changes in assets and liabilities:   (Increase) decrease in accounts receivable (1,727)  11,114 Decrease (increase) in inventory 5,261   (183)(Increase) decrease in other current assets (7,228)  1,646 Increase (decrease) in accounts payable 144   (9,634)(Decrease) increase in accrued liabilities (9,725)  948 (Decrease) increase in income taxes payable (21)  6,659 (Decrease) increase in other long-term liabilities (5,395)  707 Other, net 88   577 Cash provided by operating activities 76,643   83,333 Investing activities:   Capital expenditures (40,996)  (23,435)Proceeds from disposition of capital assets 361   115 Cash used for investing activities (40,635)  (23,320)Financing activities:   Borrowings under credit facilities 170,000   - Repayments of credit facility borrowings (213,750)  (15,000)Repayments of other long-term debt (1,962)  (1,893)Common stock dividends paid (11,233)  (7,943)Issuance of common stock 214   573 Payroll tax paid to settle shares forfeited upon vesting of stock (1,400)  (1,193)Purchase of treasury stock (29,248)  - Cash used for financing activities (87,379)  (25,456)Effect of exchange rate changes on cash and cash equivalents 16,302   935 (Decrease) increase in cash, cash equivalents and restricted cash (35,069)  35,492 Cash, cash equivalents and restricted cash at beginning of period 102,995   58,474 Cash, cash equivalents and restricted cash at end of period$67,926  $93,966       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 July 31, Nine Months Ended July 31,  2025 2024 2025 2024Cash provided by operating activities $60,656 $46,388 76,643 $83,333Capital expenditures (14,452) (6,252) (40,996) (23,435)Free Cash Flow $46,204 $40,136 $35,647 $59,898                  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 July 31,    2025 2024    Term loan facility $475,000 $0    Revolving credit facility 197,500 -    Finance lease obligations(1) 61,194 55,007    Total debt(2) 733,694 55,007    Less: Cash and cash equivalents 66,272 93,966    Net Debt $667,422 ($38,959)             (1) Includes $58.9 million and $50.7 million in real estate lease liabilities considered finance leases under U.S. GAAP as of July 31, 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 EndedJuly 31, 2025 Three Months EndedApril 30, 2025 Three Months EndedJanuary 31, 2025 Three Months EndedOctober 31, 2024 Total  Reconciliation Reconciliation Reconciliation Reconciliation ReconciliationNet (loss) income as reported $(276,007) $20,515 $(14,885) $(13,917) $(284,294)Income tax (benefit) expense  (8,191)  6,307  (5,050)  (3,621)  (10,555)Other, net  (855)  159  (1,229)  2,671   746 Interest expense  14,218   13,940  14,186   17,697   60,041 Depreciation and amortization  33,882   19,192  24,740   27,329   105,143 Asset impairment charges  302,284   -  -   -   302,284 EBITDA  65,331   60,113  17,762   30,159   173,365 Cost of sales(1)  148   -  -   887   1,035 Selling, general and administrative(1),(2),(3)  3,449   864  12,876   50,004   67,193 Restructuring charges(4)  1,367   936  7,904   -   10,207 Adjusted EBITDA $70,295  $61,913 $38,542  $81,050  $251,800            (1) Expense related to plant closure/relocation.(2) Transaction, advisory fees, reorganization costs and product recall expenses.(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 EPS Three Months Ended July 31, 2025 Three Months Ended July 31, 2024 Nine Months Ended July 31, 2025 Nine Months Ended July 31, 2024   NetIncome DilutedEPS NetIncome DilutedEPS NetIncome DilutedEPS NetIncome DilutedEPS Net (loss) income as reported $(276,007) $(6.04) $25,350  $0.77  $(270,377) $(5.83) $46,976  $1.42  Net (loss) income reconciling items from below  307,578  $6.73   1,597  $0.04   338,756  $7.30   13,757  $0.42  Adjusted net income and adjusted EPS $31,571  $0.69  $26,947  $0.81  $68,379  $1.47  $60,733  $1.84                    Reconciliation of Adjusted EBITDA Three Months Ended July 31, 2025 Three Months Ended July 31, 2024 Nine Months Ended July 31, 2025 Nine Months Ended July 31, 2024   Reconciliation   Reconciliation   Reconciliation   Reconciliation   Net (loss) income as reported $(276,007)   $25,350    $(270,377)   $46,976    Income tax (benefit) expense  (8,191)    6,688     (6,934)    12,644    Other, net  (855)    (9,474)    (1,925)    (10,520)   Interest expense  14,218     878     42,344     2,896    Depreciation and amortization  33,882     10,953     77,814     32,999    Asset impairment charges  302,284     -     302,284     -    EBITDA  65,331     34,395     143,206     84,995    EBITDA reconciling items from below  4,964     7,640     28,766     16,338    Adjusted EBITDA $70,295    $42,035    $171,972    $101,333                      Reconciling Items Three Months Ended July 31, 2025 Three Months Ended July 31, 2024 Nine Months Ended July 31, 2025 Nine Months Ended July 31, 2024   Income Statement Reconciling Items Income Statement Reconciling Items Income Statement Reconciling Items Income Statement Reconciling Items Net sales $495,273  $-  $280,345  $-  $1,347,795  $-  $785,701  $-  Cost of sales  357,305   (148)(1) 209,441   (1,507)(1) 986,129   (1,124)(1) 597,127   (2,138)(1)Selling, general and administrative  71,270   (3,449)(1), (2) 36,509   (6,133)(1), (2) 208,253   (17,435)(1), (2), (3) 103,579   (14,200)(1), (2)Restructuring charges  1,367   (1,367)(4) -   -   10,207   (10,207)(4) -   -  EBITDA  65,331   4,964   34,395   7,640   143,206   28,766   84,995   16,338  Asset impairment charges  302,284   (302,284)(5) -   -   302,284   (302,284)(5) -   -  Depreciation and amortization  33,882   (19,604)(6) 10,953   (2,796)(6) 77,814   (36,708)(6) 32,999   (8,982)(6)Operating income  (270,835)  326,852   23,442   10,436   (236,892)  367,758   51,996   25,320  Interest expense  (14,218)  -   (878)  -   (42,344)  -   (2,896)  -  Other, net  855   (949)(7) 9,474   (9,162)(7) 1,925   (118)(7) 10,520   (10,009)(7)Income before income taxes  (284,198)  325,903   32,038   1,274   (277,311)  367,640   59,620   15,311  Income tax expense  8,191   (18,325)(8) (6,688)  323 (8) 6,934   (28,884)(8) (12,644)  (1,554)(8)Net (loss) income $(276,007) $307,578  $25,350  $1,597  $(270,377) $338,756  $46,976  $13,757                    Diluted (loss) earnings per share $(6.04)   $0.77    $(5.83)   $1.42                      (1) Expense related to plant closure/relocation.(2) Transaction, advisory fees, reorganization costs and product recall expenses.(3) Amortization of step-up for purchase price adjustments on inventory.(4) Restructuring charges related to severeance and disposal of software.(5) Goodwill impairment.(6) Amortization expense related to intangible assets and onetime deprecation adjustment.(7) Pension settlement refund and foreign currency transaction gains.(8) 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.             Hardware Solutions Extruded Solutions Custom Solutions Unallocated Corp & Other TotalThree months ended July 31, 2025          Net sales $227,116  $174,427  $102,264  $(8,534) $495,273 Cost of sales  170,282   116,597   77,755   (7,329)  357,305 Gross Margin  56,834   57,830   24,509   (1,205)  137,968 Gross Margin %  25.0%   33.2%   24.0%     27.9% Selling, general and administrative(1)  32,954   20,740   11,708   5,868   71,270 Restructuring charges  1,140   34   26   167   1,367 Depreciation and amortization  16,987   6,989   4,716   5,190   33,882 Asset impairment charges  163,198   54,934   84,152   -   302,284 Operating loss  (157,445)  (24,867)  (76,093)  (12,430)  (270,835)Depreciation and amortization  16,987   6,989   4,716   5,190   33,882 Asset impairment charges  163,198   54,934   84,152   -   302,284 EBITDA  22,740   37,056   12,775   (7,240)  65,331 Expense related to plant relocation (Cost of sales)  148   -   -   -   148 Transaction, advisory fees, reorganization costs, and product recall expenses  715   -   50   2,684   3,449 Restructuring charges related to severance  1,140   34   26   167   1,367 Adjusted EBITDA $24,743  $37,090  $12,851  $(4,389) $70,295 Adjusted EBITDA Margin %  10.9%   21.3%   12.6%     14.2%            Three months ended July 31, 2024          Net sales $75,460  $134,552  $72,667  $(2,334) $280,345 Cost of sales  59,092   92,790   59,973   (2,414)  209,441 Gross Margin  16,368   41,762   12,694   80   70,904 Gross Margin %  21.7%   31.0%   17.5%     25.3% Selling, general and administrative(1)  6,906   15,648   6,559   7,396   36,509 Depreciation and amortization  1,225   5,460   4,211   57   10,953 Operating income (loss)  8,237   20,654   1,924   (7,373)  23,442 Depreciation and amortization  1,225   5,460   4,211   57   10,953 EBITDA  9,462   26,114   6,135   (7,316)  34,395 Expense related to plant closure (Cost of sales)  -   1,507   -   -   1,507 Expense related to plant closure (SG&A)  -   125   -   -   125 Transaction and advisory fees  -   -   -   6,008   6,008 Adjusted EBITDA $9,462  $27,746  $6,135  $(1,308) $42,035 Adjusted EBITDA Margin %  12.5%   20.6%   8.4%     15.0%            Nine months ended July 31, 2025          Net sales $614,791  $478,024  $284,809  $(29,829) $1,347,795 Cost of sales  466,600   325,914   219,755   (26,140)  986,129 Gross Margin  148,191   152,110   65,054   (3,689)  361,666 Gross Margin %  24.1%   31.8%   22.8%     26.8% Selling, general and administrative(1)  98,570   60,921   34,156   14,606   208,253 Restructuring charges  8,155   34   26   1,992   10,207 Depreciation and amortization  38,818   22,066   15,693   1,237   77,814 Asset impairment charges  163,198   54,934   84,152   -   302,284 Operating (loss) income  (160,550)  14,155   (68,973)  (21,524)  (236,892)Depreciation and amortization  38,818   22,066   15,693   1,237   77,814 Asset impairment charges  163,198   54,934   84,152   -   302,284 EBITDA  41,466   91,155   30,872   (20,287)  143,206 Expense related to plant relocation (Cost of sales)  1,124   -   -   -   1,124 Expense related to plant relocation (SG&A)  247   -   -   -   247 Amortization of step-up for purchase price adjustments on inventory.  7,276   1,428   302   -   9,006 Transaction, advisory fees, reorganization costs, and product recall expenses  1,397   177   50   6,558   8,182 Restructuring charges related to severance and disposal of software  8,155   34   26   1,992   10,207 Adjusted EBITDA $59,665  $92,794  $31,250  $(11,737) $171,972 Adjusted EBITDA Margin %  9.7%   19.4%   11.0%     12.8%            Nine months ended July 31, 2024          Net sales $204,127  $379,860  $208,201  $(6,487) $785,701 Cost of sales  165,952   263,107   174,365   (6,297)  597,127 Gross Margin  38,175   116,753   33,836   (190)  188,574 Gross Margin %  18.7%   30.7%   16.3%     24.0% Selling, general and administrative(1)  18,704   45,733   19,456   19,686   103,579 Depreciation and amortization  3,531   16,616   12,685   167   32,999 Operating income (loss)  15,940   54,404   1,695   (20,043)  51,996 Depreciation and amortization  3,531   16,616   12,685   167   32,999 EBITDA  19,471   71,020   14,380   (19,876)  84,995 Expense related to plant closure (Cost of sales)  -   2,138   -   -   2,138 Expense related to plant closure (SG&A)  -   1,103   -   -   1,103 Transaction and advisory fees  -   -   -   13,097   13,097 Adjusted EBITDA $19,471  $74,261  $14,380  $(6,779) $101,333 Adjusted EBITDA Margin %  9.5%   19.5%   6.9%     12.9%            (1) Includes stock-based compensation expense for the three and nine months ended July 31, 2025, respectively of $1.8 million and $3.6 million, and $1.3 million and $5.3 million for the comparable prior year periods.             QUANEX BUILDING PRODUCTS CORPORATIONSELECTED SEGMENT DATA RECONCILIATION(In thousands)(Unaudited)           This table reconciles our segment presentation, as previously reported in Exhibit 99.1 to our Current Report Form 8-K dated August 12, 2024 for the three and nine months ended July 31, 2024, to the current presentation.             NA Fenestration EU Fenestration NA Cabinet Components Unallocated Corp & Other TotalThree months ended July 31, 2024          Net sales $170,258  $59,617  $51,448  $(978) $280,345 Cost of sales  130,301   36,930   42,911   (701)  209,441 Gross Margin  39,957   22,687   8,537   (277)  70,904 Gross Margin %  23.5%   38.1%   16.6%     25.3% Selling, general and administrative  16,918   7,390   5,162   7,039   36,509 Depreciation and amortization  5,194   2,609   3,093   57   10,953 Operating income (loss)  17,845   12,688   282   (7,373)  23,442 Depreciation and amortization  5,194   2,609   3,093   57   10,953 EBITDA  23,039   15,297   3,375   (7,316)  34,395 Expense related to plant closure (Cost of sales)  1,507   -   -   -   1,507 Expense related to plant closure (SG&A)  125   -   -   -   125 Transaction and advisory fees  -   -   -   6,008   6,008 Adjusted EBITDA $24,671  $15,297  $3,375  $(1,308) $42,035 Adjusted EBITDA Margin %  14.5%   25.7%   6.6%     15.0%              Hardware Solutions(1) Extruded Solutions(2) Custom Solutions(3) Unallocated Corp & Other TotalThree months ended July 31, 2024          Net sales $75,460  $134,552  $72,667  $(2,334) $280,345 Cost of sales  59,092   92,790   59,973   (2,414)  209,441 Gross Margin  16,368   41,762   12,694   80   70,904 Gross Margin %  21.7%   31.0%   17.5%     25.3% Selling, general and administrative  6,906   15,648   6,559   7,396   36,509 Depreciation and amortization  1,225   5,460   4,211   57   10,953 Operating income  8,237   20,654   1,924   (7,373)  23,442 Depreciation and amortization  1,225   5,460   4,211   57   10,953 EBITDA  9,462   26,114   6,135   (7,316)  34,395 Expense related to plant closure (Cost of sales)  -   1,507   -   -   1,507 Expense related to plant closure (SG&A)  -   125   -   -   125 Transaction and advisory fees  -   -   -   6,008   6,008 Adjusted EBITDA $9,462  $27,746  $6,135  $(1,308) $42,035 Adjusted EBITDA Margin %  12.5%   20.6%   8.4%     15.0%              NA Fenestration EU Fenestration NA Cabinet Components Unallocated Corp & Other TotalNine months ended July 31, 2024          Net sales $478,027  $165,637  $145,663  $(3,626) $785,701 Cost of sales  370,930   104,327   124,278   (2,408)  597,127 Gross Margin  107,097   61,310   21,385   (1,218)  188,574 Gross Margin %  22.4%   37.0%   14.7%     24.0% Selling, general and administrative  46,558   23,008   15,354   18,659   103,579 Depreciation and amortization  15,887   7,705   9,240   167   32,999 Operating income (loss)  44,652   30,597   (3,209)  (20,044)  51,996 Depreciation and amortization  15,887   7,705   9,240   167   32,999 EBITDA  60,539   38,302   6,031   (19,877)  84,995 Expense related to plant closure (Cost of sales)  2,138   -   -   -   2,138 Expense related to plant closure (SG&A)  1,103   -   -   -   1,103 Transaction and advisory fees  -   -   -   13,097   13,097 Adjusted EBITDA $63,780  $38,302  $6,031  $(6,780) $101,333 Adjusted EBITDA Margin %  13.3%   23.1%   4.1%     12.9%              Hardware Solutions(1) Extruded Solutions(2) Custom Solutions(3) Unallocated Corp & Other TotalNine months ended July 31, 2024          Net sales $204,127  $379,860  $208,201  $(6,487) $785,701 Cost of sales  165,952   263,107   174,365   (6,297)  597,127 Gross Margin  38,175   116,753   33,836   (190)  188,574 Gross Margin %  18.7%   30.7%   16.3%     24.0% Selling, general and administrative  18,704   45,733   19,456   19,686   103,579 Depreciation and amortization  3,531   16,616   12,685   167   32,999 Operating income (loss)  15,940   54,404   1,695   (20,043)  51,996 Depreciation and amortization  3,531   16,616   12,685   167   32,999 EBITDA  19,471   71,020   14,380   (19,876)  84,995 Loss on damage to manufacturing facilities (Cost of sales)  -   2,138   -   -   2,138 Loss on damage to manufacturing facilities (SG&A)  -   1,103   -   -   1,103 Transaction and advisory fees  -   -   -   13,097   13,097 Adjusted EBITDA $19,471  $74,261  $14,380  $(6,779) $101,333 Adjusted EBITDA Margin %  9.5%   19.5%   6.9%     12.9%            (1) The Hardware Solutions segment contains a portion of the previously reported NA Fenestration segment.(2) The Extruded Solutions segment contains a portion of the NA Fenestration segment and the EU Fenestration segment.(3) The Custom Solutions segment contains a portion of the NA Fenestration segment and the NA Cabinet Components segment.             QUANEX BUILDING PRODUCTS CORPORATIONSALES ANALYSIS(In thousands)(Unaudited)           Three Months Ended July 31, Nine Months Ended July 31,  2025 2024 2025 2024         Hardware Solutions:        Window and door hardware$150,307  $-  $411,522  $-  Screens 76,809   75,460   203,269   204,127   $227,116  $75,460  $614,791  $204,127 Extruded Solutions:(1)        Window profiles$68,165  $67,802  $182,273  $193,758  Seals and gaskets 29,865   16,513   84,915   42,714  Spacers 54,743   37,868   146,544   104,047  Solar 5,250   5,198   17,835   16,074  Flashing Tape 3,038   4,905   6,751   13,512  Window and door hardware 10,044   -   29,694   -  Other 3,322   2,266   10,012   9,755   $174,427  $134,552  $478,024  $379,860 Custom Solutions:        Wood solutions$53,409  $51,448  $148,456  $145,663  Access solutions 27,370   -   74,158   -  Mixing solutions 21,485   21,219   62,195   62,538   $102,264  $72,667  $284,809  $208,201          Unallocated Corporate & Other:        Eliminations$(8,534) $(2,334) $(29,829) $(6,487)  $(8,534) $(2,334) $(29,829) $(6,487)         Net Sales$495,273  $280,345  $1,347,795  $785,701          (1) Reflects an increase of $2.6 million and $2.9 million in revenue associated with foreign currency exchange rate impacts for the three and nine months ended July 31, 2025, respectively. 

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