Building materials firm Quanex's Q4 adjusted EPS beats estimates

Overview

• Building products firm's fiscal Q4 net sales grew 44% yr/yr, beating analyst expectations

• Adjusted EPS for fiscal Q4 beat analyst expectations

• Company repaid $75 mln in debt during fiscal 2025

Outlook

• Quanex anticipates fiscal 2026 revenue and EBITDA to be flat compared to fiscal 2025

• Company plans to revisit 2026 guidance after first quarter results

• Quanex focuses on generating cash to pay down debt and repurchase stock

Result Drivers

• TYMAN ACQUISITION - Full-year sales growth driven by Tyman acquisition and related cost synergies

• MACROECONOMIC CHALLENGES - Lower volumes due to inflation, geopolitical tensions, and low consumer confidence

• HARDWARE SOLUTIONS - Foreign exchange and tariff pass-throughs boosted Q4 sales in Hardware Solutions

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the construction supplies & fixtures peer group is "buy."

• Wall Street's median 12-month price target for Quanex Building Products Corp is $29.50, about 103.4% above its December 10 closing price of $14.50

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nGNX6RsckP

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