Quanex Building Products Corporation (NYSE: NX) saw its stock surge 5.05% in after-hours trading on Thursday following the release of its second-quarter 2025 financial results, which significantly surpassed analyst expectations.

The company reported adjusted earnings per share (EPS) of $0.60, handily beating the analyst consensus estimate of $0.47 by 27.66%. This impressive performance came despite a 9.09% decrease from the $0.66 per share reported in the same period last year. Quanex's quarterly sales also exceeded expectations, coming in at $452.50 million, 3.00% above the analyst consensus estimate of $439.30 million. This represents a substantial 69.98% increase compared to sales of $266.20 million in the same quarter of the previous year.

Other highlights from the earnings report include an adjusted EBITDA of $61.9 million, a gross margin of 29%, and free cash flow of $13.6 million. The company also announced an increase in its cost synergy target to about $45 million, suggesting improved operational efficiency. Moreover, Quanex expressed confidence in its ability to mitigate any potential margin impact related to tariffs and stated that any unexpected weakness in demand during the second half of the year may be offset by faster-than-planned realization of cost synergies. These strong results and positive outlook appear to have fueled investor optimism, driving the stock's after-hours rally.