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
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Sales | Beat | $489.80 mln | $470.74 mln (4 Analysts) |
Q4 Adjusted EPS | Beat | $0.83 | $0.52 (4 Analysts) |
Q4 Adjusted Net Income | Beat | $38 mln | $24.07 mln (1 Analyst) |
Q4 Adjusted EBITDA | Beat | $70.90 mln | $59.39 mln (3 Analysts) |
Q4 Gross Margin | 28.10% | ||
Q4 Free Cash Flow | $66.60 mln |
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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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)