Overview
Building products maker's Q1 net sales rose 2.3%, slightly beating analyst expectations
Adjusted EBITDA for Q1 beat analyst expectations
Outlook
Quanex estimates fiscal 2026 net sales of $1.84 bln to $1.87 bln
Company expects fiscal 2026 Adjusted EBITDA of $240 mln to $245 mln
Result Drivers
FOREIGN EXCHANGE AND TARIFFS - Net sales growth driven by foreign exchange translation and tariff pass-through
OPERATIONAL COSTS - Higher operational costs at Monterrey plant impacted earnings
MACROECONOMIC CHALLENGES - Inflation, high interest rates, and geopolitical tensions weakened demand
Company press release: ID:nGNX4S6jV5
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Sales | Slight Beat* | $409.10 mln | $405.75 mln (4 Analysts) |
Q1 Adjusted EPS | Beat | -$0.01 | -$0.06 (4 Analysts) |
Q1 Adjusted Net Income | Beat | -$300,000 | -$2.17 mln (1 Analyst) |
Q1 Adjusted EBITDA | Beat | $27.40 mln | $25.64 mln (3 Analysts) |
Q1 Gross Margin | 24.10% | ||
Q1 Free Cash Flow | -$31.50 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
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 $28.50, about 44.9% above its March 4 closing price of $19.67
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 6 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(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.)