Quanex Building Products (NYSE: NX) saw its shares plummet 16.79% in pre-market trading on Friday, following a disappointing third-quarter earnings report and reduced full-year guidance. The Houston-based building products manufacturer faced multiple challenges that led to this significant stock price decline.

The company reported adjusted earnings per share of $0.69 for the fiscal third quarter, falling short of the $0.84 consensus estimate. While net sales jumped 77% to $495.3 million, slightly beating expectations, the earnings miss overshadowed the revenue growth. Quanex also recorded a substantial $302.3 million non-cash goodwill impairment charge related to business re-segmentation, which contributed to a quarterly loss of $276 million, or $6.04 per share, compared to a profit in the same period last year.

Adding to investor concerns, Quanex significantly lowered its full-year guidance. The company now expects fiscal 2025 net sales of approximately $1.82 billion, down from its previous outlook of $1.84-$1.86 billion. More notably, Quanex slashed its adjusted EBITDA forecast to around $235 million from the prior range of $270-$280 million. Management cited macroeconomic uncertainty, low consumer confidence, and ongoing operational issues in its legacy Tyman window and door hardware business in Mexico as key factors affecting performance. Despite these challenges, Quanex's CEO, George Wilson, expressed optimism about the company's prospects for profitable growth and value creation, characterizing the operational issues as "temporary in nature."