By Mackenzie Tatananni

Shares of Quanex Building Products headed for their largest same-day percentage increase in nearly 17 years after the small-cap manufacturing company swung to a profit in its fiscal fourth quarter.

The company, which makes components for windows and doors, logged a fourth-quarter profit of $19.6 million, or 43 cents a share. This compares to a loss of $13.9 million, or 30 cents, in the same period last year.

The turnaround drove shares 24% higher to $18.71 in premarket trading Friday, putting Quanex on pace for its biggest percentage increase since a 31% jump on March 23, 2009, according to Dow Jones Market Data.

Coming into Friday, shares have plunged 38% this year. The benchmark S&P 500, by comparison, has gained over 17%.

The quarterly profit appeared to overshadow weak points in the print as well as prudent messaging from the company. Operating income swelled to $42.9 million from $2.8 million a year earlier. However, sales dipped to $489.8 million from $492.2 million last year.

In prepared remarks, CEO George Wilson pointed to the company's improving liquidity, noting that its "strong cash flow" allowed Quanex to repay $75 million in bank debt in fiscal 2025.

"We continue to be encouraged by the overall resilience of the business in the current environment," Wilson said. Still, he conceded that inflationary pressures, housing affordability issues, and other headwinds caused end markets "to decline meaningfully as compared to 2024."

The CEO had a word of caution heading into fiscal 2026: Wilson warned that revenue and earnings before interest, taxes, depreciation, and amortization could be flat over the prior fiscal year.

"The first half of 2026 may be more challenged than the first half of 2025, which would imply a somewhat improved second half year-over-year," the chief executive said.

Consequently, Quanex declined to provide "official guidance," saying it plans to revisit its fiscal guidance when it reports first-quarter earnings.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

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December 12, 2025 08:10 ET (13:10 GMT)

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