Latest news with #QuanexBuildingProducts
Yahoo
16 hours ago
- Business
- Yahoo
Quanex Building Products Corp (NX) Q2 2025 Earnings Call Highlights: Record Sales Surge and ...
Net Sales: $452.2 million in Q2 2025, up 70% from $266.2 million in Q2 2024. Net Income: $20.5 million or $0.44 per diluted share in Q2 2025; adjusted net income of $27.9 million or $0.60 per diluted share. Adjusted EBITDA: Increased by 54.7% to $61.9 million in Q2 2025 from $40 million in Q2 2024. North American Fenestration Segment Sales: $151 million in Q2 2025, a decrease of 5.5% from $159.8 million in Q2 2024. European Fenestration Segment Sales: $61.3 million in Q2 2025, up 8.3% from $56.5 million in Q2 2024. North American Cabinet Component Segment Sales: $51.2 million in Q2 2025, compared to $51.1 million in Q2 2024. Tyman Business Sales: $190.1 million in Q2 2025. Cash Flow from Operations: $28.5 million in Q2 2025, compared to $33.1 million in Q2 2024. Free Cash Flow: $13.6 million in Q2 2025. Leverage Ratio: Net debt to last 12 months adjusted EBITDA at 3.2 times; debt covenant leverage ratio at 2.7 times. Share Repurchase: Approximately $23.5 million of stock repurchased in Q2 2025. Cost Synergies: Expected to realize $45 million over time, a 50% increase from the original target. Guidance: Reaffirmed net sales guidance of $1.84 billion to $1.86 billion and adjusted EBITDA guidance of $270 million to $280 million for fiscal 2025. Warning! GuruFocus has detected 3 Warning Signs with NX. Release Date: June 06, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Quanex Building Products Corp (NYSE:NX) reported a significant increase in net sales, reaching $452.2 million in Q2 2025, a 70% rise compared to the same period in 2024, primarily driven by the Tyman acquisition. The integration of the Tyman acquisition is progressing well, with cost synergies expected to reach $45 million, a 50% increase from the original target. The company has successfully localized supply chains to mitigate tariff impacts, with 22% of total cost of goods sold exposed to tariff risk, but USMCA compliance reduces this risk for Mexico and Canada. Quanex Building Products Corp (NYSE:NX) repurchased approximately $23.5 million of its stock in Q2 2025, taking advantage of a low share price and maintaining a healthy balance sheet. The company reaffirmed its net sales guidance of $1.84 billion to $1.86 billion and adjusted EBITDA guidance of $270 million to $280 million for fiscal 2025, indicating confidence in future performance. Despite the overall sales increase, net sales excluding the Tyman contribution declined by 1.4% in Q2 2025, largely due to lower volume in North America. The North American fenestration segment saw a 5.5% decrease in net sales, with volumes declining by approximately 7% year over year. Consumer confidence in North America and Europe is negatively impacted by higher interest rates and geopolitical tensions, affecting market conditions. Pricing pressures continue in Europe, although operational performance has helped offset price concessions. Free cash flow was impacted by one-time items related to integration costs and achieving cost synergies, resulting in $13.6 million for the quarter. Q: Can you give a little more color on raising the synergy target from $30 million to $45 million, and is there potential beyond that? A: George Wilson, CEO, explained that the increase in synergy targets is due to the efficiency and opportunities identified in the new operating segments. These include headcount reductions and sourcing synergies. While revenue synergies are still early, the team is confident in further potential as they continue to refine their strategies. Q: Is the tariff situation an opportunity for Quanex given your domestic manufacturing footprint, and are you seeing bids related to increased domestic sourcing? A: George Wilson, CEO, noted that their structured supply chain and diverse geographic footprint have indeed provided opportunities. They have seen increased quoting and execution of spot purchases, particularly in the cabinet segment, as customers seek to mitigate supply chain risks. Q: Where in the Tyman portfolio have you realized cost synergies faster than expected? A: Scott Zuehlke, CFO, highlighted that the main synergies came from procurement and corporate functions such as finance, HR, and IT. The integration of teams revealed more opportunities than initially estimated. Q: Is the $6.5 million in intangible asset amortization realized in Q2 a good quarterly run rate, and what is the full-year expectation for D&A? A: Scott Zuehlke, CFO, confirmed that the Q2 figure is a reasonable run rate. The company initially guided around $60 million for adjusted D&A for the year, excluding intangible amortization, which remains a good estimate. Q: Can you provide more details on the impact of tariffs on your cost of goods sold? A: George Wilson, CEO, stated that approximately 22% of their total cost of goods sold is exposed to tariff risk, with 13% specific to Mexico and Canada. However, being USMCA compliant, the tariff rate is essentially zero for these countries, minimizing potential margin impacts. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
3 days ago
- Business
- Yahoo
Quanex Building Products (NX) Tops Q2 Earnings and Revenue Estimates
Quanex Building Products (NX) came out with quarterly earnings of $0.60 per share, beating the Zacks Consensus Estimate of $0.48 per share. This compares to earnings of $0.66 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 25%. A quarter ago, it was expected that this housing materials maker would post a loss of $0.06 per share when it actually produced earnings of $0.19, delivering a surprise of 416.67%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Quanex , which belongs to the Zacks Building Products - Miscellaneous industry, posted revenues of $452.48 million for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 2.77%. This compares to year-ago revenues of $266.2 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Quanex shares have lost about 29.3% since the beginning of the year versus the S&P 500's gain of 1.5%. While Quanex has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Quanex: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.85 on $490.8 million in revenues for the coming quarter and $2.55 on $1.84 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Miscellaneous is currently in the top 36% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the broader Zacks Construction sector, Worthington Enterprises (WOR), is yet to report results for the quarter ended May 2025. The results are expected to be released on June 24. This metal manufacturer is expected to post quarterly earnings of $0.76 per share in its upcoming report, which represents a year-over-year change of +2.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Worthington Enterprises' revenues are expected to be $306.7 million, down 3.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Quanex Building Products Corporation (NX) : Free Stock Analysis Report Worthington Enterprises, Inc. (WOR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
18-04-2025
- Business
- Yahoo
Quanex Building Products (NYSE:NX) Will Be Hoping To Turn Its Returns On Capital Around
There are a few key trends to look for if we want to identify the next multi-bagger. Amongst other things, we'll want to see two things; firstly, a growing return on capital employed (ROCE) and secondly, an expansion in the company's amount of capital employed. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. However, after briefly looking over the numbers, we don't think Quanex Building Products (NYSE:NX) has the makings of a multi-bagger going forward, but let's have a look at why that may be. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. Analysts use this formula to calculate it for Quanex Building Products: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.024 = US$48m ÷ (US$2.2b - US$229m) (Based on the trailing twelve months to January 2025). Thus, Quanex Building Products has an ROCE of 2.4%. In absolute terms, that's a low return and it also under-performs the Building industry average of 15%. View our latest analysis for Quanex Building Products In the above chart we have measured Quanex Building Products' prior ROCE against its prior performance, but the future is arguably more important. If you're interested, you can view the analysts predictions in our free analyst report for Quanex Building Products . When we looked at the ROCE trend at Quanex Building Products, we didn't gain much confidence. Over the last five years, returns on capital have decreased to 2.4% from 9.2% five years ago. Although, given both revenue and the amount of assets employed in the business have increased, it could suggest the company is investing in growth, and the extra capital has led to a short-term reduction in ROCE. If these investments prove successful, this can bode very well for long term stock performance. In summary, despite lower returns in the short term, we're encouraged to see that Quanex Building Products is reinvesting for growth and has higher sales as a result. Furthermore the stock has climbed 66% over the last five years, it would appear that investors are upbeat about the future. So while the underlying trends could already be accounted for by investors, we still think this stock is worth looking into further. One more thing: We've identified 5 warning signs with Quanex Building Products (at least 2 which are a bit unpleasant) , and understanding these would certainly be useful. For those who like to invest in solid companies, check out this free list of companies with solid balance sheets and high returns on equity. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
12-03-2025
- Business
- Yahoo
Quanex Building Products First Quarter 2025 Earnings: Revenues Beat Expectations, EPS Lags
Revenue: US$400.0m (up 67% from 1Q 2024). Net loss: US$14.9m (down by 338% from US$6.25m profit in 1Q 2024). US$0.32 loss per share (down from US$0.19 profit in 1Q 2024). All figures shown in the chart above are for the trailing 12 month (TTM) period Revenue exceeded analyst estimates by 4.7%. Earnings per share (EPS) missed analyst estimates by 191%. Looking ahead, revenue is forecast to grow 15% p.a. on average during the next 2 years, compared to a 5.2% growth forecast for the Building industry in the US. Performance of the American Building industry. The company's share price is broadly unchanged from a week ago. Don't forget that there may still be risks. For instance, we've identified 5 warning signs for Quanex Building Products (2 are a bit unpleasant) you should be aware of. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
28-01-2025
- Business
- Yahoo
US Undervalued Small Caps With Insider Action To Watch In January 2025
In the last week, the United States market has stayed flat, yet it has seen a robust 23% increase over the past year with earnings anticipated to grow by 15% annually in the coming years. In this environment, identifying promising small-cap stocks that are perceived as undervalued can offer investors potential opportunities for growth, especially when there is notable insider activity signaling confidence in these companies' prospects. Name PE PS Discount to Fair Value Value Rating ProPetro Holding NA 0.7x 23.25% ★★★★★☆ OptimizeRx NA 1.1x 44.79% ★★★★★☆ Quanex Building Products 32.9x 0.9x 38.32% ★★★★☆☆ First United 12.9x 2.9x 47.08% ★★★★☆☆ McEwen Mining 4.1x 2.1x 46.18% ★★★★☆☆ Innovex International 9.1x 2.1x 47.65% ★★★★☆☆ German American Bancorp 14.4x 4.8x 48.84% ★★★☆☆☆ Franklin Financial Services 10.5x 2.1x 33.51% ★★★☆☆☆ Delek US Holdings NA 0.1x -73.35% ★★★☆☆☆ Sabre NA 0.4x -63.91% ★★★☆☆☆ Click here to see the full list of 41 stocks from our Undervalued US Small Caps With Insider Buying screener. Let's dive into some prime choices out of from the screener. Simply Wall St Value Rating: ★★★☆☆☆ Overview: Sabre operates as a technology solutions provider focusing on the travel and hospitality industries, with a market cap of approximately $1.63 billion. Operations: The company's revenue streams primarily include Travel Solutions and Hospitality Solutions, with Travel Solutions contributing the majority of revenue. The gross profit margin has shown variability, peaking at 81.41% in Q2 2020 but generally remaining above 50% in recent years. Operating expenses are a significant component of costs, with research and development being a notable expenditure. PE: -4.3x Sabre, a player in the travel technology sector, is experiencing insider confidence with recent share purchases. The company anticipates earnings growth of 72% annually, despite relying on higher-risk external borrowing for funding. Recent strategic partnerships with airlines like Hainan Airlines and Saudia showcase its commitment to enhancing global distribution capabilities. Sabre's third-quarter sales reached US$764 million, narrowing net losses from the previous year. These developments position Sabre as a potential candidate for investors interested in smaller companies with growth prospects. Delve into the full analysis valuation report here for a deeper understanding of Sabre. Explore historical data to track Sabre's performance over time in our Past section. Simply Wall St Value Rating: ★★★★☆☆ Overview: Quanex Building Products is a manufacturer of components for the fenestration (windows and doors) and cabinet markets, with operations in North America and Europe, and a market capitalization of approximately $1.18 billion. Operations: Quanex Building Products generates significant revenue primarily from its North American Fenestration and European Fenestration segments, with a notable contribution from North American Cabinet Components. The company's cost of goods sold (COGS) has been substantial, impacting its gross profit margin, which was 25.10% as of the latest reporting period. Operating expenses have also been a considerable part of the financial structure, including general and administrative expenses that reached $189.57 million in recent data. PE: 32.9x Quanex Building Products, a smaller U.S. company in the building materials sector, shows mixed signals for potential investors. Despite a 13% increase in sales to US$1.28 billion for the year ending October 2024, net income dropped significantly to US$33 million from US$82.5 million the previous year, with profit margins narrowing from 7.3% to 2.6%. The company completed repurchasing shares worth US$12.19 million under its buyback program but faces higher risk funding due to reliance on external borrowing without customer deposits. Earnings are projected to grow by over 49% annually, suggesting possible future growth despite current financial challenges and lower insider confidence indicated by no recent insider purchases. Navigate through the intricacies of Quanex Building Products with our comprehensive valuation report here. Gain insights into Quanex Building Products' past trends and performance with our Past report. Simply Wall St Value Rating: ★★★★★☆ Overview: ProPetro Holding is an oilfield services company primarily engaged in providing hydraulic fracturing and other related services, with a market capitalization of approximately $1.16 billion. Operations: ProPetro Holding generates revenue primarily from its hydraulic fracturing segment, contributing significantly more than wireline services. The company's cost of goods sold (COGS) has been a substantial component of expenses, impacting the gross profit margin, which reached 32.18% as of June 2023. PE: -7.0x ProPetro is navigating its small-cap status with strategic moves in the energy sector, notably launching ProPWR to address rising power demands in the Permian Basin. Recent contracts for electric hydraulic fracturing services highlight their commitment to efficiency and growth. The company has repurchased over 12 million shares since May 2023, reflecting insider confidence. Despite a third-quarter net loss of US$137 million, earnings are projected to grow significantly at around 93% annually, suggesting potential for recovery and value creation. Click to explore a detailed breakdown of our findings in ProPetro Holding's valuation report. Understand ProPetro Holding's track record by examining our Past report. Dive into all 41 of the Undervalued US Small Caps With Insider Buying we have identified here. Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools. Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGS:SABR NYSE:NX and NYSE:PUMP. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
