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Quanex Building Products (NX) investor relations material
Quanex Building Products Q4 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Net sales grew 43.8% year-over-year to $1.84 billion, driven by the Tyman acquisition and segment reorganization aligned with long-term strategy.
Monterrey plant challenges led to a $8 million negative EBITDA impact in Q4, higher than the $5 million expected, but recovery efforts are progressing well and the issue is expected to be resolved after Q1.
Integration of the Tyman acquisition is substantially complete, with cost synergies realized above initial projections.
Operational improvements and risk mitigation steps have been implemented across all facilities to prevent recurrence of similar issues.
Despite macroeconomic headwinds, record safety performance and strong cash flow enabled $75 million in debt repayment.
Financial highlights
Net sales for Q4 2025 were $489.8 million, down 0.5% year-over-year; full-year net sales rose to $1.84 billion from $1.28 billion.
Hardware Solutions segment would have achieved approximately 16% EBITDA margin in Q4 excluding Monterrey impact; favorable cost roll also benefited the segment.
Gross margin for the year increased to 27.2% from 23.9% year-over-year.
Adjusted EBITDA for the year was $242.9 million, up from $182.4 million; adjusted EBITDA margin was 13.2%.
Free cash flow for the year was $102.3 million, nearly doubling from $51.7 million in the prior year.
Outlook and guidance
Fiscal 2026 revenue and EBITDA expected to be flat versus 2025, with a more challenging first half and potential improvement in the second half.
Informal outlook for next year anticipates flat to down volumes with flat to up pricing, and improved EBITDA due to lower Mexico costs and additional synergies.
Expectation that Monterrey-related costs will drop to zero after Q1.
Additional synergies of $5–10 million expected in 2026, with more possible in 2027 depending on volume.
No official guidance issued due to ongoing macroeconomic uncertainty; management will revisit guidance after Q1 2026.
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