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Jan 31, 2021
Quanex Q1 2021 Earnings Report
Reported solid growth and significant margin expansion across all operating segments. Balance sheet remained strong and positive outlook intact.
Key Takeaways
Quanex Building Products reported a strong first quarter in 2021, with net sales increasing by 17.1% and Adjusted EBITDA margin improving by approximately 260 basis points year-over-year. The company saw increased demand for its products across all product lines and operating segments.
Net sales increased by 17.1% compared to the first quarter of 2020.
Adjusted EBITDA margin improved by approximately 260 basis points year-over-year.
Volumes during the quarter were especially strong in Europe.
The company repaid $5.0 million in bank debt and repurchased approximately $1.9 million of common stock during the quarter.
Quanex
Quanex
Forward Guidance
Quanex expects net sales of approximately $945 million to $965 million and Adjusted EBITDA between $112 million and $122 million in fiscal 2021.
Positive Outlook
- Approximately 12% sales growth in North American Fenestration segment
- Approximately 5% sales growth in North American Cabinet Components segment
- Approximately 22% sales growth in European Fenestration segment
Challenges Ahead
- Inflationary pressures are expected to be a factor as the year unfolds.
- There may be adverse impact from the ongoing pandemic.