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Apr 30, 2021
Quanex Q2 2021 Earnings Report
Reported robust revenue growth across all operating segments and significant margin expansion in NA and EU Fenestration segments.
Key Takeaways
Quanex Building Products Corporation announced strong second-quarter results with net sales increasing by 44.2%. The company repaid $25 million in bank debt and repurchased approximately $2.0 million of its common stock. The company is optimistic about the global economic outlook and overall trends within the residential housing industry.
Net sales increased by 44.2% compared to the second quarter of 2020.
Adjusted EBITDA margin improved by approximately 30 basis points year-over-year.
Repaid $25.0 million in bank debt during the quarter.
Repurchased approximately $2.0 million of common stock.
Forward Guidance
The company anticipates ongoing inflationary pressure and challenges with their supply chain and labor. They now expect approximately 20% sales growth in their North American Fenestration segment, approximately 15% sales growth in their North American Cabinet Components segment, and approximately 40% sales growth in their European Fenestration segment. On a consolidated basis, they now believe they can achieve net sales of approximately $1.04 billion to $1.06 billion, which they expect will generate approximately $125 million to $130 million in Adjusted EBITDA in fiscal 2021.
Positive Outlook
- Approximately 20% sales growth in North American Fenestration segment.
- Approximately 15% sales growth in North American Cabinet Components segment.
- Approximately 40% sales growth in European Fenestration segment.
- Net sales of approximately $1.04 billion to $1.06 billion.
- Adjusted EBITDA of approximately $125 million to $130 million.
Challenges Ahead
- Ongoing inflationary pressure
- Challenges with supply chain
Historical Earnings Impact
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Avg. Return Before/After Earnings
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