Quanex Q2 2021 Earnings Report
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.
Quanex
Quanex
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
- Labor challenges
- Unspecified impacts from public health issues (including pandemics, such as the recent COVID-19 pandemic) on the economy
- Demand for Quanex’s products