Quanex Q2 2024 Earnings Report
Key Takeaways
Quanex reported net sales of $266.2 million, a decrease of 2.7% compared to the same period in 2023, primarily due to softer market demand in European Fenestration and North American Cabinet Components segments. However, the company saw volume increase in North America compared to Q1 and realized margin expansion in both North American operating segments and on a consolidated basis. Quanex reaffirmed its full year 2024 guidance.
Net sales decreased by 2.7% to $266.2 million due to softer market demand in Europe and North American Cabinet Components.
North American Fenestration segment net sales increased by 1.8% due to improved volume.
North American Cabinet Components segment net sales decreased by 4.6% due to lower volume and decreased pricing.
Quanex reaffirmed its full year 2024 guidance, estimating net sales of approximately $1.1 billion and Adjusted EBITDA of approximately $145 million to $150 million.
Quanex
Quanex
Forward Guidance
Quanex reaffirms its prior guidance for fiscal year 2024, estimating net sales of approximately $1.1 billion, which should result in approximately $145 million to $150 million of Adjusted EBITDA.
Positive Outlook
- Seasonal uptick in demand for products in North America.
- Business is resilient.
- Performing well in Europe despite challenging market dynamics.
- Net sales of approximately $1.1 billion.
- Adjusted EBITDA between $145 million and $150 million.
Challenges Ahead
- Market dynamics in Europe continue to be challenging.
- Volumes are soft in Europe.
- Certain items required for reconciliation of Adjusted EBITDA are outside of the Company’s control.
- Certain items required for reconciliation of Adjusted EBITDA cannot be reasonably predicted or estimated.
- Provision for income taxes cannot be reasonably predicted or estimated.