Quanex Q3 2022 Earnings Report
Key Takeaways
Quanex reported a strong third quarter with revenue growth of approximately 16% year-over-year. Margin expansion was realized in the North American Fenestration and North American Cabinet Components segments. The company repaid $25 million in bank debt and repurchased $5 million of common stock. However, the company did start to experience some softness in demand in Europe towards the end of July.
Net sales increased by 15.8% compared to the same period in 2021, reaching $324.0 million.
Revenue growth was primarily driven by higher prices related to the pass-through of raw material cost inflation.
The company repurchased 216,000 shares of common stock for approximately $5.0 million during the quarter.
Liquidity increased to $332.0 million as of July 31, 2022.
Quanex
Quanex
Forward Guidance
Quanex reaffirms its fiscal year 2022 guidance, expecting net sales of $1.18 billion to $1.2 billion and adjusted EBITDA of $150 million to $155 million.