Quanex Q3 2024 Earnings Report
Key Takeaways
Quanex reported a decrease in net sales by 6.4% compared to the same period last year, primarily due to softer market demand across all operating segments. However, the company generated approximately $40 million in free cash flow during the quarter. The acquisition of Tyman was completed on August 1, 2024, and integration is underway.
Third quarter results were consistent with expectations.
Volumes increased across all operating segments compared to the second quarter, but demand remained soft compared to the prior year.
Approximately $40 million in free cash flow was generated during the quarter due to focus on cash flow and managing working capital.
The acquisition of Tyman closed on August 1, 2024, and integration is in progress with a focus on capturing targeted synergies.
Quanex
Quanex
Forward Guidance
Net sales are estimated to be $1.275 billion to $1.285 billion, which should result in $171 million to $176 million of Adjusted EBITDA in fiscal 2024, including the contribution from the Tyman business for the fourth quarter.