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Jul 31
Quanex Q3 2025 Earnings Report
Quanex posted mixed results in Q3 2025, with strong revenue and adjusted earnings but a steep net loss due to a large goodwill impairment.
Key Takeaways
Quanex reported a strong revenue increase due to the Tyman acquisition, but posted a significant net loss from a $302.3M non-cash goodwill impairment related to business re-segmentation.
Revenue rose to $495.3M, driven primarily by the Tyman acquisition.
Net loss totaled $276M, largely due to a $302.3M non-cash goodwill impairment.
Adjusted EPS came in at $0.69, reflecting stronger core operations.
Free cash flow was robust at $46.2M, enabling $51.25M in debt repayment.
Quanex
Quanex
Quanex Revenue by Segment
Quanex Revenue by Geographic Location
Revenue by Segment
Hardware Solutions Revenue
CapyFin.comExtruded Solutions Revenue
CapyFin.comCustom Solutions Revenue
CapyFin.comRevenue by Geographic Location
US - Fenestration Revenue
CapyFin.comIntl - Fenestration Revenue
CapyFin.comUS - Non-Fenestration Revenue
CapyFin.comIntl - Non-Fenestration Revenue
CapyFin.com Forward Guidance
Quanex expects FY2025 revenue of ~$1.82B and Adjusted EBITDA of ~$235M, while continuing integration efforts and navigating macro uncertainty.
Positive Outlook
- Guidance reaffirmed for $235M in Adjusted EBITDA.
- Tyman integration on track with $45M in expected cost synergies.
- Strong cash flow enables debt repayment and share repurchases.
- Balance sheet strengthened with improved liquidity.
- Positioned to capitalize on pent-up demand once macro conditions improve.
Challenges Ahead
- Macroeconomic uncertainty remains a headwind.
- Low consumer confidence impacting volumes.
- Operational challenges in Mexico from legacy Tyman business.
- Lower than expected seasonal demand in Q3.
- Procurement synergy realization slower than anticipated.
Revenue & Expenses
Visualization of income flow from segment revenue to net income