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Oct 31, 2025
Quanex Q4 2025 Earnings Report
Quanex Building Products announced a slight decrease in net sales for the fourth quarter of fiscal year 2025, alongside a significant increase in gross margin and a return to positive net income.
Key Takeaways
Quanex Building Products reported net sales of $489.8 million for the fourth quarter of fiscal year 2025, a marginal decrease of 0.5% compared to the same period last year. Despite the slight revenue dip, the company achieved a substantial increase in gross margin to 28.1% and returned to a net income of $19.6 million, a significant improvement from a net loss in the prior year. Adjusted EBITDA also saw a healthy increase, reflecting improved operational performance.
Net sales for Q4 2025 were $489.8 million, a slight decrease of 0.5% year-over-year, primarily due to lower volume.
Gross margin significantly improved to 28.1% in Q4 2025, up from 23.8% in Q4 2024.
The company reported a net income of $19.6 million ($0.43 diluted EPS) in Q4 2025, a turnaround from a net loss of ($13.9) million (($0.30) diluted EPS) in Q4 2024.
Adjusted EBITDA for Q4 2025 was $70.9 million, with an Adjusted EBITDA Margin of 14.5%.
Revenue by Segment
Forward Guidance
Quanex maintains a favorable long-term view for the residential housing market but anticipates a cautious outlook for fiscal 2026 due to ongoing macroeconomic challenges. The company expects fiscal 2026 to be flat compared to fiscal 2025 in terms of revenue and EBITDA, with the first half potentially more challenging than the first half of 2025.
Positive Outlook
- Long-term view for the residential housing market remains positive, with underlying fundamentals favorable.
- Optimism that demand for products will improve as consumer confidence is restored over time.
- The company is well-positioned to capitalize on pent-up demand once macroeconomic uncertainty subsides.
- Focus on generating cash to continue paying down debt.
- Opportunistic share repurchases are planned.
Challenges Ahead
- Cautious outlook for fiscal 2026 due to ongoing macroeconomic challenges.
- Expectation that fiscal 2026 revenue and EBITDA could be flat compared to fiscal 2025.
- The first half of fiscal 2026 may be more challenging than the first half of fiscal 2025.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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