Quanex Building Products (NX)
NYSE:NX
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Quanex
(NYSE:NX)
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Rating:45Neutral
Price Target:
$17.50
▲(3.80% Upside)
Action:Reiterated
Date:06/05/26
NX scores low primarily due to sharply deteriorated profitability and higher leverage, reinforced by an earnings update showing margin compression, EBITDA declines, and the withdrawal of full-year guidance. Technicals also lean weak with negative MACD and the stock below key intermediate moving averages. Valuation is partially supported by the dividend yield, but the negative P/E reflects ongoing losses.
Positive Factors
Positive cash generation
Quanex generates positive operating and free cash flow on a TTM basis despite accounting losses, giving management a durable lever to reduce debt, fund operations, and return capital. This cash conversion supports deleveraging and operational flexibility over coming quarters even if earnings remain pressured.
Negative Factors
Profitability erosion
Despite revenue growth, the company has delivered sustained negative operating and net margins, indicating structural mismatch between pricing and input costs. Persistent weak profitability undermines return on capital, limits reinvestment capacity, and raises risk the business cannot self-fund recovery without clearer margin improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Positive cash generation
Quanex generates positive operating and free cash flow on a TTM basis despite accounting losses, giving management a durable lever to reduce debt, fund operations, and return capital. This cash conversion supports deleveraging and operational flexibility over coming quarters even if earnings remain pressured.
Read all positive factors
Quanex (NX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$708.30M
Dividend Yield2.12%
Average Volume (3M)357.90K
Price to Earnings (P/E)―
Beta (1Y)1.09
Revenue Growth14.25%
EPS Growth-1038.06%
CountryUS
Employees7,068
SectorIndustrials
Sector Strength72
IndustryConstruction
Share Statistics
EPS (TTM)-5.54
Shares Outstanding45,933,815
10 Day Avg. Volume398,006
30 Day Avg. Volume357,896
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.90
Price to Sales (P/S)0.36
P/FCF Ratio6.42
Enterprise Value/Market Cap2.38
Enterprise Value/Revenue0.91
Enterprise Value/Gross Profit3.80
Enterprise Value/Ebitda-18.35
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.65
Revenue Forecast (FY)$1.86B
Quanex Business Overview & Revenue Model
Company Description
Quanex Building Products Corporation, together with its subsidiaries, provides components for the fenestration industry in the United States, Europe, Canada, Asia, and internationally. The company operates through three segments: North American Fe...
How the Company Makes Money
Quanex makes money by manufacturing and selling building product components and systems to OEMs, fabricators, distributors, and other customers serving the construction and remodeling markets. Revenue is generated primarily from product sales acro...
Quanex Earnings Call Summary
Earnings Call Date:Jun 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Sep 03, 2026
Earnings Call Sentiment Negative
The call shows operational resilience (modest consolidated revenue growth, stable extruded segment revenue, inventory reductions and clear pricing and operational actions) but is dominated by significant near-term challenges: sharp declines in reported and adjusted earnings, material gross margin compression (350 bps), sizable EBITDA declines (adjusted EBITDA down ~30% YoY) and weaker cash generation. Management is taking steps (price increases, make-to-order transition, working capital focus) and provided cautious Q3 guidance, but elevated inflation, logistics costs and geopolitical uncertainty have materially impaired profitability and prompted withdrawal of full-year guidance.Positive Updates
Modest Consolidated Revenue Growth
Net sales of $462.0M in Q2 FY26, up 2.2% versus $453M in Q2 FY25; growth driven by pricing (+~1.5%), tariff pass-throughs (~1%), and favorable foreign exchange (~+2.5%) despite estimated volume decline (~-3%).
Negative Updates
Sharp Decline in Reported Net Income
Reported net income of $3.4M ($0.07/diluted share) in Q2 FY26 versus $20.5M ($0.44) in Q2 FY25, a decline of ~83% YoY.
Read all updates
Q2-2026 Updates
Positive
Negative
Modest Consolidated Revenue Growth
Net sales of $462.0M in Q2 FY26, up 2.2% versus $453M in Q2 FY25; growth driven by pricing (+~1.5%), tariff pass-throughs (~1%), and favorable foreign exchange (~+2.5%) despite estimated volume decline (~-3%).
Read all positive updates
Company Guidance
Quanex said it is not reaffirming full‑year FY26 guidance given heightened inflation and geopolitical uncertainty, but provided Q3 2026 targets: consolidated revenue expected to be flat to up ~1% year‑over‑year and adjusted EBITDA margin expected to be flat to up 25 basis points, with an estimated tax rate of about 24% for Q3; management also expects normal seasonal, sequential volume growth in Q3 and is phasing targeted price increases (mid‑single‑digit to low‑teens %) through Q3 (with most of the benefit expected in Q4). For context, Q2 reported net sales were $462M (up 2.2% YoY), adjusted EBITDA was $44.2M (vs $63.1M prior year), gross margins declined ~350 bps YoY, volumes were down ~3% overall, and the company held $329M of liquidity (including $63.7M cash) with net leverage of 3.1x as of 4/30/2026 and a stated priority to generate cash, reduce debt and opportunistically repurchase shares.Quanex Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
35
Negative
Cash Flow
52
Neutral
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.86B | 1.84B | 1.28B | 1.13B | 1.22B | 1.07B |
| Gross Profit | 442.95M | 499.23M | 305.62M | 277.52M | 268.50M | 240.61M |
| EBITDA | -91.82M | -83.34M | 123.00M | 148.05M | 152.43M | 125.36M |
| Net Income | -249.63M | -250.81M | 33.06M | 82.50M | 88.34M | 56.98M |
Balance Sheet | ||||||
| Total Assets | 1.99B | 1.97B | 2.32B | 831.14M | 724.62M | 717.32M |
| Cash, Cash Equivalents and Short-Term Investments | 63.67M | 76.02M | 97.74M | 58.47M | 55.09M | 40.06M |
| Total Debt | 889.35M | 853.73M | 892.98M | 116.39M | 87.69M | 106.50M |
| Total Liabilities | 1.27B | 1.24B | 1.31B | 285.59M | 259.78M | 297.54M |
| Stockholders Equity | 727.36M | 726.18M | 1.01B | 545.55M | 464.83M | 419.78M |
Cash Flow | ||||||
| Free Cash Flow | 89.20M | 102.25M | 51.73M | 109.66M | 64.84M | 54.58M |
| Operating Cash Flow | 147.62M | 164.90M | 88.81M | 147.05M | 97.97M | 78.59M |
| Investing Cash Flow | -58.13M | -62.01M | -420.59M | -128.44M | -32.96M | -18.71M |
| Financing Cash Flow | -87.39M | -127.48M | 385.16M | -16.15M | -45.88M | -71.86M |
Quanex Technical Analysis
Negative
16.86
Price Trends
18.85
Negative
19.05
Negative
17.04
Negative
Market Momentum
-0.48
Positive
30.34
Neutral
32.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NX, the sentiment is Negative. The current price of 16.86 is below the 20-day moving average (MA) of 18.13, below the 50-day MA of 18.85, and below the 200-day MA of 17.04, indicating a bearish trend. The MACD of -0.48 indicates Positive momentum. The RSI at 30.34 is Neutral, neither overbought nor oversold. The STOCH value of 32.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NX.
Quanex Risk Analysis
Quanex disclosed 26 risk factors in its most recent earnings report. Quanex reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Quanex Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Neutral | $790.20M | 14.45 | 10.79% | 2.77% | 3.21% | -34.89% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
53 Neutral | $695.60M | 16.33 | 7.72% | ― | -2.54% | -11.47% | |
47 Neutral | $391.45M | -98.11 | -0.65% | ― | 1.38% | -111.51% | |
46 Neutral | $1.10B | 122.85 | 0.94% | ― | -4.66% | -201.96% | |
46 Neutral | $160.24M | -0.31 | -291.24% | ― | -12.11% | -43.71% | |
45 Neutral | $708.30M | -2.81 | -30.23% | 2.12% | 14.25% | -1038.06% |
* Industrials Sector Average
NX
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Quanex Corporate Events
Dividends
Quanex Declares Quarterly Cash Dividend, Signals Ongoing Confidence
Positive
May 28, 2026
On May 28, 2026, Quanex Building Products Corporation announced that its Board of Directors declared a quarterly cash dividend of $0.08 per share on its common stock. The dividend is scheduled to be paid on June 30, 2026, to shareholders of record...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.