olivLaw · US equity research
Quanex Building Products Corporation NX
Rolling Drawing & Extruding of Nonferrous Metals · SIC 3350 · Vertical: Primary metal industries (SIC 335x)
Quanex Building Products makes components for original equipment manufacturers in the building products industry, notably windows, doors and cabinetry, with operations across North America, the U.K. and continental Europe. The company integrated Tyman plc in 2024, and net sales reached 1.84 bn USD in fiscal 2025, while demand for window replacement remains sensitive to the housing cycle and raw material costs.
At the close of 04 Nov 2026, Quanex Building Products Corporation (NX) stock was 22.58 USD (+7.32% on the day), with market capitalisation 1.0 bn USD, P/E 22.8 on diluted EPS of 0.99 USD over the last 12 months, dividend yield 1.42%, beta 1.55, 52-week range 11.25–22.93 USD. Latest reported quarter (Q3 2026): revenue of 501.8 m USD (+1.3% YoY), net income of 26.5 m USD, diluted EPS 0.58 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 65.8
- strong (55–70)
- Bollinger (20, 2)
- 17.49 – 22.10
- above the upper band · %B 1.10 · band width 23.3%
- SMA 50 / 200
- 19.89 / 19.14
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 0.55 / 0.23
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +19.4% | −1.1% | +20.5 pp | — |
| 3 months | +8.1% | −0.5% | +8.6 pp | — |
| 6 months | +12.2% | +4.4% | +7.8 pp | — |
| Year to date | +46.8% | +12.3% | +34.5 pp | — |
| 1 year | +71.2% | +13.5% | +57.6 pp | +2.4% |
| 3 years | −21.8% | +76.4% | −98.2 pp | +127.6% |
| 5 years | +0.0% | +63.7% | −63.6 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 31 Jul 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 492.2 m | 400.0 m | 452.5 m | 495.3 m | 489.8 m | 409.1 m | 462.4 m | 501.8 m |
| Cost of revenue | 375.1 m | 307.7 m | 321.1 m | 357.3 m | 352.3 m | 310.6 m | 344.6 m | 360.4 m |
| SG&A | 86.9 m | 66.7 m | 70.3 m | 71.3 m | 69.0 m | 71.4 m | 74.4 m | 70.8 m |
| Operating income | 2.8 m | -7.0 m | 40.9 m | -270.8 m | 42.9 m | 2.9 m | 18.7 m | 46.5 m |
| Depreciation & amortisation | 27.3 m | 24.7 m | 19.2 m | 33.9 m | 25.6 m | 24.2 m | 24.7 m | 24.1 m |
| Interest expense | 17.7 m | 14.2 m | 13.9 m | 14.2 m | 13.5 m | 12.4 m | 12.0 m | 12.0 m |
| Income tax | -3.6 m | -5.1 m | 6.3 m | -8.2 m | 15.1 m | 173.0 k | 3.8 m | 7.9 m |
| Net income | -13.9 m | -14.9 m | 20.5 m | -276.0 m | 19.6 m | -4.1 m | 3.4 m | 26.5 m |
| Diluted EPS | -0.29 ≈ | -0.32 | 0.44 | -6.04 | 0.43 ≈ | -0.09 | 0.07 | 0.58 |
| Operating cash flow | 5.5 m | -12.5 m | 28.5 m ≈ | 60.7 m ≈ | 88.3 m | -20.2 m | 18.9 m ≈ | 58.6 m ≈ |
| Capex | 13.7 m | 11.6 m | 14.9 m ≈ | 14.5 m ≈ | 21.6 m | 11.3 m | 11.0 m ≈ | 10.7 m ≈ |
| Dividends paid | 4.0 m | 3.8 m | 3.7 m ≈ | 3.7 m ≈ | 3.7 m | 3.6 m | 3.6 m ≈ | 3.6 m ≈ |
| Share repurchases | 0 | 3.7 m | 23.5 m ≈ | 2.1 m ≈ | 3.1 m | 0 | 0 ≈ | 1.7 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 71 percentile of its own 28-quarter history (min 8.3, median 15.5, max 493.8; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 889.8 m | 893.8 m | 851.6 m | 1.1 bn | 1.2 bn | 1.1 bn | 1.3 bn | 1.8 bn |
| Revenue YoY | +2.7% | +0.5% | −4.7% | +25.9% | +13.9% | −7.4% | +13.0% | +43.8% |
| Net income | 26.6 m | -46.7 m | 38.5 m | 57.0 m | 88.3 m | 82.5 m | 33.1 m | -250.8 m |
| Net income YoY | +42.1% | −276.0% | unavailable | +48.0% | +55.0% | −6.6% | −59.9% | −858.7% |
| Diluted EPS | 0.76 | -1.42 | 1.17 | 1.70 | 2.66 | 2.50 | 0.90 | -5.43 |
| Diluted EPS YoY | +40.7% | −286.8% | unavailable | +45.3% | +56.5% | −6.0% | −64.0% | −703.3% |
| net % | 3.0% | -5.2% | 4.5% | 5.3% | 7.2% | 7.3% | 2.6% | -13.6% |
| Free cash flow | 78.1 m | 71.5 m | 75.1 m | 54.6 m | 64.8 m | 109.7 m | 51.7 m | 102.3 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Oct 2025
- Cash
- 76.0 m USD
- Financial debt
- 27.6 m USD
- Net debt
- -48.5 m USD
- Equity
- 726.2 m USD
- Total assets
- 2.0 bn USD
- Debt / equity
- 0.04x
- Current ratio
- 2.04x
- ROE
- -28.9%
- ROA
- -11.7%
- FCF margin
- 5.6%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 851.6 m | 1.1 bn | 1.2 bn | 1.1 bn | 1.3 bn | 1.8 bn | SEC (XBRL)· 12 Dec 2025verified |
| Cost of revenue | 658.8 m | 831.5 m | 953.0 m | 853.1 m | 972.2 m | 1.3 bn | SEC (XBRL)· 12 Dec 2025verified |
| Gross profit | 192.8 m ≈ | 240.6 m ≈ | 268.5 m ≈ | 277.5 m ≈ | 305.6 m ≈ | 499.2 m ≈ | SEC (XBRL)· 12 Dec 2025derived |
| SG&A | 89.7 m | 116.0 m | 117.1 m | 124.0 m | 190.5 m | 277.3 m | SEC (XBRL)· 12 Dec 2025verified |
| Operating income | 55.3 m | 81.9 m | 111.3 m | 110.7 m | 54.8 m | -194.0 m | SEC (XBRL)· 12 Dec 2025verified |
| Depreciation & amortisation | 47.2 m | 42.7 m | 40.1 m | 42.9 m | 60.3 m | 103.4 m | SEC (XBRL)· 12 Dec 2025verified |
| EBITDA | 102.5 m ≈ | 124.6 m ≈ | 151.4 m ≈ | 153.6 m ≈ | 115.2 m ≈ | -90.5 m ≈ | SEC (XBRL)· 12 Dec 2025derived |
| Interest expense | 5.2 m | 2.5 m | 2.6 m | 8.1 m | 20.6 m | 55.8 m | SEC (XBRL)· 12 Dec 2025verified |
| Pre-tax income | 50.3 m | 80.1 m | 109.8 m | 97.0 m | 42.1 m | -242.6 m | SEC (XBRL)· 12 Dec 2025verified |
| Income tax | 11.8 m | 23.1 m | 21.4 m | 14.5 m | 9.0 m | 8.2 m | SEC (XBRL)· 12 Dec 2025verified |
| Net income | 38.5 m | 57.0 m | 88.3 m | 82.5 m | 33.1 m | -250.8 m | SEC (XBRL)· 12 Dec 2025verified |
| Diluted EPS | 1.17 | 1.70 | 2.66 | 2.50 | 0.90 | -5.43 | SEC (XBRL)· 12 Dec 2025verified |
| Weighted average diluted shares | 32.8 m | 33.5 m | 33.2 m | 33.0 m | 36.6 m | 46.2 m | SEC (XBRL)· 12 Dec 2025verified |
| Dividend per share | 0.32 | 0.32 | 0.32 | 0.32 | 0.32 | 0.32 | SEC (XBRL)· 12 Dec 2025verified |
≈ computed by olivLaw from the reported lines of the same year: Revenue − Cost of revenue; Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 51.6 m | 40.1 m | 55.1 m | 58.5 m | 97.7 m | 76.0 m | SEC (XBRL)· 12 Dec 2025verified |
| Receivables | 88.3 m | 108.3 m | 96.0 m | 97.3 m | 197.7 m | 205.4 m | SEC (XBRL)· 12 Dec 2025verified |
| Inventories | 61.2 m | 92.5 m | 120.9 m | 98.0 m | 275.6 m | 254.1 m | SEC (XBRL)· 12 Dec 2025verified |
| Current assets | 207.3 m | 249.0 m | 280.7 m | 273.6 m | 611.3 m | 573.8 m | SEC (XBRL)· 12 Dec 2025verified |
| Property, plant & equipment, net | 184.1 m | 178.6 m | 180.4 m | 250.7 m | 402.5 m | 411.6 m | SEC (XBRL)· 12 Dec 2025verified |
| Goodwill | 146.2 m | 149.2 m | 137.9 m | 183.0 m | 574.7 m | 271.3 m | SEC (XBRL)· 12 Dec 2025verified |
| Intangibles (excl. goodwill) | 93.1 m | 82.4 m | 65.0 m | 74.1 m | 597.9 m | 549.1 m | SEC (XBRL)· 12 Dec 2025verified |
| Total assets | 691.6 m | 717.3 m | 724.6 m | 831.1 m | 2.3 bn | 2.0 bn | SEC (XBRL)· 12 Dec 2025verified |
| Accounts payable | 77.3 m | 86.8 m | 77.9 m | 74.4 m | 124.4 m | 131.3 m | SEC (XBRL)· 12 Dec 2025verified |
| Short-term debt | 692.0 k | 846.0 k | 1.0 m | 2.4 m | 25.7 m | 27.6 m | SEC (XBRL)· 12 Dec 2025verified |
| Current liabilities | 130.2 m | 158.0 m | 139.8 m | 134.7 m | 272.9 m | 281.5 m | SEC (XBRL)· 12 Dec 2025verified |
| Total liabilities | 335.8 m | 297.5 m | 259.8 m | 285.6 m | 1.3 bn | 1.2 bn | SEC (XBRL)· 12 Dec 2025verified |
| Equity | 355.8 m † | 419.8 m † | 464.8 m † | 545.6 m † | 1.0 bn † | 0 | SEC (XBRL)· 04 Sept 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 100.8 m | 78.6 m | 98.0 m | 147.1 m | 88.8 m | 164.9 m | SEC (XBRL)· 12 Dec 2025verified |
| Capex | 25.7 m | 24.0 m | 33.1 m | 37.4 m | 37.1 m | 62.6 m | SEC (XBRL)· 12 Dec 2025verified |
| Free cash flow | 75.1 m ≈ | 54.6 m ≈ | 64.8 m ≈ | 109.7 m ≈ | 51.7 m ≈ | 102.3 m ≈ | SEC (XBRL)· 12 Dec 2025derived |
| Investing cash flow | -25.2 m | -18.7 m | -33.0 m | -128.4 m | -420.6 m | -62.0 m | SEC (XBRL)· 12 Dec 2025verified |
| Financing cash flow | -55.1 m | -71.9 m | -45.9 m | -16.2 m | 385.2 m | -127.5 m | SEC (XBRL)· 12 Dec 2025verified |
| Dividends paid | 10.5 m | 10.8 m | 10.6 m | 10.6 m | 12.0 m | 14.9 m | SEC (XBRL)· 12 Dec 2025verified |
| Share repurchases | 7.2 m | 11.2 m | 6.6 m | 5.6 m | 0 | 32.4 m | SEC (XBRL)· 12 Dec 2025verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
Risk
Valuation
olivLaw classification
Score: 69 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 1.0 bn USD
Key indicators
Coverage and freshness
Score by group
- Balance sheet53
- Growth100
- Quality69
- Returns56
- Valuation75
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 4.21 – 74.33 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)48.68 – 74.33 (Mid 58.65)WACC 9.2% · starting FCFF 132.7 m USD · terminal value share of EV 74%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): -25.3%
- Peers: EV/EBITDA22.17 – 49.20 (Mid 35.29)4 companies used · median multiple 7.5x · quartiles 4.7x – 10.6xAPWC, BDC, KALU, MLI
- Peers: P/E8.24 – 39.04 (Mid 18.59)8 companies used · median multiple 18.8x · quartiles 8.3x – 39.4xAPWC, BDC, GLW, HWM, KALU, MLI, OCC, TG
- Dividend discount (DDM)4.21 – 5.66 (Mid 4.82)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 69/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 29.0% | 83 (vs peers) | 11% |
| Net margin · Quality | 2.4% | 14 (vs peers) | 7% |
| FCF conversion · Quality | 200.2% | 100 (on a fixed band) | 7% |
| Revenue CAGR 3Y · Growth | 14.6% | 100 (on a fixed band) | 9% |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | -0.2x | 60 (vs peers) | 11% |
| Interest coverage · Balance sheet | 2.2x | 11 (on a fixed band) | 7% |
| Current ratio · Balance sheet | 2.2x | 100 (on a fixed band) | 5% |
| P/E (TTM) · Valuation | 22.8x | 50 (vs peers) | 11% |
| EV/EBITDA · Valuation | 4.8x | 80 (vs peers) | 11% |
| FCF yield · Valuation | 8.8% | 100 (on a fixed band) | 9% |
| Shareholder yield (distributions) · Returns | 1.9% | 27 (on a fixed band) | 7% |
| Payout ratio (FCF) · Returns | 16.0% | 100 (on a fixed band) | 5% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet53/100 · 3/3 factors with a value
- Growth· partial100/100 · 1/2 factors with a value
- Quality69/100 · 3/3 factors with a value
- Returns56/100 · 2/2 factors with a value
- Valuation75/100 · 3/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
QUANEX BUILDING PRODUCTS CORPORATION (NX). Latest full fiscal year: 2025; data up to 2026-07-31.
Figures computed from the financial statements: revenue 1.8 bn USD in 2025; YoY growth 43.8%; net margin 2.4%; ROE 6.2%; net debt/EBITDA -0.2x.
The estimated value range is 15.20–44.12 USD per share (median of 4 methods, agreement: low); assumptions are illustrative. Against the central value of 26.94 USD, the price of 22.58 USD leaves a potential of 19.3% (value / price − 1) and a margin of safety of 16.2% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 69/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: growth. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- ROIC: 29.0%
- FCF conversion: 200.2%
- Revenue CAGR 3Y: 14.6%
- Current ratio: 2.2x
- EV/EBITDA: 4.8x
- FCF yield: 8.8%
- Payout ratio (FCF): 16.0%
What contradicts it
- Net margin: 2.4%
- Interest coverage: 2.2x
- Shareholder yield (distributions): 1.9%
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): EPS CAGR 3Y.
Versus the vertical median
Primary metal industries (SIC 335x) · same industry group (3-digit SIC) · compared with 8 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| GLWCorning Inc | 102.3 bn | 48.1 | 17.1% | 12.1% | +19.1% | +41% / +317% |
| HWMHowmet Aerospace Inc. | 84.9 bn | 41.8 | 37.7% | 21.1% | +11.1% | +4% / +306% |
| MLIMueller Industries, Inc | 12.0 bn | 13.9 | 26.2% | 17.3% | +10.9% | +0% / +166% |
| BDCBelden Inc. | 4.1 bn | 23.6 | 13.4% | 5.6% | +10.3% | −7% / +58% |
| KALUKaiser Aluminum Corporation | 1.8 bn | 8.6 | 24.5% | 4.8% | +11.5% | +15% / +89% |
| NXQuanex Building Products Corporation | 1.0 bn | 22.8 | 6.2% | 2.4% | +43.8% | +71% / −22% |
| TGTredegar Corporation | 254.4 m | 7.6 | 15.8% | — | +16.1% | −7% / +55% |
| OCCOptical Cable Corporation | 99.1 m | 38.6 | 15.6% | 3.1% | +9.5% | +38% / +329% |
| APWCAsia Pacific Wire & Cable Corporation Limited | 23.1 m | 6.6 | 2.2% | 0.7% | +11.0% | −34% / −17% |
1- and 3-year price returns: for NX from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 14.69 Total return -34% · Per year -34% | 25.86 Total return 16% · Per year 16% | 38.80 Total return 74% · Per year 74% |
| 3 years | 17.30 Total return -19% · Per year -7% | 33.96 Total return 56% · Per year 16% | 55.48 Total return 153% · Per year 36% |
| 5 years | 20.36 Total return -3% · Per year -1% | 44.58 Total return 108% · Per year 16% | 79.34 Total return 266% · Per year 30% |
- Exit P/E± 8.49
- Net margin± 5.94
- Annual revenue growth± 4.45
- Annual dilution± 0.50
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Quanex Building Products makes components for original equipment manufacturers in the building products industry, notably windows, doors and cabinetry, with operations across North America, the U.K. and continental Europe. The company integrated Tyman plc in 2024, and net sales reached 1.84 bn USD in fiscal 2025, while demand for window replacement remains sensitive to the housing cycle and raw material costs.
SWOT
Strengths
- The company holds a leading position as a component supplier to OEMs, with a broad customer base and capabilities in engineering and new technology development 1.
- The plant network across North America, the U.K. and Europe, with made-to-order production and low finished goods stocks, supports just-in-time delivery to customers 1.
- The company has shown the ability to repay debt and generate positive cash flow in recent quarters, which strengthens its financial flexibility 3.
Weaknesses
- The company recorded a major goodwill impairment in fiscal 2025 and was hit by a margin squeeze from the gap between prices and costs 13.
- Debt rose after the Tyman acquisition, and the level of indebtedness remains a point of attention for investors 3.
- A material weakness in internal controls over financial reporting existed and had not been remediated as of the annual report date 1.
Opportunities
- Synergies between Quanex and Tyman could generate cross-selling and operating savings if the integration continues as planned 13.
- Stricter energy standards in Europe could support demand for insulating glass spacers and window seals 12.
- The company intends to use its material science and process engineering expertise to enter adjacent markets, which could diversify revenue 3.
Threats
- Continued weakness in new construction and residential remodeling could further reduce volumes, especially if consumer confidence does not improve 12.
- Tariffs and possible trade wars could raise the cost of key raw materials and reduce the company's competitiveness 1.
- Dependence on a few large customers in some product lines exposes the company to losing important contracts if they vertically integrate 1.
Risks
- Cyclical construction demandhigh
Demand depends on residential remodeling and housing starts, which are sensitive to interest rates and consumer confidence. A prolonged decline could affect financial results 1.
- Raw material costshigh
The company has no long-term contracts for many raw materials, and prices for PVC, aluminum, steel and wood can fluctuate. If these costs cannot be passed on to customers, margins could fall 13.
- Leverage and credit covenantsmedium
Total debt of 672.2 mn USD and covenants in the credit facility limit flexibility. If indebtedness rises or reporting is delayed, the company could breach its credit terms 13.
- Trade policy and tariffsmedium
U.S. tariffs and retaliatory measures could increase costs and disrupt supply chains. The company says it expects to pass some of these costs to customers, but this is not assured 12.
- Internal controls and financial reportingmedium
A material weakness in controls over the statement of cash flows had not been remediated at the annual report date. If further weaknesses emerge, financial reporting could be affected 1.
- Goodwill impairmentlow
The remaining goodwill could be impaired again if future results or the share price fall, which would reduce net worth and reported profit 1.
Investment thesis
What would need to be true (bull case)
- If window replacement and housing construction recover faster than forecast, volumes could rise and support another period of margin expansion.
- The Tyman integration could generate sales and cost synergies, and the group's global presence could reduce its dependence on the U.S. market.
- Falling debt and positive free cash flow in the third quarter suggest management is focused on reducing leverage, which could strengthen the balance sheet.
What would break the thesis
- If consumer confidence stays low, the forecast declines in window shipments could materialize and volumes could remain below expectations.
- Cost pressures from tariffs and Middle East conflicts could exceed the company's ability to pass them on, which could compress margins again.
- High indebtedness and recent internal control weaknesses could limit access to financing or lead to further accounting corrections if not remediated.
What to watch
- Fourth-quarter fiscal 2026 results and the trajectory of net debtQ4 2026
- Progress in remediating the cash flow statement control weaknessnext 10-K
- Evolution of window shipment forecasts and housing starts2027
- Impact of U.S. tariffs and freight costs on gross marginQ1 2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Quanex Building Products Corporation, incorporated in Delaware in 2007 and spun off from Quanex Corporation in 2008, manufactures and distributes components for original equipment manufacturers in the building products industry, including window, door, solar, refrigeration, custom mixing, building access and cabinetry markets. Examples include flexible insulating glass spacers, extruded vinyl profiles, window and door screens, and window and door seals and hardware. The company serves a primary customer base in North America and the U.K. and operates in the U.K., Germany, Mexico, Canada and Italy. As of October 31, 2025 it operated 34 manufacturing facilities in the U.S., 7 in the U.K., 3 in Mexico, 2 in Italy, 1 in Germany and 1 in Canada, with 7,071 full-time employees 1.
The acquisition of Tyman plc, completed on August 1, 2024, substantially broadened the group's global footprint and customer base, and the company says it creates significant cross-selling opportunities among complementary customers. Quanex aims to move closer to being a comprehensive solutions provider as a result. In the third quarter of fiscal 2025 the company recorded a goodwill impairment of 302.3 mn USD, driven in significant part by a prolonged decline in its share price and weaker consumer confidence 1.
Demand is seasonal: winter weather reduces volumes in the first half of the fiscal year, while the third and fourth quarters typically see higher activity. The company largely produces to customer specifications, which keeps finished goods inventories low, and its sales backlog stood at 54.1 mn USD on October 31, 2025 1. In the third quarter of fiscal 2026 it reported net sales of 501.8 mn USD and a gross margin of 28.2%, and total debt at July 31, 2026 was 672.2 mn USD 3.
Segments
Hardware Solutions
The Hardware Solutions segment manufactures engineered window and door hardware, screens and other fenestration components, mainly for residential and light-commercial markets. Segment net sales rose to 841.7 mn USD in fiscal 2025, up 97% from the prior year, reflecting the Tyman integration, and most revenue comes from North America 1.
Extruded Solutions
The Extruded Solutions segment supplies insulating glass spacers, vinyl window and door profiles, seals and weatherstripping across North America and Europe. Demand is supported by higher energy-efficiency standards in Europe and government-sponsored retrofit programs, while in the U.S. adoption of high-performance windows supports spacer sales 12.
Custom Solutions
The Custom Solutions segment delivers engineered products in wood, metal and elastomeric materials, including interior building components, specialty access systems and custom-formulated compounds for technical applications. Demand follows construction and remodeling activity as well as industrial investment, giving the segment some diversification beyond fenestration markets 1.
Market context
The primary drivers of Quanex's results are North American residential remodeling and replacement activity and new home construction. Consultant Ducker's November 2025 forecast indicated window shipments in the R&R market could decrease approximately 5.2% in 2025 and 1.9% in 2026 1. A more recent August 2026 forecast expects total window shipments to decrease 4.2% in 2026 and 1.6% in 2027, and NAHB projects roughly 1.3 million housing starts in each of 2026, 2027 and 2028 2.
In Europe, demand is supported by energy-efficiency requirements and EU retrofit directives, which could partly offset weakness in the U.S. market. Inflationary pressures in transport, labor and raw materials such as PVC, aluminum and steel remain a risk, and the company says it seeks to pass tariff-related costs to customers through contractual or pricing mechanisms 13.
Trends
- Window replacement under pressureheadwind
Weaker consumer confidence and lower volumes in residential remodeling could limit sales, although demand could recover quickly in an upturn. The company said volumes tracked normal seasonal patterns in the third quarter of fiscal 2026 13.
- Stricter energy standards in Europetailwind
Higher European energy-efficiency requirements could favor insulating glass spacers and window seals, particularly in the short and medium term. In the U.S. the government has been reluctant to enforce stricter standards, which limits momentum from that direction 12.
- Tariffs and geopolitical tensionsheadwind
U.S. tariffs and possible retaliation could raise the cost of aluminum, wood and other materials, while the conflicts in Ukraine and the Middle East have added to freight and energy cost volatility. The company says it is working with suppliers to mitigate the impact 12.
- Margin recovery and debt reductionmixed
The company reported improved margins in the third quarter of fiscal 2026 and repaid debt, which could ease financial pressure if the trend holds. Continuation depends on closing the gap between price and cost increases 3.
Competitive position
Quanex's products are sold under highly competitive conditions, where price, quality, delivery performance and the ability to manufacture to customer specifications are the main factors. In North America it competes with metal, vinyl and wood suppliers, hardware makers and the in-house operations of vertically integrated customers. In the U.K. and Europe the market is fragmented, with many component suppliers, some of them larger than Quanex 1.
The company believes it is the largest supplier of wood components to OEMs in the U.S., but it competes with other national and regional businesses. In European hardware and seals, competition comes from established manufacturers, so cost and innovation advantages remain essential to keeping its position 1.
- Assa Abloy
Competitor in window and door hardware in North America, the U.K. and Europe, named among primary competitors.
- Epwin
Competitor in vinyl profile extrusion in the U.K.
- Veka
Competitor in vinyl profiles in the U.K., active across European window markets.
- Roto
Competitor in hardware and seals in North America and Europe.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- Quanex (NX) Q3 2026 Earnings Call TranscriptYahoo Finance — News · 09 Sept 2026 · EN
- Why Quanex Stock Skyrocketed by 22% on FridayYahoo Finance — News · 04 Sept 2026 · EN
- Quanex (NX) Expanded 3Q Margins and Repaid $42M of Debt on 1.3% Sales Growth. Can Execution Outrun Soft Volumes?Yahoo Finance — News · 04 Sept 2026 · EN
- Quanex Building Products Q3 Earnings Call HighlightsYahoo Finance — News · 04 Sept 2026 · EN
- Stocks making the biggest moves midday: Sandisk, Tesla, Lululemon, Quanex, AMC & moreCNBC — Top News · 04 Sept 2026 · EN
- Quanex Building Products Corporation Q3 2026 Earnings Call SummaryYahoo Finance — News · 04 Sept 2026 · EN
SEC filings
- Quarterly report04 Sept 2026
- Current report03 Sept 2026Results of operations · Financial statements and exhibits
- Current report27 Aug 2026Regulation FD disclosure · Financial statements and exhibits
- Quarterly report05 Jun 2026
- Current report04 Jun 2026Results of operations · Financial statements and exhibits
- Current report28 May 2026Regulation FD disclosure · Financial statements and exhibits
- Quarterly report06 Mar 2026
- Current report05 Mar 2026Results of operations · Financial statements and exhibits
- Current report03 Mar 2026Amendments to articles or bylaws · Shareholder vote · Financial statements and exhibits
- Current report26 Feb 2026Regulation FD disclosure · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-10-31 · SEC / Quanex Building Products Corporation · 12 Dec 2025
- [2] Form 10-Q, quarter ended 2026-07-31 · SEC / Quanex Building Products Corporation · 04 Sept 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Quanex Building Products Corporation · 03 Sept 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.