Quanex Building Products (NX) - 2025 Q1 - Quarterly Results

Financial Performance - Quanex reported net sales of $400.0 million for Q1 2025, a 67.3% increase from $239.2 million in Q1 2024, primarily due to the Tyman acquisition[3] - The company incurred a net loss of $14.9 million in Q1 2025, compared to a net income of $6.2 million in Q1 2024, resulting in a diluted EPS of ($0.32)[2] - Net income for the three months ended January 31, 2025, was $6,249 thousand, compared to a net loss of $14,885 thousand for the same period in 2024[23] - The company reported a net loss of $14,885 thousand for the three months ended January 31, 2025, compared to a net income of $23,847 thousand in the same period last year[44] - EBITDA for the three months ended January 31, 2025, was $17,762 thousand, a decrease from $19,069 thousand in the prior year[44] - Adjusted EBITDA for Q1 2025 was $38.5 million, with an adjusted EBITDA margin of 9.6%, compared to $19.3 million and 8.1% in Q1 2024[2] - Adjusted EBITDA for the same period was $38,542 thousand, with an adjusted EBITDA margin of 9.6%[40] Debt and Liquidity - Quanex has repaid approximately $65 million of debt since the Tyman acquisition, with total debt standing at $764.3 million as of January 31, 2025[5] - The leverage ratio of net debt to LTM adjusted EBITDA improved slightly to 3.6x as of January 31, 2025[5] - Total debt increased significantly from $65,211 thousand in January 2024 to $764,306 thousand in January 2025, reflecting a substantial rise in leverage[28] - Net Debt as of January 31, 2025, was $714,324 thousand, compared to $20,789 thousand in January 2024, indicating a significant increase in financial obligations[28] - Quanex's liquidity was reported at $301.5 million, consisting of $50.0 million in cash and available credit[6] Sales and Revenue Segments - The North American Fenestration segment experienced a 9.2% decrease in net sales, while the North American Cabinet Components segment saw a 1.6% increase[4] - The company experienced a decrease in revenue from the NA Fenestration segment, with sales dropping from $147,995 thousand in 2024 to $134,333 thousand in 2025[43] - Net sales for the three months ended January 31, 2025, were $400,044 thousand, a significant increase of 67.3% compared to $239,155 thousand for the same period in 2024[44] Expenses and Cash Flow - Selling, general and administrative expenses increased to $66,650 thousand from $32,363 thousand year-over-year, reflecting a rise of 106.5%[44] - Free Cash Flow for the three months ended January 31, 2025, was $(24,134) thousand, a decrease from $(5,726) thousand in 2024[26] - Interest expense for the three months ended January 31, 2025, was $14,186 thousand, compared to $1,068 thousand in the same period last year[44] Capital Expenditures and Assets - Capital expenditures for the three months ended January 31, 2025, were $11,624 thousand, up from $9,580 thousand in the same period of 2024[24] - Total current assets decreased from $611,268 thousand to $547,621 thousand, a decline of approximately 10.4%[21] - Cash and cash equivalents at the end of the period were $55,468 thousand, a decrease from $102,995 thousand at the beginning of the period[24] - The company reported a decrease in accounts receivable by $30,330 thousand for the three months ended January 31, 2025, compared to a decrease of $18,147 thousand in 2024[24] Shareholder Returns - The company paid common stock dividends of $3,812 thousand during the three months ended January 31, 2025, compared to $2,645 thousand in 2024, reflecting an increase in shareholder returns[24] - The company repurchased 150,000 shares for approximately $3.7 million at an average price of $24.66 per share during Q1 2025[7] Tax and Restructuring - The company reported a tax benefit of $5,050 thousand for the three months ended January 31, 2025, compared to an expense of $1,642 thousand in the prior year[44] - The company incurred restructuring charges of $7,904 thousand related to severance and disposal of software during the three months ended January 31, 2025[41] Gross Margin - Gross margin improved to $92.3 million, representing a gross margin percentage of 23.1%, up from 21.5% in the previous year[2] - Gross margin for the same period was $92,316 thousand, representing a gross margin percentage of 23.1%, compared to $51,432 thousand and 21.5% in the prior year[40]