Quanex Building Products (US:NX)2025-12-11 21:17Financial Performance - Net sales for Q4 2025 were $489.8 million, a decrease of 0.5% compared to $492.2 million in Q4 2024, while full-year net sales increased by 43.8% to $1.84 billion from $1.28 billion in 2024[4] - The company reported a net loss of $250.8 million for the full year 2025, primarily due to a non-cash goodwill impairment[5] - Net income for the three months ended October 31, 2025, was $19,571,000, resulting in a diluted EPS of $0.43, compared to a net loss of $13,917,000 and an EPS of $(0.30) for the same period in 2024[32] - The company reported a net loss of $250.806 million for the twelve months ended October 31, 2025, compared to a net income of $33.059 million in 2024[17] - The company reported an operating loss of $193.952 million for the twelve months ended October 31, 2025, primarily due to goodwill impairment charges of $302.284 million[38] Revenue and Sales Breakdown - The Hardware Solutions segment saw a 1.4% increase in Q4 2025 net sales, while the Extruded Solutions segment experienced a 6.4% decrease[4] - Net sales for the three months ended October 31, 2025, were $489.846 million, a slight decrease from $492.161 million in the same period of 2024[32] - For the twelve months ended October 31, 2025, net sales reached $1.838 billion, compared to $1.278 billion in 2024, reflecting a significant increase of 43.8%[44] - Hardware Solutions generated $226.883 million in sales for the three months ended October 31, 2025, up from $223.712 million in 2024[44] - Extruded Solutions reported $168.603 million in sales for the three months ended October 31, 2025, compared to $180.135 million in the same period of 2024[44] - Custom Solutions achieved $103.401 million in sales for the three months ended October 31, 2025, slightly up from $101.240 million in 2024[44] Profitability Metrics - Gross margin for Q4 2025 was $137.6 million, representing a gross margin percentage of 28.1%, up from 23.8% in Q4 2024[2] - Adjusted EBITDA for the full year 2025 was $242.9 million, with an adjusted EBITDA margin of 13.2%, compared to $182.4 million and 14.3% in 2024[2] - EBITDA for the three months ended October 31, 2025, was $70,918,000, compared to $81,050,000 for the same period in 2024, while the twelve-month EBITDA was $242,890,000, up from $182,383,000[32] - The adjusted EBITDA for the twelve months ended October 31, 2025, was $242.890 million, compared to $182,383,000 in the previous year, indicating growth in operational performance[32] - The company reported a gross margin of $206.193 million for the twelve months ended October 31, 2025, with a gross margin percentage of 24.5%[38] Cash Flow and Debt Management - Cash provided by operating activities increased by approximately 86% year-over-year to $164.9 million in 2025[2] - The company repaid $75 million in bank debt during fiscal 2025, improving its liquidity to $372.4 million as of October 31, 2025[3][6] - As of October 31, 2025, total debt stood at $703.9 million, with a leverage ratio of 2.6x[5] - The company’s net debt as of October 31, 2025, was $627.851 million, down from $679.182 million in 2024[25] - Cash provided by operating activities for the twelve months ended October 31, 2025, was $164.897 million, compared to $88.812 million in 2024[22] Future Outlook - The company anticipates a cautious outlook for fiscal 2026, projecting flat revenue and EBITDA compared to fiscal 2025, with potential challenges in the first half[8] - The integration of the Tyman acquisition is substantially complete, with an expected realization of approximately $45 million in cost synergies over time[3] Cost Management - Selling, general and administrative expenses for the three months ended October 31, 2025, were $69.008 million, compared to $86.891 million in the same period of 2024[37] - The company incurred restructuring charges of $10.191 million for the twelve months ended October 31, 2025[38] - Interest expense for the twelve months ended October 31, 2025, was $55,812,000, compared to $20,593,000 in the previous year, reflecting increased borrowing costs[33] Impairment and Charges - The company’s goodwill impairment charges for the twelve months ended October 31, 2025, amounted to $302.284 million[22] - The company reported a goodwill impairment charge of $302,284,000 for the twelve months ended October 31, 2025, which impacted overall profitability[32]