Quanex Building Products Announces Fourth Quarter and Full Year 2024 Results

Core Insights - Quanex Building Products Corporation reported significant financial results for the fourth quarter and full year ended October 31, 2024, driven by the Tyman acquisition, which closed on August 1, 2024 [1][2]. Financial Performance - Net sales for Q4 2024 reached $492.2 million, a 66.6$295.5 million in Q4 2023. For the full year, net sales were $1.28 billion, up 13.0$1.13 billion in 2023 [2]. - The contribution from the Tyman acquisition accounted for $203.4 million in net sales during Q4 2024. Excluding Tyman, net sales would have declined by 2.3$28.6 million, compared to $31.2 million in Q4 2023. For the full year, adjusted net income was$80.4 million, down from $90.9 million in 2023 [1][2]. Margin and Profitability - Gross margin for Q4 2024 was$117.1 million, with a gross margin percentage of 23.8%, down from 27.1% in Q4 2023. For the full year, gross margin was $305.6 million, with a margin percentage of 23.9$81.1 million, compared to $50.8 million in Q4 2023, while the full year adjusted EBITDA was$182.4 million, up from $159.6 million in 2023 [1][2]. Debt and Liquidity - The company repaid$53.75 million in debt during Q4 2024, with total debt standing at $776.9 million as of October 31, 2024. The leverage ratio of net debt to LTM adjusted EBITDA was 3.7x [3][4]. - As of October 31, 2024, Quanex's liquidity was$343.3 million, consisting of $97.7 million in cash and availability under its revolving credit facility [4]. Future Outlook - The company anticipates continued demand softness until the spring selling season of 2025, with expectations for improvement in the second half of 2025 due to seasonal trends and improving consumer confidence [1][2]. - An Investor and Analyst Day is scheduled for February 6, 2025, to present the new operating structure and provide guidance for 2025 [5].