Quanex Building Products (US:NX) Globenewswire·2025-09-25 17:10Core Viewpoint - Quanex Building Products Corporation is facing a class action lawsuit due to significant operational issues in its Tyman facility in Mexico, which have adversely affected its financial performance and misled investors about the company's operational health [1][4]. Financial Performance - For Q3 2025, Quanex reported a diluted EPS of ($6.04), a significant decline from $0.77 in the same period the previous year [2]. - The adjusted EBITDA for the same quarter was reported at $70.30 million [2]. - The operational challenges in the Tyman facility negatively impacted EBITDA in the Hardware Solutions segment by almost $5 million during Q3 2025 [3]. Stock Market Reaction - Following the announcement of the financial results, Quanex's stock price fell by $2.73, or 13.1%, closing at $18.18 per share on September 5, 2025 [3]. - The stock continued to decline, dropping an additional $1.98, or 10.9%, to close at $16.20 per share on September 8, 2025 [3]. Lawsuit Details - The class action lawsuit alleges that the company made materially false and misleading statements regarding its business operations and failed to disclose significant operational issues in the Tyman facility [4]. - Specific allegations include underinvestment in tooling and equipment maintenance, leading to degraded conditions and increased costs, which were not communicated to investors [4]. Legal Action Timeline - Investors who purchased Quanex securities during the class period (December 12, 2024, to September 5, 2025) have until November 18, 2025, to file a lead plaintiff motion in the class action lawsuit [1][5].