Quanex Building Products (US:NX) Globenewswire·2025-10-06 03:55Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Quanex Building Products Corporation due to alleged violations of federal securities laws, particularly concerning misleading statements about the company's operational issues and financial performance [4][6]. Group 1: Legal Investigation - The law firm is encouraging investors who suffered losses in Quanex between December 12, 2024, and September 5, 2025, to discuss their legal rights [1]. - There is a deadline of November 18, 2025, for investors to seek the role of lead plaintiff in a federal securities class action against Quanex [4]. Group 2: Allegations Against Quanex - The complaint alleges that Quanex's procedures regarding tooling and equipment maintenance in its Tyman Mexico facility were significantly underinvested, leading to degraded conditions [6]. - The company reportedly failed to disclose that these operational issues would incur significant costs and delay expected benefits from the Tyman integration [6]. Group 3: Financial Performance - On September 4, 2025, Quanex reported a diluted EPS of ($6.04), a significant decline from $0.77 in the prior year period, and an adjusted EBITDA of $70.30 [7]. - The CEO indicated that operational challenges in the Tyman facility negatively impacted EBITDA by almost $5 million in the third quarter of 2025 [8]. - Following the announcement of these financial results, Quanex's stock price fell by $2.73 (13.1%) to close at $18.18 per share on September 5, 2025, with continued decline on subsequent trading days [8][9].