Quanex Building Products (US:NX) Globenewswire·2025-10-08 14:50Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Quanex Building Products Corporation due to alleged violations of federal securities laws, with a deadline for investors to seek lead plaintiff status in a class action lawsuit by November 18, 2025 [3][5]. Group 1: Allegations Against Quanex - The complaint alleges that Quanex and its executives made false or misleading statements and failed to disclose significant underinvestment in tooling and equipment maintenance at its Tyman Mexico facility [5]. - It is claimed that the conditions of the tooling and equipment had degraded to near catastrophic levels, leading to expected delays in realizing benefits from the Tyman integration [5]. - The complaint also states that Quanex had previously identified these issues, and the positive statements made by the defendants regarding the company's operations were materially misleading [5]. Group 2: Financial Impact - On September 4, 2025, Quanex reported a diluted EPS of ($6.04), a significant decline from $0.77 in the same period the previous year, and an adjusted EBITDA of $70.30 [6]. - The company disclosed ongoing operational issues related to the Tyman business that impacted results more than expected during the third quarter of 2025 [6]. - During an earnings call on September 5, 2025, CEO George Wilson indicated that operational challenges negatively impacted EBITDA in the Hardware Solutions segment by almost $5 million in the third quarter alone [7]. Group 3: Stock Price Reaction - Following the announcement of the financial results and operational issues, Quanex's stock price fell by $2.73, or 13.1%, closing at $18.18 per share on September 5, 2025, with unusually heavy trading volume [7]. - The stock continued to decline, falling by $1.98 or 10.9% to close at $16.20 per share on September 8, 2025, also on unusually heavy trading volume [8].