Quanex Building Products (US:NX) Globenewswire·2025-10-30 15:39Core 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 [4][10]. 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 [6]. - It is claimed that the conditions of tooling and equipment had degraded to near catastrophic levels, leading to significant costs and delays in expected benefits from the Tyman integration [6]. - The complaint also states that Quanex had previously identified these issues, which rendered the company's positive statements about its business and operations materially misleading [6]. 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 [7]. - The company disclosed ongoing operational issues related to the Tyman business that impacted results more than expected during the third quarter of 2025 [7]. - During an earnings call on September 5, 2025, CEO George Wilson noted that operational challenges negatively impacted EBITDA in the Hardware Solutions segment by almost $5 million in the third quarter alone [8]. Group 3: Stock Price Reaction - Following the announcement of poor financial results, 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 [8]. - The stock continued to decline, dropping an additional $1.98, or 10.9%, to close at $16.20 per share on September 8, 2025, also on unusually heavy trading volume [9].