Quanex Building Products (US:NX) Globenewswire·2025-12-11 21:15Core Insights - Quanex Building Products Corporation reported a net sales growth of approximately 44% year-over-year, driven by the acquisition of Tyman [1][4] - The company successfully repaid $75 million in debt during fiscal 2025, indicating strong cash flow and a healthy balance sheet [1][3] - The integration of the Tyman acquisition is substantially complete, with expectations of realizing $45 million in cost synergies over time [3][4] Financial Performance - For the three months ended October 31, 2025, net sales were $489.8 million, a slight decrease of 0.5% compared to $492.2 million in the same period of 2024 [2][4] - For the twelve months ended October 31, 2025, net sales reached $1.84 billion, an increase of 43.8% from $1.28 billion in 2024 [2][4] - Gross margin for the fourth quarter was $137.6 million, representing 28.1% of net sales, compared to 23.8% in the same quarter of 2024 [2][4] Income and Earnings - The company reported a net income of $19.6 million for the fourth quarter of 2025, a significant recovery from a net loss of $13.9 million in the same quarter of 2024 [2][4] - Adjusted net income for the fourth quarter was $38.0 million, slightly down from $38.5 million in the prior year [2][4] - Diluted earnings per share (EPS) for the fourth quarter was $0.43, compared to a loss of $0.30 in the same period of 2024 [2][4] Cash Flow and Liquidity - Cash provided by operating activities increased approximately 86% year-over-year to $164.9 million for the twelve months ended October 31, 2025 [1][2] - Free cash flow for the same period was $102.3 million, up from $51.7 million in 2024 [2][4] - The company's liquidity improved to $372.4 million as of October 31, 2025, consisting of $76.0 million in cash and availability under its credit facility [5][4] Debt and Leverage - As of October 31, 2025, total debt stood at $703.9 million, with a leverage ratio of net debt to last twelve months adjusted EBITDA remaining stable at 2.6x [5][4] - The company has made significant progress in reducing its debt levels, repaying $75 million in fiscal 2025 [1][3] Market Outlook - The company maintains a cautious outlook for fiscal 2026 due to ongoing macroeconomic challenges but remains optimistic about future demand as consumer confidence improves [7][4] - The company plans to revisit guidance for 2026 when reporting first-quarter earnings, emphasizing a measured approach to future projections [7][4]