Group 1 - A class action lawsuit has been filed on behalf of shareholders who purchased securities of Quanex Building Products Corporation between December 12, 2024, and September 5, 2025 [1] - Quanex Building Products Corporation is described as an international supplier of engineered home components and access solutions to the construction industry, including products such as windows, doors, cabinetry, and vinyl products [1]

Core Insights - Latham Group, Inc. has appointed Jeffrey J. Jackson as an independent member of its Board of Directors and as a member of the Audit Committee, increasing the board size from eight to nine directors [1][2]. Group 1: Appointment Details - Jeffrey J. Jackson is currently the CEO of Cabinetworks Group, Inc., the largest privately-owned kitchen cabinet manufacturer in the U.S. [2] - Jackson has a notable background, having served as President and CEO of PGT Innovations, Inc., where he led the company to significant growth and national brand recognition in the fenestration industry [2][3]. - His previous executive roles include positions at The Hershey Company, Mrs. Smith's Bakeries, and The Coca-Cola Company, showcasing a diverse experience across various sectors [2]. Group 2: Board Commentary - James C. Cline, Chairman of the Latham Board, expressed enthusiasm about Jackson's appointment, highlighting his visionary leadership and extensive expertise in executive management and finance [3]. - Cline noted that Jackson's broad sector knowledge and industry relationships will provide valuable operational and strategic experience to support Latham's growth and competitive positioning [3]. Group 3: Company Overview - Latham Group, Inc. is the largest designer, manufacturer, and marketer of in-ground residential swimming pools in North America, Australia, and New Zealand [4]. - The company operates with approximately 1,850 employees across 30 locations, indicating a robust operational platform [4].

Industry Overview - The Zacks Building Products - Miscellaneous industry is experiencing growth due to increased government infrastructure spending, which is driving demand for construction-related products and services [1] - Key players in the industry, such as United Rentals, Inc., Masco Corporation, Construction Partners, Inc., Hillman Solutions Corp., and Quanex Building Products Corporation, are well-positioned to capitalize on these trends [1] Current Challenges - The industry faces near-term challenges from high mortgage rates, affordability concerns, and inflation-related cost pressures, including tariffs on raw materials like iron, steel, and copper [2] - Despite these challenges, proactive cost management and pricing strategies are helping to mitigate headwinds [2] Industry Description - The industry comprises manufacturers, designers, and distributors of home improvement and building products, including ceiling systems, doors, windows, flooring, and metal products [3] - Companies also provide solutions for rehabilitating aging infrastructure and rent equipment to a diverse customer base [3] Future Trends - Strong global trends in infrastructure modernization and energy transition are expected to benefit industry players [4] - Improving residential construction markets are anticipated to drive growth, with builders cautiously optimistic for 2025 due to a lack of existing inventory [4] Operational Strategies - Industry participants are implementing cost-saving initiatives, including business consolidation and supply chain improvements, to boost profitability [5] - Strategic investments in new products and acquisitions are being pursued to supplement organic growth [5] Tariff Impact - U.S. tariff policies are increasing costs and disrupting supply chains, leading to heightened inflation [6] - Overall construction input prices were reported to be 1.1% higher in June compared to the previous year [6] Market Performance - The Zacks Building Products - Miscellaneous industry has underperformed the S&P 500 Composite and the broader Zacks Construction sector over the past year, losing 8.4% [12] - The industry is currently trading at a forward P/E ratio of 16.7X, lower than the S&P 500's 22.61X and the sector's 18.76X [15] Company Highlights - **Construction Partners**: Positioned for strong growth with a record project backlog of $2.84 billion and significant revenue growth from acquisitions [20][21] - **Quanex**: Benefiting from the acquisition of Tyman, contributing to a 67.3% year-over-year increase in consolidated sales [24][25] - **United Rentals**: Growth driven by strong demand in infrastructure projects and a stable customer sentiment, with a reaffirmed full-year guidance [27][28][29] - **Masco**: Facing a potential $400 million tariff headwind but expects to offset 50%-65% through pricing and cost reduction efforts [31][32] - **Hillman**: Aiming to reduce reliance on Chinese suppliers and maintain sales growth despite macroeconomic challenges [35][36]

Industry Overview - The Zacks Building Products - Miscellaneous industry is facing challenges from a weak real estate market and inflation-driven consumer uncertainty, with high mortgage rates and limited housing inventory suppressing demand [1][6] - Tariff-related cost inflation is expected to compress margins, particularly due to elevated input prices for iron, steel, and copper [1][4] Government Infrastructure Spending - Increased government infrastructure spending is providing support to companies in the industry, despite potential challenges from macroeconomic uncertainties and rising raw material costs [2][7] - The U.S. administration's focus on infrastructure modernization and climate-resilient initiatives is expected to benefit industry players [8] Trends Impacting the Industry - Tariff policies are reshaping the industry by increasing costs and disrupting supply chains, contributing to broader inflationary pressures [4] - The National Association of Home Builders estimates that tariffs have added approximately $10,900 to the cost of constructing a new home [4] - Construction input costs surged at a 9.7% annualized pace in the first quarter of 2025, driven by tariff-related pressures [4] Company Performance and Strategies - Companies like Quanex Building Products Corporation, Frontdoor, Gibraltar Industries, and Aspen Aerogels are leveraging operational excellence, geographic and product diversification, and strategic acquisitions to navigate challenges [2][9] - Quanex reported a 67.3% year-over-year increase in consolidated sales due to the acquisition of Tyman, contributing $175.7 million in revenue [22][23] - Frontdoor has seen a 15% year-over-year increase in its DTC member base, driven by effective digital marketing and brand relaunch strategies [26][27] - Gibraltar is benefiting from government investments and operational improvements, with an upward revision of 2025 earnings estimates indicating 15.8% year-over-year growth [30][31] - Aspen Aerogels achieved 90% revenue growth and $90 million in adjusted EBITDA, driven by strong demand in its PyroThin Thermal Barriers business [34][35] Industry Performance Metrics - The Zacks Building Products - Miscellaneous industry currently holds a Zacks Industry Rank of 139, placing it in the bottom 43% of over 250 Zacks industries [10][12] - The industry has underperformed the Zacks S&P 500 Composite and the broader Zacks Construction sector, losing 11.1% over the past year compared to the sector's 5.4% decrease [14] - The industry's forward 12-month price-to-earnings ratio is 15.27X, lower than the S&P 500's 20.81X and the sector's 17.33X [17]

Group 1 - Fortune Brands Innovations (FBIN) reported quarterly earnings of $0.66 per share, matching the Zacks Consensus Estimate, but down from $0.83 per share a year ago [1] - The company posted revenues of $1.03 billion for the quarter ended March 2025, missing the Zacks Consensus Estimate by 3.39%, and down from $1.11 billion year-over-year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates two times, but has not beaten consensus revenue estimates [2] Group 2 - The stock has declined approximately 20.5% since the beginning of the year, compared to a decline of 3.9% for the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $1.12 on revenues of $1.25 billion, and for the current fiscal year, it is $4.11 on revenues of $4.66 billion [7] - The Zacks Industry Rank for Retail - Home Furnishings is currently in the bottom 15% of over 250 Zacks industries, indicating potential underperformance compared to higher-ranked industries [8]