Overview

• Building products maker's Q1 net sales rose 2.3%, slightly beating analyst expectations

• Adjusted EBITDA for Q1 beat analyst expectations

Outlook

• Quanex estimates fiscal 2026 net sales of $1.84 bln to $1.87 bln

• Company expects fiscal 2026 Adjusted EBITDA of $240 mln to $245 mln

Result Drivers

• FOREIGN EXCHANGE AND TARIFFS - Net sales growth driven by foreign exchange translation and tariff pass-through

• OPERATIONAL COSTS - Higher operational costs at Monterrey plant impacted earnings

• MACROECONOMIC CHALLENGES - Inflation, high interest rates, and geopolitical tensions weakened demand

Company press release: ID:nGNX4S6jV5

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Sales	Slight Beat*	$409.10 mln	$405.75 mln (4 Analysts)
Q1 Adjusted EPS	Beat	-$0.01	-$0.06 (4 Analysts)
Q1 Adjusted Net Income	Beat	-$300,000	-$2.17 mln (1 Analyst)
Q1 Adjusted EBITDA	Beat	$27.40 mln	$25.64 mln (3 Analysts)
Q1 Gross Margin		24.10%
Q1 Free Cash Flow		-$31.50 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the construction supplies & fixtures peer group is "buy."

• Wall Street's median 12-month price target for Quanex Building Products Corp is $28.50, about 44.9% above its March 4 closing price of $19.67

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 6 three months ago

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