Quanex Building Products Corporation, along with its various subsidiaries, operates as a comprehensive global supplier specializing in components for the fenestration sector ...
Quanex Building Products Corporation, traded on NYSE under the symbol NX, is a comprehensive global supplier for the building products industry, with a rich history dating back to 1927. The company operates across three primary segments: North American Fenestration, European Fenestration, and North American Cabinet Components, serving markets in North ...Quanex Building Products Corporation, traded on NYSE under the symbol NX, is a comprehensive global supplier for the building products industry, with a rich history dating back to 1927. The company operates across three primary segments: North American Fenestration, European Fenestration, and North American Cabinet Components, serving markets in North America, Europe, Asia, and beyond. Its product portfolio is diverse, including flexible insulating glass spacers, custom-extruded vinyl profiles, window and door screens, and engineered metal and wood components for fenestration. Additionally, it supplies cabinet doors and components to OEMs in the kitchen and bathroom cabinetry sector, along with non-fenestration products such as solar panel sealants, decorative trim, vinyl decking and fencing, water retention barriers, and conservatory roof components.
With over 7,100 employees and 67 locations worldwide, Quanex utilizes a multi-channel sales approach, including direct sales, external reps, distributors, and agents, to reach OEMs. The company is led by CEO George L. Wilson, who also serves as Chairman and President. Financially, Quanex has a market cap of approximately $1.01 billion, with revenue per share of $40.82, though recent TTM metrics show negative profitability. The company has faced challenges with an EBITDA margin of -4.6% and a net profit margin of -13.9%, but it maintains a current ratio of 2.28, indicating strong liquidity. Quanex emphasizes innovation and sustainability, positioning itself for market leadership in fenestration and building products.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$1.8B
+43.8%
+8.5%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$-250.8M
-858.7%
+691.2%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+27.2%
+13.6%
-100.0%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
-10.6%
-346.0%
+128.9%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
-13.6%
-627.6%
+628.9%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$102.3M
+97.7%
+505.6%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+5.6%
+37.5%
+458.0%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
117.6%
+33.1%
-7.6%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
2.04x
-9.0%
-2.1%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good day, and thank you for standing by. Welcome to the Q2 2 thousand 26 Quanex Building Products Corporation Earnings Conference Call. At this time, all participants are in a listen only mode. Please be advised that today's conference is being recorded. After the speakers' presentation, there will be a question and answer session. To ask a question, please press 11 on your telephone, and wait for your name to be announced. To withdraw your question, please press 11 again. I would now like to hand the conference over to your speaker today, Scott Michael Zuehlke, Senior Vice President, CFO and Treasurer.
Scott Michael Zuehlke: Thanks for joining the call with this morning. On the call with me today is George L. Wilson, our Chairman, President and CEO. This conference call will contain forward looking statements and some discussion of non GAAP measures. Forward looking statements and guidance discussed on this call and in our earnings release are based on current expectations. Actual results or events may differ materially from such statements and guidance. And Quanex undertakes no obligation to update or revise any forward looking statement to reflect new information or events. For a more detailed description of our forward looking statement disclaimer, and a reconciliation of non GAAP measures to the most directly comparable GAAP measures, please see our earnings release issued yesterday and posted to our website.
George L. Wilson: I will now turn the call over to George for his prepared remarks. Thanks, Scott, and good morning to everyone on the call. In my commentary, I will give our perspective on the current macroeconomic environment, provide an overview of our results, highlight some inflationary challenges and the actions being taken by Quanex, and then discuss go forward priorities. From a macroeconomic perspective, housing demand in North America and Europe is showing early signs of stabilization, but the recovery will likely proceed gradually. Progress remains constrained by persistently weak consumer confidence, which remains below historical norms. Inflation fatigue, affordability challenges, and ongoing geopolitical uncertainty are outweighing an otherwise strong labor market. In the US, mortgage rates above 6% further dampen activity while the lock in effect where homeowners are reluctant to relinquish previously secured low rates continues to limit mobility. Even as rising home equity reflects higher property values. Given these ongoing challenges, we do not expect housing markets to rebound sharply in the near term. We instead anticipate a steady recovery over the medium to longer term and this will depend on, 1, an improvement in affordability, 2, a decrease or stabilization of interest rates, and 3, improvement in consumer confidence influenced by a period of geopolitical stability. I will now provide some commentary on our results for the second quarter of 26. Despite the headwinds I just mentioned, demand for our …