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Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for Quanex Building Products Corp (NX, Financial) is $33.75 with a high estimate of $38.00 and a low estimate of $28.00. The average target implies an upside of 85.24% from the current price of $18.22. More detailed estimate data can be found on the Quanex Building Products Corp (NX) Forecast page.
Based on the consensus recommendation from 2 brokerage firms, Quanex Building Products Corp's (NX, Financial) average brokerage recommendation is currently 1.5, indicating "Buy" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Quanex Building Products Corp (NX, Financial) in one year is $29.45, suggesting a upside of 61.64% from the current price of $18.22. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Quanex Building Products Corp (NX) Summary page.
NX Key Business Developments
Release Date: June 06, 2025
- Net Sales: $452.2 million in Q2 2025, up 70% from $266.2 million in Q2 2024.
- Net Income: $20.5 million or $0.44 per diluted share in Q2 2025; adjusted net income of $27.9 million or $0.60 per diluted share.
- Adjusted EBITDA: Increased by 54.7% to $61.9 million in Q2 2025 from $40 million in Q2 2024.
- North American Fenestration Segment Sales: $151 million in Q2 2025, a decrease of 5.5% from $159.8 million in Q2 2024.
- European Fenestration Segment Sales: $61.3 million in Q2 2025, up 8.3% from $56.5 million in Q2 2024.
- North American Cabinet Component Segment Sales: $51.2 million in Q2 2025, compared to $51.1 million in Q2 2024.
- Tyman Business Sales: $190.1 million in Q2 2025.
- Cash Flow from Operations: $28.5 million in Q2 2025, compared to $33.1 million in Q2 2024.
- Free Cash Flow: $13.6 million in Q2 2025.
- Leverage Ratio: Net debt to last 12 months adjusted EBITDA at 3.2 times; debt covenant leverage ratio at 2.7 times.
- Share Repurchase: Approximately $23.5 million of stock repurchased in Q2 2025.
- Cost Synergies: Expected to realize $45 million over time, a 50% increase from the original target.
- Guidance: Reaffirmed net sales guidance of $1.84 billion to $1.86 billion and adjusted EBITDA guidance of $270 million to $280 million for fiscal 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Quanex Building Products Corp (NX, Financial) reported a significant increase in net sales, reaching $452.2 million in Q2 2025, a 70% rise compared to the same period in 2024, primarily driven by the Tyman acquisition.
- The integration of the Tyman acquisition is progressing well, with cost synergies expected to reach $45 million, a 50% increase from the original target.
- The company has successfully localized supply chains to mitigate tariff impacts, with 22% of total cost of goods sold exposed to tariff risk, but USMCA compliance reduces this risk for Mexico and Canada.
- Quanex Building Products Corp (NX) repurchased approximately $23.5 million of its stock in Q2 2025, taking advantage of a low share price and maintaining a healthy balance sheet.
- The company reaffirmed its net sales guidance of $1.84 billion to $1.86 billion and adjusted EBITDA guidance of $270 million to $280 million for fiscal 2025, indicating confidence in future performance.
Negative Points
- Despite the overall sales increase, net sales excluding the Tyman contribution declined by 1.4% in Q2 2025, largely due to lower volume in North America.
- The North American fenestration segment saw a 5.5% decrease in net sales, with volumes declining by approximately 7% year over year.
- Consumer confidence in North America and Europe is negatively impacted by higher interest rates and geopolitical tensions, affecting market conditions.
- Pricing pressures continue in Europe, although operational performance has helped offset price concessions.
- Free cash flow was impacted by one-time items related to integration costs and achieving cost synergies, resulting in $13.6 million for the quarter.
