New Segment Reporting Implemented

Balance Sheet Further Strengthened with $51.25 Million of Debt Repaid in 3Q25

Cost Synergy Target Reaffirmed

Full Year Guidance Updated

HOUSTON, Sept. 04, 2025 (GLOBE NEWSWIRE) -- Quanex Building Products Corporation (NYSE:NX) ("Quanex" or the "Company") today announced its results for the three months ended July 31, 2025.

The Company reported the following selected financial results:

	Three Months Ended July 31,		Nine Months Ended July 31,
($ in millions, except per share data)	2025	2024	2025	2024
Net Sales	$495.3	$280.3	$1,347.8	$785.7
Gross Margin	$138.0	$70.9	$361.7	$188.6
Gross Margin %	27.9%	25.3%	26.8%	24.0%
Net (loss) income	($276.0)	$25.4	($270.4)	$47.0
Diluted EPS	($6.04)	$0.77	($5.83)	$1.42

Adjusted Net Income	$31.6	$26.9	$68.4	$60.7
Adjusted Diluted EPS	$0.69	$0.81	$1.47	$1.84
Adjusted EBITDA	$70.3	$42.0	$172.0	$101.3
Adjusted EBITDA Margin %	14.2%	15.0%	12.8%	12.9%

Cash Provided by Operating Activities	$60.7	$46.4	$76.6	$83.3
Free Cash Flow	$46.2	$40.1	$35.6	$59.9

(See Non-GAAP Terminology Definitions and Disclaimers section, Non-GAAP Financial Measure Disclosure table, Selected Segment Data table and reconciliation tables for additional information)

George Wilson, Chairman, President and Chief Executive Officer, stated, "A significant amount of work had to be done to re-segment the business, so we are pleased that the work is now complete, and we are operating and reporting in our new segments. We are encouraged by the overall resilience of the business in the current environment, demonstrated by our strong cash flow, which enabled us to repay over $51 million in bank debt in the third quarter of 2025. Our balance sheet is healthy, and our liquidity improved meaningfully during the quarter. We continue to make substantial progress on the integration of the Tyman business. After identifying additional target synergies and adjusting for lower expected volumes and pushing out the timing of when we expect to realize procurement savings, we still believe there is a path to realizing approximately $45 million in cost synergies over time, which is above our initial projection of $30 million. Although macroeconomic uncertainty and low consumer confidence, as well as operational issues related to the legacy Tyman window and door hardware business in Mexico that are ongoing but temporary in nature, posed challenges for us in our third quarter, we remain optimistic about our prospects for profitable growth and value creation.

Looking ahead, we believe Quanex is well positioned due to our solid, flexible financial foundation and advantaged strategic positioning. Despite the macroeconomic uncertainty, our near-term priorities remain unchanged, which include staying focused on the Tyman integration, capturing synergies, generating cash flow to pay down debt and opportunistically repurchasing our stock. As macroeconomic uncertainty subsides and consumer confidence improves, our team is well positioned to capitalize on pent-up demand."

Third Quarter Results Summary

Quanex generated net sales of $495.3 million during the three months ended July 31, 2025, which represents an increase of 76.7% compared to $280.3 million for the same period of 2024. The increase reflects the contribution from the Tyman acquisition that closed on August 1, 2024. Excluding the contribution from Tyman, net sales would have increased by 1.4% for the third quarter of 2025, mainly due to increased pricing and tariff passthroughs, offset by lower volumes. Inclusive of contributions from the Tyman acquisition, the Company reported increases in net sales of 201.0%, 29.6% and 40.7% for the third quarter of 2025 in its Hardware Solutions, Extruded Solutions and Custom Solutions segments, respectively. (See Sales Analysis table for additional information)

On a consolidated basis, the decrease in reported earnings for the three months ended July 31, 2025, was primarily the result of a $302.3 million non-cash goodwill impairment related to the re-segmentation of the business. The re-segmentation occurred at a point in time when consumer confidence is low, and equity values for building products companies are depressed. The non-cash goodwill impairment is not related to any performance indicators or revisions to long-term expectations. In addition, ongoing macroeconomic uncertainty, low consumer confidence and operational challenges related to the legacy Tyman window and door hardware business in Mexico impacted results more than expected during the third quarter of 2025. The seasonal uptick Quanex started to see in the second quarter of 2025 didn't continue to materialize to the degree the Company anticipated, and procurement related cost synergies were lower than expected.

The increase in adjusted earnings during the third quarter of 2025, compared to the same period of 2024, was mostly due to the contribution from the Tyman acquisition combined with the realization of related cost synergies.

Balance Sheet & Liquidity Update

As of July 31, 2025, the Company had total debt of $733.7 million and Quanex's leverage ratio of Net Debt to LTM Adjusted EBITDA decreased to 2.6x. As of July 31, 2025, the Company reported a LTM Net Loss of $284.3 million, mainly due to the non-cash goodwill impairment and LTM Adjusted EBITDA was $251.8 million (See Non-GAAP Terminology Definitions and Disclaimers section, Net Debt Reconciliation table and Last Twelve Months Adjusted EBITDA Reconciliation table for additional information)

The leverage ratio for Quanex's quarterly debt covenant compliance ("Debt Covenant Leverage Ratio") for its lenders was 2.4x as of July 31, 2025. The Debt Covenant Leverage Ratio calculation is defined in the Company's Amendment No. 1 to its Second Amended and Restated Credit Agreement ("Credit Agreement"), which was filed with the SEC on June 12, 2024. In general, the main difference is that the Debt Covenant Leverage Ratio excludes real-estate leases that are considered "finance" leases under U.S. GAAP and is calculated on a proforma basis to include Adjusted EBITDA from the Tyman acquisition, $30 million of EBITDA for the synergy target related to the acquisition, less realized synergies, and only cash from domestic subsidiaries. Note that per the terms of the Credit Agreement, the quarterly Debt Covenant Leverage Ratio must be less than 3.75x through the fourth quarter of 2025 and less than 3.25x starting in the first fiscal quarter of 2026. The Debt Covenant Leverage Ratio would be 2.3x if calculated using the full $66.3 million cash and cash equivalents balance as of July 31, 2025, and adjusting for the $2.1 million in cash used to repurchase stock during the quarter.

Quanex's liquidity improved to $337.7 million as of July 31, 2025, consisting of $66.3 million in cash on hand plus availability under its Senior Secured Revolving Credit Facility due 2029, less letters of credit outstanding.

Share Repurchases

Quanex's Board authorized a $75 million share repurchase program in December of 2021. Repurchases under this program will be made in open market transactions or privately negotiated transactions, subject to market conditions, applicable legal requirements, and other relevant factors. The Company repurchased 100,000 shares of common stock for approximately $2.1 million at an average price of $20.54 per share during the three months ended July 31, 2025. As of July 31, 2025, approximately $33.6 million remained under the existing share repurchase authorization.

Outlook

Quanex is updating its guidance for fiscal 2025 based on year-to-date results, recent demand trends, an updated cost synergy realization tracking and timing model, conversations with its customers, and a realistic timeline to address operational issues in the window and door hardware business in Mexico. On a consolidated basis for fiscal 2025, the Company now estimates that it will generate net sales of approximately $1.82 billion, which Quanex expects will yield Adjusted EBITDA* of approximately $235 million.

Mr. Wilson commented, "We have a strong team with a proven track record and a breadth of products that are unmatched in the industry, which gives us confidence in our ability to execute on our long-term operational and financial objectives."

*When Quanex provides expectations for Adjusted EBITDA on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and corresponding GAAP measures is generally not available without unreasonable effort. Certain items required for such a reconciliation are outside of the Company's control and/or cannot be reasonably predicted or estimated, such as the provision for income taxes related to net income.

Conference Call and Webcast Information

The Company has also scheduled a conference call for Friday, September 5, 2025 at 11:00 a.m. ET (10:00 a.m. CT) to discuss the release. A link to the live audio webcast will be available on Quanex's website at http://www.quanex.com in the Investors section under Presentations & Events.

Participants can pre-register for the conference call using the following link:

https://register-conf.media-server.com/register/BI1e90103192034399a255d44d3a7eb162

Registered participants will receive an email containing conference call details for dial-in options. To avoid delays, it is recommended that participants dial into the conference call ten minutes ahead of the scheduled start time. A replay will be available for a limited time on the Company's website at http://www.quanex.com in the Investors section under Presentations & Events.

About Quanex

Quanex is a global manufacturer with core capabilities and broad applications across various end markets. The Company currently collaborates and partners with leading OEMs to provide innovative solutions in the window, door, solar, refrigeration, custom mixing, building access and cabinetry markets. Looking ahead, Quanex plans to leverage its material science expertise and process engineering to expand into adjacent markets.

Non-GAAP Terminology Definitions and Disclaimers

Adjusted Net Income (defined as net income further adjusted to exclude amortization of step-up for purchase price adjustments on inventory, asset impairment charges, transaction, advisory fees and reorganization costs, restructuring charges related to severance and disposal of software, amortization expense related to intangible assets, pension settlement refund and other net adjustments related to foreign currency transaction gain/loss and effective tax rates reflecting impacts of adjustments on a with and without basis) and Adjusted EPS are non-GAAP financial measures that Quanex believes provide a consistent basis for comparison between periods and more accurately reflects operational performance, as they are not influenced by certain income or expense items not affecting ongoing operations. EBITDA (defined as net income or loss before interest, taxes, depreciation and amortization and other, net), Adjusted EBITDA and LTM Adjusted EBITDA (defined as EBITDA further adjusted to exclude purchase price accounting inventory step-ups, transaction costs, certain severance charges, gain/loss on the sale of certain fixed assets, restructuring charges and asset impairment charges) are non-GAAP financial measures that the Company uses to measure operational performance and assist with financial decision-making. Net Debt is defined as total debt (outstanding balance on the revolving credit facility plus financial lease obligations) less cash and cash equivalents. The leverage ratio of Net Debt to LTM Adjusted EBITDA is a financial measure that the Company believes is useful to investors and financial analysts in evaluating Quanex's leverage. In addition, with certain limited adjustments, this leverage ratio is the basis for a key covenant in the Company's credit agreement.

Free Cash Flow is a non-GAAP measure calculated using cash provided by operating activities less capital expenditures. Quanex uses the Free Cash Flow metric to measure operational and cash management performance and assist with financial decision-making. Free Cash Flow is measured before application of certain contractual commitments (including capital lease obligations), and accordingly is not a true measure of the Company's residual cash flow available for discretionary expenditures. Quanex believes Free Cash Flow is useful to investors in understanding and evaluating the Company's financial and cash management performance.

Quanex believes that the presented non-GAAP measures provide a consistent basis for comparison between periods and will assist investors in understanding the Company's financial performance when comparing results to other investment opportunities. The presented non-GAAP measures may not be the same as those used by other companies. Quanex does not intend for this information to be considered in isolation or as a substitute for other measures prepared in accordance with U.S. GAAP.

Forward Looking Statements

Statements that use the words "estimated," "expect," "could," "should," "believe," "will," "might," or similar words reflecting future expectations or beliefs are forward-looking statements. The forward-looking statements include, but are not limited to, the following: impacts from public health issues (including pandemics) on the economy and the demand for Quanex's products, timing estimates or any other expectations related to the acquisition of Tyman, the Company's future operating results, future financial condition, future uses of cash and other expenditures, expenses and tax rates, expectations relating to Quanex's industry, and the Company's future growth, including any guidance discussed in this press release. The statements and guidance set forth in this release are based on current expectations. Actual results or events may differ materially from this release. For a complete discussion of factors that may affect Quanex's future performance, please refer to the Company's Annual Report on Form 10-K for the fiscal year ended October 31, 2024, and the Company's Quarterly Reports on Form 10-Q under the sections entitled "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors". Any forward-looking statements in this press release are made as of the date hereof, and Quanex undertakes no obligation to update or revise any forward-looking statements to reflect new information or events.


CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited)

	Three Months Ended July 31,						Nine Months Ended July 31,
	2025			2024			2025			2024

Net sales	$	495,273		$	280,345		$	1,347,795		$	785,701
Cost of sales		357,305			209,441			986,129			597,127
Selling, general and administrative		71,270			36,509			208,253			103,579
Restructuring charges		1,367			-			10,207			-
Depreciation and amortization		33,882			10,953			77,814			32,999
Asset impairment charges		302,284			-			302,284			-
Operating (loss) income		(270,835	)		23,442			(236,892	)		51,996
Interest expense		(14,218	)		(878	)		(42,344	)		(2,896	)
Other, net		855			9,474			1,925			10,520
(Loss) income before income taxes		(284,198	)		32,038			(277,311	)		59,620
Income tax benefit (expense)		8,191			(6,688	)		6,934			(12,644	)
Net (loss) income	$	(276,007	)	$	25,350		$	(270,377	)	$	46,976

(Loss) earnings per common share, basic	$	(6.04	)	$	0.77		$	(5.83	)	$	1.43
(Loss) earnings per common share, diluted	$	(6.04	)	$	0.77		$	(5.83	)	$	1.42

Weighted average common shares outstanding:
Basic		45,691			32,876			46,395			32,857
Diluted		45,691			33,106			46,395			33,087

Cash dividends per share	$	0.08		$	0.08		$	0.24		$	0.24


QUANEX BUILDING PRODUCTS CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited)

	July 31, 2025			October 31, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	66,272		$	97,744
Restricted Cash		1,654			5,251
Accounts receivable, net		201,837			197,689
Inventories		272,222			275,550
Income taxes receivable		-			5,937
Prepaid and other current assets		41,339			29,097
Total current assets		583,324			611,268
Property, plant and equipment, net		405,510			402,466
Operating lease right-of-use assets		147,829			126,715
Deferred tax assets		3,654			3,845
Goodwill		271,459			574,711
Intangible assets, net		558,768			597,909
Other assets		2,133			2,874
Total assets	$	1,972,677		$	2,319,788

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	126,486		$	124,404
Accrued liabilities		95,378			103,623
Income taxes payable		1,273			6,620
Current maturities of long-term debt		26,313			25,745
Current operating lease liabilities		15,243			12,475
Total current liabilities		264,693			272,867
Long-term debt		695,605			737,198
Noncurrent operating lease liabilities		138,246			117,560
Deferred income taxes		143,576			162,304
Other liabilities		13,166			19,113
Total liabilities		1,255,286			1,309,042
Stockholders' equity:
Common stock		512			513
Additional paid-in-capital		699,106			701,008
Retained earnings		148,795			430,405
Accumulated other comprehensive loss		(30,501	)		(46,428	)
Treasury stock at cost		(100,521	)		(74,752	)
Total stockholders' equity		717,391			1,010,746
Total liabilities and stockholders' equity	$	1,972,677		$	2,319,788


QUANEX BUILDING PRODUCTS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (In thousands) (Unaudited)

	Nine Months Ended July 31,
	2025			2024
Operating activities:
Net (loss) income	$	(270,377	)	$	46,976
Adjustments to reconcile net (loss) income to cash provided by operating activities:
Depreciation and amortization		77,814			32,999
Stock-based compensation		2,762			2,159
Deferred income tax		(26,440	)		(2,321	)
Asset impairment charge		302,284			-
Gain on deal contingent foreign exchange forward currency contract		-			(9,200	)
Other, net		9,203			886
Changes in assets and liabilities:
(Increase) decrease in accounts receivable		(1,727	)		11,114
Decrease (increase) in inventory		5,261			(183	)
(Increase) decrease in other current assets		(7,228	)		1,646
Increase (decrease) in accounts payable		144			(9,634	)
(Decrease) increase in accrued liabilities		(9,725	)		948
(Decrease) increase in income taxes payable		(21	)		6,659
(Decrease) increase in other long-term liabilities		(5,395	)		707
Other, net		88			577
Cash provided by operating activities		76,643			83,333
Investing activities:
Capital expenditures		(40,996	)		(23,435	)
Proceeds from disposition of capital assets		361			115
Cash used for investing activities		(40,635	)		(23,320	)
Financing activities:
Borrowings under credit facilities		170,000			-
Repayments of credit facility borrowings		(213,750	)		(15,000	)
Repayments of other long-term debt		(1,962	)		(1,893	)
Common stock dividends paid		(11,233	)		(7,943	)
Issuance of common stock		214			573
Payroll tax paid to settle shares forfeited upon vesting of stock		(1,400	)		(1,193	)
Purchase of treasury stock		(29,248	)		-
Cash used for financing activities		(87,379	)		(25,456	)
Effect of exchange rate changes on cash and cash equivalents		16,302			935
(Decrease) increase in cash, cash equivalents and restricted cash		(35,069	)		35,492
Cash, cash equivalents and restricted cash at beginning of period		102,995			58,474
Cash, cash equivalents and restricted cash at end of period	$	67,926		$	93,966


QUANEX BUILDING PRODUCTS CORPORATION FREE CASH FLOW AND NET DEBT RECONCILIATION (In thousands) (Unaudited)

The following table reconciles the Company's calculation of Free Cash Flow, a non-GAAP measure, to its most directly comparable GAAP measure. The Company defines Free Cash Flow as cash provided by operating activities less capital expenditures.

	Three Months Ended July 31,		Nine Months Ended July 31,
	2025	2024	2025	2024
Cash provided by operating activities	$60,656	$46,388	76,643	$83,333
Capital expenditures	(14,452)	(6,252)	(40,996)	(23,435)
Free Cash Flow	$46,204	$40,136	$35,647	$59,898


The following table reconciles the Company's Net Debt which is defined as total debt principal of the Company plus finance lease obligations minus cash.

	As of July 31,
	2025	2024
Term loan facility	$475,000	$0
Revolving credit facility	197,500	-
Finance lease obligations⁽¹⁾	61,194	55,007
Total debt⁽²⁾	733,694	55,007
Less: Cash and cash equivalents	66,272	93,966
Net Debt	$667,422	($38,959)

(1) Includes $58.9 million and $50.7 million in real estate lease liabilities considered finance leases under U.S. GAAP as of July 31, 2025 and 2024, respectively.
(2) Excludes outstanding letters of credit.


QUANEX BUILDING PRODUCTS CORPORATION NON-GAAP FINANCIAL MEASURE DISCLOSURE LAST TWELVE MONTHS ADJUSTED EBITDA RECONCILIATION (In thousands, except per share data) (Unaudited)

Reconciliation of Last Twelve Months Adjusted EBITDA	Three Months Ended July 31, 2025			Three Months Ended April 30, 2025		Three Months Ended January 31, 2025			Three Months Ended October 31, 2024			Total
	Reconciliation			Reconciliation		Reconciliation			Reconciliation			Reconciliation
Net (loss) income as reported	$	(276,007	)	$	20,515	$	(14,885	)	$	(13,917	)	$	(284,294	)
Income tax (benefit) expense		(8,191	)		6,307		(5,050	)		(3,621	)		(10,555	)
Other, net		(855	)		159		(1,229	)		2,671			746
Interest expense		14,218			13,940		14,186			17,697			60,041
Depreciation and amortization		33,882			19,192		24,740			27,329			105,143
Asset impairment charges		302,284			-		-			-			302,284
EBITDA		65,331			60,113		17,762			30,159			173,365
Cost of sales⁽¹⁾		148			-		-			887			1,035
Selling, general and administrative^(1),(2),(3)		3,449			864		12,876			50,004			67,193
Restructuring charges⁽⁴⁾		1,367			936		7,904			-			10,207
Adjusted EBITDA	$	70,295		$	61,913	$	38,542		$	81,050		$	251,800

(1) Expense related to plant closure/relocation.
(2) Transaction, advisory fees, reorganization costs and product recall expenses.
(3) Amortization of step-up for purchase price adjustments on inventory.
(4) Restructuring charges related to severeance and disposal of software.


QUANEX BUILDING PRODUCTS CORPORATION NON-GAAP FINANCIAL MEASURE DISCLOSURE (In thousands, except per share data) (Unaudited)


Reconciliation of Adjusted Net Income and Adjusted EPS	Three Months Ended July 31, 2025							Three Months Ended July 31, 2024							Nine Months Ended July 31, 2025							Nine Months Ended July 31, 2024
	Net Income			Diluted EPS				Net Income			Diluted EPS				Net Income			Diluted EPS				Net Income			Diluted EPS
Net (loss) income as reported	$	(276,007	)	$	(6.04	)		$	25,350		$	0.77			$	(270,377	)	$	(5.83	)		$	46,976		$	1.42
Net (loss) income reconciling items from below		307,578		$	6.73				1,597		$	0.04				338,756		$	7.30				13,757		$	0.42
Adjusted net income and adjusted EPS	$	31,571		$	0.69			$	26,947		$	0.81			$	68,379		$	1.47			$	60,733		$	1.84

Reconciliation of Adjusted EBITDA	Three Months Ended July 31, 2025							Three Months Ended July 31, 2024							Nine Months Ended July 31, 2025							Nine Months Ended July 31, 2024
	Reconciliation							Reconciliation							Reconciliation							Reconciliation
Net (loss) income as reported	$	(276,007	)					$	25,350						$	(270,377	)					$	46,976
Income tax (benefit) expense		(8,191	)						6,688							(6,934	)						12,644
Other, net		(855	)						(9,474	)						(1,925	)						(10,520	)
Interest expense		14,218							878							42,344							2,896
Depreciation and amortization		33,882							10,953							77,814							32,999
Asset impairment charges		302,284							-							302,284							-
EBITDA		65,331							34,395							143,206							84,995
EBITDA reconciling items from below		4,964							7,640							28,766							16,338
Adjusted EBITDA	$	70,295						$	42,035						$	171,972						$	101,333

Reconciling Items	Three Months Ended July 31, 2025							Three Months Ended July 31, 2024							Nine Months Ended July 31, 2025							Nine Months Ended July 31, 2024
	Income Statement			Reconciling Items				Income Statement			Reconciling Items				Income Statement			Reconciling Items				Income Statement			Reconciling Items
Net sales	$	495,273		$	-			$	280,345		$	-			$	1,347,795		$	-			$	785,701		$	-
Cost of sales		357,305			(148	)	⁽¹⁾		209,441			(1,507	)	⁽¹⁾		986,129			(1,124	)	⁽¹⁾		597,127			(2,138	)	⁽¹⁾
Selling, general and administrative		71,270			(3,449	)	^(1), (2)		36,509			(6,133	)	^(1), (2)		208,253			(17,435	)	^{(1), (2), (3)}		103,579			(14,200	)	^(1), (2)
Restructuring charges		1,367			(1,367	)	⁽⁴⁾		-			-				10,207			(10,207	)	⁽⁴⁾		-			-
EBITDA		65,331			4,964				34,395			7,640				143,206			28,766				84,995			16,338
Asset impairment charges		302,284			(302,284	)	⁽⁵⁾		-			-				302,284			(302,284	)	⁽⁵⁾		-			-
Depreciation and amortization		33,882			(19,604	)	⁽⁶⁾		10,953			(2,796	)	⁽⁶⁾		77,814			(36,708	)	⁽⁶⁾		32,999			(8,982	)	⁽⁶⁾
Operating income		(270,835	)		326,852				23,442			10,436				(236,892	)		367,758				51,996			25,320
Interest expense		(14,218	)		-				(878	)		-				(42,344	)		-				(2,896	)		-
Other, net		855			(949	)	⁽⁷⁾		9,474			(9,162	)	⁽⁷⁾		1,925			(118	)	⁽⁷⁾		10,520			(10,009	)	⁽⁷⁾
Income before income taxes		(284,198	)		325,903				32,038			1,274				(277,311	)		367,640				59,620			15,311
Income tax expense		8,191			(18,325	)	⁽⁸⁾		(6,688	)		323		⁽⁸⁾		6,934			(28,884	)	⁽⁸⁾		(12,644	)		(1,554	)	⁽⁸⁾
Net (loss) income	$	(276,007	)	$	307,578			$	25,350		$	1,597			$	(270,377	)	$	338,756			$	46,976		$	13,757

Diluted (loss) earnings per share	$	(6.04	)					$	0.77						$	(5.83	)					$	1.42

(1) Expense related to plant closure/relocation.
(2) Transaction, advisory fees, reorganization costs and product recall expenses.
(3) Amortization of step-up for purchase price adjustments on inventory.
(4) Restructuring charges related to severeance and disposal of software.
(5) Goodwill impairment.
(6) Amortization expense related to intangible assets and onetime deprecation adjustment.
(7) Pension settlement refund and foreign currency transaction gains.
(8) Tax impact of net income reconciling items.


QUANEX BUILDING PRODUCTS CORPORATION SELECTED SEGMENT DATA (In thousands) (Unaudited)

This table provides gross margin, operating income (loss), EBITDA, and Adjusted EBITDA by reportable segment. Non-operating expense and income tax expense are not allocated to the reportable segments.

	Hardware Solutions			Extruded Solutions			Custom Solutions			Unallocated Corp & Other			Total
Three months ended July 31, 2025
Net sales	$	227,116		$	174,427		$	102,264		$	(8,534	)	$	495,273
Cost of sales		170,282			116,597			77,755			(7,329	)		357,305
Gross Margin		56,834			57,830			24,509			(1,205	)		137,968
Gross Margin %		25.0%			33.2%			24.0%						27.9%
Selling, general and administrative⁽¹⁾		32,954			20,740			11,708			5,868			71,270
Restructuring charges		1,140			34			26			167			1,367
Depreciation and amortization		16,987			6,989			4,716			5,190			33,882
Asset impairment charges		163,198			54,934			84,152			-			302,284
Operating loss		(157,445	)		(24,867	)		(76,093	)		(12,430	)		(270,835	)
Depreciation and amortization		16,987			6,989			4,716			5,190			33,882
Asset impairment charges		163,198			54,934			84,152			-			302,284
EBITDA		22,740			37,056			12,775			(7,240	)		65,331
Expense related to plant relocation (Cost of sales)		148			-			-			-			148
Transaction, advisory fees, reorganization costs, and product recall expenses		715			-			50			2,684			3,449
Restructuring charges related to severance		1,140			34			26			167			1,367
Adjusted EBITDA	$	24,743		$	37,090		$	12,851		$	(4,389	)	$	70,295
Adjusted EBITDA Margin %		10.9%			21.3%			12.6%						14.2%

Three months ended July 31, 2024
Net sales	$	75,460		$	134,552		$	72,667		$	(2,334	)	$	280,345
Cost of sales		59,092			92,790			59,973			(2,414	)		209,441
Gross Margin		16,368			41,762			12,694			80			70,904
Gross Margin %		21.7%			31.0%			17.5%						25.3%
Selling, general and administrative⁽¹⁾		6,906			15,648			6,559			7,396			36,509
Depreciation and amortization		1,225			5,460			4,211			57			10,953
Operating income (loss)		8,237			20,654			1,924			(7,373	)		23,442
Depreciation and amortization		1,225			5,460			4,211			57			10,953
EBITDA		9,462			26,114			6,135			(7,316	)		34,395
Expense related to plant closure (Cost of sales)		-			1,507			-			-			1,507
Expense related to plant closure (SG&A)		-			125			-			-			125
Transaction and advisory fees		-			-			-			6,008			6,008
Adjusted EBITDA	$	9,462		$	27,746		$	6,135		$	(1,308	)	$	42,035
Adjusted EBITDA Margin %		12.5%			20.6%			8.4%						15.0%

Nine months ended July 31, 2025
Net sales	$	614,791		$	478,024		$	284,809		$	(29,829	)	$	1,347,795
Cost of sales		466,600			325,914			219,755			(26,140	)		986,129
Gross Margin		148,191			152,110			65,054			(3,689	)		361,666
Gross Margin %		24.1%			31.8%			22.8%						26.8%
Selling, general and administrative⁽¹⁾		98,570			60,921			34,156			14,606			208,253
Restructuring charges		8,155			34			26			1,992			10,207
Depreciation and amortization		38,818			22,066			15,693			1,237			77,814
Asset impairment charges		163,198			54,934			84,152			-			302,284
Operating (loss) income		(160,550	)		14,155			(68,973	)		(21,524	)		(236,892	)
Depreciation and amortization		38,818			22,066			15,693			1,237			77,814
Asset impairment charges		163,198			54,934			84,152			-			302,284
EBITDA		41,466			91,155			30,872			(20,287	)		143,206
Expense related to plant relocation (Cost of sales)		1,124			-			-			-			1,124
Expense related to plant relocation (SG&A)		247			-			-			-			247
Amortization of step-up for purchase price adjustments on inventory.		7,276			1,428			302			-			9,006
Transaction, advisory fees, reorganization costs, and product recall expenses		1,397			177			50			6,558			8,182
Restructuring charges related to severance and disposal of software		8,155			34			26			1,992			10,207
Adjusted EBITDA	$	59,665		$	92,794		$	31,250		$	(11,737	)	$	171,972
Adjusted EBITDA Margin %		9.7%			19.4%			11.0%						12.8%

Nine months ended July 31, 2024
Net sales	$	204,127		$	379,860		$	208,201		$	(6,487	)	$	785,701
Cost of sales		165,952			263,107			174,365			(6,297	)		597,127
Gross Margin		38,175			116,753			33,836			(190	)		188,574
Gross Margin %		18.7%			30.7%			16.3%						24.0%
Selling, general and administrative⁽¹⁾		18,704			45,733			19,456			19,686			103,579
Depreciation and amortization		3,531			16,616			12,685			167			32,999
Operating income (loss)		15,940			54,404			1,695			(20,043	)		51,996
Depreciation and amortization		3,531			16,616			12,685			167			32,999
EBITDA		19,471			71,020			14,380			(19,876	)		84,995
Expense related to plant closure (Cost of sales)		-			2,138			-			-			2,138
Expense related to plant closure (SG&A)		-			1,103			-			-			1,103
Transaction and advisory fees		-			-			-			13,097			13,097
Adjusted EBITDA	$	19,471		$	74,261		$	14,380		$	(6,779	)	$	101,333
Adjusted EBITDA Margin %		9.5%			19.5%			6.9%						12.9%

(1) Includes stock-based compensation expense for the three and nine months ended July 31, 2025, respectively of $1.8 million and $3.6 million, and $1.3 million and $5.3 million for the comparable prior year periods.


QUANEX BUILDING PRODUCTS CORPORATION SELECTED SEGMENT DATA RECONCILIATION (In thousands) (Unaudited)

This table reconciles our segment presentation, as previously reported in Exhibit 99.1 to our Current Report Form 8-K dated August 12, 2024 for the three and nine months ended July 31, 2024, to the current presentation.

	NA Fenestration		EU Fenestration		NA Cabinet Components			Unallocated Corp & Other			Total
Three months ended July 31, 2024
Net sales	$	170,258	$	59,617	$	51,448		$	(978	)	$	280,345
Cost of sales		130,301		36,930		42,911			(701	)		209,441
Gross Margin		39,957		22,687		8,537			(277	)		70,904
Gross Margin %		23.5%		38.1%		16.6%						25.3%
Selling, general and administrative		16,918		7,390		5,162			7,039			36,509
Depreciation and amortization		5,194		2,609		3,093			57			10,953
Operating income (loss)		17,845		12,688		282			(7,373	)		23,442
Depreciation and amortization		5,194		2,609		3,093			57			10,953
EBITDA		23,039		15,297		3,375			(7,316	)		34,395
Expense related to plant closure (Cost of sales)		1,507		-		-			-			1,507
Expense related to plant closure (SG&A)		125		-		-			-			125
Transaction and advisory fees		-		-		-			6,008			6,008
Adjusted EBITDA	$	24,671	$	15,297	$	3,375		$	(1,308	)	$	42,035
Adjusted EBITDA Margin %		14.5%		25.7%		6.6%						15.0%

	Hardware Solutions⁽¹⁾		Extruded Solutions⁽²⁾		Custom Solutions⁽³⁾			Unallocated Corp & Other			Total
Three months ended July 31, 2024
Net sales	$	75,460	$	134,552	$	72,667		$	(2,334	)	$	280,345
Cost of sales		59,092		92,790		59,973			(2,414	)		209,441
Gross Margin		16,368		41,762		12,694			80			70,904
Gross Margin %		21.7%		31.0%		17.5%						25.3%
Selling, general and administrative		6,906		15,648		6,559			7,396			36,509
Depreciation and amortization		1,225		5,460		4,211			57			10,953
Operating income		8,237		20,654		1,924			(7,373	)		23,442
Depreciation and amortization		1,225		5,460		4,211			57			10,953
EBITDA		9,462		26,114		6,135			(7,316	)		34,395
Expense related to plant closure (Cost of sales)		-		1,507		-			-			1,507
Expense related to plant closure (SG&A)		-		125		-			-			125
Transaction and advisory fees		-		-		-			6,008			6,008
Adjusted EBITDA	$	9,462	$	27,746	$	6,135		$	(1,308	)	$	42,035
Adjusted EBITDA Margin %		12.5%		20.6%		8.4%						15.0%

	NA Fenestration		EU Fenestration		NA Cabinet Components			Unallocated Corp & Other			Total
Nine months ended July 31, 2024
Net sales	$	478,027	$	165,637	$	145,663		$	(3,626	)	$	785,701
Cost of sales		370,930		104,327		124,278			(2,408	)		597,127
Gross Margin		107,097		61,310		21,385			(1,218	)		188,574
Gross Margin %		22.4%		37.0%		14.7%						24.0%
Selling, general and administrative		46,558		23,008		15,354			18,659			103,579
Depreciation and amortization		15,887		7,705		9,240			167			32,999
Operating income (loss)		44,652		30,597		(3,209	)		(20,044	)		51,996
Depreciation and amortization		15,887		7,705		9,240			167			32,999
EBITDA		60,539		38,302		6,031			(19,877	)		84,995
Expense related to plant closure (Cost of sales)		2,138		-		-			-			2,138
Expense related to plant closure (SG&A)		1,103		-		-			-			1,103
Transaction and advisory fees		-		-		-			13,097			13,097
Adjusted EBITDA	$	63,780	$	38,302	$	6,031		$	(6,780	)	$	101,333
Adjusted EBITDA Margin %		13.3%		23.1%		4.1%						12.9%

	Hardware Solutions⁽¹⁾		Extruded Solutions⁽²⁾		Custom Solutions⁽³⁾			Unallocated Corp & Other			Total
Nine months ended July 31, 2024
Net sales	$	204,127	$	379,860	$	208,201		$	(6,487	)	$	785,701
Cost of sales		165,952		263,107		174,365			(6,297	)		597,127
Gross Margin		38,175		116,753		33,836			(190	)		188,574
Gross Margin %		18.7%		30.7%		16.3%						24.0%
Selling, general and administrative		18,704		45,733		19,456			19,686			103,579
Depreciation and amortization		3,531		16,616		12,685			167			32,999
Operating income (loss)		15,940		54,404		1,695			(20,043	)		51,996
Depreciation and amortization		3,531		16,616		12,685			167			32,999
EBITDA		19,471		71,020		14,380			(19,876	)		84,995
Loss on damage to manufacturing facilities (Cost of sales)		-		2,138		-			-			2,138
Loss on damage to manufacturing facilities (SG&A)		-		1,103		-			-			1,103
Transaction and advisory fees		-		-		-			13,097			13,097
Adjusted EBITDA	$	19,471	$	74,261	$	14,380		$	(6,779	)	$	101,333
Adjusted EBITDA Margin %		9.5%		19.5%		6.9%						12.9%

(1) The Hardware Solutions segment contains a portion of the previously reported NA Fenestration segment.
(2) The Extruded Solutions segment contains a portion of the NA Fenestration segment and the EU Fenestration segment.
(3) The Custom Solutions segment contains a portion of the NA Fenestration segment and the NA Cabinet Components segment.


QUANEX BUILDING PRODUCTS CORPORATION SALES ANALYSIS (In thousands) (Unaudited)

		Three Months Ended July 31,						Nine Months Ended July 31,
		2025			2024			2025			2024

Hardware Solutions:
	Window and door hardware	$	150,307		$	-		$	411,522		$	-
	Screens		76,809			75,460			203,269			204,127
		$	227,116		$	75,460		$	614,791		$	204,127
Extruded Solutions:⁽¹⁾
	Window profiles	$	68,165		$	67,802		$	182,273		$	193,758
	Seals and gaskets		29,865			16,513			84,915			42,714
	Spacers		54,743			37,868			146,544			104,047
	Solar		5,250			5,198			17,835			16,074
	Flashing Tape		3,038			4,905			6,751			13,512
	Window and door hardware		10,044			-			29,694			-
	Other		3,322			2,266			10,012			9,755
		$	174,427		$	134,552		$	478,024		$	379,860
Custom Solutions:
	Wood solutions	$	53,409		$	51,448		$	148,456		$	145,663
	Access solutions		27,370			-			74,158			-
	Mixing solutions		21,485			21,219			62,195			62,538
		$	102,264		$	72,667		$	284,809		$	208,201

Unallocated Corporate & Other:
	Eliminations	$	(8,534	)	$	(2,334	)	$	(29,829	)	$	(6,487	)
		$	(8,534	)	$	(2,334	)	$	(29,829	)	$	(6,487	)

Net Sales		$	495,273		$	280,345		$	1,347,795		$	785,701

(1) Reflects an increase of $2.6 million and $2.9 million in revenue associated with foreign currency exchange rate impacts for the three and nine months ended July 31, 2025, respectively.

Quanex Building Products Announces Third Quarter 2025 Results