Quanex Building Products (NX)
NYSE:NX
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Quanex
(NYSE:NX)
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Rating:52Neutral
Price Target:
$20.00
▲(18.62% Upside)
Action:ReiteratedDate:03/06/26
The score is held back primarily by the sharp swing into operating and net losses alongside higher leverage, despite solid TTM free cash flow. Technicals also lean weak/oversold, indicating limited near-term momentum. Offsetting these risks are management’s FY2026 guidance for meaningful margin expansion and revenue growth, plus a modest dividend and generally stable corporate/governance signals.
Positive Factors
Strong cash generation
Quanex’s trailing-twelve-month revenue surge accompanied by ~$177M operating cash flow and ~$115M free cash flow provides durable internal funding. Sustained cash conversion underpins dividend support, capex and debt paydown capacity, cushioning the business while margin recovery is executed over the medium term.
Negative Factors
Higher leverage and weakened balance sheet
Debt/equity rising to ~1.18 and negative ROE materially reduce financial flexibility. Elevated leverage limits the company’s ability to absorb demand shocks, constrains capital allocation (M&A or buybacks), and makes successful margin recovery essential to avoid prolonged refinancing risk or asset-preservation tradeoffs.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Quanex’s trailing-twelve-month revenue surge accompanied by ~$177M operating cash flow and ~$115M free cash flow provides durable internal funding. Sustained cash conversion underpins dividend support, capex and debt paydown capacity, cushioning the business while margin recovery is executed over the medium term.
Read all positive factors
Quanex (NX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$915.00M
Dividend Yield2.12%
Average Volume (3M)590.77K
Price to Earnings (P/E)―
Beta (1Y)0.99
Revenue Growth43.81%
EPS Growth-584.11%
CountryUS
Employees7,068
SectorIndustrials
Sector Strength72
IndustryConstruction
Share Statistics
EPS (TTM)-0.01
Shares Outstanding45,933,815
10 Day Avg. Volume380,975
30 Day Avg. Volume590,775
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.90
Price to Sales (P/S)0.36
P/FCF Ratio6.42
Enterprise Value/Market Cap1.91
Enterprise Value/Revenue0.95
Enterprise Value/Gross Profit3.63
Enterprise Value/Ebitda-23.20
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.1
Revenue Forecast (FY)$1.84B
Quanex Business Overview & Revenue Model
Company Description
Quanex Building Products Corporation, together with its subsidiaries, provides components for the fenestration industry in the United States, Europe, Canada, Asia, and internationally. The company operates through three segments: North American Fe...
How the Company Makes Money
Quanex makes money by manufacturing and selling building-product components to window and door makers and related customers, generating revenue primarily from product sales (rather than subscriptions or licensing). Its key revenue streams are tied...
Quanex Earnings Call Summary
Earnings Call Date:Mar 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jun 04, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: near-term results showed meaningful margin and cash-flow deterioration (notably a ~28.8% drop in consolidated adjusted EBITDA and negative free cash flow), and segments experienced lower volumes and EBITDA declines. Offsetting these near-term headwinds are several positive items — stabilization of the Monterrey plant, solid liquidity, explicit FY2026 guidance calling for meaningful revenue growth (12%–14%) and a material margin expansion (500–550 bps), ongoing product and commercial initiatives, and a plan to reduce leverage toward ~2.0x. Given the balance of significant near-term operational and cash challenges with a credible set of remediation actions and constructive full-year guidance, the overall tone is cautious but constructive.Positive Updates
Consolidated Revenue Increase
Net sales for Q1 FY2026 were $409.1M, up approximately 2.3% year-over-year versus $400.0M, driven primarily by foreign exchange translation and tariff pass-through.
Negative Updates
Significant Decline in Adjusted EBITDA (Consolidated)
Consolidated adjusted EBITDA for Q1 FY2026 was $27.4M versus $38.5M in Q1 FY2025, a decline of $11.1M or approximately 28.8%, driven by reduced operating leverage from lower volumes and temporary Monterrey costs.
Read all updates
Q1-2026 Updates
Positive
Negative
Consolidated Revenue Increase
Net sales for Q1 FY2026 were $409.1M, up approximately 2.3% year-over-year versus $400.0M, driven primarily by foreign exchange translation and tariff pass-through.
Read all positive updates
Company Guidance
Quanex guided fiscal 2026 consolidated net sales of $1.84–1.87 billion and adjusted EBITDA of $240–245 million (implying consolidated revenue growth of 12–14% vs. 2025 and an adjusted EBITDA margin expansion of ~500–550 basis points year‑over‑year), with modeling assumptions of gross margin of 28.0–28.5%, SG&A of $295–300 million (includes bonus accrual at target), depreciation & amortization of $105–110 million (adjusted D&A excl. intangible amortization $65–70 million for adjusted EPS), interest expense of $50 million, a tax rate of ~24%, CapEx of $70–75 million, and full‑year free cash flow of approximately $100 million; liquidity stood at $331.6 million as of 1/31/2026 (cash $62.3 million plus revolver availability net of LCs), net debt/LTM adjusted EBITDA was 2.8x (expected to tick up in Q2 but to exit 2026 nearer 2.0x), the company expects to be a net borrower in the first half with the majority of cash generation in the second half, and noted Q1 metrics of net sales $409.1 million, adjusted EBITDA $27.4 million, cash used by operations $20.2 million and negative free cash flow of $31.5 million.Quanex Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
40
Negative
Cash Flow
66
Positive
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.85B | 1.84B | 1.28B | 1.13B | 1.22B | 1.07B |
| Gross Profit | 481.19M | 499.23M | 305.62M | 277.52M | 268.50M | 240.61M |
| EBITDA | -75.23M | -83.34M | 123.00M | 148.05M | 152.43M | 125.36M |
| Net Income | -239.99M | -250.81M | 33.06M | 82.50M | 88.34M | 56.98M |
Balance Sheet | ||||||
| Total Assets | 1.98B | 1.97B | 2.32B | 831.14M | 724.62M | 717.32M |
| Cash, Cash Equivalents and Short-Term Investments | 62.31M | 76.02M | 97.74M | 58.47M | 55.09M | 40.06M |
| Total Debt | 892.62M | 853.73M | 892.98M | 116.39M | 87.69M | 106.50M |
| Total Liabilities | 1.25B | 1.24B | 1.31B | 285.59M | 259.78M | 297.54M |
| Stockholders Equity | 730.35M | 726.18M | 1.01B | 545.55M | 464.83M | 419.78M |
Cash Flow | ||||||
| Free Cash Flow | 94.89M | 102.25M | 51.73M | 109.66M | 64.84M | 54.58M |
| Operating Cash Flow | 157.20M | 164.90M | 88.81M | 147.05M | 97.97M | 78.59M |
| Investing Cash Flow | -61.79M | -62.01M | -420.59M | -128.44M | -32.96M | -18.71M |
| Financing Cash Flow | -89.59M | -127.48M | 385.16M | -16.15M | -45.88M | -71.86M |
Quanex Technical Analysis
Positive
16.86
Price Trends
19.21
Positive
17.25
Positive
17.15
Positive
Market Momentum
0.16
Negative
62.72
Neutral
87.30
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NX, the sentiment is Positive. The current price of 16.86 is below the 20-day moving average (MA) of 17.77, below the 50-day MA of 19.21, and below the 200-day MA of 17.15, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 62.72 is Neutral, neither overbought nor oversold. The STOCH value of 87.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NX.
Quanex Risk Analysis
Quanex disclosed 26 risk factors in its most recent earnings report. Quanex reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Quanex Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $748.45M | 17.16 | 9.76% | ― | -10.84% | -53.49% | |
59 Neutral | $779.10M | 11.74 | 8.07% | 2.77% | 1.19% | -56.98% | |
56 Neutral | $1.21B | 15.14 | 9.87% | ― | -9.21% | -97.43% | |
52 Neutral | $915.00M | -52.26 | -30.23% | 2.12% | 43.81% | -584.11% | |
45 Neutral | $440.23M | 2,188.09 | 2.20% | ― | -0.19% | -50.51% | |
41 Neutral | $90.62M | -0.34 | -217.71% | ― | -15.28% | -350.51% |
* Industrials Sector Average
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3.02
17.83%
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Quanex Corporate Events
Executive/Board ChangesShareholder Meetings
Quanex Shareholders Back Board, Pay and Auditor Choices
Positive
Mar 3, 2026
On February 26, 2026, Quanex held its Annual Meeting of Stockholders, where 39,532,896 of 45,938,400 eligible shares were represented in person or by proxy. Eight directors were elected to terms expiring at the 2027 Annual Meeting, each receiving ...
Business Operations and StrategyDividends
Quanex Declares Quarterly Cash Dividend, Signals Ongoing Stability
Positive
Feb 26, 2026
On February 26, 2026, Quanex Building Products Corporation announced that its Board of Directors declared a quarterly cash dividend of $0.08 per share on its common stock. The dividend will be paid on March 31, 2026, to shareholders of record as o...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.