Quanex Building Products Announces Third Quarter 2026 Results

Net Sales Growth
Volumes Continue to Track Normal Seasonality Patterns
Margin Expansion Realized in Hardware Solutions Segment and on Consolidated Basis
$42.25 Million of Debt Repaid in 3Q26
Continued Progress and Execution on Working Capital Management

HOUSTON, Sept. 03, 2026 (GLOBE NEWSWIRE) -- Quanex Building Products Corporation (NYSE:NX) (“Quanex” or the “Company”) today announced its results for the three months ended July 31, 2026.  

The Company reported the following selected financial results:

		Three Months Ended July 31,				Nine Months Ended July 31,
($ in millions, except per share data)		2026		2025		2026		2025
Net Sales		$501.8		$495.3		$1,373.3		$1,347.8
Gross Margin		$141.5		$138.0		$357.8		$361.7
Gross Margin %		28.2%		27.9%		26.1%		26.8%
Operating Income (Loss)		$46.5		($270.8)		$68.1		($236.9)
Net Income (Loss)		$26.5		($276.0)		$25.8		($270.4)
Diluted EPS		$0.58		($6.04)		$0.57		($5.83)
Adjusted Net Income		$36.0		$31.6		$47.0		$68.4
Adjusted Diluted EPS		$0.79		$0.69		$1.03		$1.47
Adjusted EBITDA		$72.7		$70.3		$144.3		$172.0
Adjusted EBITDA Margin %		14.5%		14.2%		10.5%		12.8%
Cash Provided By Operating Activities		$58.6		$60.7		$57.3		$76.6
Free Cash Flow		$47.8		$46.2		$24.2		$35.6

(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, “Volumes continued to track normal seasonality patterns during the third quarter of 2026, and we made meaningful progress addressing the price versus cost imbalance that impacted our margins in the second quarter of 2026. Inflationary pressures related to macroeconomic concerns and the ongoing conflict in the Middle East are still having an impact, but the initial rate and magnitude of these pressures have somewhat subsided.

“We stayed focused on managing our working capital during the third quarter of 2026, which when coupled with the seasonal uptick in volumes, enabled us to repay $42.25 million of debt and buy back some of our shares. We will continue to prioritize repaying debt and opportunistically repurchasing our shares as we generate cash in the fourth quarter of 2026. In addition, we will continue to identify operational efficiencies and commercial synergies that we believe will benefit us when consumer confidence and demand improve.”

Third Quarter 2026 Results Summary   

Quanex reported net sales of $501.8 million during the three months ended July 31, 2026, which represents an increase of 1.3% compared to $495.3 million for the same period in 2025, mainly due to favorable impacts from pricing, partially offset by the impact of IEEPA tariff reimbursements to customers. The Hardware Solutions segments reported a 2.7% decline in net sales for the third quarter of 2026, driven by lower volumes and the impact of IEEPA tariff reimbursements to customers, which were somewhat offset by favorable impacts from pricing. The Extruded Solutions segments reported net sales growth of 2.8% for the third quarter of 2026, as lower volumes were more than offset by favorable impacts from pricing. Quanex reported an increase of 8.5% in net sales for the third quarter of 2026 in its Custom Solutions segment, largely due to increased volume and improved pricing. (See Sales Analysis table for additional information)

On a consolidated basis, the increase in reported earnings for the third quarter of 2026 compared to the third quarter of 2025 was mainly due to improved pricing, lower depreciation and amortization expense and lower interest expense. Results for the third quarter of 2025 were also impacted by a $302.3 million non-cash goodwill impairment.

Balance Sheet & Liquidity Update

As of July 31, 2026, the Company had total debt of $672.2 million and Quanex’s leverage ratio of Net Debt to LTM Adjusted EBITDA was 2.8x. As of July 31, 2026, Quanex reported LTM Net Income of $45.4 million and LTM Adjusted EBITDA of $215.2 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 Company’s liquidity increased by 10.5% to $363.1 million as of July 31, 2026, consisting of $62.1 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 99,786 shares of common stock for approximately $1.7 million at an average price of $17.10 per share during the three months ended July 31, 2026. As of July 31, 2026, approximately $28.7 million remained under the existing share repurchase authorization.   

Conference Call and Webcast Information

The Company has scheduled a conference call for Friday, September 4, 2026, 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/BIac7900426be941999342c141e5049229

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 partners with leading OEMs to provide innovative solutions in 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 reflect 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.  These measures allow management and investors to evaluate operational performance and trends without the impact of certain non-cash charges, acquisition-related costs, and other items that may vary significantly from period to period and may not be reflective of Quanex’s core operating results. The presented non-GAAP measures may not be the same as those used by other companies. The Company 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

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995.   Statements that use the words “estimated,” “expect,” “could,” “should,” “believe,” “will,” “might,” “anticipate,” “intend,” “plan,” “project,” “seek,” “would,” “may,” or similar words reflecting future expectations or beliefs are forward-looking statements. The forward-looking statements include, but are not limited to, the following: Quanex’s future operating results, future financial condition, future uses of cash and other expenditures, expenses and tax rates, expectations relating to the Company’s industry, expectations regarding the recovery of price versus cost imbalances, anticipated debt repayment and share repurchase activity, expected operational efficiencies and synergies 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 those expressed or implied in these forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. For a complete discussion of factors that may affect the Company’s future performance, please refer to Quanex’s Annual Report on Form 10-K for the fiscal year ended October 31, 2025, 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 the Company undertakes no obligation to update or revise any forward-looking statements, whether written or oral, to reflect new information, developments or events.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited)
		Three Months Ended July 31,								Nine Months Ended July 31,
		2026				2025				2026				2025
Net sales		$	501,845			$	495,273			$	1,373,301			$	1,347,795
Cost of sales			360,380				357,305				1,015,517				986,129
Selling, general and administrative			70,837				71,270				216,695				208,253
Restructuring charges			-				1,367				-				10,207
Depreciation and amortization			24,138				33,882				73,037				77,814
Asset impairment charges			-				302,284				-				302,284
Operating income (loss)			46,490				(270,835	)			68,052				(236,892	)
Interest expense			(11,978	)			(14,218	)			(36,387	)			(42,344	)
Other, net			(93	)			855				5,972				1,925
Income (loss) before income taxes			34,419				(284,198	)			37,637				(277,311	)
Income tax (expense) benefit			(7,915	)			8,191				(11,854	)			6,934
Net income (loss)		$	26,504			$	(276,007	)		$	25,783			$	(270,377	)
Earnings (loss) per common share, basic		$	0.58			$	(6.04	)		$	0.57			$	(5.83	)
Earnings (loss) per common share, diluted		$	0.58			$	(6.04	)		$	0.57			$	(5.83	)
Weighted average common shares outstanding:
Basic			45,461				45,691				45,466				46,395
Diluted			45,648				45,691				45,607				46,395
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, 2026				October 31, 2025
ASSETS
Current assets:
Cash and cash equivalents		$	62,094			$	76,018
Restricted Cash			2,123				2,100
Accounts receivable, net			214,768				205,384
Inventories			276,396				254,122
Income taxes receivable			5,603				-
Prepaid assets			37,452				32,387
Other current assets			3,847				3,764
Total current assets			602,283				573,775
Property, plant and equipment, net			394,021				411,591
Operating lease right-of-use assets			171,552				154,866
Deferred tax assets			300				2,706
Goodwill			273,765				271,346
Intangible assets, net			522,218				549,137
Other assets			4,552				4,812
Total assets		$	1,968,691			$	1,968,233
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	127,030			$	131,307
Accrued liabilities			88,209				95,155
Income taxes payable			9,300				12,076
Current maturities of long-term debt			26,551				27,561
Current operating lease liabilities			18,822				15,446
Other liabilities			-				-
Total current liabilities			269,912				281,545
Long-term debt			636,814				665,268
Noncurrent operating lease liabilities			160,290				145,459
Deferred pension benefits
Deferred income taxes			137,766				135,993
Liabilities for uncertain tax positions			1,857				-
Other liabilities			16,608				13,789
Total liabilities			1,223,247				1,242,054
Stockholders’ equity:
Common stock			512				512
Additional paid-in-capital			697,598				700,029
Retained earnings			179,472				164,710
Accumulated other comprehensive loss			(32,142	)			(35,439	)
Treasury stock at cost			(99,996	)			(103,633	)
Total stockholders’ equity			745,444				726,179
Total liabilities and stockholders' equity		$	1,968,691			$	1,968,233

QUANEX BUILDING PRODUCTS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (In thousands) (Unaudited)
	Nine Months Ended July 31,
	2026				2025
Operating activities:
Net (loss) income	$	25,783			$	(270,377	)
Adjustments to reconcile net loss to cash used for operating activities:
Depreciation and amortization		73,037				77,814
Stock-based compensation		3,617				2,762
Deferred income tax		664				(26,440	)
Goodwill impairment charge		-				302,284
Other, net		4,640				9,203
Changes in assets and liabilities:
Increase in accounts receivable		(8,685	)			(1,727	)
(Increase) decrease in inventory		(21,129	)			5,261
Increase in other current assets		(4,430	)			(7,228	)
(Decrease) increase in accounts payable		(2,365	)			144
Decrease in accrued liabilities		(7,601	)			(9,725	)
Change in income taxes		(6,629	)			(21	)
Other, net		366				(5,307	)
Cash provided by operating activities		57,268				76,643
Investing activities:
Capital expenditures		(33,066	)			(40,996	)
Proceeds from disposition of capital assets		62				361
Cash used for investing activities		(33,004	)			(40,635	)
Financing activities:
Borrowings under credit facilities		141,500				170,000
Repayments of credit facility borrowings		(164,250	)			(213,750	)
Repayments of other long-term debt		(3,316	)			(1,962	)
Common stock dividends paid		(10,916	)			(11,233	)
Purchase of treasury stock		(1,707	)			(29,248	)
Other, net		(704	)			(1,186	)
Cash used for financing activities		(39,393	)			(87,379	)
Effect of exchange rate changes on cash and cash equivalents		1,228				16,302
Decrease in cash, cash equivalents and restricted cash		(13,901	)			(35,069	)
Cash, cash equivalents and restricted cash at beginning of period		78,118				102,995
Cash, cash equivalents and restricted cash at end of period	$	64,217			$	67,926

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,
	2026				2025				2026				2025
Cash provided by operating activities	$	58,554			$	60,656			$	57,268			$	76,643
Capital expenditures	(10,744		)		(14,452		)		(33,066		)		(40,996		)
Free Cash Flow	$	47,810			$	46,204			$	24,202			$	35,647
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,
	2026				2025
Term loan facility	$	450,000			$	475,000
Revolving credit facility	168,500				197,500
Finance lease obligations (1)	53,697				61,194
Total debt (2)	672,197				733,694
Less: Cash and cash equivalents	62,094				66,272
Net Debt	$	610,103			$	667,422
(1) Includes $47.9 million and $58.9 million in real estate lease liabilities considered finance leases under U.S. GAAP as of July 31, 2026 and 2025, 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, 2026				Three Months Ended April 30, 2026				Three Months Ended January 31, 2026				Three Months Ended October 31, 2025				Total
		Reconciliation				Reconciliation				Reconciliation				Reconciliation				Reconciliation
Net income (loss) as reported		$	26,504			$	3,350			$	(4,071	)		$	19,571			$	45,354
Income tax expense (benefit)			7,915				3,766				173				15,147				27,001
Other, net			93				(448	)			(5,617	)			(5,246	)			(11,218	)
Interest expense			11,978				12,042				12,367				13,468				49,855
Depreciation and amortization			24,138				24,650				24,249				25,630				98,667
EBITDA			70,628				43,360				27,101				68,570				209,659
Cost of sales (1)			1,223				121				407				308				2,059
Selling, general and administrative (1),(2)			894				688				(126	)			2,040				3,496
Adjusted EBITDA		$	72,745			$	44,169			$	27,382			$	70,918			$	215,214
(1) Severance and other expenses related to manufacturing footprint and performance optimization.
(2) Transaction, advisory fees, severance and reorganization costs.

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, 2026								Three Months Ended July 31, 2025								Nine Months Ended July 31, 2026								Nine Months Ended July 31, 2025
		Net Income				Diluted EPS				Net Income				Diluted EPS				Net Income				Diluted EPS				Net Income				Diluted EPS
Net income (loss) as reported		$	26,504			$	0.58			$	(276,007	)		$	(6.04	)		$	25,783			$	0.57			$	(270,377	)		$	(5.83	)
Net income(loss) reconciling items from below			9,507			$	0.21				307,578			$	6.73				21,221			$	0.46				338,756			$	7.30
Adjusted net income and adjusted EPS		$	36,011			$	0.79			$	31,571			$	0.69			$	47,004			$	1.03			$	68,379			$	1.47
Reconciliation of Adjusted EBITDA		Three Months Ended July 31, 2026								Three Months Ended July 31, 2025								Nine Months Ended July 31, 2026								Nine Months Ended July 31, 2025
		Reconciliation								Reconciliation								Reconciliation								Reconciliation
Net income (loss) as reported		$	26,504							$	(276,007	)						$	25,783							$	(270,377	)
Income tax expense			7,915								(8,191	)							11,854								(6,934	)
Other, net			93								(855	)							(5,972	)							(1,925	)
Interest expense			11,978								14,218								36,387								42,344
Depreciation and amortization			24,138								33,882								73,037								77,814
Asset impairment charges			-								302,284								-								302,284
EBITDA			70,628								65,331								141,089								143,206
EBITDA reconciling items from below			2,117								4,964								3,207								28,766
Adjusted EBITDA		$	72,745							$	70,295							$	144,296							$	171,972
Reconciling Items		Three Months Ended July 31, 2026								Three Months Ended July 31, 2025								Nine Months Ended July 31, 2026								Nine Months Ended July 31, 2025
		Income Statement				Reconciling Items				Income Statement				Reconciling Items				Income Statement				Reconciling Items				Income Statement				Reconciling Items
Net sales		$	501,845			$	-			$	495,273			$	-			$	1,373,301			$	-			$	1,347,795			$	-
Cost of sales			360,380				(1,223	)	(1)		357,305				(148	)	(1)		1,015,517				(1,751	)	(1)		986,129				(1,124	)	(1)
Selling, general and administrative			70,837				(894	)	(1),(3)		71,270				(3,449	)	(1),(3)		216,695				(1,456	)	(1),(3)		208,253				(17,435	)	(1),(2),(3)
Restructuring charges			-				-				1,367				(1,367	)	(4)		-				-				10,207				(10,207	)	(4)
EBITDA			70,628				2,117				65,331				4,964				141,089				3,207				143,206				28,766
Asset impairment charges			-				-				302,284				(302,284	)	(5)		-				-				302,284				(302,284	)	(5)
Depreciation and amortization			24,138				(9,758	)	(6)		33,882				(19,604	)	(6)		73,037				(29,291	)	(6)		77,814				(36,708	)	(6)
Operating income (loss)			46,490				11,875				(270,835	)			326,852				68,052				32,498				(236,892	)			367,758
Interest expense			(11,978	)			-				(14,218	)			-				(36,387	)			-				(42,344	)			-
Other, net			(93	)			288		(7)		855				(949	)	(7)		5,972				(4,942	)	(7)		1,925				(118	)	(7)
Income (loss) before income taxes			34,419				12,163				(284,198	)			325,903				37,637				27,556				(277,311	)			367,640
Income tax (expense) benefit			(7,915	)			(2,656	)	(8)		8,191				(18,325	)	(8)		(11,854	)			(6,335	)	(8)		6,934				(28,884	)	(8)
Net income (loss)		$	26,504				9,507			$	(276,007	)		$	307,578			$	25,783				21,221			$	(270,377	)		$	338,756
Diluted earnings (loss) per share		$	0.58							$	(6.04	)						$	0.57							$	(5.83	)
(1) Severance and other expenses related to manufacturing footprint and performance optimization.
(2) Amortization of step-up for purchase price adjustments on inventory.
(3) Transaction, advisory fees, and severance and reorganization costs.
(4) Restructuring charges related to severance and disposal of software.
(5) Goodwill impairment.
(6) Amortization expense related to intangible assets.
(7) Foreign currency transaction (gains) losses.
(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, 2026
Net sales		$	220,923			$	179,291			$	111,007			$	(9,376	)		$	501,845
Cost of sales			162,056				121,389				85,861				(8,926	)			360,380
Gross Margin			58,867				57,902				25,146				(450	)			141,465
Gross Margin %			26.6	%			32.3	%			22.7	%							28.2	%
Selling, general and administrative (1)			33,162				22,279				13,143				2,253				70,837
Depreciation and amortization			11,386				7,213				5,330				209				24,138
Operating (loss) income			14,319				28,410				6,673				(2,912	)			46,490
Depreciation and amortization			11,386				7,213				5,330				209				24,138
EBITDA			25,705				35,623				12,003				(2,703	)			70,628
Expense related to plant relocation and closure (Cost of sales)			1,223				-				-				-				1,223
Reorganization and severance costs			127				1				-				766				894
Adjusted EBITDA		$	27,055			$	35,624			$	12,003			$	(1,937	)		$	72,745
Adjusted EBITDA Margin %			12.2	%			19.9	%			10.8	%							14.5	%
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 income (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 and closure (Cost of sales)			148				-				-				-				148
Transaction, advisory fees, reorganization costs, and product recall expenses			715				-				50				2,684				3,449
Restructuring charges			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	%
Nine months ended July 31, 2026
Net sales		$	613,054			$	484,040			$	304,062			$	(27,855	)		$	1,373,301
Cost of sales			475,172				331,979				236,302				(27,936	)			1,015,517
Gross Margin			137,882				152,061				67,760				81				357,784
Gross Margin %			22.5	%			31.4	%			22.3	%							26.1	%
Selling, general and administrative (1)			103,105				65,084				40,182				8,324				216,695
Depreciation and amortization			34,626				21,893				15,956				562				73,037
Operating (loss) income			151				65,084				11,622				(8,805	)			68,052
Depreciation and amortization			34,626				21,893				15,956				562				73,037
EBITDA			34,777				86,977				27,578				(8,243	)			141,089
Expense related to plant relocation and closure (Cost of sales)			1,751				-				-				-				1,751
Credit related to plant relocation (SG&A)			(8	)			-				-				-				(8	)
Reorganization and severance costs			273				1				1				1,189				1,464
Adjusted EBITDA		$	36,793			$	86,978			$	27,579			$	(7,054	)		$	144,296
Adjusted EBITDA Margin %			6.0	%			18.0	%			9.1	%							10.5	%
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 closure (Cost of sales)			1,124				-				-				-				1,124
Gain related to plant closure (SG&A)			247				-				-				-				247
Amortization of step-up for purchase price adjustments on inventory and accounts receivable			7,276				1,428				302				-				9,006
Transaction and advisory fees			1,397				177				50				6,558				8,182
Restructuring charges			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	%
(1) Includes stock-based compensation expense for the three and nine months ended July 31 2026 of $0.9 million and 5.5 million, respectively, and $1.8 million and $3.6 million for the comparable prior year periods.

QUANEX BUILDING PRODUCTS CORPORATION SALES ANALYSIS (In thousands) (Unaudited)
		Three Months Ended July 31,								Nine Months Ended July 31,
		2026				2025				2026				2025
Hardware Solutions:(1)
	Window and door hardware	$	133,038			$	148,303			$	387,047			$	405,497
	Screens		85,830				76,809				219,980				203,269
	Other		2,055				2,004				6,027				6,025
		$	220,923			$	227,116			$	613,054			$	614,791
Extruded Solutions:(2)
	Window profiles	$	75,684			$	76,775			$	206,581			$	206,629
	Seals and gaskets		20,241				20,415				57,405				57,857
	Spacers		59,996				55,201				160,124				148,733
	Solar		5,375				5,250				15,292				17,835
	Flashing Tape		2,821				3,038				7,567				6,751
	Window and door hardware		10,079				10,676				26,061				31,311
	Other		5,095				3,072				11,010				8,908
		$	179,291			$	174,427			$	484,040			$	478,024
Custom Solutions:(3)
	Wood solutions	$	59,282			$	53,409			$	162,841			$	148,456
	Access solutions		29,483				27,370				78,984				74,158
	Mixing solutions		22,242				21,485				62,237				62,195
		$	111,007			$	102,264			$	304,062			$	284,809
Unallocated Corporate & Other:
	Eliminations	$	(9,376	)		$	(8,534	)		$	(27,855	)		$	(29,829	)
		$	(9,376	)		$	(8,534	)		$	(27,855	)		$	(29,829	)
Net Sales		$	501,845			$	495,273			$	1,373,301			$	1,347,795
(1) Reflects an unfavorable $0.2 million and favorable $6.5 million impact on revenue associated with foreign currency exchange rate impacts for the three and nine months ended July 31, 2026, respectively.
(2) Reflects an unfavorable $0.1 million and favorable $8.3 million impact on revenue associated with foreign currency exchange rate impacts for the three and nine months ended July 31, 2026, respectively.
(3) Reflects no impact and favorable $0.3 million impact on revenue associated with foreign currency exchange rate impacts for the three and nine months ended July 31, 2026, respectively.