Quanex Building Products Corp. (NYSE: NX) reported third-quarter adjusted earnings per share of $0.79, exceeding the consensus estimate of $0.65, as revenue increased 1.3% year-over-year to $501.8 million.
Gross margin expanded to 28.2% from 27.9% in the prior-year period, reflecting progress in addressing a price-versus-cost imbalance that weighed on second-quarter results. Revenue growth was led by an 8.5% rise in net sales at the Custom Solutions segment, driven by higher volumes and improved pricing, while the Extruded Solutions segment posted a 2.8% increase. The Hardware Solutions segment saw a 2.7% decline in net sales due to lower volumes and IEEPA tariff reimbursements to customers, though margin expansion was maintained.
The company repaid $42.25 million of debt during the quarter, reducing total debt to $672.2 million. The leverage ratio stood at 2.8 times net debt to last-12-month adjusted EBITDA. Liquidity increased 10.5% to $363.1 million, comprising $62.1 million in cash and availability under its senior secured revolving credit facility.
Quanex also repurchased 99,786 shares of common stock for approximately $1.7 million at an average price of $17.10 per share. Shares rose 1.4% in after-hours trading to $19.02 following the results announcement.
Chairman, President and CEO George Wilson said volumes followed normal seasonality in the quarter, adding that the company made meaningful progress addressing the price-versus-cost imbalance that impacted margins in the prior period.
