Is NX's EPS growth sustainable beyond Q2 2025?

**Quanex Building Products' (NX) EPS growth appears to be sustainable beyond Q2 2025**, based on several key factors indicating a strong financial performance and strategic positioning for future growth: 1. **Consistent Performance**: NX has a track record of surpassing EPS and revenue estimates, with four consecutive quarters of EPS outperformance. This consistency suggests a strong operational foundation that can be sustained. 2. **Strategic Restructuring**: The company's restructuring into three new segments (Hardware Solutions, Extruded Solutions, and Custom Solutions) is poised to drive future growth. This strategic move aligns with market trends and is likely to contribute positively to EPS growth in the long term. 3. **Acquisition-Driven Growth**: The acquisition of Tyman has been a significant catalyst for growth, with expected synergies of $30 million by the end of the year. As NX continues to integrate acquisitions, we can expect further boosts to EPS growth. 4. **Financial Health Indicators**: Despite a net loss in Q1 2025, the company showed improved gross margins and significant revenue growth. The ability to improve margins and increase sales, especially after acquisitions, is a positive sign for long-term EPS sustainability. 5. **Dividend History and Analyst Expectations**: NX has a history of maintaining dividend payments for 18 consecutive years, which implies a stable financial outlook and confidence from analysts regarding future earnings potential. 6. **Market Position and Outlook**: The company's strong market position and optimistic full-year guidance suggest that NX is well-equipped to sustain and potentially accelerate EPS growth into the future. In conclusion, while there may be short-term fluctuations, the combination of NX's consistent performance, strategic initiatives, and positive financial indicators strongly suggest that the company's EPS growth is sustainable beyond Q2 2025.