Quanex 2025 Q3 Earnings Sharp Net Loss as Earnings Plunge

Quanex (NX) reported its fiscal 2025 Q3 earnings on September 5, 2025. The company delivered a significant revenue increase, but the earnings results were far below expectations, with a shift from profit to a major loss. Quanex revised its 2025 guidance downward to reflect ongoing operational and market challenges.

Quanex posted total revenue of $495.27 million in 2025 Q3, representing a 76.7% increase compared to $280.35 million in the same period last year. This growth was driven by strong performance across key segments. Engineered Products led with $401.54 million in revenue, while NA Fenestration and EU Fenestration added $227.12 million and $174.43 million, respectively. The NA Cabinet Comp. segment contributed $102.26 million, and the Unallocated Corp. & Other category had a negative contribution of $8.53 million, likely due to restructuring or overhead charges.

The company swung to a loss of $6.04 per share in 2025 Q3, compared to a profit of $0.77 per share in 2024 Q3—representing an 884.4% negative change. On a net income basis, Quanex reported a loss of $276.01 million, a 1188.8% deterioration from net income of $25.35 million in the prior-year quarter, signaling severe profitability issues despite robust top-line growth.

Quanex’s stock price has shown mixed performance recently, climbing 6.94% on the latest trading day but falling 14.93% over the past week and dropping 7.29% month-to-date.

Following the earnings report, CEO George Wilson highlighted Quanex’s resilience amid macroeconomic headwinds and outlined steps to address the Q3 earnings shortfall. Operational issues in Mexico’s hardware business negatively impacted Q3 EBITDA by $5 million. Wilson emphasized leadership changes, capital investments, and integration efforts post-Tyman acquisition as part of the aggressive remediation plan. He remains optimistic about long-term growth and reaffirmed the company’s commitment to organic expansion, margin improvement, and geographic diversification.

Looking ahead, Quanex updated its 2025 guidance, expecting consolidated net sales of approximately $1.82 billion and adjusted EBITDA of $235 million. These estimates account for lower-than-anticipated volumes, timing shifts in synergy realization, and ongoing challenges in Mexico. For Q4, the company projects a 27% gross margin, $264 million in SG&A expenses, $58 million in depreciation and amortization, $53 million in interest expenses, and a 24.5% tax rate. CapEx is expected at $75 million, with $80 million in free cash flow. Synergy realization from the Tyman integration is on track for early 2026, with cost synergies expected to contribute $45 million over time.

Additional News
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