Earnings release
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EXHIBIT 99.1 Quanex Building Products Announces Third Quarter 2026 Results Net Sales GrowthVolumes Continue to Track Normal Seasonality PatternsMargin Expansion Realized in Hardware Solutions Segment and on Consolidated Basis$42.25 Million of Debt Repaid in 3Q26Continued Progress and Execution on Working Capital Management HOUSTON, Sept. 03, 2026 (GLOBE NEWSWIRE) -- Quanex Building Products Corporation (NYSE:NX) (“Quanex” or the “Company”) todayannounced its results for the three months ended July 31, 2026. The Company reported the following selected financial results: Three Months Ended July 31, Nine Months Ended July 31,($ in millions, except per share data) 2026 2025 2026 2025Net Sales $501.8 $495.3 $1,373.3 $1,347.8Gross Margin $141.5 $138.0 $357.8 $361.7Gross 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 $68.4Adjusted Diluted EPS $0.79 $0.69 $1.03 $1.47Adjusted EBITDA $72.7 $70.3 $144.3 $172.0Adjusted EBITDA Margin % 14.5% 14.2% 10.5% 12.8% Cash Provided By Operating Activities $58.6 $60.7 $57.3 $76.6Free 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 tableand reconciliation tables for additional information) George Wilson, Chairman, President and Chief Executive Officer, stated, “Volumes continued to track normal seasonality patterns during the thirdquarter of 2026, and we made meaningful progress addressing the price versus cost imbalance that impacted our margins in the second quarter of2026. Inflationary pressures related to macroeconomic concerns and the ongoing conflict in the Middle East are still having an impact, but theinitial 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 opportunisticallyrepurchasing our shares as we generate cash in the fourth quarter of 2026. In addition, we will continue to identify operational efficiencies andcommercial 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 tariffreimbursements to customers. The Hardware Solutions segments reported a 2.7% decline in net sales for the third quarter of 2026, driven by lowervolumes and the impact of IEEPA tariff reimbursements to customers, which were somewhat offset by favorable impacts from pricing. TheExtruded Solutions segments reported net sales growth of 2.8% for the third quarter of 2026, as lower volumes were more than offset by favorableimpacts 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 toincreased 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 toimproved pricing, lower depreciation and amortization expense and lower interest expense. Results for the third quarter of 2025 were also impactedby 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-GAAPTerminology Definitions and Disclaimers section, Net Debt Reconciliation table and Last Twelve Months Adjusted EBITDA Reconciliation tablefor 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 availabilityunder 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 openmarket transactions or privately negotiated transactions, subject to market conditions, applicable legal requirements, and other relevant factors. The
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Company repurchased 99,786 shares of common stock for approximately $1.7 million at an average price of $17.10 per share during the threemonths 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 thelive 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 thatparticipants dial into the conference call ten minutes ahead of the scheduled start time. A replay will be available for a limited time on theCompany’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 withleading 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, assetimpairment 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 transactiongain/loss and effective tax rates reflecting impacts of adjustments on a with and without basis) and Adjusted EPS are non-GAAP financial measuresthat Quanex believes provide a consistent basis for comparison between periods and more accurately reflect operational performance, as they arenot 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 excludepurchase price accounting inventory step-ups, transaction costs, certain severance charges, gain/loss on the sale of certain fixed assets, restructuringcharges and asset impairment charges) are non-GAAP financial measures that the Company uses to measure operational performance and assistwith financial decision-making. Net Debt is defined as total debt (outstanding balance on the revolving credit facility plus financial leaseobligations) less cash and cash equivalents. The leverage ratio of Net Debt to LTM Adjusted EBITDA is a financial measure that the Companybelieves is useful to investors and financial analysts in evaluating Quanex’s leverage. In addition, with certain limited adjustments, this leverageratio 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 FreeCash Flow metric to measure operational and cash management performance and assist with financial decision-making. Free Cash Flow ismeasured before application of certain contractual commitments (including capital lease obligations), and accordingly is not a true measure of theCompany’s residual cash flow available for discretionary expenditures. Quanex believes Free Cash Flow is useful to investors in understanding andevaluating 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 inunderstanding the Company’s financial performance when comparing results to other investment opportunities. These measures allow managementand investors to evaluate operational performance and trends without the impact of certain non-cash charges, acquisition-related costs, and otheritems that may vary significantly from period to period and may not be reflective of Quanex’s core operating results. The presented non-GAAPmeasures may not be the same as those used by other companies. The Company does not intend for this information to be considered in isolation oras 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 LitigationReform 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 cashand other expenditures, expenses and tax rates, expectations relating to the Company’s industry, expectations regarding the recovery of price versuscost imbalances, anticipated debt repayment and share repurchase activity, expected operational efficiencies and synergies and the Company’sfuture growth, including any guidance discussed in this press release. The statements and guidance set forth in this release are based on currentexpectations. Actual results or events may differ materially from those expressed or implied in these forward-looking statements. Therefore, youshould not rely on any of these forward-looking statements. For a complete discussion of factors that may affect the Company’s futureperformance, please refer to Quanex’s Annual Report on Form 10-K for the fiscal year ended October 31, 2025, and the Company’s QuarterlyReports 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
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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 CORPORATIONCONDENSED CONSOLIDATED BALANCE SHEETS(In thousands)(Unaudited) July 31, 2026 October 31, 2025ASSETS 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)
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Total stockholders’ equity 745,444 726,179 Total liabilities and stockholders' equity $ 1,968,691 $ 1,968,233 QUANEX BUILDING PRODUCTS CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW(In thousands)(Unaudited) Nine Months Ended July 31, 2026 2025Operating 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 CORPORATIONFREE 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 GAAPmeasure. 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 2025Cash 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 obligationsminus cash.
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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 and2025, respectively.(2) Excludes outstanding letters of credit. QUANEX BUILDING PRODUCTS CORPORATIONNON-GAAP FINANCIAL MEASURE DISCLOSURELAST TWELVE MONTHS ADJUSTED EBITDA RECONCILIATION(In thousands, except per share data)(Unaudited) Reconciliation of Last Twelve Months AdjustedEBITDA Three MonthsEnded July 31,2026 Three MonthsEnded April30, 2026 Three MonthsEndedJanuary 31,2026 Three MonthsEnded October31, 2025 Total Reconciliation Reconciliation Reconciliation Reconciliation ReconciliationNet 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 CORPORATIONNON-GAAP FINANCIAL MEASURE DISCLOSURE(In thousands, except per share data)(Unaudited) Reconciliationof AdjustedNet Incomeand AdjustedEPS Three Months Ended July31, 2026 Three Months Ended July31, 2025 Nine Months Ended July31, 2026 Nine Months Ended July31, 2025 Net Income DilutedEPS Net Income DilutedEPS Net Income DilutedEPS Net Income DilutedEPS Net income(loss) asreported $ 26,504 $ 0.58 $ (276,007) $ (6.04) $ 25,783 $ 0.57 $ (270,377) $ (5.83) Netincome(loss)reconcilingitems frombelow 9,507 $ 0.21 307,578 $ 6.73 21,221 $ 0.46 338,756 $ 7.30 Adjusted netincome andadjusted EPS $ 36,011 $ 0.79 $ 31,571 $ 0.69 $ 47,004 $ 1.03 $ 68,379 $ 1.47
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Reconciliationof AdjustedEBITDA Three Months Ended July31, 2026 Three Months Ended July31, 2025 Nine Months Ended July31, 2026 Nine Months Ended July31, 2025 Reconciliation Reconciliation Reconciliation Reconciliation Net income(loss) asreported $ 26,504 $ (276,007) $ 25,783 $ (270,377) Income taxexpense 7,915 (8,191) 11,854 (6,934) Other, net 93 (855) (5,972) (1,925) Interestexpense 11,978 14,218 36,387 42,344 Depreciationandamortization 24,138 33,882 73,037 77,814 Assetimpairmentcharges - 302,284 - 302,284 EBITDA 70,628 65,331 141,089 143,206 EBITDAreconcilingitems frombelow 2,117 4,964 3,207 28,766 AdjustedEBITDA $ 72,745 $ 70,295 $ 144,296 $ 171,972 ReconcilingItems Three Months Ended July31, 2026 Three Months Ended July31, 2025 Nine Months Ended July31, 2026 Nine Months Ended July31, 2025 IncomeStatement ReconcilingItems IncomeStatement ReconcilingItems IncomeStatement ReconcilingItems IncomeStatement ReconcilingItems 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 andadministrative 70,837 (894)(1),(3) 71,270 (3,449)(1),(3) 216,695 (1,456)(1),(3) 208,253 (17,435) (1),(2),(3)Restructuringcharges - - 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 Assetimpairmentcharges - - 302,284 (302,284)(5) - - 302,284 (302,284)(5)Depreciationandamortization 24,138 (9,758)(6) 33,882 (19,604)(6) 73,037 (29,291)(6) 77,814 (36,708)(6)Operatingincome (loss) 46,490 11,875 (270,835) 326,852 68,052 32,498 (236,892) 367,758 Interestexpense (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 incometaxes 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 Dilutedearnings (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.
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QUANEX BUILDING PRODUCTS CORPORATIONSELECTED SEGMENT DATA(In thousands)(Unaudited) This table provides gross margin, operating income (loss), EBITDA, and Adjusted EBITDA by reportable segment. Non-operating expense andincome tax expense are not allocated to the reportable segments. HardwareSolutions ExtrudedSolutions CustomSolutions UnallocatedCorp & 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 (Costof 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 (Costof sales) 148 - - - 148 Transaction, advisory fees, reorganization costs, andproduct 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 (Costof 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%
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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 priceadjustments 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 CORPORATIONSALES 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 forthe 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 forthe 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 ninemonths ended July 31, 2026, respectively.