Quanex Building Products (NX) Q2 2026 earnings summary

Executive summary

• Net sales grew 2.2% year-over-year to $462.4 million for the quarter ended April 30, 2026, driven by favorable pricing, tariff-related recoveries, and foreign exchange translation.

• Adjusted net income and adjusted EBITDA declined due to reduced operating leverage from lower volumes, inflationary pressures, and increased costs related to the Middle East conflict.

• Management is addressing price vs. cost imbalances and expects margin recovery in the second half of the year if inflation subsides and seasonality holds.

Financial highlights

• Gross margin fell to 25.5% from 29.0% year-over-year; operating income dropped to $18.7 million from $40.9 million.

• Net income was $3.4 million ($0.07 diluted EPS), down from $20.5 million ($0.44 diluted EPS) in the prior year quarter.

• Adjusted EBITDA was $44.2 million (9.6% margin), compared to $63.1 million (14.0% margin) a year ago.

• Free cash flow for the quarter was $7.9 million, down from $13.6 million in the prior year.

Outlook and guidance

• Management expects to recover some margin shortfall in the second half of 2026, assuming normal seasonality and easing inflation.

• Prioritization of debt repayment and opportunistic share repurchases as cash is generated.