Quanex Q3 adjusted EPS beats estimates helped by improved pricing and lower expenses
NX•Outlook and analyst view
Quanex said it will prioritize debt repayment and share repurchases in the fourth quarter of 2026, while seeking operational efficiencies and commercial synergies to prepare for improved demand.
The current average analyst rating on the shares is "strong buy," with two "strong buy" or "buy" ratings, no "hold" ratings and no "sell" or "strong sell" ratings.
Wall Street's median 12-month price target for Quanex Building Products Corp is $27.00, about 42.6% above its Sept. 2 closing price of $18.93. The stock recently traded at 9 times the next 12-month earnings, versus a P/E of 10 three months ago.
Q3 results beat estimates
Quanex said third-quarter sales rose slightly and adjusted earnings per share beat analyst expectations, helped by improved pricing and lower expenses.
Key figures
| Metric | Actual | Consensus Estimate |
|---|---|---|
| Q3 Sales | $501.8 mln | $497.51 mln |
| Q3 Adjusted EPS | $0.79 | $0.66 |
| Q3 Adjusted Net Income | $36 mln | $29.94 mln |
| Q3 Adjusted EBITDA | $72.7 mln | $68.02 mln |
| Q3 Free Cash Flow | $47.8 mln |
Drivers and capital allocation
The company said favorable pricing drove net sales growth and helped offset lower volumes in some segments.
Quanex also attributed margin expansion in its Hardware Solutions segment and overall to progress addressing the price-versus-cost imbalance.
