HOUSTON, December 12, 2024 – Quanex Building Products Corporation (NYSE: NX) announced its financial results for the fourth quarter and fiscal year ending October 31, 2024, showcasing notable contributions from its recent acquisition.
Key Financial Metrics
| Financial Metric | Q4 2024 Amount | Q4 2023 Amount | YoY Change (%) |
|---|---|---|---|
| Net Sales (Q4) | $492.2 million | $295.5 million | +66.6% |
| Net Sales (Fiscal Year) | $1.28 billion | $1.13 billion | +13.0% |
| Excluding Tyman Contribution | -2.3% (Q4) | ||
| -5.0% (FY) |
Quanex posted significant increases in net sales both for the quarter and the fiscal year, largely driven by the inclusion of Tyman's contributions since the acquisition on August 1, 2024. Excluding Tyman, there was a decline in net sales by 2.3% in the fourth quarter and by 5.0% over the fiscal year due to lower volumes.
Revenue Performance by Segment
| Segment | Q4 2024 Change | FY 2024 Change |
|---|---|---|
| North American Fenestration | -4.7% | -2.6% |
| North American Cabinet Components | +1.7% | -7.9% |
| European Fenestration (ex-FX Impact) | -1.2% | -8.9% |
| Contribution from Tyman | $203.4 million | N/A |
The segments showed mixed results, with the Tyman acquisition prominently boosting overall net sales. Both North American and European Fenestration experienced challenges, leading to a decrease in net sales in these segments.
Key Developments and Operational Highlights
- Contribution from the Tyman acquisition notably boosted overall results.
- $53.75 million of debt repaid post-Tyman acquisition.
- Margin expansion achieved on a consolidated basis for the full year, driven by effective cost controls and contributions from Tyman.
- Integration of the Tyman acquisition progressing ahead of schedule, with synergies being realized.
Executive Commentary
George Wilson, Chairman, President and CEO of Quanex, emphasized that despite a challenging macro environment in 2024, the company was able to execute its long-term growth strategy. The Tyman acquisition was highlighted as transformative, both in impact and opportunities for the future. Looking forward, Quanex plans to continue focusing on integration and capitalizing on synergies while expecting improved results in the latter half of 2025.
Shareholder Initiatives and Guidance
No specific updates were provided regarding dividends or share repurchase programs. The company expects to see demand pick up by the spring selling season of 2025, improving results in the latter half due to seasonality and increased consumer confidence.
Quanex remains committed to leveraging its acquisition to bolster long-term profitability and enhance shareholder value, with further details to be unveiled during the forthcoming Investor and Analyst Day in February 2025.
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