NX Earnings Prediction
The chart below shows how NX performed 10 days before and after its earnings report, based on data from the past quarters. Typically, NX sees a +1.61% change in stock price 10 days leading up to the earnings, and a -1.78% change 10 days following the report. On the earnings day itself, the stock moves by -0.02%. This data can give you a slight idea of what to expect for the next quarter's release.
NX Key Earning Data
NX Earnings Analysis
Positive
Acquisition-Driven Financial Growth: Year over year improvements in both revenue and earnings driven by the acquisition of Time, with a focus on achieving $30 million in run rate synergies by the end of year two.
Safety and Quality Improvements: Record safety performance achieved in the first quarter, along with improvements in service and quality metrics as a result of sharing best practices between legacy Quanix and Time.
Net Sales Surge: Net sales increased by approximately 67% to $400 million compared to the same period last year, primarily due to the Timon acquisition.
EBITDA Growth and Margin Expansion: Adjusted EBITDA for the quarter doubled to $38.5 million, reflecting margin expansion of approximately 150 basis points year over year, driven by cost synergies from the Timon acquisition.
Earnings Guidance Reaffirmation: Reaffirmation of full year earnings guidance, with expected net sales of approximately $1.84 billion to $1.86 billion and adjusted EBITDA guidance of $270 million to $280 million for fiscal 2025.
Safety and Engagement Optimization: Operational focus on safety culture, employee engagement, working capital improvements, and optimizing return on net assets to maximize cash flow generation.
Business Re-segmentation Strategy: Plans to re-segment the business into three new units: hardware solutions, extruded solutions, and custom solutions, aimed at better serving customers and driving margin improvement.
Negative
Net Sales Analysis: Net sales increased by 67% to $400 million, but excluding the Timon acquisition, net sales would have declined by 6.2% due to lower volume.
Net Loss Comparison: The company reported a net loss of $14.9 million for Q1 2025, compared to a net income of $6.2 million in Q1 2024, indicating a significant downturn in profitability.
Adjusted EBITDA Analysis: Adjusted EBITDA for the quarter was $38.5 million, but this was largely driven by the Timon acquisition and realization of cost synergies, raising concerns about organic growth.
Fenestration Sales Decline: The North American Fenestration segment saw a 9.2% decrease in net sales, with an estimated volume decline of 8% year over year, reflecting weak market demand.
European Fenestration Revenue Decline: The European Fenestration segment's revenue decreased by 2%, and adjusted EBITDA declined slightly, indicating challenges in maintaining profitability in that market.
Negative EBITDA Decline: The North American Cabinet Components segment reported negative adjusted EBITDA of $873,000, worsening from the previous year, highlighting operational inefficiencies.
Cash Flow Concerns: Cash used for operating activities was $12.5 million, a stark contrast to cash provided in the same quarter last year, raising concerns about cash flow management post-acquisition.
High Leverage Ratio Risks: The company’s leverage ratio was reported at 2.2 times, indicating a high level of debt relative to earnings, which could pose risks if market conditions do not improve.
NX FAQs
How does NX typically perform around its earnings report dates?
NX's stock performance around earnings reports can vary, but historical data shows specific patterns, such as a +1.61% change leading up to the report and a -1.78% change in the 10 days following the release.
Is Quanex Building Products Corp (NX) Q1 2025 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
NX Earning Call Sentiment
Earnings call transcript: Quanex Building Products beats Q1 2025 forecasts
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