Quanex Building Products Corporation NX
Quanex's Q3 FY2026 results (quarter ended 2026-07-31) validate the post-acquisition turnaround: operating income of $46.5M in the quarter marks a sharp sequential acceleration from $2.9M in Q1 and $18.7M in Q2, and the $0.58 diluted EPS beat consensus of $0.658 by roughly 20%, triggering a 22% one-day stock surge to a 52-week high. The stock still trades at 0.46x P/S — below the peer median of 0.57x — and sits above both its 50-day ($19.90) and 200-day ($18.58) moving averages at $20.66, reflecting improving momentum without excessive valuation stretch.
The core risk is that FY2025 left the balance sheet levered at $854M in total debt with a $251M net loss, so sustained quarterly profitability is needed to de-risk the capital structure.
What could go wrong
- High leverage from acquisition. Total debt stood at $854M as of FY2025 (ended 2025-10-31), up from $116M in FY2023, creating interest burden and balance-sheet fragility if the turnaround stalls.
- Volume stagnation. Q3 FY2026 volumes were flat with revenue growth of only 1.3% YoY; pricing gains of ~3% were partially offset by ~2% tariff-revenue reduction, limiting organic top-line upside.
- Stock already re-rated. Shares surged 22% on September 4, 2026 to a 52-week high, meaning much of the turnaround optimism may now be discounted in the price.
- Insider net selling. Over the trailing 24 months, insiders net disposed approximately $4.6M in real shares (acquisitions were predominantly phantom stock units tied to compensation), offering no strong insider conviction signal.
What would change my mind
Where this comes from: quarterly_results · earnings_surprises · news (GuruFocus, Fool) · peer_relative. Orin's read on NX; not advice.
Twelve months actual closes to 2026-09-23 · actual filings
50-day average 200-day average · volume below
On file
All NX filings| Form | Filed | What it says | Read |
|---|---|---|---|
| 8-K | 3 Sep | — | on file |
| 8-K | 27 Aug | Quanex Building Products Corporation (NYSE: NX) filed an 8-K on August 27, 2026 announcing that its Board of Directors declared a quarterly cash dividend of $0.08 per share on… | read |
| 10-Q | 5 Jun | Net sales for the three months ended April 30, 2026, were $462.4 million, an increase of 2.2% year-over-year. | read |
| 8-K | 4 Jun | Quanex Building Products Corporation reported financial results for the period ending June 4, 2026, via press release filed as Exhibit 99.1. | read |
| 8-K | 28 May | Quanex Building Products Corporation declared a quarterly cash dividend of $0.08 per share on its common stock. | read |
| 13G | 30 Apr | — | on file |
| 13G/A | 14 Apr | — | on file |
| 13G/A | 27 Mar | — | on file |
Largest holders · 13F Q2 2026
Money flow| Filer | Position | Of fund |
|---|---|---|
| Ameriprise Financial | $50.9M | 0.0% of fund |
| Tpg Gp A | $38.3M | 0.8% of fund |
| Vanguard Capital Management | $37.6M | 0.0% of fund |
| Vanguard Portfolio Management | $36.4M | 0.0% of fund |
| State Street | $33.6M | 0.0% of fund |
| Geode Capital Management | $22.2M | 0.0% of fund |
44 filers · quarter ended Q2 2026 · positions, not flows
Insiders, last 24 months: 95 Form 4 filings, net −$4.6M. Of the 50 on hand, 3 were open-market purchases and 2 sales— the rest are grants, option exercises and tax withholding.
Ask Orin about NX
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Start 3 free days →Where it trades
| Metric | Now | Own median | Sector |
|---|---|---|---|
| P/E | 20.0× | — | 44.5× |
| EV/EBITDA | 7.6× | — | — |
| P/S | 0.49× | — | — |
| P/B | 1.2× | — | — |
-3.5%
free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $0.1B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.
Against the companies it is compared to
| Company | Market cap | P/E | EV/EBITDA | Gross | Net | ROE |
|---|---|---|---|---|---|---|
| NXQuanex Building Products Corporation | $911M | 20.0× | 7.6× | 22.7% | 2.4% | 6% |
| APOGApogee Enterprises, Inc. | $768M | 11.4× | 6.6× | 23.3% | 4.9% | 13% |
| ASPNAspen Aerogels, Inc. | $471M | — | — | 2.7% | -62.4% | -53% |
| LTBRLightbridge Corporation | $236M | — | 0.1× | 0.0% | 0.0% | -12% |
The median is of the 1 peers listed above and nothing else — check it against the column. This company trades 74.7% above it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.
What it has traded at
What its sector has traded at
Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.
Every estimate on one scale
The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.