Quanex Building Products Narrows Q1 Loss to $4.1M on 2.3% Revenue Gain

Quanex Building Products Corporation (NYSE: NX), a manufacturer of components for window and door OEMs, reported a net loss of $4.1 million for the three months ending January 31, 2026, compared to a net loss of $14.9 million in the prior-year quarter. The company posted diluted earnings per share of negative $0.09, an improvement from negative $0.32 a year earlier. Read more earnings reports.

Revenue rose 2.3% to $409.1 million for the quarter, up from $400.0 million in the three months ending January 31, 2025. Cost of revenue increased to $310.6 million from $307.7 million, while selling, general and administrative expenses climbed to $71.4 million from $66.7 million.

Operating income swung to $2.9 million from an operating loss of $7.0 million in the prior-year period. Interest expense declined to $12.4 million from $14.2 million. The company recorded an income tax expense of $173,000, compared to a tax benefit of $5.1 million in the year-earlier quarter.

Cash Position and Balance Sheet

Quanex reported cash and cash equivalents of $62.3 million as of January 31, 2026, down from $76.0 million at the end of the prior fiscal year on October 31, 2025. Total assets increased to $1.98 billion from $1.97 billion over the same period.

Cash from operations was negative $20.2 million for the quarter, compared to negative $12.5 million in the prior-year period. Cash used in investing activities totaled $11.2 million, while financing activities generated $15.9 million.

Accounts receivable fell to $189.2 million from $205.4 million at fiscal year-end, while inventory increased to $270.6 million from $254.1 million. Total liabilities stood at $1.25 billion, up slightly from $1.24 billion as of October 31, 2025.

Equity and Share Count

Total stockholders' equity rose to $730.4 million as of January 31, 2026, from $726.2 million three months earlier. Retained earnings declined to $157.0 million from $164.7 million, reflecting the quarterly loss. Treasury stock decreased to $98.2 million from $103.6 million.

Common shares outstanding increased to 45.9 million from 45.7 million at fiscal year-end. The weighted average share count for the quarter was 45.5 million, down from 47.0 million in the prior-year period.

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