Quanex Building Products Corporation (NX) AI Stock Analysis

Quanex Building Products Corporation supplies essential components for the fenestration industry across the United States, Europe, Canada, Asia, and other international markets. The company operates through three key segments: North American Fenestration, European Fenestration, and North American Cabinet Components. Offerings include flexible insulating glass spacers, extruded vinyl profiles, window and door screens, and precision-formed metal and wood components for original equipment manufacturers. Quanex also provides non-fenestration products such as solar panel sealants, trim moldings, vinyl decking, fencing solutions, water retention barriers, and conservatory roof components through direct sales, representatives, and distributors.

Revenue grew at a 5-year CAGR of 16.6% from FY2020 to FY2025, rising from $1.07B in FY2021 to $1.84B in FY2025. In FY2025, revenue grew 43.8% and gross margin reached 27.2%, but operating margin was -10.6% and net income was -$250.8M compared to $33.1M in FY2024. For the trailing twelve months, revenue was $1.86B with an operating margin of 9.3% and a profit margin of 2.4%. In the latest quarter ended July 31, 2026, quarterly revenue growth was 1.3% year-over-year, while quarterly earnings fell 84.1%.

As of July 31, 2026, Quanex held $62.1M in cash and short-term investments against $842.5M in total debt, resulting in net debt of $780.4M and a debt-to-equity ratio of 1.13. Total assets stood at $1.97B with a current ratio of 2.23. In FY2025, the company generated $164.9M in operating cash flow and $102.3M in free cash flow. Capital deployment in FY2025 included $62.6M in capital expenditures, $32.4M in share buybacks, and $14.9M in dividends paid.

Trading at $18.89 as of October 16, 2026, Quanex has a market capitalization of $865.7M and an enterprise value of $1.69B. Its trailing P/E of 19.5x and forward P/E of 10.0x are both below the median of its US-listed Industrials peers at 24.8x and 17.2x, respectively. The company's EV/EBITDA of 7.6x also sits below the peer median of 13.9x. Over the past year, the stock returned 34.1%, outperforming the S&P 500 return of 16.8%, though its 5-year return of -3.8% lagged the S&P 500 return of 83.0%.

Quanex pays a forward annual dividend of $0.32 per share, offering a dividend yield of 1.69% with a payout ratio of 17.2%. Paid quarterly, the company has paid dividends for 39 consecutive years. Its 5-year annualized dividend growth stands at 0.0%, and the last ex-dividend date was September 15, 2026.

Two analysts rate Quanex a Strong Buy, with no Buy, Hold, Sell, or Strong Sell ratings. The mean price target is $26.00, representing a 37.6% premium over the last close of $18.89. For the current fiscal year ending October 31, 2026, analysts estimate revenue of $1.87B and EPS of $1.82, down 21.0%. The company beat EPS estimates in each of the last 4 quarters, and its next earnings date is December 10, 2026.

This page is an AI-written research summary of Quanex Building Products Corporation (NX). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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