- Quanex Building Products Corporation (NYSE:NX) reported second-quarter sales growth of 19.4% year-over-year to $322.9 million, beating the consensus of $285.95 million.
- The sales increase was attributable to higher prices related to the pass-through of raw material cost inflation.
- Adjusted EPS improved to $0.80 from $0.43 in 2Q21, above the consensus of $0.43.
- The gross margin contracted 20 bps to 22.7%.
- Adjusted EBITDA increased by 40.4% Y/Y to $45.2 million, and margin expanded by 210 bps to 14%.
- Quanex cash used in operating activities year-to-date of $1.9 million, compared to generated $29 million a year ago. Free cash outflow was $15.7 million.
- The Company's liquidity increased to $296.5 million as of April 30, 2022, consisting of $38.9 million in cash on hand.
- NX repurchased 75,000 shares for ~$1.6 million at an average price of $20.92 per share during Q2.
- "For the second half of our fiscal year, we now expect low double-digit revenue growth in our North American Fenestration segment and mid-single-digit revenue growth in our North American Cabinet Components and European Fenestration segments. Overall, on a consolidated basis and assuming the current inflation and supply chain challenges do not worsen materially, we estimate this will equate to net sales of $1.18 billion to $1.2 billion, which we expect will generate ~$150 million to $155 million in Adjusted EBITDA* in fiscal 2022," stated George Wilson, President, and Chief Executive Officer.
- FY22 net sales outlook increased to $1.18 billion to $1.2 billion (vs. consensus of $1.14 billion), from $1.13 billion to $1.15 billion.
- Price Action: NX shares are trading higher by 9.45% at $22.70 during the post-market session on Thursday.
