Quanex Building Products CORP Q1 FY2025 earnings call

• Acknowledged Curt Stevens' retirement and his contributions. - First quarter results aligned with expectations, driven by Timon acquisition. - Progress on achieving $30M run rate synergies by end of year two. - Resegmenting business into Hardware Solutions, Extruded Solutions, and Custom Solutions. - Market impacts from Fed rates, tariffs, and seasonality. - Operational improvements in safety, service, quality; focus on working capital and cash flow.

North American Fenestration: Net sales $134.3M in Q1 2025, down 9.2% Y/Y; adjusted EBITDA $11.6M, down from $13.7M. European Fenestration: Revenue $48.5M, down 2% Y/Y (flat after FX); adjusted EBITDA $9.9M, slightly down. North American Cabinet Components: Net sales $43.8M, growth; adjusted EBITDA -$873k, worse than -$732k. Timon Business: Net sales $175.7M, down 8% Y/Y; adjusted EBITDA $19M, margin expansion.

• Reaffirmed full-year net sales guidance of $1.84-$1.86B and adjusted EBITDA $270M-$280M. - Second quarter revenue expected up 9%-11%, adjusted EBITDA margin expansion. - Seasonality expected to drive second half improvement.

• Macroeconomic uncertainties, including Fed interest rate movements and tariffs. - Impact of weather on seasonal order cadence. - Fluid and unpredictable tariff situation.

Q: Reuben Garner asked about margin improvement and divergence between cabinet and fenestration segments.

A: Scott Zuehlke said margin improvement due to PPA step-up from acquisition; George Wilson noted weather impact and cabinet segment as leading indicator.

Q: Steven Ramsey asked about guidance outlook and cash flow deployment.

A: Scott Zuehlke said seasonality drives second half improvement; George Wilson said guidance was conservative.

Q: Adam Thalhimer asked about tariff impact and customer macro outlook.

A: George Wilson said tariffs may impact hardware segment more; customers cautious due to uncertainty.

Q: Justin Machete asked about Timon EBITDA margin and Jackson facility.

A: Scott Zuehlke said Timon similar to historical seasonality; George Wilson said Jackson facility helps with regional capacity and adjacent markets.