The adjusted EPS beat may provide short-term support, but the steep YoY margin decline and lack of guidance raise suggest underlying weakness. Monitor upcoming tariffs and cost recovery commentary; avoid adding until margins show stabilization.
Price Chart
Executive Summary
Quanex Q2 FY2026 adjusted EPS of $0.25 beat consensus by 25% on revenue of $462.4M (+2.2% YoY), but GAAP net income plunged 84% YoY to $3.4M as gross margins contracted 350bps due to tariff costs and inflation. No updated guidance was provided, and the company highlighted ongoing price vs cost imbalance.
Key Financial Metrics
Key Facts
- Q2 GAAP diluted EPS $0.07 vs $0.44 YoY; adjusted diluted EPS $0.25 vs $0.63 YoY
- Revenue $462.4M (+2.2% YoY) vs consensus $459.3M
- Gross margin 25.5% vs 29.0% a year ago
- Adjusted EBITDA $44.2M (9.6% margin) vs $63.1M (14.0% margin)
- Net debt $651.4M; leverage ratio 3.1x (up from 2.8x Q1)
- No revised FY2026 guidance; prior outlook: sales $1.84B-$1.87B, Adj. EBITDA $240M-$245M
- Free cash flow $7.9M vs $13.6M in prior-year quarter
Financial Impact
Adjusted EPS beat consensus by $0.05, but GAAP net income fell $17.2M YoY due to margin compression.
Risk Factors
- Further tariff escalation increasing raw material costs
- Housing market downturn reducing demand for fenestration products
- Leverage above 3x limits financial flexibility
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001171843-26-003917 |
| Document: f8k_060426.htm | 0001171843-26-003917 |
| Document: 0001171843-26-003917-index-headers.html | 0001171843-26-003917 |
| Document: 0001171843-26-003917-index.html | 0001171843-26-003917 |
| Document: 0001171843-26-003917.txt | 0001171843-26-003917 |
| 8-K Data (Synthetic) | 0001171843-26-003917 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 today | SC 13D/A | $19.36 | awaiting T+20 | — | $20.03 (−3.46%) |
Oct 7, 2026 20d ago | SC 13G/A | $18.39 | awaiting T+20 | — | $20.03 (+8.92%) |
Sep 3, 2026 7w ago | Press Release | $22.93 $18.91 | ▼ −17.53% | ▼ −18.13% | $20.03 (−12.65%) |
Jun 12, 2026 19w ago | Institutional Cluster | $17.02 $17.40 | ▲ +2.23% | ▲ +0.45% | $20.03 (+17.69%) |
Jun 4, 2026 20w ago | 8-K | $15.42 $17.18 | ▼ −11.41% | ▼ −9.55% | $20.03 (−29.90%) |
Mar 5, 2026 33w ago | 8-K | $17.27 $17.75 | ▲ +2.78% | ▲ +4.83% | $20.03 (+15.98%) |
Mar 5, 2026 33w ago | Press Release | $17.27 $17.75 | ▲ +2.78% | ▲ +4.83% | $20.03 (+15.98%) |
US Market Status
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