Quanex Building Products Corp Q4 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Julio Romero - Sidoti & Company LLC - Analyst : Thanks. Hey, good morning, George and Scott.

Question: Julio Romero - Sidoti & Company LLC - Analyst : Scott, did I hear you correctly that the negative EBITDA impact in the fourth quarter from the Monterrey challenges was $8 million and if so, your EBITDA margins for the Hardware Solution segment would have been in the 16% range in the quarter. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 12, 2025 / 4:00PM, NX.N - Q4 2025 Quanex Building Products Corp Earnings Call

Question: Julio Romero - Sidoti & Company LLC - Analyst : Understood. And that the $3 million drag expected in the first quarter, does that, does your current kind of informal outlook, assume that goes to zero, beyond the first quarter?

Question: Julio Romero - Sidoti & Company LLC - Analyst : Well sounds prudent that you know you're able to get your arms around it, for sure, maybe thinking about the informal Outlook, does your current informal outlook assume. What does that assume from a market volume perspective in terms of the volume you'll get in the first half and the amount of procurement synergies you'll be able to realize as a result.

Question: Julio Romero - Sidoti & Company LLC - Analyst : Understood. Last one for me is, you were able to pay down debt, pretty aggressively here in the fiscal year. You also repurchased roughly $3 million of stock here in the fourth quarter, but the shares have been pretty depressed here. Can you just talk about if you were limited by the open repurchase window timing at all during the fourth quarter and then also if you could comment on whether you've been active on the buyback kind of post quarter and. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 12, 2025 / 4:00PM, NX.N - Q4 2025 Quanex Building Products Corp Earnings Call

Question: Julio Romero - Sidoti & Company LLC - Analyst : Thanks for the call guys. I appreciate it.

Question: Steven Ramsey - Thompson Research Group LLC - Analyst : Hi, good morning, wanted to think about for 2026 with the persistently challenging demand backdrop. More recently and looking forward, are you seeing any irrational competitive response in certain geographies or certain product categories?

Question: Steven Ramsey - Thompson Research Group LLC - Analyst : Okay, that's great to hear. And then also looking at 2026 and the various product components within each segment, are there any certain products that you expect to be better than the flattish level for the year?

Question: Steven Ramsey - Thompson Research Group LLC - Analyst : Okay, and then on the benefits of the resegmentation this was a talking point from the investor day you mentioned it again, are there any early positive takeaways and results with the resegmentation? So far, is there any benefits embedded in the 2026 EBITDA Outlook and then maybe any of the nuances by segment on the sales or margin side with this resegmentation.

Question: Steven Ramsey - Thompson Research Group LLC - Analyst : It's good to hear. Thank you.

Question: Kevin Gainey - Thompson Davis & Co Inc - Analyst : Good morning, George and Scott. Congrats on the recorder.

Question: Kevin Gainey - Thompson Davis & Co Inc - Analyst : Maybe we could talk about the synergies to start first and how you guys are thinking, how quickly you might be able to achieve the $15 million to get to the ultimate $45 million. And then Maybe if you could break down how you're approaching those synergies from like a cost procurement. Footprint perspective.

Question: Kevin Gainey - Thompson Davis & Co Inc - Analyst : Sounds good and then as you guys think about the pricing gains that you got in 2025. How much of that was really inflation linked versus kind of structurally and do you think you have any concerns around give backs in 26?

Question: Kevin Gainey - Thompson Davis & Co Inc - Analyst : Might be a long answer, but I think it was a great answer maybe if you guys could talk about demand as well from parse between resident new residential versus repair and remodel and whether one feels stronger than the other and how you're thinking about it for 26.

Question: Kevin Gainey - Thompson Davis & Co Inc - Analyst : Appreciate the color and then one final one just on cash flow you guys typically burn cash in the January quarter? Is there any reason to expect you wouldn't have slightly negative free cash flow in Q1?

Question: Kevin Gainey - Thompson Davis & Co Inc - Analyst : Sounds good guys I appreciate it.