SHAREHOLDER INVESTIGATION: Faruqi & Faruqi, LLP Examining Potential Securities Law Violations at Quanex Building Products

Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses In Quanex To Contact Him Directly To Discuss Their Options

If you suffered losses in Quanex and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).

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NEW YORK--(BUSINESS WIRE)--Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Quanex Building Products Corporation (“Quanex” or the “Company”) (NYSE: NX).

Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.

On September 4, 2025, after the market closed, Quanex released its financial results for the third quarter of fiscal year 2025. The company disclosed "operational issues" at the legacy Tyman Mexico hardware business that "impacted results more than expected." Quanex reported a diluted EPS of ($6.04), a significant loss compared to $0.77 in the prior-year period, alongside an adjusted EBITDA of $70.30. The company also announced it was "adjusting for lower expected volumes" and delaying the realization of "procurement savings" from the Tyman integration.

During the earnings call on September 5, 2025, CEO George Wilson elaborated on these results. He quantified the "operational challenges" in Mexico, stating they "negatively impacted EBITDA... by almost $5 million in the third quarter alone." Wilson explained the issue was "identified midyear" during the integration and stemmed from "significantly deficient" or "nonexistent" systems for "tooling repairs." He noted that because Quanex was "underinvested" in the "tooling condition and the equipment condition," it had to "make some changes... before it was catastrophic."

In response to these disclosures, Quanex’s stock price fell $2.73, or 13.1%, to close at $18.18 per share on September 5, 2025, on unusually heavy trading volume. The sell-off continued on the next trading day, September 8, 2025, when the stock declined an additional $1.98, or 10.9%, to close at $16.20 per share, again on unusually heavy trading volume.

To learn more about the Quanex Building Products investigation, go to www.faruqilaw.com/NX or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).

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