Quanex Building Products Corporation reported fiscal third-quarter net sales of $501.8 million, up 1.3% from $495.3 million a year earlier, with gross margin expanding to 28.2% from 27.9% and adjusted EBITDA rising to $72.7 million from $70.3 million. The company repaid $42.25 million of debt, reducing its net-debt-to-adjusted-EBITDA ratio to 2.8 times from 3.1 times at the end of the second quarter. However, volume declines persisted in two of its three segments, with Hardware Solutions sales down 2.7% and Extruded Solutions growth of 2.8% driven solely by pricing. Custom Solutions provided a bright spot, with sales up 8.5% to $111.0 million on higher volumes and improved pricing. Nine-month free cash flow fell to $24.2 million from $35.6 million, and total debt remained at $672.2 million, leaving fourth-quarter cash generation as the key test for continued deleveraging.
Quanex Building ProductsMargins expanded, EBITDA rose, and debt repaid, though volumes soft in some segments.
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