The Law Offices of Frank R. Cruz announces that it has filed a class action lawsuit in the United States District Court for the District of Connecticut captioned Zanol v. Quanex Building Products Corporation et al (Case No. 4:25-cv-04453) on behalf of persons and entities that purchased or otherwise acquired Quanex Building Products Corporation (“Quanex” or the “Company”) (NYSE: NX) securities between December 12, 2024 and September 5, 2025, inclusive (the “Class Period”). Plaintiff pursues claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”).

Investors are hereby notified that they have until 60 days from this notice to move the Court to serve as lead plaintiff in this action.

IF YOU SUFFERED A LOSS ON YOUR QUANEX BUILDING PRODUCTS CORPORATION INVESTMENTS, CLICK HERE TO SUBMIT A CLAIM TO POTENTIALLY RECOVER YOUR LOSSES IN THE ONGOING SECURITIES FRAUD LAWSUIT.

What Happened?

On September 4, 2025, after the market closed, Quanex announced financial results for the third quarter of the 2025 fiscal year. Among other things, the Company disclosed “operational issues related to the legacy Tyman window and door hardware business in Mexico that are ongoing” which “impacted results more than expected during the third quarter of 2025.” Specifically, the Company reported a diluted EPS of ($6.04), compared to $0.77 in the prior year period and an adjusted EBITDA of $70.30. The Company further disclosed that it was “adjusting for lower expected volumes and pushing out the timing of when [it] expect[s] to realize procurement savings” from the integration of the Tyman business.

Then, on September 5, 2025, the Company held an earnings call pursuant to the Company’s third quarter 2025 financial results. During the earnings call, Chief Executive Officer George Wilson (“Wilson”) explained “operational challenges” in the Tyman facility in Mexico “negatively impacted EBITDA in the Hardware Solutions segment by almost $5 million in the third quarter alone.” Wilson further explained that the issue was previously “identified midyear” as it got “deeper into the integration” with Tyman, and described how the systems used to “anticipate and plan for tooling repairs” were significantly deficient, indicating it was near “nonexistent.” Wilson stated because Quanex was “underinvested” in “the tooling condition and the equipment condition” it “had to make some changes and fix some things before it was catastrophic.”

On this news, 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 stock price continued to decline on the subsequent trading day, falling $1.98 or 10.9%, to close at $16.20 per share on September 8, 2025, on unusually heavy trading volume.

What Is the Lawsuit About?

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) the Company’s procedures and policies regarding tooling and equipment maintenance in its Tyman Mexico facility were significantly “underinvested”; (2) as a result, the Company’s tooling and equipment conditions had significantly degraded to near “catastrophic” levels; (3) that, as a result of the foregoing, the Company was likely to incur significant costs, “pushing out the timing” of expected benefits from the Tyman integration; (4) that Quanex had previously identified the foregoing issues; and (5) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

Contact Us to Participate or Learn More:

If you purchased Quanex securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please click HERE or contact us at:

Law Offices of Frank R. Cruz

2121 Avenue of the Stars, Suite 800

Telephone: 310-914-5007

Email: info@frankcruzlaw.com

Visit our website at: www.frankcruzlaw.com

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NX CLASS ACTION NOTICE: The Law Offices of Frank R. Cruz Files Securities Fraud Lawsuit Against Quanex Building Products Corporation