Quanex Building Products CORPNX
Quanex Building Products CORP Segments Disclosure
Segment Information
Long-lived assets, net includes: property, plant and equipment, net; goodwill, intangible assets, net, and operating leases.
In our Annual Report on Form 10-K as of October 31, 2024 and our Quarterly Reports on Form 10- Q as of January 31, 2025 and April 30, 2025, respectively, we presented four reportable business segments: (1) NA Fenestration, comprising four operating segments primarily focused on the fenestration market in North America including vinyl profiles, insulating glass spacers, screens, custom compound mixing, and other fenestration components; (2) EU Fenestration, comprising our U.K.-based vinyl extrusion business, manufacturing vinyl profiles and conservatories, and the European insulating glass business manufacturing insulating glass spacers; (3) NA Cabinet Components, comprising our cabinet door and components segment; and (4) Tyman, which was acquired on August 1, 2024, comprising a leading international supplier of engineered fenestration components and access solutions to the construction industry.
During the third quarter of 2025, we restructured our reportable segments due to changes in our organizational structure and how our CODM makes key operating decisions, allocates resources and assesses the performance of our business. As a result, we now report in three reportable segments: Hardware Solutions, which provides window and door hardware and screens; Extruded Solutions, which supplies insulating glass spacers, vinyl window and door profiles, seals, and weatherstripping; and Custom Solutions, which provides wood, mixing, and building access solutions. We continue to maintain a grouping called Unallocated Corporate & Other, which includes transaction expenses, stock-based compensation, long-term incentive awards based on the performance of our common stock and other factors, certain severance and legal costs not deemed to be allocable to all segments, depreciation of corporate assets, interest expense, other, net, income taxes, inter-segment eliminations, and executive incentive compensation and medical expense fluctuations relative to planned costs as determined during annual planning process. Other general and administrative costs associated with the corporate office are allocated to the reportable segments, based upon each segment’s relative operating activity. The accounting policies of our operating segments are the same as those used to prepare the accompanying consolidated financial statements. Corporate general and administrative expenses allocated during the years ended October 31, 2025, 2024 and 2023 were $40.3 million, $27.3 million and $23.5 million, respectively.
ASC Topic 280-10-50, “Segment Reporting” (ASC 280) permits aggregation of operating segments based on factors including, but not limited to: (1) similar nature of products serving the building products industry, primarily the fenestration business; (2) similar production processes, although there are some differences in the amount of automation amongst operating plants; (3) similar types or classes of customers, namely the primary OEMs; (4) similar distribution methods for product delivery, although the extent of the use of third-party distributors will vary amongst the businesses; (5) similar regulatory environment; and (6) converging long-term economic similarities.
Our CODM, the President and Chief Executive Officer, reviews several measures of segment profitability to assess performance and allocate resources. Segment operating income (loss) is the measure of segment profit or loss that is most consistent with GAAP and is used by the CODM to evaluate segment results, allocate resources, and monitor performance against the annual budget and forecasts. The CODM considers forecast-to-actual variances on a monthly basis using the segment operating income (loss) for each segment when making decisions about allocating capital and personnel to the segments. The CODM also uses segment operating income (loss), along with net sales, to assess the performance for each segment by comparing the results of each segment with one another and in the compensation of certain employees.
The Company does not provide segment asset information as such information is not provided to the CODM and accordingly, asset information is not used in assessing segment performance.
Selected segment information for the years ended October 31, 2025, 2024 and 2023 was as follows (in thousands):
| Hardware Solutions | Extruded Solutions | Custom Solutions | Unallocated Corp. & Other | Total | ||||||||||||||||||||||||||||
| Year Ended October 31, 2025 | ||||||||||||||||||||||||||||||||
| Net sales | $ | 841,674 | $ | 646,627 | $ | 388,210 | $ | (38,870) | $ | 1,837,641 | ||||||||||||||||||||||
| Cost of sales (excluding depreciation and amortization) | 635,481 | 440,141 | 298,316 | (35,525) | 1,338,413 | |||||||||||||||||||||||||||
| Selling, general and administrative | 128,009 | 83,716 | 48,273 | 17,263 | 277,261 | |||||||||||||||||||||||||||
| Restructuring charges | 7,936 | 34 | 205 | 2,016 | 10,191 | |||||||||||||||||||||||||||
| Depreciation and amortization | 51,681 | 29,204 | 21,248 | 1,311 | 103,444 | |||||||||||||||||||||||||||
| Goodwill impairment charges | 163,198 | 54,934 | 84,152 | — | 302,284 | |||||||||||||||||||||||||||
Operating (loss) income | (144,631) | 38,598 | (63,984) | (23,935) | (193,952) | |||||||||||||||||||||||||||
| Year Ended October 31, 2024 | ||||||||||||||||||||||||||||||||
| Net sales | $ | 427,839 | $ | 559,995 | $ | 309,441 | $ | (19,413) | $ | 1,277,862 | ||||||||||||||||||||||
| Cost of sales (excluding depreciation and amortization) | 349,379 | 389,760 | 252,111 | (19,012) | 972,238 | |||||||||||||||||||||||||||
| Selling, general and administrative | 51,564 | 58,100 | 31,068 | 49,738 | 190,470 | |||||||||||||||||||||||||||
| Depreciation and amortization | 16,580 | 25,119 | 18,348 | 281 | 60,328 | |||||||||||||||||||||||||||
| Operating income (loss) | 10,316 | 87,016 | 7,914 | (50,420) | 54,826 | |||||||||||||||||||||||||||
| Year Ended October 31, 2023 | ||||||||||||||||||||||||||||||||
| Net sales | $ | 296,959 | $ | 544,585 | $ | 298,361 | $ | (9,322) | $ | 1,130,583 | ||||||||||||||||||||||
Cost of sales (excluding depreciation and amortization) | 239,505 | 378,791 | 244,026 | (9,263) | 853,059 | |||||||||||||||||||||||||||
Selling, general and administrative | 21,608 | 62,349 | 24,834 | 15,166 | 123,957 | |||||||||||||||||||||||||||
Depreciation and amortization | 3,968 | 22,351 | 16,277 | 270 | 42,866 | |||||||||||||||||||||||||||
| Operating income (loss) | 31,878 | 81,094 | 13,224 | (15,495) | 110,701 | |||||||||||||||||||||||||||
The following tables reconcile our segment presentation, as previously reported in our Annual Report on Form 10-K for the twelve months ended October 31, 2024 and 2023, to the current presentation (in thousands):
| NA Fenestration | EU Fenestration | NA Cabinet Components | Tyman | Unallocated Corp. & Other | Total | |||||||||||||||||||||||||||||||||
| Year Ended October 31, 2024 | ||||||||||||||||||||||||||||||||||||||
| Net sales | $ | 650,058 | $ | 230,712 | $ | 198,424 | $ | 203,435 | $ | (4,767) | $ | 1,277,862 | ||||||||||||||||||||||||||
Cost of sales (excluding depreciation and amortization) | 498,378 | 144,585 | 168,414 | 163,946 | (3,085) | 972,238 | ||||||||||||||||||||||||||||||||
Selling, general and administrative | 56,630 | 31,318 | 20,727 | 44,453 | 37,342 | 190,470 | ||||||||||||||||||||||||||||||||
Depreciation and amortization | 20,994 | 10,420 | 12,244 | 16,438 | 232 | 60,328 | ||||||||||||||||||||||||||||||||
| Operating income (loss) | 74,056 | 44,389 | (2,961) | (21,402) | (39,256) | 54,826 | ||||||||||||||||||||||||||||||||
Hardware Solutions(1) | Extruded Solutions(2) | Custom Solutions(3) | Unallocated Corp. & Other | Total | ||||||||||||||||||||||||||||||||||
| Year Ended October 31, 2024 | ||||||||||||||||||||||||||||||||||||||
| Net sales | $ | 427,839 | $ | 559,995 | $ | 309,441 | $ | (19,413) | $ | 1,277,862 | ||||||||||||||||||||||||||||
Cost of sales (excluding depreciation and amortization) | 349,379 | 389,760 | 252,111 | (19,012) | 972,238 | |||||||||||||||||||||||||||||||||
Selling, general and administrative | 51,564 | 58,100 | 31,068 | 49,738 | 190,470 | |||||||||||||||||||||||||||||||||
Depreciation and amortization | 16,580 | 25,119 | 18,348 | 281 | 60,328 | |||||||||||||||||||||||||||||||||
| Operating income (loss) | 10,316 | 87,016 | 7,914 | (50,420) | 54,826 | |||||||||||||||||||||||||||||||||
| NA Fenestration | EU Fenestration | NA Cabinet Components | Tyman | Unallocated Corp. & Other | Total | |||||||||||||||||||||||||||||||||
Year Ended October 31, 2023 | ||||||||||||||||||||||||||||||||||||||
| Net sales | $ | 667,482 | $ | 250,774 | $ | 215,445 | $ | — | $ | (3,118) | $ | 1,130,583 | ||||||||||||||||||||||||||
Cost of sales (excluding depreciation and amortization) | 517,805 | 158,491 | 178,210 | — | (1,447) | 853,059 | ||||||||||||||||||||||||||||||||
Selling, general and administrative | 56,979 | 32,350 | 21,074 | — | 13,554 | 123,957 | ||||||||||||||||||||||||||||||||
Depreciation and amortization | 20,539 | 9,849 | 12,208 | — | 270 | 42,866 | ||||||||||||||||||||||||||||||||
| Operating income (loss) | 72,159 | 50,084 | 3,953 | — | (15,495) | 110,701 | ||||||||||||||||||||||||||||||||
Hardware Solutions(1) | Extruded Solutions(2) | Custom Solutions(3) | Unallocated Corp. & Other | Total | ||||||||||||||||||||||||||||||||||
Year Ended October 31, 2023 | ||||||||||||||||||||||||||||||||||||||
| Net sales | $ | 296,959 | $ | 544,585 | $ | 298,361 | $ | (9,322) | $ | 1,130,583 | ||||||||||||||||||||||||||||
Cost of sales (excluding depreciation and amortization) | 239,505 | 378,791 | 244,026 | (9,263) | 853,059 | |||||||||||||||||||||||||||||||||
Selling, general and administrative | 21,608 | 62,349 | 24,834 | 15,166 | 123,957 | |||||||||||||||||||||||||||||||||
Depreciation and amortization | 3,968 | 22,351 | 16,277 | 270 | 42,866 | |||||||||||||||||||||||||||||||||
| Operating income (loss) | 31,878 | 81,094 | 13,224 | (15,495) | 110,701 | |||||||||||||||||||||||||||||||||
(1) The Hardware Solutions segment contains a portion of the previously reported NA Fenestration and Tyman segments.
(2) The Extruded Solutions segment contains a portion of the NA Fenestration, EU Fenestration, and Tyman segments.
(3) The Custom Solutions segment contains a portion of the NA Fenestration, NA Cabinet Components, and Tyman segments.
The following table summarizes the change in the carrying amount of goodwill by segment for the years ended October 31, 2025 and 2024 (in thousands):
| Hardware Solutions | Extruded Solutions | Custom Solutions | Unallocated Corp. & Other | Total | ||||||||||||||||||||||||||||
| Balance as of October 31, 2023 | $ | 2,784 | $ | 99,632 | $ | 80,540 | $ | — | $ | 182,956 | ||||||||||||||||||||||
| Tyman acquisition | 163,647 | 140,329 | 81,069 | — | 385,045 | |||||||||||||||||||||||||||
| Foreign currency translation adjustment | 3,936 | 3,672 | (898) | — | 6,710 | |||||||||||||||||||||||||||
| Balance as of October 31, 2024 | $ | 170,367 | $ | 243,633 | $ | 160,711 | $ | — | $ | 574,711 | ||||||||||||||||||||||
| Measurement period adjustment | 6,984 | (9,986) | (987) | — | (3,989) | |||||||||||||||||||||||||||
| Goodwill impairment charge | (163,198) | (54,934) | (84,152) | — | (302,284) | |||||||||||||||||||||||||||
| Foreign currency translation adjustment | 448 | 2,220 | 240 | — | 2,908 | |||||||||||||||||||||||||||
| Balance as of October 31, 2025 | $ | 14,601 | $ | 180,933 | $ | 75,812 | $ | — | $ | 271,346 | ||||||||||||||||||||||
As a result of the impairment test performed during the year ended October 31, 2025, we recognized non-cash goodwill impairment losses totaling $302.3 million. Of this amount, $163.2 million pertains to two out of the three reporting units within the Hardware Solutions reportable segment, $54.9 million relates to one of the four reporting units within Extruded Solutions, and $84.2 million impacts all three reporting units within the Custom Solutions reportable segment. One of the reporting units within Hardware Solutions and one reporting unit within Custom Solutions were fully impaired, resulting in seven reporting units remaining with goodwill. For further details of Goodwill, see Note 7, “Goodwill and Intangible Assets”, located herewith.
We did not allocate non-operating expense or income tax expense to the reportable segments. The following table reconciles operating income as reported above to net income for the years ended October 31, 2025, 2024 and 2023 (in thousands):
| Year Ended October 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
Operating (loss) income | $ | (193,952) | $ | 54,826 | $ | 110,701 | |||||||||||
| Interest expense | (55,812) | (20,593) | (8,136) | ||||||||||||||
| Other, net | 7,171 | 7,849 | (5,519) | ||||||||||||||
Income tax expense | (8,213) | (9,023) | (14,545) | ||||||||||||||
Net (loss) income | $ | (250,806) | $ | 33,059 | $ | 82,501 | |||||||||||
Geographic Information
Our manufacturing facilities and all long-lived assets are located primarily in the U.S. and Europe. We attribute our net sales to a geographic region based on the location of the customer. The following tables provide information concerning our net sales for the years ended October 31, 2025, 2024 and 2023, and our long-lived assets as of October 31, 2025 and 2024 (in thousands):
| Year Ended October 31, | |||||||||||||||||
| Net sales | 2025 | 2024 | 2023 | ||||||||||||||
| United States | $ | 1,248,137 | $ | 926,864 | $ | 834,525 | |||||||||||
| Europe | 450,359 | 271,182 | 244,560 | ||||||||||||||
| Canada | 66,026 | 35,333 | 25,845 | ||||||||||||||
| Asia | 58,849 | 24,091 | 14,298 | ||||||||||||||
| Other foreign countries | 14,270 | 20,392 | 11,355 | ||||||||||||||
| Total net sales | $ | 1,837,641 | $ | 1,277,862 | $ | 1,130,583 | |||||||||||
| October 31, | |||||||||||
| Long-lived assets, net | 2025 | 2024 | |||||||||
| United States | $ | 1,003,958 | $ | 1,229,157 | |||||||
| Europe | 355,950 | 441,129 | |||||||||
| Other foreign countries | 27,032 | 31,515 | |||||||||
| Total long-lived assets, net | $ | 1,386,940 | $ | 1,701,801 | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Dec 12, 2025 | Showing above |
| 2024 | Dec 16, 2024 | |
| 2023 | Dec 15, 2023 | |
| 2022 | Dec 16, 2022 | |
| 2021 | Dec 17, 2021 | |
| 2020 | Dec 11, 2020 | |
| 2019 | Dec 12, 2019 | |
| 2018 | Dec 11, 2018 | |
| 2017 | Dec 12, 2017 | |
| 2016 | Dec 16, 2016 | |
| 2015 | Dec 15, 2015 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.