Faruqi & Faruqi Investigates Potential Claims Against Quanex
Faruqi & Faruqi, LLP, a prominent national securities law firm, is investigating potential claims on behalf of investors in Quanex Building Products Corporation (NYSE:NX). This inquiry follows significant operational challenges reported by the company that have adversely impacted its financial performance. Investors who purchased or acquired shares between December 12, 2024, and September 5, 2025, are encouraged to contact the firm to discuss their options.
The firm highlights a critical deadline of November 18, 2025, for investors seeking to assume the role of lead plaintiff in a federal securities class action against Quanex. Faruqi & Faruqi has successfully recovered hundreds of millions of dollars for investors since its establishment in 1995.
The investigation centers on allegations that Quanex and its executives violated federal securities laws by making false or misleading statements, alongside failing to disclose several significant issues. These include the underinvestment in the company’s tooling and equipment maintenance at its Tyman facility in Mexico, which had reportedly degraded to near “catastrophic” levels. Furthermore, it is claimed that the company had already identified these issues, which would likely incur substantial costs and delay expected benefits from the Tyman integration.
On September 4, 2025, after the market closed, Quanex announced its financial results for the third quarter of the fiscal year. The company revealed that ongoing operational issues related to the legacy Tyman window and door hardware business in Mexico negatively impacted its performance more than anticipated. Quanex reported a diluted earnings per share (EPS) of ($6.04), a significant decline compared to $0.77 in the same period the previous year. Additionally, the adjusted EBITDA stood at $70.30.
During an earnings call held on September 5, 2025, Chief Executive Officer George Wilson elaborated on the operational challenges within the Tyman facility, stating that these issues had a detrimental impact of nearly $5 million on EBITDA for the Hardware Solutions segment during the third quarter alone. Wilson noted that these challenges were identified midyear as integration efforts deepened, revealing that the systems for anticipating and planning tooling repairs were severely deficient.
Following this disclosure, Quanex’s stock price dropped by $2.73, or 13.1%, closing at $18.18 per share on September 5, 2025, with unusually heavy trading volume. The decline continued into the following trading day, with shares falling another $1.98, or 10.9%, to close at $16.20 on September 8, 2025.
The role of lead plaintiff is designated to the investor with the largest financial interest in the relief sought by the class, who also meets the criteria of being typical and adequate to represent class members. Any member of the potential class may petition the court to serve as lead plaintiff through their chosen counsel, or they may opt to remain an absent class member without affecting their ability to recover any potential settlement.
Faruqi & Faruqi also invites anyone with information regarding Quanex’s conduct, including whistleblowers, former employees, and shareholders, to reach out to the firm. For further details about the class action concerning Quanex Building Products, interested parties can visit www.faruqilaw.com/NX or contact partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
As a reminder, the law firm Faruqi & Faruqi, LLP is dedicated to handling all communications confidentially and welcomes discussions regarding individual cases.
